Yamana Gold Provides Timing for Update on Feasibility Study and Development Decision on Wasamac Project; Announces Acquisition of Properties Adjoining the Company's Wasamac Project in Abitibi-Témiscamingue Region Which Represent Structural Extensions of G - Seite 2

The acquisition also includes certain other claims in Malartic township adjacent to the Camflo property which the Company previously acquired and has transferred to the Canadian Malartic General Partnership. These claims will be made available to the partnership also. 

Closing of the Transaction is expected to take place on or about June 21, 2021, subject to usual closing conditions.  

The Wasamac Underground Gold Project

Yamana’s Wasamac project is located in the Abitibi-Témiscamingue Region of Quebec, 100 kilometres from the Company’s 50%-owned Canadian Malartic mine. The project has existing proven and probable mineral reserves of 1.8 million ounces of gold (21.45 million tonnes at 2.56 g/t), measured and indicated mineral resources of 525,000 ounces (6.95 million tonnes at 2.35 g/t), and inferred mineral resources of 263,000 ounces (3.78 million tonnes at 2.17 g/t) supported by a previously completed Feasibility Study in 2018.

Following an in-depth review of the 2018 Feasibility Study, Yamana has identified opportunities to optimize the processing plant design, incorporate increased levels of automation in the underground mine, and optimize the materials handling system to increase the planned throughput rate to 7,000 tonnes per day. In addition, the processing plant and associated infrastructure have been designed at a nameplate capacity of 7,500 tonnes per day, representing further production upside. Additional metallurgical test work supports an optimized processing flow sheet, meaning that the higher throughput can be achieved with similar-sized equipment to the 2018 study. In the mine, the underground crusher and conveyor system requires significantly less capital development compared to the previous study.

The higher throughput rate supports the Company’s vision of Wasamac as a 170,000 to 200,000 ounce per year producer with all-in sustaining costs well below the Company’s average. The Company has also identified opportunities to convert additional mineral reserves at the same average gold grade to maintain an initial reserve life at the higher than Feasibility Study throughput and production levels referred to above of more than 10 years.  In addition, mineral resources exclusive of mineral reserves along with expansion potential at depth and in other areas of the original claims package support a strategic mine life of more than 15 years. This geological and exploration potential is significantly improved with the purchase of the Globex claims.