Yamana expects construction decision for Wasamac in July, acquires adjoining properties
(Kitco News) - Yamana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) announced Monday that it has agreed to acquire from Globex Mining the Francoeur, Arntfield and Lac Fortune gold properties adjoining the company’s Wasamac project as well as additional claims in the Beauchastel township to the east of the Wasamac project.
The company said that the acquisition of the Globex claims will significantly add to the exploration upside of the Wasamac project, and it is consistent with Yamana’s strategy to expand its presence in the Abitibi-Témiscamingue Region of Quebec.
Wasamac, Francoeur and Arntfield have recorded past production of over 823,000 ounces of gold, including 508,642 ounces at Francoeur (2.60 million tonnes at 6.1 g/t); 252,923 ounces at Wasamac (1.89 million tonnes at 4.2 g/t); and 61,524 ounces at Arntfield (480,000 tonnes at 4.0 g/t).
Yamana said that data from the Globex properties and the adjoining Wasamac project will be consolidated, and exploration drilling is expected to begin during the second half of 2021 with the objective of adding mineral resources that could extend mine life or enhance production at the proposed Wasamac mine.
Pursuant to the terms of the agreement, Yamana will pay an initial amount of C$4,000,000 on closing, which at the direction of Globex will be paid in shares, with the remaining payment of C$11,000,000 payable over four years in either cash or shares at the election of Globex. In addition, Globex will receive a 2% Gross Metal Royalty from Yamana.
Yamana’s Wasamac project has existing proven and probable mineral reserves of 1.8 million ounces of gold (21.45 million tonnes at 2.56 g/t), measured and indicated mineral resources of 525,000 ounces (6.95 million tonnes at 2.35 g/t), and inferred mineral resources of 263,000 ounces (3.78 million tonnes at 2.17 g/t) supported by a previously completed Feasibility Study in 2018.
The company said that details of a definitive update of the Feasibility Study are expected to be announced on or before the release of the company’s second quarter production and financial results expected in late July, at which point a formal construction decision will be made for the Wasamac project.
Yamana Gold is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina.