Yamana Increases Mineral Reserves by 11% Replaces Measured and Indicated Mineral Resources and Increases Inferred Mineral Resources by 39%
Replaces Measured and Indicated Mineral Resources and Increases Inferred Mineral Resources by 39%
TORONTO, ONTARIO -- (Marketwire) -- 02/22/12 -- YAMANA GOLD INC. (TSX: YRI)(NYSE: AUY)(LSE: YAU) ('Yamana' or 'The Company') today announced its mineral reserves and resources for the year ended December 31, 2011. The Company's total gold equivalent ounces(1) (GEO) in the proven and probable mineral reserves category increased by 2.0 million ounces to 18.6 million ounces, which represents an 11% increase over the previous year. Total measured and indicated resources were replaced and inferred GEO mineral resources increased by 39% to over 10 million ounces. The increases are net of 2011 depletion due to production of 1.1 million GEO.
HIGHLIGHTS:
-- Total proven and probable GEO mineral reserves increased to 18.6 million
ounces, an 11% increase from 2010 and includes:
-- Total gold mineral reserves of 17.0 million ounces, an increase of
10%
-- Total silver mineral reserves of 82.9 million ounces, an increase of
28%
-- Total measured and indicated GEO mineral resources of 13.6 million
ounces, replacing resources that were upgraded to reserves and includes:
-- Total measured and indicated gold mineral resources of 13.2 million
ounces
-- Total measured and indicated silver mineral resources of 23.4
million ounces
-- Total inferred GEO mineral resources increased to 10.3 million ounces,
an increase of 39% over 2010 due to new discoveries at Chapada,
Gualcamayo, Fazenda Brasiliero and CI Santa Luz and significant
extensions to known deposits at Pilar, El Penon and Mercedes.
-- Total inferred gold mineral resources of 9.1 million ounces, an
increase of 39%
-- Total inferred silver mineral resources of 63.4 million ounces, an
increase of 28%
-- El Penon - Total mineral reserves increased 20% to 3.5 million GEO
supporting an increased mine life and sustainable production of 440,000
GEO per year
-- Jacobina - Total mineral reserves increased 20% to 2.0 million ounces
with an increase of 10% in mineral reserve grade
-- Jeronimo - Total attributable mineral reserves increased 17% to 1.1
million ounces
-- Chapada - Total mineral reserves increased 6% to 3.3 million ounces with
an increase in mineral reserve grade of 9%
-- Minera Florida - Total mineral reserves increased 28% to 968,000 GEO as
the tailings are upgraded to reserves
'The success of our 2011 exploration program is demonstrated by our significant total mineral resource growth and conversion of mineral resources to mineral reserves this year. This has built on the success of our 2010 program and the growth in mineral reserves and resources from last year. The continued growth of our total resource base together with our historical conversion rates gives us confidence in the sustainability of the 1.75 million ounces of production that we expect beginning in 2014. This growth also increases the gold represented by each share in Yamana, enhancing shareholder value,' said Yamana's Chairman and Chief Executive Officer, Peter Marrone. 'We are now looking at the next wave of growth projects that will take us beyond 1.75 million ounces, and as Jeronimo is our next project under evaluation, it is important to note that attributable mineral reserves increased by approximately 17% this year before completion of our feasibility study or making a construction decision. We will continue to focus on building our project pipeline to deliver consistent growth in accordance with our organic growth strategy.'
Mineral reserves and resources were calculated based on a gold price of $950 per ounce, a silver price of $20 per ounce and a copper price of $2.50 per pound (except where noted).
On a gold equivalent basis proven and probable mineral reserves are 18.6 million GEO for the year ending December 31, 2011, an increase of over 11 % from 2010 at 16.6 million GEO. This is comprised of 17.0 million ounces of proven and probable gold mineral reserves and 82.9 million ounces of proven and probable silver mineral reserves. Average gold grade increased by 9% with notable contributions from Chapada, Jacobina and Gualcamayo. Proven and probable copper mineral reserves were 2.6 billion pounds of copper at an average grade of 0.30% including Alumbrera.
CONSOLIDATED MINERAL RESERVES AND MINERAL RESOURCES
AS AT DECEMBER 31, 2011
----------------------------------------------------------------------------
Contained Gold Contained Silver Contained Copper
(000's ounces) (000's ounces) (Millions of lbs)
----------------------------------------------------------------------------
Total Proven and Probable
Mineral Reserves 17,038 82,940 2,569
----------------------------------------------------------------------------
Total Measured and
Indicated Mineral
Resources 13,192 23,384 986
----------------------------------------------------------------------------
Total Inferred Resources 9,142 63,426 1,218
----------------------------------------------------------------------------
Detailed mineral reserve and mineral resource tables follow at the end of this press release and are available on our website, www.yamana.com/reserveandresource.
