Following the merger of Meridian Gold and Northern Orion into Yamana
Gold (See E&MJ, October 2007, p. 10) Yamana released a press statement on
October 18 outlining its strategic plan for exploiting the combined mining assets
gained from the acquisition. The long-term plan, according to Yamana’s management,
is focused on organic growth, initially targeting production of 1.2 million oz
of gold in 2008 and increasing to 2.2 million oz in 2012. Production at these
levels will be driven from enhancements, expansions, improvements and development
of existing assets. Yamana owns seven producing mines, two of which are undergoing
expansion; five development-stage projects and an extensive exploration portfolio
in North, Central and South America.
The principal components of targeted
production to a sustainable production
level of 2.2 million oz include the
following:
• Increasing sustainable gold production
at the Chapada mine in Brazil
from a baseline of 170,000 oz of gold
in addition to copper, with plant capacity
increases;
• Increasing production at the El Peñón
mine in Chile initially to 420,000
gold equivalent oz (GEO) and potential
to achieve approximately 500,000 oz
(GEO) with modest plant capacity
increases and tailings improvements;
• Increasing production at the Jacobina
mine in Brazil to exceed 200,000 oz
Au largely from development of new
mine areas including Canavieiras and
Morro do Vento;
• Increasing production at the Gualcamayo
property in Argentina from an
initial target of 200,000 oz/y Au to
over 300,000 oz from growing resources
at satellite and potential
underground areas;
• Increasing production at the Minera
Florida mine in Chile to approximately
120,000 oz/y Au from plant capacity
increases;
• Developing the Mercedes property in
Mexico to a production level of up to
200,000 oz/y Au with a target date for
production of 2009;
• Developing the C1 Santa Luz property
in Brazil to over 100,000 oz/y Au with
a target date of December 2007 for a
feasibility study;
• Developing the Jeronimo project to a
production level of 150,000 oz/y Au;
• Pursuing the San Andres mine in Honduras
for a production level of 90,000
to 100,000 oz/y Au;
• Improvements and enhancements at
the Sao Francisco mine in Brazil to
increase production to up to 140,000
oz/y Au; and
• Continuing development efforts at the
Sao Vicente, La Pepa, Amancaya and
other projects.
Toronto-based Yamana Gold and
Meridian Gold, Reno, Nevada, USA,
after an extended hostile takeover battle,
announced on September 24 that
they had agreed to a $3.55-billion deal
in which Yamana acquired all of
Meridian’s outstanding shares. Under
the terms of the agreement, Meridian’s
shareholders received C$7 in cash plus
2.235 Yamana common shares for each
Meridian common share tendered and
taken up by Yamana. Yamana and
Northern Orion, a Canadian mid-tier
copper and gold producer, announced
their merger on the same day Yamana
made its unsolicited bid for Meridian.
As featured in Womp 07 Vol 8 - www.womp-int.com