Agua Rica is a large scale copper, gold, silver and molybdenum porphyry deposit located in the mining-friendly province of Catamarca near the producing Alumbrera mine. Yamana has concluded that this is an exceptional stand alone project offering significant value and currently has further optimization upside options being evaluated.
Project Status
- Feasibility study 2006, completed optimization study January 2010
Highlights
- 100% owned by Yamana Gold.
- Agua Rica's estimated rock value makes it one of the world's most significant undeveloped copper/gold/moly deposits known today.
- Estimated mine life of 26.5 years
- More than 176 holes drilled in excess of 65,000 metres.
- Completed positive feasibility study update in October 2006.
- Based on the recently completed optimization study, Agua Rica is expected to produce approximately 12.5 million tonnes of copper/gold concentrate and 357,750 tonnes of molybdenum concentrate, resulting in average annual production of approximately 365 million pounds of copper and 154,000 gold equivalent ounces in the first ten years of production.
- Yamana is continuing to update components of the feasibility study and believes an updated feasibility study should be able to show added value and operational efficiencies, making this viable project even more robust.
- Initial metallurgical testing of Agua Rica’s molybdenum concentrate suggests that the deposit may contain a significant amount or rhenium not originally assumed in the feasibility study. Yamana has commissioned a detailed market study or rhenium and is also advancing further drilling and metallurgical testing.
- Received Environmental and Social License in March 2009. The compliance process for the conditions of the license and obtaining of sectoral permits are underway and are expected within 18 months.
- Yamana believes the best value can be created through a joint venture partnership and is currently in the process of evaluating potential strategic partners for the development of Agua Rica.
- Yamana continues to increase the value of Agua Rica and is currently in the process of evaluating further optimization initiatives.
Reserves and Resources
(based on assumed metal prices of $425 per ounce of gold and $1.10 per pound of copper)
(at December 31, 2008)
Proven and Probable Reserves
797M tonnes at 0.23 grams/tonne gold = 5.8M ounces gold
797M tonnes at 0.49% copper = 8.7B pounds of copper
Measured and Indicated Resources
(exclusive of reserves)
312M tonnes at 0.17 grams/tonne gold = 1.7M ounces gold
312M tonnes at 0.42% copper = 2.9B pounds of copper
Inferred Resources
(exclusive of reserves)
651,000 tonnes at 0.12 grams/tonne gold = 2.5M ounces gold
651,000 tonnes at 0.34% copper = 4.9B pounds of copper
* Based on higher metal prices used in the recent optimization review, contained metal is expected to increase by at least five percent. An updated full mineral reserve estimate will be completed as part of the continued review of the project.