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Yamana Gold Reports Strong Second Quarter 2021 Production Results and Cash Flows; Jacobina and Canadian Malartic Achieve All-Time Quarterly High Production; Minera Florida and El Peñón Post Standout Quarters

TORONTO, July 29, 2021 (GLOBE NEWSWIRE) — YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the Company”) is herein reporting its…

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TORONTO, July 29, 2021 (GLOBE NEWSWIRE) -- YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) (“Yamana” or “the Company”) is herein reporting its financial and operational results for the second quarter of 2021. Strong cash flow and production during the quarter were underpinned by all-time quarterly high production at Jacobina and Canadian Malartic as well as standout quarters from Minera Florida and El Peñón.

In a separate announcement published today, the Company reported significant progress on the Phase 2 expansion of Jacobina as well as strong exploration results that expand the operation’s mineral resource inventory and support the phased expansion, underscoring Jacobina’s exceptional long-term growth potential and ability to further extend strategic mine life. For additional details, please see the press release titled: 'Yamana Gold Reports Significant Progress on Phase 2 Expansion at Jacobina and Strong Exploration Results for the Operation' available on the Company's website at www.yamana.com.

SECOND QUARTER HIGHLIGHTS

Financial Results - Strong Cash Flows Further Strengthen Cash Balances and Balance Sheet Driving Latest Increase in Dividend

  • Adjusted net earnings(2, 4) were $70.7 million or $0.07 per share basic and diluted.
  • Earnings before taxes of $87.3 million increased significantly in relation to the comparative period earnings before taxes of $9.7 million.
  • A non-cash accounting deferred income tax expense of $145.3 million, predominantly associated with an increase in income tax rates in Argentina as applied to certain non-producing assets (namely Suyai and MARA) reduced earnings for the period as under accounting principles, the difference between accounting carrying values and tax basis requires recalculation although not payment of deferred income taxes. Future cash payments associated with the deferred income tax liability are not expected. This has resulted in a net loss(4) for accounting purposes of $43.9 million or $0.05 per share basic and diluted although no cash impact.
  • Strong cash flows from operating activities of $153.5 million and cash flows from operating activities before net change in working capital(2) of $167.8 million with free cash flow before dividends and debt repayments(2) of $51.2 million.
  • With production and costs in line with plan for the first half of the year, the Company anticipates stronger production, lower unit costs, and increased cash flow in the third and fourth quarters.
  • Cash and cash equivalents of $702.0 million, and available credit of $750.0 million, for total available liquidity of approximately $1.5 billion. Cash balances include $223.4 million available for utilization by the MARA Project. The remainder of cash and cash equivalents of $478.6 million, along with further liquidity and incoming cash flows is expected to be more than sufficient to fully fund the Company's business and capital allocation objectives.
  • As announced today, the Company is raising its annual dividend to $0.12 per share, representing a nearly 15% increase from the previous level and a cumulative increase of 500% from the second quarter of 2019. The dividend increase reflects improved cash flows and increased cash balances, along with other realized and anticipated strengthening of the Company's financial position.                                                                                                                                   
 Three months ended June 30
(In millions of United States Dollars)20212020
Net Free Cash Flow (2)$96.3  $60.3  
Free Cash Flow before Dividends and Debt Repayments (2)$51.2  $38.2  
Decrease in Net Debt (2)$22.8  $101.1  

Operating Results - Record Production at Jacobina and Canadian Malartic, Standout Quarters from Minera Florida and El Peñón     