The most notable changes are detailed below:
El Penon,Chile
Total gold equivalent mineral reserves increased by 20% to 3.5 million GEO supporting an increased mine life and a higher sustainable production level of 440,000 GEO per year. The Company has increased GEO mineral reserves for two consecutive years since 2009. In 2011, gold equivalent mineral reserve tonnage increased by 33% at an average grade of 9.7 g/t. This increase includes a portion of the Pampa Augusta Victoria (PAV) vein system which is 'open pittable' as it is near surface and easily accessible. The 2012 exploration program at El Penon will focus on the extension of PAV and areas within the North Block as well as more recent discoveries. This effort is expected to result in continued increases in mineral resources in 2012.
Chapada, Brazil
Total gold mineral reserves increased by 6% to 3.3 million ounces at an average grade of 0.25 g/t, a 9% increase from 2010. The increases are largely attributed to the inclusion of portions of the Suruca and Corpo Sul mineral resources upgrading to mineral reserves. Measured and indicated mineral resources declined slightly but with a modest increase in grade. This was expected given the exploration focus in 2011 was to upgrade mineral resources to mineral reserves and further exploration of Corpo Sul. Gold mineral reserves have increased cumulatively by 54% since 2009. Inferred mineral resources increased by 193% to 1.2 million GEO in 359.0 million tonnes of mineral resources at 0.10 g/t.
A feasibility study was completed for Suruca in late 2011 which outlines average annual gold production of 49,000 ounces over an initial five years beginning in 2013. Corpo Sul is a new discovery made during 2011. It is expected that further work at Corpo Sul will significantly contribute to 2012 growth of mineral reserves.
Jacobina, Brazil
Total proven and probable gold mineral reserves increased by 20% to 2.0 million ounces. Since acquisition of the mine, the Company has increased gold mineral reserves cumulatively by 64% representing a five-year consecutive increase. As at December 2011 mineral reserve grade increased by 10% to 2.74 g/t as the higher grade Canavieiras and Morro do Vento deposits were upgraded to mineral reserves. Since 2009, mineral reserve grade has increased by 28% from 2.14 g/t to 2.74 g/t. Measured and indicated mineral resources increased by 44% to 2.4 million ounces in 27.6 million tonnes of mineral resources at 2.70 g/t. These results warrant the Company's continuing evaluation of higher production levels at Jacobina related to the higher grade mineral reserves. This is the third year of consecutive quality improvements and increases in mineral reserves and mineral resources at Jacobina.
Gualcamayo, Argentina
Total mineral reserves were depleted by 9%. Measured and indicated mineral resources increased by 20% to 1.1 million ounces in 33.6 million tonnes of mineral resources at 1.04 g/t. Inferred mineral resources increased by 444% to 626,000 ounces in 10.3 million tonnes of mineral resources at 1.9 g/t. The mineral resource increases are a result of exploration south west of the QDD Lower West (QDDLW) deposit which intersected two large bodies of sulphide breccia similar to QDDLW. These are potentially an extension of QDDLW, sub-parallel bodies or feeders to the QDDLW. This mineralization remains open to the south west and down dip. Exploration in 2012 will focus on expanding these new discoveries and linking them with QDDLW.
Minera Florida, Chile
Total proven and probable gold equivalent mineral reserves increased by 28% to 968,000 GEO from 2010 and increased by 38% over the last two consecutive years. The 2011 increase includes the historic tailings that were upgraded to mineral reserves as a result of the impending start-up of the Minera Florida expansion in which the tailings will be processed. The tailings represent 5.7 million tonnes of mineral reserves averaging 1.35 gold equivalent g/t for 245,000 GEO. This expansion will produce approximately 40,000 GEO's per year with the first gold pour expected in March, 2012. Measured and indicated mineral resources increased by 46% to 584,000 GEO at an average gold equivalent grade of 6.5 g/t which includes new mineral resources within the main core.
Fazenda Brasileiro, Brazil
Total mineral reserves increased by 104% to 359,000 ounces at an average grade of 2.4 g/t as some mineral resources were upgraded to mineral reserves, primarily from CLX2 and Canto in addition to the remodelling of some existing mineral reserves. Measured and indicated mineral resources modestly declined as mineral resources were converted to mineral reserves through infill drilling and inferred mineral resources increased by 160% to 525,000 ounces in 4.7 million tonnes of mineral resources at 3.45 g/t. The Company has been mining at Fazenda Brasileiro for seven years after acquiring the mine in 2003 with only 2.5 years of mine life remaining based on known mineral reserves.
