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Yamana aims to produce 500,000 ounces of gold in Quebec annually from 2028

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(Kitco News) - Yamana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) announced yesterday that as of 2028, the company’s average annual gold production in Quebec, including production from Wasamac and the Odyssey underground at Canadian Malartic, is expected to climb to approximately 450,000-500,000 ounces and remain at this level through 2035.

The major contributor to the overall projected growth of Yamana’s gold output in Quebec is expected to be the company’s wholly-owned Wasamac project, located in the Abitibi-Témiscamingue Region of Quebec, which, according to a press-release, the company decided to advance to production.

The company said that recently updated feasibility study for Wasamac revealed robust project economics including NPV of $254 million with an after-tax IRR of 16.1% at $1,550 per ounce of gold and NPV of $470 million and after-tax IRR of 24% at $1,850 per ounce of gold based on mineral reserves and excluding future upside potential from encouraging exploration prospects.

Yamana expects average LOM gold production of 169,000 ounces per year at Wasamac over an initial 10-year mine life, with average annual production for the first five years of operation is expected to be 184,000 ounces.

The company added that initial capital cost is expected to be relatively modest for a 7,000 tpd underground operation, at approximately $416 million, with total LOM sustaining capital estimated at $318 million primarily for underground mine development and mobile equipment. The company said it plans to fully fund development with available cash and cash flows.

Yamana noted that expected LOM cash costs and all-in sustaining costs of $640 per ounce and $828 per ounce, respectively, remain well below the company average, reflecting the application of more conservative cost assumptions to de-risk the project and align with benchmark costs from Yamana’s other operations.

According to the company's statement, Wasamac is designed as a modern underground operation with a small footprint and minimal infrastructure on the south of the Route 117 highway. Use of an underground conveyor, electric mining equipment and high-efficiency ventilation fans will minimize carbon emissions, with further electrification planned as new technology becomes commercially available between now and project execution.

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