Yamana hikes reserves and reserve grade at Jacobina
Canadian miner Yamana Gold has announced an increase in the mineral reserve and mineral reserve grade for its Jacobina mine, in Brazil.
After depletion from production for the six-month period of 2019, the mine had proven and probable mineral reserves of 2.28-million ounces of gold, representing an increase of 8.6% compared with year-end 2018.
Further, the mineral reserve grade increased by 2.6% to 2.4 g/t, which is a second straight year of mineral reserve grade increase. From year-end 2017, overall mineral reserve grade has increased by 5.3%.
Yamana said on Thursday that the mineral reserve estimate and mineral reserve grade increase provided a stable platform for expanded long-term production and free cash flow generation.
Mineral resources were relatively unchanged from year-end 2018.
The company also provided an exploration update for Jacobina, which demonstrated strong growth in total contained and future potential ounces.
The Canavieiras and Morro do Vento areas had yielded “excellent” new drill intercepts and were expected to continue providing new resources at higher than life-of-mine grades. The João Belo Sur area has also demonstrated potential for long-term mineral resource growth immediately adjacent to the existing João Belo mine, which was historically the most important producer at Jacobina.
“Jacobina represents a meaningful and high-quality operation with substantial long life and a significant production platform, which should further improve with additional exploration and with a planned phased expansion.
“Jacobina is now a significant contributor to Yamana’s net asset value, earnings before interest, tax, depreciation and amortisation, cash flow, and free cash flow,” said Yamana.
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