Name of the Project
Jacobina mine – Phase 2 expansion.

Location
In Bahia state, north-east Brazil.

Project Owner/s
Canadian-based precious metals producer Yamana Gold.

Project Description
The Jacobina operation comprises a complex of underground gold mines and a 6 500 t/d carbon-in-pulp processing plant.

The operation has total proven and probable reserves of 34.18-million tonnes grading 2.27 g/t.

Total measured and indicated resources are esti­mated at 42.47-million tonnes grading 2.26 g/t gold, with inferred resources estimated at 18.53-million tonnes grading 2.36 g/t gold.

The prefeasibility study (PFS) on the Phase 2 expan­sion project envisages an increase in the processing plant’s throughput to 8 500 t/d, which is expected to be achieved through the installation of an additional grinding line and incremental upgrades to the crushing and gravity circuits.

The Phase 2 expansion will ramp up gold production to 230 000 oz/y by 2023, at average feed grades of 2.4 g/t of gold.

The current mining equipment fleet and under­ground infrastructure at Jacobina is able to sup­port most of the additional production requirements for the Phase 2 expansion, including electrical substations and pumpstations. However, the acquisition of certain infrastructure will be moved to an earlier date to support the increased production rate.

Ventilation infrastructure will be upgraded to pro­vide adequate airflow for the additional working areas and increased equipment fleet. Total underground development is unchanged from the Phase 1 case, but the peak development rate is planned to increase from about 16 km a year to 19 km a year to support the higher production rate.

The project has a mine life of 11.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS case scenario, which is based on current mineral reserves only, delivers an after-tax net present value, at a 5% discount rate, of $777-million over an 11.5-year mine life using a conservative gold price assumption of $1 250/oz.

Capital Expenditure
Yamana Gold significantly lowered the capital expenditure estimate for the expansion of its Jacobina mine in July 2021, with the project now expected to cost no more than $15-million to $20-million, significantly lower than the original estimate of $57-million announced in August 2020.

Planned Start/End Date
Phase 2 is expected to be completed in early 2023; the timeline depends on the feasi­bility study.

Latest Developments
Instead of installing an additional ball mill at the Jacobina project, Yamana has opted for a simplified approach of debottlenecking and incremental operational improvements.

Yamana has said that trials at Jacobina have demonstrated that the processing plant could consistently achieve daily operating throughput above 8 000 t/d – significantly exceeding the Phase 1 nameplate capacity.

The processing plant achieved a monthly average of at least 7 500 t/d in May.

Subject to permit modifications, Jacobina will begin processing at 8 500 t/d by the second half of 2023, increasing gold production to about 230 000 oz/y.

With the Phase 2 expansion under way, with a simpler process at a reduced cost, Yamana has said it will pursue the Phase 3 expansion to 10 000 t/d as part of a comprehensive plan.

Engineering for the Phase 3 will advance in parallel with the Phase 2 expansion, with the plant modification originally planned for Phase 2 considered adequate for Phase 3.

The feasibility study for Phase 3 will be completed in 2023, with project commissioning slated for 2027.

Further, Yamana has reported that an overall haulage optimisation study is under way, with the use of Rail-Veyor technology considered a promising solution.

A comprehensive tailings management strategy has also been adopted to complement Jacobina’s phased expansion. The strategy substitutes surface deposition of tailings with underground tailings disposal as backfill.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Yamana Gold, tel +1416815 0220 or email investor@yamana.com.