YAMANA GOLD INC. announced updated mineral reserves and mineral resources for its 50%-owned Canadian Malartic mine.
Yamana and Agnico Eagle Mines Limited each acquired a 50% interest in the mine as part of the joint acquisition of Osisko Mining Corporation, which was completed on June 16, 2014. The mine is operated by the Canadian Malartic General Partnership under a joint management committee.
The mineral reserves and mineral resources set out in this news release reflect the aggregate of Yamana and Agnico Eagle’s 50% interests in the Canadian Malartic mine. Highlights of the updated Canadian Malartic mine mineral reserves and mineral resources are as follows:
- Proven and probable mineral reserves are 8.9 million ounces of gold based on a $1,300 per ounce engineered pit design, a cut-off grade between 0.28 g/t and 0.35 g/t gold, and a C$/US$ exchange rate of 1.10.
- The addition of the new 5% royalty payable to Osisko Gold Royalties Ltd. (OR:TSX) increased the highest cut-off grade to approximately 0.35 g/t gold from 0.33 g/t gold. This resulted in a decrease of about 60,000 ounces to the mineral reserve base from previous estimates published by Osisko.
- A $100 per ounce decline in the gold price would reduce the mineral reserves by approximately 3.3% or 310,000 ounces.
Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest million, so aggregate amounts may differ slightly. Measured and indicated mineral resources are inclusive of mineral reserves. The assumptions used for the June 15, 2014 mineral reserves and mineral resources estimates at the Canadian Malartic mine were $1,300 per ounce gold, a cut-off grade between 0.28 g/t and 0.35 g/t gold (depending on the deposit) and a C$/US$ exchange rate of 1.10.