  • Gold equivalent ounce ("GEO")(1) production was 241,341, including gold production of 217,402 ounces, and silver production of 1.63 million ounces.
  • Jacobina and Canadian Malartic production reached all-time quarterly highs, with total production of 47,503 and 92,106 ounces of gold, respectively.
  • Minera Florida also had a standout quarter, producing 23,813 ounces of gold.
  • El Peñón was ahead of plan for the first half of the year and is well positioned for the third and fourth quarters with approximately 57% of annual production for the operation expected in those quarters.
  • Cerro Moro produced 25,313 GEO(1), a significant increase versus the comparative prior year period of 15,451 GEO(1).
  • The Company remains well positioned to achieve guidance for the year of 1,000,000 GEO(1), underpinned by strong momentum at Jacobina, Canadian Malartic and Minera Florida, as well as an anticipated strong second half of the year at El Peñón and Cerro Moro, as previously guided.
  • Cash costs(2) and all-in sustaining costs ("AISC")(2) were $720 and $1,081 per GEO(1), respectively, which were in line with plan and as guided.
  • Year-to-date costs are in line with or better than plan, with minimal impact from inflationary pressures. The Company expects per GEO(1) costs to improve in the second half of the year as higher production is expected. Inflationary pressures have been mostly absent, although more recently the Company has begun observing inflationary pressures on certain consumables, namely steel which impacts grinding media costs, higher diesel and other oil-based derivative prices, as well as higher ammonium nitrate prices which impact the cost of explosives, among other less significant items. These higher prices, along with stronger foreign exchange rates than those realized earlier in the year, are expected to have an impact on costs and partially offset the per GEO(1) cost decreases resulting from higher production in the second half of the year, were they to persist for the balance of 2021. At this point, while the Company believes it is reasonable to assume that some of these inflationary pressures will persist for the balance of the year, their impact on the Company’s cost structure is uncertain, although it is not expected to be significant.

Health Safety and Sustainable Development

  • The Company's Total Recordable Injury Rate was 0.58(5) for the first six months of 2021.
  • Our climate action strategy advanced during the quarter with work to determine the baseline year and data compilation to develop abatement scenarios.
  • The Company was ranked 31st in Corporate Knights magazine list of Canada’s Best 50 Corporate Citizens and first amongst Canadian mining companies. The Best 50 rankings are generated based on an evaluation of 8 environmental metrics, 5 social metrics, 6 governance metrics and 3 economic factors.
  • The Company released its annual Material Issues Report and Global Reporting Initiative Report in June. These reports cover a variety of sustainability related topics and provides detailed data on the Company’s strong environmental, social and governance (ESG) performance.

Summary of Certain Non-Cash and Other Items Included in Net Loss(4)

(In millions of United States Dollars, except per share amounts,
totals may not add due to rounding)

Three months ended June 30
20212020
Realized and unrealized foreign exchange losses(4)$9.1  $7.0  
Share-based payments/mark-to-market of deferred share units1.2  23.6  
Mark-to-market gains on derivative contracts, investments and other assets(0.3) (2.3) 
Gain on discontinuation of the equity method of accounting(9.2)   
Temporary suspension, standby and other incremental COVID-19 costs12.7  19.2  
Other provisions, write-downs and adjustments(4)5.3  5.5  
Non-cash tax on unrealized foreign exchange (gains) losses(13.4) 11.8  
Income tax effect of adjustments(4)(1.5) (11.3) 
One-time tax adjustments(4)110.7  9.8  
Total adjustments(4) (i)$114.6  $63.3  
Total adjustments - increase to earnings(4) per share $0.12  $0.07  

(i)     For the three months ended June 30, 2021, net loss(4) would be adjusted by an increase of $114.6 million (2020 - increase of $63.3 million).

Earnings before taxes of $87.3 million increased significantly in relation to the comparative period earnings before taxes of $9.7 million. A non-cash accounting deferred income tax expense of $145.3 million, predominantly associated with an increase in income tax rates in Argentina as applied to certain non-producing assets (namely Suyai and MARA) reduced earnings for the period as under accounting principles, the difference between accounting carrying values and tax basis requires recalculation although not payment of deferred income taxes. Future cash payments associated with the deferred income tax liability are not expected. The net loss(4) of $43.9 million or $0.05 per share basic and diluted, compared to nil or nil per share basic and diluted in the comparative prior year quarter, was impacted by $110.7 million of non-cash income tax items attributable to Yamana Gold Inc. equity holders, primarily driven by the aforementioned tax rate change. Adjusting items of $114.6 million(4), that management believes may not be reflective of current and ongoing operations, and which may be used to adjust or reconcile input models in consensus estimates, decreased net loss(4) for the current period.

