Mercedes is a development stage gold-silver project located in northern Sonora, Mexico, approximately 200 kilometres south of Tucson, Arizona. Yamana has advanced Mercedes from a grassroots exploration prospect to an advanced development stage project.

Project Status

Advanced Development

Type of Operation

Planned as a bench-and-fill mine

Highlights

• Planned as a bench-and-fill mine with throughput of 1,500 tonnes per day. 
• Average annual production is expected to be approximately 120,000 gold equivalent ounces for approximately six years based on known reserves. 
• A positive pre-feasibility study was delivered in early 2009 and included an upside scenario adding three years to the original initial mine life based on current resources and recent exploration results. 
• In July 2009, Yamana made a decision for the development and construction of Mercedes. This decision was based on positive project economics and drilling results which added further certainty to the extension of the initial mine life. 
• In the first half of 2009, Mercedes was further advanced with the construction of a development ramp. The ramp has accelerated development of the Mercedes vein and confirmed continuity in the grade. 
• Based on exploration success to date Yamana increased its 2009 exploration budget at Mercedes and will continue to advance new 2009 discoveries to indicated resources. 
• A new resource estimate based on recent drilling results is currently in progress. 
• Main pre-production development activities are currently underway and permitting is in progress. 
• The Company expects to receive permitting in mid-2010 with production targeted to begin in late-2012.

Reserves and Resources

(at February 12, 2009)

Proven and Probable Reserves

2.65M tonnes at 7.10 grams per tonne gold and 72.43 grams per tonne silver (7.58 grams per tonne gold equivalent) containing 604,402 ounces gold and 6.2M ounces silver (645,490 gold equivalent ounces)

Measured and Indicated Resources

(inclusive of reserves)
2.39M tonnes at 8.62 grams per tonne gold and 85.14 grams per tonne silver (9.19 grams per tonne gold equivalent) containing 661,830 ounces gold and 6.5M ounces silver (705,000 gold equivalent ounces)

Inferred Resources

(exclusive of reserves)
452,000 tonnes at 5.87 grams/tonne gold and 68.01 grams per tonne silver (6.27 grams per tonne gold equivalent) containing 84,627 ounces gold and 988,835 ounces silver (91,175 gold equivalent ounces) 

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

 

Expected Annual Production

Approximately 120,000 gold equivalent ounces

Mine Life

Initial mine life: Approximately 6 years
Potential extension: Approximately 9 years