Each one in plain English, with the numbers worked through for a shareholder.
5 June 2012drilling progress report▲ Good
Yamana gave a mid-year 2012 exploration update under a roughly US$125 million budget (390,000 metres of drilling at 16 projects, the upper end of the up-to-US$125M signalled in May 2011). Highlights are new veins and zones at El Peñón (Fortuna Este, Dorada West, and the Elizabeth vein at Pampa Augusta Victoria), mineralization about 2,500 m south of Corpo Sul at Chapada, a new Barrancas discovery at Mercedes, and new targets near Jordino at Pilar. These are drilling results, not reserves or resources; the company says Pampa Augusta Victoria is being fast tracked and could allow production above the 440,000 GEO sustainable level, which is management's view.
Yamana reported year-end 2011 proven and probable reserves of 18.6 million gold-equivalent ounces, up 11% from 16.6 million, net of 1.1 million ounces produced in 2011. Measured and indicated resources were replaced at 13.6 million ounces and inferred resources rose 39% to 10.3 million ounces, driven by the Chapada Corpo Sul discovery, Gualcamayo, Fazenda Brasileiro, C1 Santa Luz and extensions at Pilar, El Peñón and Mercedes. This follows through on the 2011 exploration program and mid-2011 drilling updates (Pampa Augusta Victoria, Corpo Sul), with El Peñón reserves up 20% to 3.5 million ounces and Fazenda Brasileiro noted as having only 2.5 years of known reserve life. Management says it expects 1.75 million ounces of production starting in 2014 and is evaluating Jeronimo as the next project. Figures are company estimates at assumed prices of US$950 gold, US$20 silver and US$2.50 copper. The excerpt is truncated partway through the project details.
Yamana gave a mid-year 2011 exploration update under its US$105 million budget (420,000 metres of drilling at 20 projects). Highlights are a near-surface, high-grade Victoria vein system at El Peñón's Pampa Augusta Victoria discovery (over 400 m along strike, 100 m down dip, still open), the new Corpo Sul copper-gold zone at Chapada, extensions at Pilar, higher-than-reserve grades at Jacobina's Canavieiras, and a new discovery, Arco Sul, near the closed Fazenda Nova mine. These are drilling results, not reserves or resources; Mercedes production is expected to start mid-2012.
Yamana filed an updated independent technical report (dated March 25, 2011) on the Gualcamayo project in San Juan, Argentina, covering the QDD Upper open pit, the Amelia Inés and Magdalena satellite deposits, and the QDD Lower West underground zone approved for construction in August 2010. The excerpt is truncated before the resource, reserve and economic tables, so no new figures are seen here. It documents the existing Gualcamayo plan rather than announcing a change.
Yamana filed an updated independent technical report (effective March 7, 2011) on the Chapada mine and the Suruca project in Goiás, Brazil. It covers Chapada and Suruca resources and reserves at December 31, 2010, an integrated mine schedule and economics. The excerpt shows only the table of contents, so no resource, reserve or economic figures are seen here. It builds on the Suruca discovery thread (hole SU-11, 2009-10).
Yamana filed an independent technical report on the El Peñón mine in Chile (Scott Wilson RPA, dated December 7, 2010). It states resources at December 31, 2009 of 8.47 million tonnes measured and indicated at 10.80 g/t gold and 306.4 g/t silver (2.94 million oz gold, 83.4 million oz silver) and 3.85 million tonnes inferred at 8.4 g/t gold (1.04 million oz). It also notes the Pampa Augusta Victoria discovery 30 km north (e.g. hole DAV0002: 6.0 m at 2.05 g/t gold and 1,405 g/t silver). The reserve figures are in the truncated part and are not seen here.
Yamana filed an updated independent technical report (Scott Wilson RPA, dated March 22, 2010) on the Pedro Valencia mine of Minera Florida in Chile, with data at December 31, 2009. It states measured and indicated resources of 4.70 million tonnes at about 6.38 g/t gold (960,000 oz, including reserves) and 2.75 million tonnes of inferred resources at about 6.1 g/t (540,000 oz), and the auditors found these NI 43-101 compliant and in acceptable agreement with their own check estimates. They recommend a minimum mining width and excluding some potentially unmineable remnant blocks in future estimates. The reserve figures fall in the truncated part, so they are not seen here. Recent drilling at Membrillo supports the exploration thread (e.g. 8.25 m at 3.79 g/t gold).
