Name of the Project
Jacobina mine – Phase 2 expansion.

Location
In Bahia state, north-east Brazil.

Project Owner/s
Canadian-based precious metals producer Yamana Gold.

Project Description
The Jacobina operation comprises a complex of underground gold mines and a 6 500 t/d carbon-in-pulp processing plant.

The operation has total proven and probable reserves of 34.18-million tonnes grading 2.27 g/t gold.

Total measured and indicated resources are esti­mated at 42.47-million tonnes grading 2.26 g/t gold, with inferred resources estimated at 18.53-million tonnes grading 2.36 g/t gold.

The prefeasibility study (PFS) on the Phase 2 expan­sion project envisages an increase in the processing plant’s throughput to 8 500 t/d, which is expected to be achieved through the installation of an additional grinding line and incremental upgrades to the crushing and gravity circuits.

The Phase 2 expansion will ramp up gold production to 230 000 oz/y by 2023, at average feed grades of 2.4 g/t of gold.

The current mining equipment fleet and under­ground infrastructure at Jacobina can sup­port most of the additional production requirements for the Phase 2 expansion, including electrical substations and pumpstations. However, the acquisition of certain infrastructure will be moved to an earlier date to support the increased production rate.

Ventilation infrastructure will be upgraded to pro­vide adequate airflow for the additional working areas and increased equipment fleet. Total underground development is unchanged from the Phase 1 case, but the peak development rate is planned to increase from about 16 km a year to 19 km a year to support the higher production rate.

The project has a mine life of 11.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS case scenario, which is based on current mineral reserves only, delivers an after-tax net present value, at a 5% discount rate, of $777-million over an 11.5-year mine life using a conservative gold price assumption of $1 250/oz.

Capital Expenditure
Yamana Gold significantly lowered the capital expenditure estimate for the expansion of its Jacobina mine in July 2021, with the project now expected to cost not more than $15-million to $20-million, which is significantly lower than the original estimate of $57-million announced in August 2020.

Planned Start/End Date
Phase 2 is expected to be completed in early 2023; the timeline depends on the feasi­bility study.

Latest Developments
Yamana Gold has received the permit to expand throughput at its Jacobina mine to 10 000 t/d, marking not only a significant milestone in the Phase 2 ramp-up to 230 000 oz/y but also facilitating the future Phase 3 expansion to bring production up to 270 000 oz/y.

The company has said that it will immediately start to ramp up throughput at Phase 2 from the previously permitted 7 500 t/d to 8 500 t/d. The Phase 2 objective of 8 500 t/d will be achieved by the second quarter of 2022 – about a year earlier than originally planned, Yamana has stated.

The miner has also simplified its approach for the Phase 2 expansion, which reduces capital expenditure, increases energy efficiency and derisks the project. The capital costs for the Phase 2 expansion are estimated at $20-million, of which $15-million will be spent in 2022.

Engineering for the potential Phase 3 expansion will advance in parallel with Phase 2, with a feasibility study for Phase 3 to be completed in 2023.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Yamana Gold, tel +1416815 0220 or email investor@yamana.com.