Photo by: Yamana
Canadian bullion miner Yamana Gold will soon make a formal construction decision for the Wasamac project, the TSX-listed company said on Monday, while also announcing the acquisition of gold properties adjoining the project.
Yamana, which acquired the Wasamac property, in Quebec, from Monarch Gold earlier this year, said its vision for the mine was to produce between 170 000 oz/y and 200 000 oz/y at an all-in sustaining cost “well below” the company’s average.
Since the acquisition of the project, Yamana has identified opportunities to optimise the processing plant design, incorporate increased levels of automation in the underground mine and optimise the materials handling system that could increase the planned throughput rate to 7 000 t/d. The processing plant, designed at 7 500 t/d, presents further production upside.
A definitive feasibility study’s outcome would be announced on, or before, the company’s second quarter production and financial results, which were expected in late July. At that point, a formal construction decision would be announced.
Meanwhile, Yamana would acquire from Globex Mining Enterprises the Francoeur, Arntfield and Lac Fortune gold properties adjoining the Wasamac project, as well as additional claims in the Beuchastel township to the east of Wasamac.
The acquisition of these claims would significantly add to the exploration upside of the Wasamac project, Yamana said.
Historical drilling, previous production from Francoeur and Arntfield, both former operating mines, and recent trenching and exploration work by Globex had defined a 6 km western continuation of the Wasa shear — located immediately north of the prolific Cadillac Break — with mineralisation similar to that at Wasamac.
Data from the Globex properties and the adjoining Wasamac project would be consolidated, and exploration drilling was expected to begin during the second half of 2021.
The Globex properties also covered several historical gold producers located along the shear zone and, notwithstanding past production, exploration would build on a historical drill database of 1 024 drill holes by drilling several high potential targets with significant gold intercepts located outside of the historically mined areas, as well as extending known mineral resources.
Wasamac, Francoeur and Arntfield have recorded past production of more than 823 000 oz of gold.
Yamana would pay an initial amount of C$4-million in shares on closing of the transaction, and the remaining C11-million was payable over four years in either cash or shares.
Globex would receive a 2% gross metal royalty from Yamana.