Toronto-based Yamana Gold has recorded all time-highs at its processing plant at the Jacobina gold mine in Brazil, which saw third quarter gold production of 47,373 ounces.
Throughput for the processing plant was well above plan, processing nearly 7,500 tonnes per day and 4% more than second quarter levels. Increased throughput and mining rates will allow Yamana to proceed with Phase 2 expansion without requiring the installation of an additional ball mill.
Phase 2 expansion envisions daily throughput attaining 8,500 tpd to produce 230,000 ounces per year. Capital cost expectations are now expected in the range of US$15 million to US$20 million. Phase 2 expansion is expected to be completed in mid-2022, with Jacobina to start processing at the new rate by the second half of 2023. Gold production remained steady quarter-on-quarter, at 47,373 ounces in the third quarter.
Yamana is also considering Phase 3 expansion to increase throughput to 10,000 tpd. Phase 3 would be completed in 2023.
Processing troubles impacted the Cerro Moro gold-silver mine in Argentina, with high clay content and sedimentation impeding gold and silver recoveries. Yamana plans to implement a feed blending control system, as well as drilling new wells to improve the water quality for processing. I twill also be testing new reagants.
Over the past year, Cerro Morro has been increasing throughput daily to 1,100 tonnes per day. Cerro Morro still increased gold production by 50% quarter-on-quarter to 19,261 ounces, and increased silver production by 86% to 1,370,486 ounces.
The company completed a scoping study for plant expansion in the first half of 2021, which suggests doubling plant throughput to 2,200 tpd could be achieved with minimal capital. Further metallurgical testing will be done to confirm the scoping study findings.
Yamana has completed a preliminary study on constructing a heap leach circuit at Cerro Moro, and has approved a targeted oxides drill program to create a heap-leachable inventory of 5 million tonnes by the end of this year.
At the Minera Florida gold mine in Chile, work on the plant de-bottlenecking study continues. The objective is to increase throughput from 74,500 tonnes per month to 100,000 tpm, which could increase production to approximately 120,000 ounces of gold per year.
Preliminary studies have found that the plant can be increased to 90,000 tpm, but to achieve 100,000 tpm, a crushing circuit will need to be added.
At the Wasamac gold project in Quebec, Yamana expects to receive all approvals and permits by the third quarter of 2024, with construction starting them. Processing plant construction will take 2.5 years, while the underground crusher and conveyor system will be commissioned six months after that. Commercial production is expected in the fourth quarter of 2027.
As part of its plans to reduce emissions, Yamana has conducted workshops with each operation to work towards preliminary roadmaps focused on operations and abating emission levels.
