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Unlike its debt-ridden fellow Canadian gold miners, Yamana Gold (TSX:YRI)(NYSE:AUY) is going ahead with ambitious expansion plans, such as the construction of its Cerro Moro gold and silver project, located in the southern Argentine province of Santa Cruz.
According to Minería en Linea (in Spanish), the Toronto-based company will invest an initial $450 million to develop Cerro Moro, which acquired last year, as part of the takeover of fellow Canadian junior miner Extorre.
At the time of the transaction, Extorre had established indicated resources of 2.43 million tonnes grading 7.4 grams gold and 498.8 grams silver for 1.4 million gold equivalent ounces and inferred resources of 4.75 million tonnes grading 3.5 grams gold and 172 grams silver for 1.05 million gold equivalent ounces.
Yamana managed to bolster resources in the indicated category by 44% as per February this year.
Construction at the project, envisioned as a combined open pit and underground operation, is expected to start early next year, with production slated to begin in late 2015, creating 1,000 direct and indirect jobs.
Yamana already operates the Gualcamayo gold mine in the San Juan province and holds a 12.5% stake in the Alumbrera gold and copper mine in Catamarca province. Glencore Xstrata (LON: GLEN) owns 50% of Alumbrera and Goldcorp (TSX: G) has a 37.5%
The Canadian miner also operates in Brazil, Chile, Mexico and Colombia.
Image of Santa Cruz by Nestor Galina
Comments
Sueychop
Yamana! Yamana!
Yamana is good enough for me!
When this stock market bubble pops, and it will, Yamana will go to the moon. This is just like 2007 when I made 90% on my Yamana Gold stock. Don’t buy it right now, wait for gold to go under $1,100 per ounce, and then once its bottomed out for real wait for it to bounce back up around $1,200 and buy! buy! buy! Although at $8 per share I’m buying some right now.
When this Fed-induced bubble pops, sell your Yamana at 50% at $20 per share, then let the rest ride up above $30 to who knows. But make sure you sell it at some point. This is the last hurrah. After the inflationary tsunami we’ll get a deflationary depression. Buy silver bars for that (beans, bullets, etc.).