Yamana set out a plan to raise El Peñón (Chile) output to at least 450,000-500,000 gold-equivalent ounces a year, by lifting plant capacity from 4,300 to 5,000 tonnes a day by 2012 and adding ore from other sources such as Amancaya (inferred 351,000 oz). It also reported a new high-grade vein discovery, Pampa Augusta Victoria, 30 km north of the mine, where 21 drill holes show e.g. 2 m at 54.40 g/t gold and 5,575 g/t silver. 2010 production is planned at about 400,000-420,000 GEO, with US$18.4M budgeted for exploration. This continues the El Peñón thread, whose earlier target was 500,000 GEO a year; the drilling results are not reserves or resources. The release also says El Peñón was not meaningfully affected by the Feb 27 Chile earthquake, while Minera Florida needs repairs and a power source.
Yamana reported 2009 exploration discoveries and set a 2010 exploration budget of about US$75-80 million. New zones include Suruca at Chapada (hole SU-11: 81.0 m at 1.2 g/t gold), Lagoa do Gato at Fazenda Brasileiro (e.g. 22.0 m at 5.50 g/t), Lagartixa at Jacobina (3 m at 6.03 g/t), Salamanca near Gualcamayo, and Centenario and Polvorin at Minera Florida; Caiamar (Brazil) resource estimate is targeted by mid-2010. These are drilling results, not reserves or resources, and the excerpt is truncated.
Yamana held the official inauguration of the Gualcamayo mine, following the commercial production declared in July, and gave drilling results from Salamanca, about 10 km north (e.g. 89.15 m at 1.63 g/t gold in hole 09S-09), with a resource estimate planned for the first half of 2010. It says a QDD Lower West feasibility update is expected in 2010, and gives Gualcamayo 2009 production of more than 120,000 oz, which differs from the roughly 75,000 oz of commercial production cited in July (the filing does not explain the difference; it may reflect total versus commercial-period output, which is an inference). These are drilling results, not reserves.
Yamana filed a Scott Wilson RPA technical report (dated March 30, 2009) on the Jacobina mine in Bahia, Brazil, with data as at December 31, 2008. It reports 35.5 million tonnes of measured and indicated resources at about 2.66 g/t gold and 25.2 million tonnes of inferred at about 2.2 g/t, plus 19.5 million tonnes of proven and probable reserves at 2.23 g/t. Jacobina produced 73,240 oz of gold in 2008, and the plan is to mine about 1.8 million tonnes a year from 2009 to 2019, falling in 2017 for lack of working areas. The auditors found their own check estimates in acceptable agreement with Yamana's and the reserves NI 43-101 compliant.
Yamana filed updated NI 43-101 technical reports on Gualcamayo (Argentina, dated February 27, 2009) and Chapada (Brazil, effective February 19, 2009). The Gualcamayo report describes QDD Upper (open pit), the AIM deposits and the QDD Lower West underground zone, which it says is at a recently approved feasibility stage; it includes economic analysis for shrinkage and front-caving mining options. The excerpt shown is mainly the table of contents and summary introduction, so the specific resource, reserve and cost figures cannot be stated here.
Yamana reported proven and probable gold reserves of 19.4 million oz at December 31, 2008, up from 17.9 million oz a year earlier (net up about 1.5 million oz, or 8%), and measured and indicated resources of 15.7 million oz, up 22% from 12.9 million oz. The reserve gain is mainly from Mercedes (over 600,000 oz) and Gualcamayo (net over 1.1 million oz), after about 0.95 million oz mined and 0.1 million oz removed for the Rossi disposition. The company also states a 2009 goal of 1.35 million GEO and a minimum US$56 million exploration budget.
