Expected to be one of Yamana’s most prolific mine properties, Gualcamayo, is located in the northern San Juan province of Argentina. Mining began in late 2008 with the processing of ore in early 2009. Commercial production was declared effective July 1, 2009.


Project History

Located within a three hour drive of the provincial capital of San Juan province. Gualcamayo received positive results in its initial feasibility study, and environmental approval in August 2007. Gualcamayo was constructed by Yamana in less than two years.

Type of Operation

Gualcamayo is an open-pit heap-leach mine with three main mineral deposits: QDD, Amelia Ines and Magdalena (AIM), and QDD Lower West. Based on drilling results, Yamana is of the view that the project will ultimately also include an underground mining operation.

Mine Highlights

• Total reserve and resource base of approximately 3.9 million ounces of gold including 2.9 million ounces in reserves. 
• Significant upside most particularly from QDD Lower West.
  

2008 Overview

• Completed construction and began start-up and commissioning. 
• Increased gold reserves by over 1.1 million ounces year-over-year.
• Grade improved year-over-year with the addition of QDD Lower West. 

 2009 Overview

• Declared commercial production effective July 1, 2009.
• Completed construction of the second ore pass. 

• Exceeded production guidance by approximately 20 percent.
• Main QDD deposit performed according to design and expectations (grade, production and recoveries).
• Focus on further exploration of QDD Lower West, where higher quality ounces continue to be added. 
• Discovered new area of mineralization, Salamanca, located 10 kilometres north of Gualcamayo within the Gualcamayo mine area.

 

Future Growth

• Yamana continues with plans to increase throughput to 1,500 tonnes per hour and processing ore from AIM and QDD Lower West. 
• Expansion to 1,500 tonnes per hour is expected to be complete by the end of 2010.
• Metallurgical testwork continues at the AIM deposit to create more reliability and certainty in the ore metallurgy.
• Continue exploration at QDD Lower West with the objective of extending the QDD Lower West deposit.
• A feasibility study for QDD Lower West is expected in the second half of 2010.
• Positive drill results support Yamana’s view that Salamanca may represent an important source of further gold ounces for Gualcamayo.
• Drilling continues at Salamanca with a mineral resource estimate expected in the first half of 2010.

 

Production and Costs

2009A: 143,400 ounces of gold
2010E: 165-180,000 ounces of gold at $340-380 per ounce
2011E: 165-180,000 ounces of gold at $350-390 per ounce

Reserves and Resources

(at December 31, 2008)

Proven and Probable Reserves

83.7M tonnes at 1.08 grams/tonne gold = 2.9M ounces gold

Measured and Indicated Resources

(exclusive of reserves)
14.9M tonnes at 1.23 grams/tonne gold = 592,000 ounces gold

Inferred Resources

(exclusive of reserves)
12.8M tonnes at 1.04 grams/tonne gold = 428,000 ounces gold 

For further information please see Yamana’s mineral reserves and resources estimates

Expected Remaining Mine Life

10+ years