OPERATIONS UPDATE

Canadian Malartic

Canadian Malartic had an exceptional second quarter, with production exceeding plan due to higher grade and recoveries from the ore found deeper in the Malartic pit. Throughout the course of 2021 the mine will continue its transition from the Malartic pit to the Barnat pit. Canadian Malartic remains on track to complete topographic drilling and blasting at Barnat by the third quarter of 2021, while overburden removal was completed during the first quarter as planned. The Company expects higher stripping than previous years in association with Barnat, and this increased stripping is expected to normalize over the following years. Additionally, the Company is undertaking the required pit pushback to obtain the optimized ounces as per the revised open pit design, which resulted in an increase of approximately 150,000 ounces of gold mineral reserves on a 50% basis.

Jacobina

Jacobina exceeded its production plan, and posted record-setting quarterly gold production at 47,503 ounces during the second quarter. Mill throughput for the quarter was well above plan, with recovery rates and grade as expected. Throughput averaged 7,500 tonnes per day ("tpd") in May and approximately 7,200 tpd over the full second quarter, a 5% increase compared to the previous quarter.

During the first quarter, a new Falcon concentrator and cyclone bank were installed, while an additional Knelson concentrator was installed on grinding line two in the second quarter. Other initiatives include an increase in the diameter of the pipeline feeding the tailings storage facility from 10 to 16 inches to relieve pipe pressures thereby increasing design limits. Throughput for the balance of the year is expected to increase to rates above those experienced in the second quarter to approximately 7,500 tpd which represents the permitted operational point.

Additionally, the Jacobina processing team continued to fine-tune the operation of the plant, optimizing the aperture of the crushers and sizing of the screens to reduce the feed size of material entering the ball mills, thereby improving milling performance. Furthermore, a new combination of mill liners and grinding balls allowed an increase in throughput while maintaining grinding size.

Cerro Moro

Cerro Moro second quarter GEO(1) production was 25,313, with gold production of 14,488 ounces and silver production of 736,823 ounces, a significant increase as compared to 15,451 GEO(1) in the prior year period. During a period of adverse weather conditions limiting travel to site and impacting shift changes, the Company made certain health, safety and other site improvements originally slated for the second half of the year, which will benefit future quarters. The opening of more mining faces and transition to more mill feed coming from underground ore, at higher grades than the open pit ore, continued in the quarter with Zoe contributions becoming more prevalent. This trend will continue throughout the second half of 2021, with most of the ore to plant coming from Escondida Far West, Zoe, Escondida Central and Escondida West.

The Company expects higher gold production in the second half of the year, with increases in grade. Over the past year, Cerro Moro has optimized the operation of the processing plant to increase daily throughput to approximately 1,100 tpd as seen in the first quarter. The mine saw linear development continue during the quarter and will continue to improve throughout the year, further supporting the much higher second half of 2021 production profile.

The Company is evaluating construction of a heap leach operation, a lower-cost processing alternative, that would facilitate the processing of lower-grade mineral reserves, potentially extending mine life. The evaluation is in the early stages with a preliminary study completed, and metallurgical lab testing currently underway. Yamana has submitted 8 samples consisting of 800 kg each to a prominent laboratory in Canada to run column tests, to evaluate the potential for heap leach recovery from near surface vein mineralization. Samples were collected from prior quarter diameter drill holes and surface trench saw cut bedrock samples. Preliminary results after 81 days of leaching have been reported and five of the zones tested returned results suggesting recoveries of over 70% could be achieved. Studies are ongoing and full results with reagent consumption and effects of grain size on recovery will be reported before year end. The results indicate good potential for leaching of both oxidized near surface vein material, zones with hypogene oxides (hematite) and some low sulphide gold bearing veins. Following the positive preliminary metallurgical results, Yamana has planned a targeted drilling program with the objective of defining a heap-leachable inventory of 5 million tonnes by the end of 2022. In the first half of 2021, Yamana also completed a scoping study for a plant expansion using a more energy-efficient comminution configuration. The study indicated that a doubling of plant throughput to approximately 2,200 tpd could potentially be achieved with modest capital investment and would significantly reduce processing costs per tonne. In the second half of the year, Yamana will undertake metallurgical testing to confirm the assumption of the scoping study before advancing to the next level of engineering.

