Yamana CEO Peter Marrone
Canadian precious metals miner Yamama Gold has completed the integration of the Agua Rica project with the Minera Alumbrera plant and infrastructure, effectively turning a greenfield project into a lower-risk brownfield project.
The Agua Rica project will use infrastructure and facilities of a joint venture (JV) that Yamana has with Glencore and Newmont in Argentina. The project will also be known as MARA going forward.
"Leveraging existing infrastructure enhances project economics, simplifies permitting, and reduces the project's environmental footprint, thereby significantly enhancing the value of the project,” said Yamana CEO Peter Marrone on Friday.
The integration creates synergies by combining existing infrastructure which was formerly used to process ore from the Alumbrera mine during its mine life, including processing facilities, a fully permitted tailings storage facility, pipeline, logistical installations, ancillary buildings, and other infrastructure, with the future openpit Agua Rica mine.
Yamana said modest modifications would be implemented at the existing processing circuit to process Agua Rica ore in order to produce copper and by-products concentrate, which would be transported to port for commercialisation.
The distance between the mine and plant is about 36 km and ore will be transported to the plant by overland conveyor.
Yamana, as the sole owner of Agua Rica, and the partners of Alumbrera have created a new JV pursuant to which Yamana holds a controlling interest of 56.25%, Glencore holds a 25.00% interest, and Newmont holds an 18.75% interest.
Yamana will be the operator of the JV and will continue to lead the engagement with local, provincial, and national stakeholders, completion of the feasibility study and environmental impact assessment for the Mara project, and generally lead the project to development and operation.
A technical committee has been formed and is comprised of representatives of the three companies to oversee these efforts.
“We are very pleased to have worked with our partners, Glencore and Newmont, on the integration, and we look forward to working with them on the development of the project,” said Marrone.
A 2019 prefeasibility study delivered positive results for the project, estimating an net present value (NPV) of $1.9-billion and an after-tax internal rate of return (IRR) of 19.7% for the project.
Based on mineral reserves updated as at June 30, 2019, the PFS estimates a mine life of 28 years with average yearly production over the first ten years of about 533-million pounds of copper-equivalent, including 107 000 oz of gold and contributions of molybdenum and silver.