Ernesto/Pau-a-Pique is an advanced development stage project located in the prolific Guapore Gold Belt property which covers 450,000 hectares. The significant existing infrastructure including paved roadways supports the development of Ernesto/Pau-a-Pique as two operating mines with a common processing plant.

Project Status

Advanced Development

Project History

In 2005, Yamana began exploration in both areas with surface geological mapping and sampling. In early 2010 a formal decision for the construction of the Ernesto/Pau-a-Pique project was made.

Type of Operation

Pau-a-Pique is planned as an underground bench-and-fill mine and Ernesto is planned to be mined both open-pit and cut-and-fill underground.

Highlights

• Annual gold production is expected to be approximately 100,000 ounces over the seven year mine life, with the first two years of production averaging approximately 120,000 ounces further improving project economics. 
• The feasibility study  completed in early 2010 confirmed the robust return and comparatively low capital cost for the project. 
• A construction decision was made in January 2010 and was based on positive feasibility study results and an expected upgrade in mineral resources as a result of deeper drilling of the ore body.
• There is potential to extend the mine life as efforts continue to upgrade mineral resource ounces to the proven and probable category and expand mineral resources at Ernesto as results demonstrate the deposit is open at depth and down dip.
• Yamana continues to progress more detailed engineering and an exploration tunnel to facilitate drilling in deeper areas where there are further resources.
• Yamana also continues to conduct pilot tests on metallurgy and recoveries.
• Permitting is underway and construction is expected to begin in mid-2010 with production commencing in late 2012. 

 

Resources

(at January 26, 2010)

Proven and Probable Reserves

7.1M tonnes at 3.11 grams/tonne gold = 710,000 ounces gold

Measured and Indicated Resources

(exclusive of reserves)
8.2M tonnes grading 3.24 grams/tonne gold = 854,000 ounces of gold

Inferred Resources

(exclusive of reserves)
4.4M tonnes grading 1.79 grams/tonne gold = 256,000 ounces of gold

Expected Annual Production

Approximately 100,000 ounces of gold

For further information please see  Yamana’s press release announcing the construction decision to develop Ernesto/Pau-a-pique

Initial Mine Life

Approximately 7 years