Yamana Gold to Go Ahead with Cerro Moro Project

Yamana Gold Inc. (TSX:YRI,NYSE:AUY) announced it will go ahead with the construction of its high-grade, low-cost gold-silver project Cerro Moro in Argentina. The current plan for the project sees the first three full production years generating 135,000 ounces of gold and 6.7 million ounces of silver.

As quoted in the press release:

Life of mine (“LOM”) estimates include annual production of 102,000 ounces of gold and 5 million ounces of silver, throughput of 1,000 tonnes per day (“tpd”), cash costs of $380 to $400 per ounce of gold and $5.35 to $5.50 for silver, and all in sustaining costs of $547 to $557 per ounce of gold and $7.60 to $7.80 per ounce of silver. LOM production estimates consider only current mineral reserves and not the benefit of expected additions from exploration and new discoveries.

Project capital in 2015 is expected to be approximately $30 million, with more than half of the spending to occur late in the year when the formal groundbreaking of construction is expected. The remaining capital will be spent in 2016 and 2017. Production is expected to begin in the second half of 2017.

Total project capital for the life of mine is expected to be $398 million that includes $265 million in initial capital and $133 million LOM sustaining capital.

Click here to read the full Yamana Gold Inc. (TSX:YRI,NYSE:AUY) press release.