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Yamana announces East Gouldie discovery

Yamana Gold (TSX: YRI) says a new mineralised zone, dubbed East Gouldie, has been discovered at its Canadian Malartic joint venture openpit gold mine in Quebec as the partners investigate underground potential.
Yamana announces East Gouldie discovery Yamana announces East Gouldie discovery Yamana announces East Gouldie discovery Yamana announces East Gouldie discovery Yamana announces East Gouldie discovery

Yamana and Agnico Eagle are investigating the underground potential at Canadian Malartic in Quebec

Staff reporter

Highlights from drilling at East Gouldie, south of the East Malartic zone, have included an estimated true width of 25.2m grading 5.1g/t gold from 1789m.

Yamana said results indicated the East Gouldie, East Malartic and Sladen zones were converging at depth.

Drilling this year is aiming to define and increase underground mineral resources, focused on the Odyssey, East Malartic and now also the East Gouldie zones.

"The potential exists in these areas to increase production by supplementing openpit production with higher grade underground feed and also to extend mine life," Yamana said.

The company also updated the mineral resources for the East Malartic and Odyssey zones.

East Malartic now contains an inferred 1.4 million ounces and a new indicated 361,000oz above 1,000m; plus an inferred 1.48Moz below 1,000m which it said had not been previously reported.

Odyssey has an indicated 68,000oz and an inferred 809,000oz, with the majority sitting above the 1,000m mark.

Canadian Malartic, a 50:50 joint venture with Agnico Eagle Mines (TSX: AEM), produced 348,600 ounces for Yamana in 2018 and is expected to deliver 330,000oz this year.

The partners expanded the project area in March, acquiring the Rand Malartic property to the east which they say has the same favourable geological setting as the Odyssey zone.

Yamana last week increased the reserves and reserve grade at its Jacobina gold mine in Brazil, where a phase one expansion is ahead of schedule and a prefeasibility study is underway for phase two.

It said an exploration update was planned for its El Peñón and Minera Florida mines in Chile next quarter.

Yamana shares have risen from C$2.41 in May to a 52-week high of $5.04 last month.

They closed down 1.76% yesterday at $4.45 to capitalise it at $4.2 billion (US$3.2 billion).