(Alliance News) - Yamana Gold Inc on Friday hailed its two "cornerstone assets" as it provided a technical update on projects in Canada and Chile.
In Canada, Yamana has the Malartic mine in Quebec, while in Chile, it operates the El Penon mine in the Antofagasta region. It filed technical reports with regulators in the two countries.
"The reports provide technical updates on two of Yamana's cornerstone assets and information supporting the mineral reserves and mineral resources that form the basis for the company's 10-year strategic production outlook," Yamana explained.
El Penon has grown in strength since the last technical update three years ago, Yamana said. Since the end of 2017, mineral reserves at the asset have risen 21% to 921,000 ounces of gold. Silver resources rose almost a quarter to 29.2 million ounces over the same period.
"The operation also continues to add to its mineral inventory in both the measured and indicated and inferred mineral resource categories," Yamana added.
"Successful development of mineral reserves and mineral resources has translated into the highest production levels since the company right sized the operation in late 2016."
While output is rising, costs are falling, Yamana explained. El Penon is now in the 22nd year of its life and is still generating "significant free cash flow".
Malartic's last technical report in Canada was filed in 2014 and since then, four million ounces of gold have been produced.
Yamana added: "Project enhancement opportunities will continue to be evaluated as the project advances, including opportunities for increased conversion of mineral resources and extension of the higher-grade East Goudie zone, which have the potential to significantly extend mine life."
Shares in Yamana were 4.7% higher at 335.00 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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