Mercedes, Mexico
Total proven and probable mineral reserves increased by 22% to 1.0 million GEO as a result of the increase in GEO mineral reserves, primarily from the Barrancas, Lagunas Norte and Diluvio vein structures. Measured and indicated mineral resources were replaced at 202,000 GEO, and inferred mineral resources increased by 14% to 561,000, and include the new ounces from the additional vein structure in the Barrancas zone and the more recently discovered Diluvio zone of the Lupita vein structure.
C1 Santa Luz, Brazil
Total mineral reserves increased by 24% to 1.5 million ounces as a result of exploration success down dip of the existing mineral resource in addition to the increase in the gold price assumption that had not been changed since the completion of the feasibility study. Measured and indicated mineral resources modestly declined due to the conversion of most of the mineral resources to mineral reserves. Inferred mineral resources increased by 107% to 476,000 ounces in 5.9 million tonnes of mineral resources, most of the increase was grade driven as gold grades improved by 77% to 2.53 g/t.
Ernesto/Pau-a-Pique, Brazil
Total mineral reserves increased by 11% to 791,000 ounces. Measured and indicated mineral resources increased by 14% on 2.3 million tonnes of mineral resources at 1.92 g/t to 141,000 ounces and inferred mineral resources also increased by 14% in 4.9 million tonnes of mineral resources at 1.87 g/t to 293,000 ounces. These increases can be attributed to the upgrade of mineral resources at the Lavrinha deposit to mineral reserves and the slight increase in the gold price assumptions.
Pilar, Brazil
Inferred mineral resources increased by over 200% to 1.1 million ounces in 8.2 million tonnes of mineral resources at 4.06 g/t which reflects a significant increase in grade. These mineral resource increases are attributed to exploration success down dip at Jordino and along strike to the north. The mineral reserve was unchanged from 2010 year end as the focus of the 2011 exploration program was the expansion of the total mineral resource base and discovery of new mineralized zones to support higher production levels at Pilar.
Jeronimo, Chile
Total attributable mineral reserves increased by 17% to 1.1 million gold ounces from the initial mineral reserve declared in 2010. On a 100% basis, the project has 1.9 million gold ounces in mineral reserves and 246,000 gold ounces of measured and indicated mineral resources.
During 2011, the Company completed a pre-feasibility study. The final feasibility study is expected to be delivered before mid-year 2012. The Company is completing some additional metallurgical testing and advanced engineering that are expected to increase certainty of feasibility results and have potential to increase production and recovery levels. The Company anticipates making a construction decision on Jeronimo in 2012.
2012 Exploration Program
Yamana expects to spend approximately $125 million on exploration in 2012 continuing to build on its successful record of replacing and increasing mineral reserves and mineral resources. The exploration program will focus on increasing the Company's mineral reserves and mineral resources, accelerating the development of new discoveries such as Jordino and Maria Lazarus at Pilar, the extension of Pampa Augusta Victoria and definition of a new discovery at El Penon, the expansion of high grade mineral resources at Jacobina and the development of several greenfield projects.
Qualified Person
Other than as set forth herein, Evandro Cintra, P.Geo., Senior Vice President, Technical Services for Yamana Gold Inc. has reviewed and confirmed the scientific and technical information contained within this press release and serves as the Qualified Person as defined in National Instrument 43-101.
About Yamana
Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Colombia. Yamana plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, advancement of its exploration properties and by targeting other gold consolidation opportunities with a primary focus in the Americas.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as 'plan,' 'expect', 'budget', 'target', 'project', 'intend,' 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
These factors include the Company's expectations in connection with the projects and exploration programs discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso, the Argentine Peso and the Mexican Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate mineral resources, risk related to non-core mine dispositions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2010 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES
This news release uses the terms 'Measured', 'Indicated' and 'Inferred' Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. 'Inferred Mineral Resources' have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
1. Silver is reported as a gold equivalent in 2011 at a ratio of 50:1.
Silver is reported at Mercedes as a gold equivalent at a ratio of 140:1.
2. Silver is reported as a gold equivalent in 2010 at a ratio of 55:1.
Silver is reported at Mercedes as a gold equivalent in 2010 at a ratio
of 150:1.
