The Jacobina gold deposit is located in the Bahia state in Northern Brazil. Yamana Gold (AUY) reported multiple intercepts at Jacobina that were above-average grade over potentially mineable widths. The average grades at four mineral reefs at Jacobina exceed the company’s expectations with grades in excess of six grams per ton of gold across drill intercepts of approximately three meters. The long-term growth outlook for Jacobina also looks promising as the exploration drilling at the Canavieiras Norte mine is showing encouraging results.
Minera Florida is located within the Coastal Cordillera in the Metropolitan Region of Central Chile. Yamana’s focus at this site has shifted from a mineral resource infill program to a mineral resource discovery and growth program. The exploration results confirm that there are extensions at depth along veins within the core mine. The work is ongoing to identify and develop numerous auriferous quartz veins. These already suggest the potential for long-term mineral resource and mineral reserve growth.
Yamana’s Monument Bay project is located in Manitoba, Canada. The company reported that the results from the winter drilling program that focused on developing continuity of the high grade mineral shoots were successful in intersecting significant gold mineralization. Its fall drilling program will focus on further definition drilling and testing of down-plunge extensions of high grade zones.
All these exploration results are encouraging and point towards a potential upside to production in the long term for Yamana. Yamana’s peers (RING) (GDX) such as Agnico Eagle Mines (AEM), Newmont Mining (NEM), and Goldcorp (GG) also have strong project pipelines.