Growth - Value - Vision
Brazil, Argentina, Chile, Mexico - Yamana is targeting sustainable gold production of 2.2 M oz of gold by 2012.
Message: Announces Record Reserves and Resources
| March 3, 2009 | ||
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Yamana Gold Announces Record Reserves and Resources
- Proven and probable gold reserves increase 8%; measured and indicated resources increase 22% - |
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TORONTO, ONTARIO--(Marketwire - March 3, 2009) - YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY)(LSE:YAU) today announced that proven and probable gold reserves increased to 19.4 million ounces as of December 31, 2008. Total new discovered proven and probable gold reserves totalled 2.5 million ounces in 2008. With approximately 1.0 million ounces having been mined in 2008, net gold reserves increased by approximately 1.5 million ounces, representing a net increase of eight percent. Total measured and indicated gold resources increased significantly to 15.7 million ounces, up 22 percent from 12.9 million ounces a year earlier. Approximately 7.9 million new ounces of gold were added across all categories before production, which exceeds the Company's previous expectation of 7.0 million new ounces. Discovery costs for proven and probable plus measured and indicated gold ounces were approximately US$12.00 per gold ounce which compares well to the industry average. The increase in proven and probable gold reserves is primarily due to the addition of over 600,000 ounces at Mercedes in Mexico, and net additions of more than 1.1 million ounces at Gualcamayo in Argentina, more than 140,000 ounces at Minera Florida in Chile, more than 200,000 ounces at Jacobina and approximately 100,000 ounces at Chapada in Brazil. At Gualcamayo, the proven and probable reserve increase includes 240,000 ounces from the QDD main deposit, which will now enable the Company to evaluate further extending the mine life. At Jacobina, new reserve ounces exceeded ounces mined, resources were upgraded from inferred to measured and indicated and the average grade improved notably. At El Penon, the Company replaced most of the ounces mined and significantly increased measured and indicated resources. The proven and probable reserve estimate at El Penon does not include Bonanza and Al Este. Yamana has increased infill drilling this year with the goal of upgrading resources to reserves. The total resource estimate does not include drilling completed at Pilar for 2008 and the Company expects to provide a resource estimate update in Q2 2009. Below is a summary of the changes in gold mineral reserves year-over-year: Proven and probable reserves as of December 31, 2007 17.9 Moz Net property dispositions (Rossi) (0.1) Mined ounces during 2008 (0.95) Discovered ounces during 2008 2.5 ---------------------------------------------------- --------- Proven and probable reserves as of December 31, 2008 19.4 Moz Yamana's exploration budget this year is expected to total a minimum of US$56 million (US$37 million capitalized and the remainder expensed) with the goal of further increasing mineral reserves and resources. In 2009, Yamana's exploration program will focus on mine and near-mine opportunities primarily in Chile, Brazil, Mexico and Argentina as the Company concentrates on expansions and advanced projects for near development. Main areas of focus in 2009 include: - Increased drilling at El Penon with an emphasis on the prospective North Block area with the objective of discovering another 600,000 gold equivalent ounces this year. - Further exploration of the QDD Lower West deposit at Gualcamayo, including about 100 metres of underground development and 10,000 metres of diamond drilling to extend the deposit along strike to the west with the intention of expanding the known ore body and total mineable reserves in that western area. - Continued drilling at Mercedes targeting 30,000 metres of drilling with the goal of upgrading inferred mineral resources and some narrow indicated mineral resources to reserves, with the intention of increasing mineral reserves by an additional 300,000 gold equivalent ounces in due course. - Ongoing exploration at Pilar targeting 20,000 metres of drilling with the intention of supporting a sufficient resource for a feasibility level study late this year. An update to Pilar's resource estimate for 2008 drilling is expected in Q2 2009. - Continued infill drilling at Ernesto/Pau-a-Pique in Brazil with the objective of upgrading inferred mineral resources to measured and indicated mineral resources to support a feasibility study by the end of 2009. Complete reserve and resource information for all metals, including tonnage, grade, accompanying metals price assumptions can be found on the Company's website, www.yamana.com, in the "Investors" section under "Reserves & Resources". FINANCIAL RESULTS Yamana will release its fourth quarter and year-end 2008 financial results after the close of business on March 4, 2009. A conference call will follow on March 5, 2009 at 11:00 am EST. Conference Call Information: ---------------------------- Toll Free (North America): 1-877-874-1570 International: 719-325-4757 Participant Audio Webcast: www.yamana.com Conference Call REPLAY: ----------------------- Toll Free Replay Call (North America): 1-888-203-1112, Passcode: 9741441 Replay Call: 719-457-0820, Passcode: 9741441 About Yamana Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Central America. Yamana is producing gold and other precious metals at intermediate company production levels. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in Brazil, Argentina, Chile and elsewhere in the Americas. |
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