El Peñón

El Peñón had a strong second quarter, with GEO(1) production of 52,607, including gold production of 39,492 ounces and silver production of 891,255 ounces, compared to 47,925 GEO(1) in the prior year period. The higher grade La Paloma, Quebrada Colorada Sur and Pampa Campamento Deep sectors zones will come into production in the second half of the year, contributing to higher planned production in the third and fourth quarters. The Company observed strong grades at El Peñón in June, with 4.29 g/t gold and 117.8 g/t silver. These grades were achieved ahead of plan, and trending towards the higher grades that are anticipated to be continuously observed in the third and fourth quarters. The Company expects that a strong second half of 2021 will account for approximately 57% of gold and silver production at El Peñón. The first step to unlock the opportunity to leverage the existing processing capacity at the mine and increase production is to establish additional mining sectors for increased mine production. The development of La Paloma, Quebrada Colorada Sur and Pampa Campamento Deeps is an important component of that strategy, and accessing those new areas will provide increased mining flexibility.

Minera Florida

Minera Florida had a strong second quarter, with production above plan and prior year production. Linear development that is in line with the mine's strategy of increasing flexibility continues to advance ahead of plan, and exploration results continued to demonstrate extensions of identified areas of mineralization and new discoveries. The positive results were primarily due to increased tonnes processed, largely as a result of continuing improvements in productivity with contributions from the Pataguas and Don Leopoldo mining zones, and processing tonnes were supplemented from lower grade ore and stockpiles. The Company is now reactivating and optimizing formerly decommissioned ore passes, with two ore passes already re-established, and an additional ore pass at Satellite Fantasma-Polvorin scheduled to commence construction in August. The ore passes are expected to further reduce haulage distance and increase operational flexibility as a result of additional haulage routes. Ongoing initiatives to improve development cycle times have now increased underground development beyond the previous rates of 1,200-1,300 metres per month, achieving 1,344 metres in June, at a lower unit cost, bringing forward access to new production levels and unlocking additional mining sectors. Internalization of mining activities, ongoing optimization of the haulage network, and increasing disposal of development waste into underground voids will further improve mine productivity going forward. A review of the processing plant in the first quarter has identified several opportunities for increased recovery and reduced operating costs. Management is currently in the process of prioritizing these opportunities, focusing on the initiatives that can be implemented quickly with minimal investment.

In line with the 10-year outlook, the plant de-bottlenecking study and preparation of the environmental and social impact assessment ("ESIA") are advancing on schedule, with the objective to increase throughput from 74,500 to 100,000 tonnes per month, which would increase annual gold production to approximately 120,000 ounces. Preliminary studies indicate that the capacity of the processing plant can be increased to approximately 90,000 tonnes per month through incremental adjustments. An upgrade of the crushing circuit would be required to achieve 100,000 tonnes per month.

CONSTRUCTION, DEVELOPMENT AND ADVANCED STAGE PROJECTS

Jacobina Phased Optimization With Lower Capital Requirements

As reported in a separate announcement today, the Company has made significant progress on the Phase 2 expansion to increase daily throughput to 8,500 tpd and raise production to 230,000 ounces per year. Today's announcement also includes a highly positive exploration update for Jacobina that supports the phased expansion and underscores the operation's exceptional long-term growth potential and ability to further extend strategic mine life.

The success reflects a simplified approach to complete the Phase 2 expansion, which will be achieved through incremental debottlenecking of the processing plant and tailings system combined with operational improvements, without requiring the installation of an additional ball mill. This approach, which follows a similar approach to that which has been the basis for the quarter-over-quarter success of Jacobina over the past several years, significantly reduces capital expenditures, improves energy efficiency, and de-risks the project. Capital expenditures are expected to be significantly lower than the original planned capital estimated in the Phase 2 pre-feasibility study, an amount not exceeding $15 million to $20 million. Subject to successful completion of required permit modifications, Jacobina would begin processing at the new Phase 2 rate by the second half of 2023.