Yamana's Mineral Reserves and Resources Estimates as at December 31, 2011
1. Mineral Reserves (Proven and Probable)
Yamana's Mineral Reserves and Resources Estimates as at December 31, 2011
Mineral Reserves (Proven and Probable)
-------------------------------------------- -------------------------------
Gold Proven Reserves Probable Reserves
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
------------------------------- -------------------------------
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
-------------------------------------------- -------------------------------
Alumbrera
(12.5%) 31,000 0.37 369 1,000 0.24 8
Chapada 135,650 0.22 970 278,880 0.26 2,347
C1-Santa Luz 19,752 1.55 987 10,860 1.37 478
El Penon 1,636 7.95 418 9,719 5.71 1,783
Ernesto/Pau a
Pique 2,279 3.86 283 5,884 2.69 508
Fazenda
Brasileiro 3,123 2.57 258 1,488 2.10 101
Gualcamayo 15,400 1.05 518 43,500 1.20 1,676
Jacobina 6,482 2.16 450 16,315 2.96 1,555
Jeronimo
(57%) 6,350 3.91 798 2,331 3.79 284
Mercedes 492 9.12 144 4,804 5.31 820
------------------------------- -------------------------------
Minera
Florida Ore 2,998 3.50 338 2,005 4.74 306
Minera
Florida
Tailings 5,661 1.09 198 - - -
Total Minera
Florida 8,659 1.93 536 2,005 4.74 306
------------------------------- -------------------------------
Pilar - - - 11,098 4.04 1,440
Total Gold
Mineral
Reserves 230,824 0.77 5,732 387,885 0.91 11,305
-------------------------------------------- -------------------------------
Agua Rica 384,871 0.25 3,080 524,055 0.21 3,479
-------------------------------------------- -------------------------------
-------------------------------------------- -------------------------------
Silver Proven Reserves Probable Reserves
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
------------------------------- -------------------------------
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
-------------------------------------------- -------------------------------
El Penon 1,636 225.82 11,879 9,719 174.83 54,631
Mercedes 492 106.77 1,690 4,804 54.44 8,408
------------------------------- -------------------------------
Minera
Florida Ore 2,998 20.19 1,946 2,005 31.42 2,026
Minera
Florida
Tailings 5,661 12.96 2,359 - - -
Total Minera
Florida 8,659 15.46 4,305 2,005 31.42 2,026
------------------------------- -------------------------------
Total Silver
Mineral
Reserves 10,788 51.54 17,875 16,528 122.44 65,065
-------------------------------------------- -------------------------------
Agua Rica 384,871 3.73 46,176 524,055 3.33 56,070
-------------------------------------------- -------------------------------
-------------------------------------------- -------------------------------
Copper Proven Reserves Probable Reserves
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
-------------------------------------------- -------------------------------
Alumbrera
(12.5%) 31,000 0.37 253 1,000 0.28 6
Chapada 135,650 0.30 891 220,010 0.29 1,419
Total Copper
Mineral
Reserves 166,650 0.31 1,144 221,010 0.29 1,425
-------------------------------------------- -------------------------------
Agua Rica 384,871 0.56 4,779 524,055 0.43 5,011
-------------------------------------------- -------------------------------
-------------------------------------------- -------------------------------
Zinc Proven Reserves Probable Reserves
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
-------------------------------------------- -------------------------------
Minera
Florida 2,998 0.99 65 2,005 1.34 59
-------------------------------------------- -------------------------------
Total Zinc
Mineral
Reserves 2,998 0.99 65 2,005 1.34 59
-------------------------------------------- -------------------------------
-------------------------------------------- -------------------------------
Molybdenum Proven Reserves Probable Reserves
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
-------------------------------------------- -------------------------------
Alumbrera
(12.5%) 31,000 0.013 9 1,000 0.014 0.3
Total Moly
Mineral
Reserves 31,000 0.013 9 1,000 0.014 0.3
-------------------------------------------- -------------------------------
Agua Rica 384,871 0.033 279 524,055 0.030 350
-------------------------------------------- -------------------------------
------------- ----------------------------------
Gold Total - Proven and Probable
----------------------------------
Tonnes Grade Contained
----------------------------------
(000's) (g/t) oz. (000's)
------------- ----------------------------------
Alumbrera
(12.5%) 32,000 0.36 376
Chapada 414,530 0.25 3,317
