The Wasamac Underground Mining Project Enters a New, Advanced Exploration Phase

Yamana Gold last wednesday issued a press release to investors, providing updates on various work and projects underway as well as an important announcement on the Wasamac underground mining project. With the release, Yamana confirms its intention to proceed with the feasibility study’s recommendation to move forward with the implementation of an advanced exploration program. As such, all necessary permit processes will be initiated to obtain authorizations for the construction of two ramps to access the deposit from the north of Route 117 to allow for bulk sampling and to pursue other exploration opportunities from underground. According to the current schedule, the process of developing advanced exploration scenarios and authorization requests leads us to anticipate a positive decision from the government at the earliest the start of winter 2023.

If approved, the new exploration phase would enable us to:

• Validate the mining and production plan by ensuring the grade, recovery, and geotechnical aspects of the project
• Seize opportunities to optimize process performance: preliminary results of optimization studies indicate the potential to improve average gold recovery by 3% and up to 5.5% in certain areas
• Confirm the stability parameters of sites, backfill strategy and the operating sequence to secure a safe, stable working environment
• Establish underground drilling platforms to conduct boundary and exploration drilling while minimizing surface activities.

Preliminary analysis of the recommendation, conducted since the summer, led us to consider new hypotheses for the advanced exploration work. As such, we hired external consultants to recommend technically viable and safe scenarios to recover a bulk sample without stripping the galleries of the old Wasamac mine.

The process of obtaining specific government permits (Energy and Natural Resources for sampling, Environment for construction of exploration infrastructures) would be done alongside the environmental impact assessment currently underway and with a timeline of 13 to 16 months. Our commitments to the neighbourhood would also be included in the requests for advanced exploration.

Furthermore, the Task Force, which is composed primarily of area residents, is currently working on a voluntary acquisition program and will soon begin work on an infrastructure and property integrity protection program.

To read the full press release: https://www.yamana.com/English/investors/news/news-details/2021/Yamana-Gold-Announces-the-Discovery-of-New-Mineralized-Zones-at-Wasamac-and-Provides-an-Update-on-Its-Growth-Projects/default.aspx