Canadian bullion producer Yamana Gold on Monday announced a positive development decision for the Wasamac mine, in Quebec, confirming that it would spend $416-million on the 7 000 t/d underground operation.
The project, which Yamana acquired earlier this year, has robust economics, including a net present value of $254-million and an aftertax internal rate of return of 24% at $1 850/oz.
Yamana said that it would start project construction once it had received required permits and authorisations by mid-2024 and that it would take about two-and-a-half years to complete the construction phase.
First gold production is scheduled for late 2026 and commercial production is planned for the fourth quarter of 2027.
The mine is key to expanding Yamana’s footprint in the Abitibi-Témiscamingue region and will bolster production by at least 200 000 oz/y in the first four years following its ramp-up.
Over the initial ten-year mine life, Wasamac is expected to produce an average of 169 000 oz/y at an all-in sustaining cost of $828/oz. The miner said that the mine life could be extended and that it had started an exploration drilling programme aimed at expanding the current mineral resources.
By 2028, production in Quebec would be about half-a-million ounces, the company stated.
Yamana based its decision to advance the project to production on several completed studies which were intended to corroborate diligence reviews when it purchased the project in early 2021 and to update a historical feasibility study.