As previously presented in the Company’s 10-year production outlook, Yamana is evaluating a further expansion at Jacobina to increase throughput to 10,000 tpd, referred to as Phase 3. With the Phase 2 expansion now underway with a simpler process at reduced capital costs, the Company will now pursue the Phase 3 expansion as part of a comprehensive plan which aligns the processing plant, underground mine, tailings strategy, and permitting, while managing capital expenditure and cash flow.

For additional details, please see the press release titled: 'Yamana Gold Reports Significant Progress on Phase 2 Expansion at Jacobina and Strong Exploration Results for the Operation' available on the Company's website at www.yamana.com.

The Wasamac Project Update and Positive Development Decision

On July 19, 2021, the Company announced the results of several studies on the Company’s wholly-owned Wasamac project in the Abitibi-Témiscamingue Region of Quebec, Canada, intended to corroborate diligence reviews conducted by the Company on its purchase of the Wasamac project in early 2021, and update a historical feasibility study. These studies updated the baseline technical and financial aspects of the Wasamac project that now underpin the decision to advance the project to production. The results from all studies were consistent with the Company’s conclusions in its diligence reviews relating to the purchase of Wasamac and, in some cases, are better than the conclusions from those reviews. The Wasamac project further solidifies the Company’s long-term growth profile with a top-tier gold project in Quebec’s Abitibi-Témiscamingue Region, where Yamana has deep operational and technical expertise and experience.

Yamana expects to receive all permits and certificates of authorization required for project construction by the third quarter of 2024. Construction time to processing plant commissioning is estimated at approximately two-and-a-half years, with the underground crusher and conveyor system scheduled for commissioning six months later. First gold production is scheduled for the fourth quarter of 2026, with commercial production planned for the fourth quarter of 2027, however, the Company has already identified opportunities to improve the production ramp-up and decrease the processing plant construction period, which would improve significantly over the feasibility study's base case production profile. To increase the level of confidence in metallurgical and geomechanical assumptions, Yamana is considering the recommendation for an underground bulk sample, which could commence earlier on a separate environmental permit. The bulk sample would require ramp access to the underground mineralization. As part of the studies, the following optimization highlights were provided:

  • Mineral reserves of 1.91 million gold ounces at an unchanged average gold grade of 2.56 g/t for an initial mine life of 10 years.
  • Rapid production ramp-up in first year followed by sustained gold production of approximately 200,000 ounces per year for at least the next four years. Including the ramp-up phase, average annual production for the first five years of operation is expected to be 184,000 ounces.
  • Average life of mine (“LOM”) gold production of 169,000 ounces per year with average throughput of 7,000 tpd.
  • Optimized mining method and mining sequence, utilizing a combination of longitudinal and transverse stoping with paste fill, which resulted in a higher production rate, reduced dilution, and a 26% reduction in LOM development metres.
  • Initial capital cost is expected to be relatively modest for a 7,000 tpd underground operation, at approximately $416 million. The Company undertook extensive due diligence relating to the acquisition of Wasamac and identified several opportunities for optimizations and improvements; the updated studies confirmed the opportunities for optimizations.
  • The Company plans to fully fund development with available cash and cash flows.
  • Total LOM sustaining capital estimated at $318 million primarily for underground mine development and mobile equipment.
  • LOM cash costs(2) and AISC(2) of $640 per ounce and $828 per ounce, respectively, remaining well below the Company average, reflecting the application of more conservative cost assumptions to de-risk the project and align with Yamana's benchmark costs.
  • Robust project economics including net present value (“NPV”) of $254 million with an after-tax internal rate of return (“IRR”) of 16.1% at $1,550 per ounce of gold and NPV of $470 million and after-tax IRR of 24% at $1,850 per ounce of gold based on mineral reserves and excluding future upside potential from encouraging exploration prospects.
  • As of 2028, Yamana’s average annual gold production in Quebec, including production from Wasamac and the Odyssey underground at Canadian Malartic, is expected to climb to approximately 450,000-500,000 ounces and remain at this level through 2035.
  • Wasamac is designed as a modern underground operation with a small footprint and minimal infrastructure on the south of the Route 117 highway. Tailings will be deposited underground as paste fill and in a filtered dry-stack tailings storage facility approximately six kilometres northwest of the processing plant.
  • Use of an underground conveyor, electric mining equipment and high-efficiency ventilation fans to minimize carbon emissions, with further electrification planned as new technology becomes commercially available between now and project execution.
  • Using a conveyor rather than diesel trucks to transport ore to surface is expected to reduce CO2 emissions by more than 2,200 tonnes per year, equivalent to taking 500 cars off the road. Over the LOM, the Company expects to reduce CO2 emissions by more than 20,000 tonnes.