C1-Santa Luz 30,612 1.49 1,465
El Penon 11,355 6.03 2,202
Ernesto/Pau a
Pique 8,163 3.01 791
Fazenda
Brasileiro 4,611 2.42 359
Gualcamayo 58,900 1.16 2,194
Jacobina 22,797 2.74 2,005
Jeronimo
(57%) 8,682 3.88 1,082
Mercedes 5,296 5.66 964
----------------------------------
Minera
Florida Ore 5,004 4.00 643
Minera
Florida
Tailings 5,661 1.09 198
Total Minera
Florida 10,665 2.45 842
----------------------------------
Pilar 11,098 4.04 1,440
Total Gold
Mineral
Reserves 618,709 0.86 17,038
------------- ----------------------------------
Agua Rica 908,926 0.22 6,559
------------- ----------------------------------
------------- ----------------------------------
Silver Total - Proven and Probable
----------------------------------
Tonnes Grade Contained
----------------------------------
(000's) (g/t) oz. (000's)
------------- ----------------------------------
El Penon 11,355 182.18 66,511
Mercedes 5,296 59.31 10,099
----------------------------------
Minera
Florida Ore 5,004 24.69 3,972
Minera
Florida
Tailings 5,661 12.96 2,359
Total Minera
Florida 10,665 18.46 6,330
----------------------------------
Total Silver
Mineral
Reserves 27,316 94.44 82,940
------------- ----------------------------------
Agua Rica 908,926 3.50 102,246
------------- ----------------------------------
------------- ----------------------------------
Copper Total - Proven and Probable
----------------------------------
Tonnes Grade Contained
(000's) (%) lbs (mm)
------------- ----------------------------------
Alumbrera
(12.5%) 32,000 0.37 259
Chapada 355,660 0.29 2,310
Total Copper
Mineral
Reserves 387,660 0.30 2,569
------------- ----------------------------------
Agua Rica 908,926 0.49 9,789
------------- ----------------------------------
------------- ----------------------------------
Zinc Total - Proven and Probable
----------------------------------
Tonnes Grade Contained
(000's) (%) lbs (mm)
------------- ----------------------------------
Minera
Florida 5,004 1.13 125
------------- ----------------------------------
Total Zinc
Mineral
Reserves 5,004 1.13 125
------------- ----------------------------------
------------- ----------------------------------
Molybdenum Total - Proven and Probable
----------------------------------
Tonnes Grade Contained
(000's) (%) lbs (mm)
------------- ----------------------------------
Alumbrera
(12.5%) 32,000 0.013 9
Total Moly
Mineral
Reserves 32,000 0.013 9
------------- ----------------------------------
Agua Rica 908,926 0.031 629
------------- ----------------------------------
Mineral Resources (Measured, Indicated and Inferred)
------------ ------------------------------- -------------------------------
Gold Measured Resources Indicated Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
------------ ------------------------------- -------------------------------
Amancaya - - - - - -
------------------------------- -------------------------------
C1 Santa
Luz
Shallow 3,243 1.00 104 5,792 1.07 199
C1 Downdip
Extension - - - 3,046 2.85 279
Total C1
Santa Luz 3,243 1.00 104 8,837 1.68 478
------------------------------- -------------------------------
Chapada 40,760 0.16 212 258,681 0.24 1,978
El Penon 604 10.17 198 1,306 5.93 249
Ernesto/Pau
a Pique 204 6.28 41 2,083 1.50 100
Fazenda
Brasileiro 127 1.82 7 2,361 1.92 146
Gualcamayo 7,244 1.20 279 26,325 0.99 840
Jacobina 12,259 2.22 876 15,303 3.08 1,515
Jeronimo
(57%) 772 3.77 94 385 3.69 46
La Pepa 15,750 0.61 308 133,682 0.57 2,452
---------------------------------------------------------------
Mercedes 57 7.50 14 1,809 3.00 174
Rey del Oro - - - - - -
Total
Merceds 57 7.50 14 1,809 3.00 174
------------------------------- -------------------------------
Minera
Florida 1,321 6.21 264 1,471 5.60 265
------------------------------- -------------------------------
Pilar - - - 1,094 4.51 159
Pilar -
Caiamar - - - 703 4.76 108
Total Pilar - - - 1,797 4.62 267
------------------------------- -------------------------------
Suyai - - - 4,700 15.00 2,286
Total Gold
Mineral
Resources 82,347 0.91 2,397 458,743 0.73 10,796
------------ ------------------------------- -------------------------------
Agua Rica 27,081 0.14 120 173,917 0.14 776
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Silver Measured Resources Indicated Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
------------ ------------------------------- -------------------------------
Amancaya - - - - - -
Chapada - - - 82,161 1.43 3,775
El Penon 604 231.90 4,505 1,306 163.87 6,879
---------------------------------------------------------------
Mercedes 57 34.51 63 1,809 32.25 1,876
Rey del
Oro - - - -- - -