Yamana released a pre-feasibility study for Mercedes (Mexico) and a scoping study for Ernesto/Pau-a-Pique (Brazil). Mercedes has probable reserves of 2.65 million tonnes at 7.58 g/t gold equivalent (645,000 GEO) and indicated resources of 705,000 GEO; the study estimates capital of about US$152 million, cash costs of $264 per GEO, about 118,000 GEO a year for roughly six years, and an after-tax NPV (5%) of US$72.7 million with a 22.4% IRR. Production is expected by 2012 if a construction decision is made by Q1 2010. Ernesto/Pau-a-Pique has indicated resources of 593,000 oz and inferred resources of 305,000 oz of gold, capital of about US$86 million, about 100,000 oz a year at roughly US$356 cash cost, NPV US$138 million and IRR 38%; a feasibility study is targeted for the end of 2009 with production in 2012. This follows through on the earlier Mercedes pledge of a feasibility-level study by end-2008, but what was delivered is a pre-feasibility study, and the company's 1 million oz Mercedes goal is now stated as a target to reach before a construction decision. The Pilar inferred resource of about 970,000 oz is unchanged, with an update expected in Q2 2009. These are study estimates
Yamana gave an exploration update. At Gualcamayo, new holes (e.g. 248.2 m of 3.00 g/t Au in 08QD-523) suggest QDD Lower West may be larger than the current resource estimate, and the company plans a feasibility update including it by year-end, with QDD production now expected to begin at the end of 2008. At El Peñón, drilling at Bonanza North supports the view that it could be at least twice the current resource, and the company reiterates 500,000 GEO/yr by end-2008 with a mine plan in progress for about 600,000. At Mercedes, Yamana says it is on track for a one-million-ounce gold resource and a feasibility study by end-2008. Pilar de Goiás has an inferred resource of 972,000 oz at 2.42 g/t, with a scoping study planned for end-2008. These are drilling results and company expectations, not confirmed reserves.
Yamana filed a mineral resource update report (GeoSim Services, dated March 10, 2008) for its Gualcamayo gold project in San Juan, Argentina. The excerpt shows only the cover, disclaimers and table of contents, which list updated resource estimates for the QDD Lower zone and the Amelia Inés and Magdalena (AIM) deposits, but no resource figures, so no change in size can be stated.
Yamana filed an updated technical report (Independent Mining Consultants, March 17, 2008) on the Chapada copper-gold mine in Brazil, which had its first year of commercial production in 2007. Proven and probable reserves as of January 1, 2008 are 310.8 million tonnes at 0.33% copper and 0.24 g/t gold, slightly up from 303.0 million tonnes at 0.35% copper and 0.26 g/t gold a year earlier. The report says higher metal prices converted some resource to reserve; reserves assume US$1.85/lb copper and US$575/oz gold.
Yamana filed a Golder Associates technical report (March 2008) updating mineral resources and reserves at the Jacobina mine in Bahia, Brazil (Canavieiras, Serra do Córrego, Morro do Vento and João Belo deposits), as at December 31, 2007. The excerpt shown contains the contents pages and disclaimers but not the resource or reserve numbers, so no change in size can be stated from it.
Yamana filed an independent technical report (Scott Wilson RPA, dated February 11, 2008) auditing the resources and reserves of El Peñón in Chile, the mine gained in the Meridian takeover. The auditors found no significant errors in their rerun calculations and called the metal prices used (US$470/oz gold) conservative. However, they said production-versus-forecast reconciliation has become somewhat less accurate than in prior years, so the resource classification is 'somewhat aggressive' and should be revised. The reserve figures are as at December 31, 2006, and the excerpt does not show them.
Yamana filed an updated technical report (dated February 2008, prepared with NCL Consultants) on its São Francisco mine in Mato Grosso, Brazil, which the report says has produced since 2005-2006 using open-pit mining with heap leach and gravity processing. It updates resources, reserves, mining and metallurgy for 2008 reporting purposes; the excerpt shown does not include the resource or reserve figures, so no changes can be stated here.
This is a re-filing of the same March 25, 2008 year-end results release (sales US$747.1 million, net earnings US$157.2 million, reserves of 17.9 million oz, 2008 target of 1.3 million GEO). One visible difference: here El Peñón is planned to reach about 600,000 GEO per year by 2010, versus the end of 2009 in the previous version. No new events are added.
