The Chapada open pit gold-copper mine, located northwest of Brasília in Goiás state, began production in 2007. It is a relatively low-cost operation and contributes significantly to Yamana’s favourable cost structure. Ore is treated in a flotation plantcapable of treating 22 million tonnes annually. A carbon-in-leach project is to be introduced in 2013 to help combat lower grades and recoveries.

 

Recent exploration has resulted in new discoveries and continuing positive results at Corpo Sul, the southern extension of the Chapada deposit found in 2011. It is expected that the mine’s throughput can be enhanced by blending ore from the main Chapada pit with higher grade ore from Corpo Sul. As the size and scale of Corpo Sul increase, it will be evaluated as a stand-alone orebody. Production from the Suruca gold deposit, discovered six kilometres northeast of Chapada in 2009, is expected to begin in late 2013, and contribute an average of 45,000-50,000 ounces annually to Chapada’s operations for an initial five years. The Company’s strategic plan is to ensure sustainable production from Chapada of approximately 150,000 ounces of gold and 135.0 million pounds of copper per year for at least five years from 2015.

Production	2012A	2013E	2014E
Gold (oz.)	128,171	105-115,000	140-160,000
Copper (million lb.)	150	120-135	130-145

 

Mineral Reserves and Mineral Resources (as at Dec. 31, 2012)

Gold 3.7 million oz. proven & probable + 2.3 million oz. measured & indicated
Silver 3.8 million oz measured & indicated
Copper 2.5 billion lb. proven & probable + 1.1 million  lb. measured & indicated