Total
Mercedes 57 34.51 63 1,809 32.25 1,876
---------------------------------------------------------------
Minera
Florida 1,321 32.00 1,354 1,471 30.00 1,409
Suyai - - - 4,700 23.00 3,523
Total Silver
Mineral
Resources 1,982 92.92 5,922 91,447 5.94 17,462
------------ ------------------------------- -------------------------------
Agua Rica 27,081 2.35 2,042 173,917 2.89 16,158
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Copper Measured Resources Indicated Resources
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Chapada 40,760 0.19 167 176,520 0.21 818
Total Copper
Mineral
Resources 40,760 0.19 167 176,520 0.21 818
------------ ------------------------------- -------------------------------
Agua Rica 27,081 0.45 266 173,917 0.38 1,447
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Zinc Measured Resources Indicated Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Minera
Florida 1,321 1.75 51 1,471 1.70 55
Total Zinc
Mineral
Resources 1321 1.75 51 1471 1.70 55
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Molybdenum Measured Resources Indicated Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Agua Rica 27,081 0.049 29 173,917 0.037 142
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Gold Total - Measured and Indicated Inferred Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
------------ ------------------------------- -------------------------------
Amancaya - - - 1,390 7.90 351
------------------------------- -------------------------------
C1 Santa
Luz
Shallow 9,035 1.04 303 2,638 1.19 101
C1 Downdip
Extension 3,046 2.85 279 3,217 3.63 376
Total C1
Santa Luz 12,081 1.50 582 5,855 2.53 476
------------------------------- -------------------------------
Chapada 299,441 0.23 2,190 358,960 0.10 1,182
El Penon 1,910 7.28 447 5,257 6.55 1,107
Ernesto/Pau
a Pique 2,287 1.92 141 4,868 1.87 293
Fazenda
Brasileiro 2,488 1.91 153 4,728 3.45 525
Gualcamayo 33,569 1.04 1,119 10,259 1.90 626
Jacobina 27,562 2.70 2,391 15,814 2.68 1,362
Jeronimo
(57%) 1,157 3.74 139 1,118 4.49 161
La Pepa 149,432 0.57 2,760 37,900 0.50 620
----------------------------------------------------------------
Mercedes 1,866 3.13 188 3,293 3.98 421
Rey del Oro - - - 4,020 0.68 88
Total
Merceds 1,866 3.13 188 7,313 2.16 509
------------------------------- -------------------------------
Minera
Florida 2,792 5.89 529 3,457 5.32 591
------------------------------- -------------------------------
Pilar 1,094 4.51 159 6,785 4.19 915
Pilar -
Caiamar 703 4.76 108 1,380 3.30 150
Total Pilar 1,797 4.62 267 8,165 4.06 1,065
------------------------------- -------------------------------
Suyai 4,700 15.00 2,286 900 9.90 274
Total Gold
Mineral
Resources 541,090 0.76 13,192 465,991 0.61 9,142
------------ ------------------------------- -------------------------------
Agua Rica 200,998 0.14 896 642,110 0.12 2,444
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Silver Total - Measured and Indicated Inferred Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (000's) (g/t) oz. (000's)
------------ ------------------------------- -------------------------------
Amancaya - - - 1,390 73.00 3,270
Chapada 82,161 1.43 3,775 27,553 1.11 982
El Penon 1,910 185.40 11,384 5,257 274.89 46,458
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Mercedes 1,866 32.32 1,939 3,293 41.97 4,443
Rey del
Oro - - - 4,020 21.77 2,814
Total
Mercedes 1,866 32.32 1,939 7,313 30.87 7,257
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Minera
Florida 2,792 30.78 2,763 3,457 44.00 4,884
Suyai 4,700 23.00 3,523 900 21.00 575
Total Silver
Mineral
Resources 93,429 7.78 23,384 45,870 43.01 63,426
------------ ------------------------------- -------------------------------
Agua Rica 200,998 2.82 18,200 642,110 2.33 48,124
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Copper Total - Measured and Indicated Inferred Resources
--------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Chapada 217,280 0.21 986 331,407 0.17 1,218
Total Copper
Mineral
Resources 217,280 0.21 986 331,407 0.17 1218
------------ ------------------------------- -------------------------------
Agua Rica 200,998 0.39 1,714 642,110 0.34 4,853
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Zinc Total - Measured and Indicated Inferred Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Minera
Florida 2,792 1.72 106 3,457 1.43 109
Total Zinc
Mineral
Resources 2792 1.72 106 3457 1.43 109
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
Molybdenum Total - Measured and Indicated Inferred Resources
------------------------------- -------------------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (%) lbs (mm) (000's) (%) lbs (mm)
