Brio Gold, a Subsidiary of Yamana Gold, Provides Second Quarter Update
July 16, 2015
TORONTO, ONTARIO--(Marketwired - July 16, 2015) - BRIO GOLD INC. ("Brio Gold"), a subsidiary of Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) ("Yamana" or "the Company"), today announced preliminary second quarter 2015 results and a new discovery at the Fazenda Brasileiro operation.
PRELIMINARY SECOND QUARTER OPERATIONAL RESULTS
Brio Gold's operating mines produced 35,211 ounces of gold in the second quarter of 2015 at cash costs(1) of $773 per ounce. Production for the first half of 2015 of 66,389 ounces is consistent with budget and these mines are on track to meet guidance of 130,000 ounces of gold at average cash costs of $730 per ounce of gold in 2015.
|Total Brio Gold||31,177||35,211||66,389|
|Cash costs (per oz.)|
|Total Brio Gold||$824||$773||$797|
Pilar outperformed in the second quarter with production and cash costs better than budget. Pilar production was 21,237 ounces of gold and averaged over 7,000 ounces of gold per month in the second quarter, which is above the baseline average of 6,300 ounces per month established in the first quarter of 2015. Cash costs improved from the previous quarter to $756 per ounce. Development work continues at the satellite Maria Lazarus deposit with full production stoping ready to begin in the third quarter of 2015. When in full production, Maria Lazarus is expected to contribute approximately 25,000 ounces per year.
Second quarter production at Fazenda Brasileiro increased from the first quarter of 2015 to 13,974 ounces of gold at cash costs of approximately $798 per ounce. Production at Fazenda Brasileiro is expected to continue increasing quarter over quarter throughout the year.
At C1 Santa Luz, Brio Gold continues to advance the project with the continuation of detailed metallurgical testwork and the completion of final process flow sheet design, and is now awaiting final confirmatory pilot plant testwork results. Brio Gold also expects operating and capital cost estimates based on these results to be completed in the third quarter. Once the testwork and cost estimates have been finalized, detailed engineering design is expected to commence shortly thereafter. The preliminary capital cost estimate for the flow sheet modification remains within the Company's previous guidance of $20 to $30 million. C1 Santa Luz is expected to contribute approximately 100,000 ounces of gold annually.
(All amounts are expressed in United States dollars unless otherwise indicated.)
1. Refers to a non-GAAP measure. Reconciliation of non-GAAP measures are available at www.yamana.com/Q12015.
FAZENDA BRASILEIRO EXPLORATION UPDATE
A prospective new discovery has also been made at the Fazenda Brasileiro mine. The new discovery, named E388 East, is at relatively shallow depth (350 metres) and near existing primary infrastructure, immediately adjacent to a main haulage ramp (E-Ramp). The exploration results are similar in thickness and grade to those that were seen in the early years of the mine and supports Brio Gold's belief that the mine, which has been in operation for more than three decades, still has considerable exploration potential and mine life to come.
Exploration drilling at Fazenda Brasileiro to test several prospective targets that have the potential to significantly extend the mine life, expand the resource and increase production will continue in 2015. Drilling results available from the E388 East zone as of June 19, 2015 consisted of 25 underground holes, totaling approximately 3,000 metres. The first phase of drilling was completed at the end of June and consisted of an underground program. Select high-grade intercepts are provided below.
Please see Appendix 1 for a summary of significant intercepts (>2.0 grams per tonne ("g/t") gold).
- Hole FS-13894: 10.0 metres of 11.8 g/t
- Hole FS-13894: 2.0 metres of 50.6 g/t
- Hole FS-13903: 2.0 metres of 24.1 g/t
- Hole FS-13788: 14.0 metres of 10.6 g/t
- Hole FS-08480: 8.0 metres of 9.3 g/t
- Hole FX-08232: 6.0 metres of 13.1 g/t
- Hole FS-12885: 11.0 metres of 5.9 g/t
- Hole FS-13902: 9.0 metres of 7.2 g/t
- Hole FS-13899: 5.0 metres of 14.4 g/t
- Hole FS-13882: 18.0 metres of 6.7 g/t
- Hole FS-13881: 8.0 metres of 12.2 g/t
Approximately $2.5 million has been allocated for exploration at Fazenda Brasileiro in 2015 for exploring prioritized targets in and adjacent to the existing mine infrastructure. The drilling plan focuses on extensions of favorable structural trends that have been identified over the decades of mining operations. The Company will continue to invest in near-mine exploration with the objective of extending the mine life and expanding the resource.
Quality Assurance/Quality Control
Yamana incorporates industry standard Quality Assurance and Quality Control by its mines and exploration projects. This includes the use of professionally prepared standards and blanks and analysis of sample duplicates. Regular evaluation of laboratory QA/QC results are conducted internally by the laboratories, as well as externally by a dedicated geochemical laboratory specialist.
Mark G. Stevens, P. Geo., Vice President, Exploration for Brio Gold has reviewed and confirmed the scientific and technical information contained within this press release and serves as the Qualified Person as defined in the National Instrument 43-101.
Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including Brazil, Argentina, Chile, Mexico and Canada. Yamana plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, the advancement of its exploration properties and by targeting other gold consolidation opportunities with a primary focus in the Americas.
Appendix 1: Summary of Assay Results (> 2.0 g/t Au)
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation.