Name of the Project
Jacobina mine – Phase 2 expansion.

Location
Bahia state, north-east Brazil.

Project Owner/s
Canada-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 mine has a reserve life of more than 15-years, as well as a pipeline of resources and exploration targets that is expected to further extend mine life.

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 can 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 proposed Phase 3 expansion to 10 000 t/y is expected to be conducted through incremental debottlenecking

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS case scenario, 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 not more than $15-million to $20-million. This is 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 mid-2022 and Phase 3 is expected to be completed by 2035.

Latest Developments
The Phase 2 expansion of the Jacobina mine is progressing ahead of schedule and is now expected to achieve its throughput objective one year ahead of schedule.

The company has stated that the expansion will reach its Phase 2 objective of 8 500 t/d by midyear, which will increase the mine’s production to 230 000 oz/y.

Jacobina received its expansion permit at the end of last year, allowing for throughput to increase to 10 000 t/d. This not only facilitates the Phase 2 ramp-up but also allows for the future Phase 3 expansion to increase production to 270 000 oz/y.

With the Phase 2 expansion advancing ahead of schedule, Yamana will pursue the Phase 3 expansion to 10 000 t/y.

A Phase 4 expansion to 15 000 t/y is also an option, which will increase production to 350 000 oz/y.

Engineering for Phase 4 is “well advanced”, with Yamana stating that a comprehensive plan – aligning the processing plant, underground mine and tailings management strategy – while managing capital expenditures and cash flow, is under way.

Key Contracts, Suppliers and Consultants
None stated.

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