------------ ------------------------------- -------------------------------
Agua Rica 200,998 0.039 172 642,110 0.034 480
------------ ------------------------------- -------------------------------
------------ ------------------------------- -------------------------------
NOTE: Mineral Resources are exclusive of Mineral Reserves
Yamana Gold Inc. Mineral Reserves and Mineral Resource Reporting Notes:
1. Metal Price, Cut-off Grade
Mine Mineral Reserves Mineral Resources
Alumbrera $1,400 Au, $3.20 Cu, $17.00 Mo
(12.5%) and 0.22% CuEq N/A
1.0 g/t Aueq Open pit, 3.4 g/t
Amancaya N/A Aueq Underground
Caiamar N/A 1.5 g/t Au cut-off
$950 Au, $2.50 Cu, $4.40 NSR $3.53 NSR cut-off out of pit
Chapada cut-off for Chapada Mine for Chapada Mine
$900 Au; 0.2 g/t Au cut-off 0.2 g/t Au cut-off for oxides
for oxides and 0.3 g/t Au cut- and 0.3 g/t Au cut-off for
off for sulphides in Suruca sulphides in Suruca Gold
Gold Project Project
0.5 g/t Au cut-off for C1
$950 Au for C1, Antas 2, Antas Santa Luz Shallow and 1.5 g/t
3 and $750 Au Mansinha and Au cut-off for C1 Downdip
C1-Santa Luz Mari, 0.50 g/t Au cut-off Extension
$950 Au, $20.00 Ag, Variable
cut-off for Underground and
1.2 g/t Aueq cut-off for Open
El Penon pit 3.9 g/t Aueq cut-off
$825 Au, 1.0 g/t Underground,
0.3 g/t Au Open pit cut-off
for Ernesto and PP and $950 0.3 g/t Open pit 1.0 g/t
Ernesto/Pau a Au, 0.7 g/t Au cut-off for Underground for Ernesto/PP and
Pique Lavrinha 0.3 g/t for Lavrinha
$950 Au, 1.00 g/t Au 0.5 g/t cut-off Underground
Fazenda Underground and 0.80g/t Au and 0.25g/t Au Open pit cut-
Brasileiro Open pit cut-off off
$950 Au, 1.00 g/t Au
Underground and 0.15 g/t Au 1.00 g/t Au Underground and
Gualcamayo Open pit cut-off 0.15 g/t Au Open pit cut-off
0.5 g/t Au cut-off for
Jacobina Mines and 1.5 g/t Au
Jacobina $950 Au; 1.17 g/t Au cut-off cut-off for Pindobacu Project
Jeronimo $900 Au, 2.0 g/t Au cut-off 2.0 g/t Au cut-off
La Pepa N/A $780 Au, 0.30 g/tAu cut-off
$950 Au, $20.00 Ag, 3.0 g/t
Mercedes Aueq 2.0 g/t Aueq cut-off
$950 Au, $20.00 Ag, $1 lb Zn,
2.51 g/t Aueq cut-off and
Minera FloridaFlorida tailings cut-off N/A 2.5 g/t Aueq cut-off
Pilar $900 Au; 2.0 g/t Au cut-off 2.0 g/t Au cut-off
Suyai N/A 5.0 g/t Au cut-off
$1,000 g/t Au, $2.25 lb Cu,
Agua Rica $17.00 g/t Ag, $12.00 lb Mo 0.2% Cu cut-off
2. All mineral reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101, other than the estimates for the Alumbrera mine which have been calculated in accordance with the JORC Code which is accepted under NI 43-101.
3. All mineral resources are reported exclusive of mineral reserves.
4. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
5. Mineral reserves and mineral resources are reported as of December 31, 2011.
6. For the qualified persons responsible for the mineral reserve and mineral resource estimates, see the qualified persons chart in 'Item 15 Interests of Experts' in the Company's Annual Information Form on its website at www.yamana.com.
The following are qualified persons responsible for mineral reserve and mineral resource estimates as at December 31, 2011.
--------------- -------------------------------
Property Qualified Persons for Mineral Qualified Persons for Mineral
Reserves Resources
----------------------------------------------------------------------------
Alumbrera Julio Bruna Novillo, AusIMM, Julio Bruna Novillo, AusIMM,
Member of CIM, Xstrata Plc Member of CIM, Xstrata Plc
----------------------------------------------------------------------------
Amancaya Not applicable Chester M. Moore, P.Eng.,
Roscoe Postle Associates Inc.
----------------------------------------------------------------------------
Chapada Porfirio Cabaleiro Rodriguez, Porfirio Cabaleiro Rodriguez,
BSc Mine Eng, MAIG, Coffey BSc Mine Eng, MAIG, Coffey
Mining Pty Ltd (for all of Mining Pty Ltd (for all of
Chapada, excluding Suruca) and Chapada, excluding Suruca) and
Raul Contreras, MAusIMM, Raul Contreras, MAusIMM,
Registered Member of Chilean Registered Member of Chilean
Mining Commission, Senior Mining Commission, Senior
Consultant, Resource Consultant, Resource
Estimation, Metalica Estimation, Metalica
Consultores S.A. (for Suruca) Consultores S.A. (for Suruca)
----------------------------------------------------------------------------
C-1 Santa Luz Emerson Ricardo Re, MSc, Marco Antonio Alfaro
MAusIMM, Registered Member of Sironvalle, P.Eng., Ph.D.
Chilean Mining Commission, Eng., MAusIMM, Registered
Corporate Manager R&R, Yamana Member of Chilean Mining
Gold Inc. Commission, Corporate Manager,
Reserves, Yamana Gold Inc.
(for all of C1 Santa Luz
excluding C1 extension) and
Sergio Brandao Silva, P. Geo,
Exploration Director, Brazil,
Yamana Gold Inc. (for C1
extension)
----------------------------------------------------------------------------
El Penon Marco Antonio Alfaro Marcos Valencia A. P.Geo.,
Sironvalle, P.Eng., Ph.D. Regional Resource Estimation
Eng., MAusIMM, Registered Manager, Andes Exploration,
Member of Chilean Mining Yamana Gold Inc.
Commission, Corporate Manager,
Reserves, Yamana Gold Inc.
----------------------------------------------------------------------------
Ernesto/ Pau-a Emerson Ricardo Re, MSc, Sergio Brandao Silva, P. Geo,
-Pique MAusIMM, Registered Member of Exploration Director, Brazil,
Chilean Mining Commission, Yamana Gold Inc.
Corporate Manager R&R, Yamana
Gold Inc.
----------------------------------------------------------------------------
Fazenda Emerson Ricardo Re, MSc, Sergio Brandao Silva, P. Geo,
Brasileiro MAusIMM, Registered Member of Exploration Director, Brazil,
Chilean Mining Commission, Yamana Gold Inc.
Corporate Manager R&R, Yamana
Gold Inc.
----------------------------------------------------------------------------
Gualcamayo Emerson Ricardo Re, MSc, Marcos Valencia A. P.Geo.,
MAusIMM, Registered Member of Regional Resource Estimation
Chilean Mining Commission, Manager, Andes Exploration,
Corporate Manager R&R, Yamana Yamana Gold Inc.
Gold Inc. (for Gualcamayo,
excluding QDD Lower) and
Guillermo Bagioli, MAusIMM,
Registered Member of Chilean
Mining Commission, Metalica
Consultores S.A. (for QDD
Lower)
----------------------------------------------------------------------------
Jacobina Emerson Ricardo Re, MSc, Sergio Brandao Silva, P. Geo,
MAusIMM, Registered Member of Exploration Director, Brazil,
Chilean Mining Commission, Yamana Gold Inc.
Corporate Manager R&R, Yamana
Gold Inc.
----------------------------------------------------------------------------
Jeronimo Guillermo Bagioli Arce, Dominique Francois-Bongarcon,
MAusIMM, Registered Member of Ph.D, P.Eng., Agoratek
Chilean Mining Commission, International
Metalica Consultores S.A.
----------------------------------------------------------------------------
La Pepa Not applicable Chester M. Moore, P.Eng.,
Roscoe Postle Associates Inc.
----------------------------------------------------------------------------
Mercedes Marco Antonio Alfaro Greg Walker, P.Geo., Senior
Sironvalle, P.Eng., Ph.D. Manager, Resources Estimation,
Eng., MAusIMM, Registered Yamana Gold Inc.
Member of Chilean Mining
Commission, Corporate Manager,
Reserves, Yamana Gold Inc.
----------------------------------------------------------------------------
Minera Florida Marco Antonio Alfaro Marcos Valencia A. P.Geo.,
Sironvalle, P.Eng., Ph.D. Regional Resource Estimation
Eng., MAusIMM, Registered Manager, Andes Exploration,
Member of Chilean Mining Yamana Gold Inc.
Commission, Corporate Manager,
Reserves, Yamana Gold Inc.
----------------------------------------------------------------------------
Pilar Guillermo Bagioli, MAusIMM, Marco Antonio Alfaro
Registered Member of Chilean Sironvalle, P.Eng., Ph.D.
Mining Commission, Metalica Eng., MAusIMM, Registered
Consultores S.A. (for Jordino) Member of Chilean Mining
and Emerson Ricardo Re, MSc, Commission, Corporate Manager,
MAusIMM, Registered Member of Reserves, Yamana Gold Inc.
Chilean Mining Commission, (for Jordino) and Sergio
Corporate Manager R&R, Yamana Brandao Silva, P. Geo,
Gold Inc. (for Jordino Exploration Director, Brazil,
Extension) Yamana Gold Inc. (for Jordino
Down Dip, Tres Buracos, HG and
Ogo Extension)
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Suyai Not applicable Robin J. Young, P. Geo.,
Western Services Engineering,
Inc.
----------------------------------------------------------------------------
Agua Rica Enrique Munoz Gonzalez, Evandro Cintra, Ph.D., P.
MAusIMM, Registered Member of Geo., Senior Vice President,
Chilean Mining Commission Technical Services, Yamana
Gold Inc.
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Contacts:
Yamana Gold Inc.
Lisa Doddridge, Vice President
Corporate Communications and Investor Relations
416-945-7362 or 1-888-809-0925
lisa.doddridge@yamana.com