Yamana Gold is pressing ahead with the second phase of its expansion of its Jacobina mine in Brazil after authorities granted it permission to increase production to 10000 tons per day.
The license marks an important milestone in Yamana's plan to increase Jacobina's gold production to 230000 ounces, the company said. The Canadian miner points out that it has also promoted a third phase of future expansion, which will bring gold production to 270000 ounces a year.
Yamana plans to immediately increase production from the previous allowable 7500 tons per day to 8500 tons per day in the second phase. It is expected to achieve its target throughput in the second quarter of 2022-about a year ahead of schedule.
The Toronto-based company also said it had simplified the second phase of expansion, reducing capital expenditure, improving energy efficiency and reducing project risk. The cost of capital for the second phase is estimated at $20 million, of which $15 million will be put into use next year, Yamana said.
The potential third phase of the expansion project and the second phase of Synchronize advance, the third phase of the feasibility study will be completed in 2023.
Jacobina started production before Yamana owned it in 2006, and its annual production has more than doubled since 2014, from 75000 ounces of gold to nearly 180000 ounces.
The "uniqueness" of America
The Jacobina mining complex, located in the state of Bahia in northeastern Brazil, consists of five underground gold deposits: Canavieiras, Jo ã o Belo, Morro do Cuscuz, Morro do Vento and Serra do C ó rrego.
Peter Marrone, executive chairman and founder of Yamana, says this conglomerate structure is common in West Africa but unique in the Americas.
The company has three other mines in South America: Minera Florida and El Pe ó n in Chile and Cerro Moro in Argentina.