Yamana reported 2007 results: sales of US$747.1 million, net earnings of US$157.2 million, and cash and short-term investments of about US$330 million at year end. Results include Meridian and Northern Orion only since October 2007. Proven and probable gold reserves rose to 17.9 million oz from 6.8 million oz, and the company says the Meridian and Northern Orion acquisitions were completed for total consideration of US$4.8 billion, which closes the Meridian open thread in the company's own account. It targets 1.3 million gold equivalent oz in 2008 (the earlier context said 1 million oz gold) and 2.2 million oz of gold from 2012, with about US$1.3 billion of capex over three years funded from cash and operating cash flow. El Peñón is now planned at about 500,000 GEO/yr by Q4 2008 and 600,000 by end of 2009 in this version, and Gualcamayo start-up is now Q3 2008. These are plans, not results.
Yamana reported a feasibility study for its C1 Santa Luz gold project in Bahia, Brazil: about 103,000 oz a year on average, capital cost US$139 million, cash cost US$390-410/oz, and production starting early 2010. Yamana says it has approved construction start-up. It also finished the Chapada pyrite acid market study and is moving to a final feasibility study (continuing that thread), and gave a first resource estimate for Bonanza and an update for Al Este at El Peñón (the Meridian mine), with more than one million oz of high-grade gold resource reported to date in the new North Block veins. These are study projections, not results.
Yamana gave an exploration update with new high-grade vein results at El Peñón (Chile, a Meridian asset now acquired), and drilling at Jacobina, Pilar de Goiás, Pau-a-Pique (Brazil) and Minera Florida (Chile). It states El Peñón production is expected to rise from over 420,000 gold equivalent ounces in 2008 to over 500,000 in 2010, and Jacobina from about 140,000 oz in 2008 to over 200,000 oz in 2009. These are company projections, not results.
Yamana and Meridian jointly reported exploration results. At Gualcamayo (Argentina), the Amelia Ines/Magdalena satellite deposits now have 518,000 oz of measured and indicated resources (up 87,000 oz) and 170,000 oz inferred (up 73,000 oz). This resource estimate will be used for the AIM feasibility study targeted by year end, matching the year-end timing set in the August update. It also gave drilling results for Jacobina, El Peñón (Chile) and Mercedes (Mexico); the latter two are Meridian properties, shown here as part of the pending deal.
Yamana responded to an exploration update from Meridian, saying it contained nothing new and would not change its offer, which it called 'full, fair and final'. The release states the offer as C$4.00 plus 2.235 Yamana shares per Meridian share, expiring September 7, 2007, which is a higher cash amount than the C$3.15 in earlier filings, so the cash part of the bid had been raised at some point not shown in these filings. This continues the Meridian takeover contest; the filing does not report how many shares have been tendered.
Yamana said its shares are expected to move from London's AIM to the main market of the London Stock Exchange on June 12, 2007, with AIM trading cancelled at the same time. No new shares are being issued, the tickers stay the same (YAU, YRI, AUY), and the company states it has 354.2 million shares outstanding. The filing is labelled as a drilling update in its title, but the content is only about the listing.
Yamana reported five new drill holes at the Amelia Ines and Magdalena satellite deposits at Gualcamayo, with Magdalena hole QD-400 returning 4.90 g/t gold over 149.15 m and Amelia Ines hole QD-389 returning 2.65 g/t over 78.67 m. It says the QDD feasibility study is still due by end of June, with the satellite update by end of September, and QDD start-up still mid-2008; the company says the results suggest a larger, higher-grade deposit, but resources there are still from 2004 and drilling continues.
Yamana completed a scoping study for a Pyrite Project at Chapada to recover extra gold and copper and make sulphuric acid from tailings concentrate. It estimates capital cost of $194.8 million, a pre-tax return of about 20% (above 27% at current prices), and about 320,000 extra ounces of gold and 94 million pounds of copper over the mine life. It is proceeding to a marketing study and then a feasibility study. For Gualcamayo, the QDD open pit feasibility study is due in June, with a second phase on the Amelia Inés and Magdalena satellite deposits by the end of summer, and a resource update for the QDD lower west zone by year-end.
Yamana reported bottle-roll metallurgical tests at Gualcamayo: average gold recovery of 73.6% for Amelia Ines/Magdalena (21 tests) and 81.1% for the QDD Lower West underground target (16 tests), or 85.7% excluding one unoxidized sample. The company says it targets Amelia Ines/Magdalena production from Year 2 and QDD Lower West from Year 3, with feasibility work due in Q2 and Q3 2007 and a preliminary economic evaluation for Lower West later in 2007. These are management targets and not confirmed.
