Yamana: PFS Shows 28-Year Mine Life For Agua Rica
(Kitco News) - Yamana Gold Inc. (TSX: YRI; NYSE: AUY) Friday reported the results of a pre-feasibility study for the Agua Rica project in Argentina, listing higher reserves and an initial mine life expected to be nearly three decades.
Officials said proven and probable copper mineral reserves increased from the end of 2018 by 21% to 11.8 billion pounds, while gold mineral reserves rose by 12% to 7.4 million ounces.
The company said the study showed an initial mine life of 28 years, with annual production for the first decade increased to 533 million copper-equivalent pounds. Cash costs were put at $1.29 per pound of copper and all-in sustaining costs at $1.52 for the first 10 years of production.
Yamana said net present value increased to $1.935 billion with an increased after-tax internal rate of return of 19.7%.
Expectations are for a full feasibility study to be completed by 2020, Yamana said.
The pre-feasibility study follows a prior agreement between Yamana, Glencore International AG and Newmont Goldcorp Corp. for the development and operation of the Agua Rica project using the infrastructure and facilities of Minera Alumbrera Ltd., thereby realizing synergies and lowering the initial capital required.
“The integration plan generates significant synergies and lowers execution risk by bringing together the extensive mineral resource of Agua Rica with the existing infrastructure of Alumbrera to create a unique, high-quality, and low-risk brownfield project that the parties believe will bring significant value to shareholders and local communities and stakeholders,” Yamana said.