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Fast Facts

Ownership
100%

Primary Metals
Gold, Silver

Type of Mining
Underground

Proven and Probable Mineral Reserves
916,000 ounces of gold(1)
30,238,000 contained ounces of silver(2)

2019 Production
159,515 ounces of gold
4.3 million ounces of silver
209,857 GEO(3)

2020 Production Guidance
162,000 ounces of gold
4.0 million ounces of silver
202,000 GEO(3)

(1) 6,397,000 tonnes with an average grade of 4.45 grams per tonne of gold.
(2) 6,397,000 tonnes with an average grade of 147.00 grams per tonne of silver.
(3) GEO assumes gold ounces plus the equivalent of silver ounces using a ratio of 86.02 for 2019, a ratio of 86.10 for the original 2020 guidance, and a ratio of 98.85 for the revised 2020 guidance.

Overview

Located in northern Chile in the Atacama Desert, El Peñón is an underground gold-silver mine acquired in 2007 when Yamana completed the purchase of Meridian Gold. The operation has maintained a mineral reserve life of six to eight years, continually replacing ounces mined since entering production in 1999. It is a prime example of how Yamana is able to deliver value and organic growth by consistently replacing mineral reserves beyond depletion and increasing mine life. El Peñón was rightsized in late 2016 to optimize its development and sustaining capital requirements and provide time and flexibility for exploration discoveries. As a result, El Peñón reduced its mine throughput, stabilizing production at approximately 160,000 ounces of gold per year, (215,000 gold equivalent ounces including silver production), and it reduced costs and improved efficiencies across the organization. The lower throughput also improved processing plant performance, resulting in higher recoveries. Daily throughput is now approximately 3,300 tonnes per day (“tpd”), but El Peñón has the capacity to process up to 4,400 tpd, representing an opportunity to increase production as the operation endeavours to build its mineral inventory in the wake of robust exploration results.

Since rightsizing the operation, El Peñón has exceeded its production targets in 2017, 2018, and 2019, providing a sustainable platform for operations and development of the exploration potential aimed at extending mine life and generating further value for the Company’s shareholders.

Exploration Upside

Exploration at El Peñón has focused on extending mine life by adding new mineral resources in areas outside of current life of mine plans. Ongoing evaluation and interpretation have recognized low-angle faults that displace several of the principal veins, leading to the discovery of deep extensions of the Orito, Bonanza, El Valle, Martillo Flat, and Pampa Campamento veins, while further interpretation and drilling continue to provide new mineral reserves from secondary veins and vein extensions, notably in the Sorpresa, Esmeralda, and Paloma sectors. Exploration also generated additional discoveries and new mineralized structures, including the discovery of Quebrada Colorada Sur. The Company is successfully leveraging artificial intelligence technology to identify new drill targets using historical data . Please see the press release published September 8, 2020, for the most recent exploration update for El Peñón.

Please refer to Mineral Reserves & Resources for complete information relating to mineral reserves and mineral resources indicating tonnage and grade for the various mines and projects.

Disclaimer

You are now leaving the Yamana Gold Inc. website to go to an independent third party website. Yamana has no control over information at third party sites hyperlinked to this one. These links are being provided for the convenience of the users of this website and Yamana does not endorse and is not responsible or liable for the content, nature or reliability of any linked website or any link contained in a linked website. Yamana takes no responsibility for monitoring, updating, supplementing or correcting any information on any linked website and makes no representation or warranties regarding such information.

NON-GAAP INFORMATION

Yamana discloses certain non-GAAP measures including Cash costs per ounce of gold, Cash costs per ounce of silver, Co-product cash costs per ounce of gold, Co-product cash costs per ounce of silver, Co-product cash costs per pound of copper, All-in sustaining costs per ounce of gold, All-in sustaining costs per ounce of silver, All-in sustaining co-product costs per ounce of gold, and All-in sustaining co-product costs per ounce of silver to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS. The term IFRS and generally accepted accounting principles (“GAAP”) are used interchangeably. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

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