There is excellent potential for significant future exploration success and mineral resource conversion, with the Wasamac deposit remaining open at depth and along strike. A planned infill and exploration drilling campaign to generate additional mineral reserves has the potential to sustain a 200,000-ounce production level for an extended period and support a strategic mine life of more than 15 years. Preliminary plans include 120,000 metres of drilling in 2021 and 2022 with a budget of $15 million over the two-year period.

Lastly, there are further optimization and life extension opportunities for further conversion of mineral resources to mineral reserves is expected through engineering, especially surrounding the historic mining zone, the utilization of the full design capacity of 7,500 tpd that could increase annual gold production, additional metallurgical drilling and test work to be carried out to evaluate the potential increase in gold recovery through the installation of a flotation and concentrate leach circuit and opportunities to accelerate the project execution plan to bring forward first gold production. Future infill drilling programs will include assaying for silver, which has the potential to improve project economics and reduce AISC.(2)

Acquisition of Francoeur, Arntfield and Lac Fortune Properties

On June 21, 2021, the Company entered into a Definitive Purchase Agreement to acquire the Francoeur, Arntfield and Lac Fortune properties from Globex Mining Enterprises Inc. (“Globex”). The Francoeur property is located adjacent to Yamana’s Wasamac project and covers the western extension of the Wasa shear zone. This acquisition adds six kilometers of highly prospective strike length for exploration efforts to increase overall resources adjacent to a major asset and to extend the Wasamac mine life.

The property also covers several historical gold producers located along the shear zone and notwithstanding past production, exploration will build on a historical drill database of 1,024 drill holes by drilling several high potential targets with significant gold intercepts located outside of the historically mined areas as well as extending known mineral resources. Wasamac, Francoeur and Arntfield have recorded past production of over 720,000 ounces of gold, with Francoeur and Arntfield contributing ounces at a grade of 6.2 g/t and 4 g/t of gold, respectively.(6) Further, Francoeur currently has a historic mineral resource of approximately 66,600 ounces of gold at a grade of 6.5 g/t of gold in the measured and indicated categories. Mineralization along the Wasa shear zone has been exposed in trenches recently completed by Globex and is very similar in character to the Wasamac resource mineralization indicating the strong exploration potential of the property. Given the proximity to the Canadian Malartic mine of another block acquired as part of the transaction, which has several positive historical drill intercepts, consideration is being given for a potential transfer into the Canadian Malartic General Partnership exploration program, which would modestly decrease the acquisition cost for the Company.

The Odyssey Project Advancing on Schedule

The Company and its partner announced a positive construction decision for the Odyssey project at Canadian Malartic on February 11, 2021.

The Company and its partner note that several key processes and activities are progressing as planned:

  • Overburden excavation and grouting were completed to prepare for construction of the production shaft and headframe.
  • Underground ramp development is ahead of schedule with approximately 764 linear metres of development now completed during 2021 (1,587 linear metres total). Development of the exploration ramp is anticipated to take approximately two years to complete, with the first drilling platform established in early July.
  • Underground ramp development is currently ahead of schedule.
  • Odyssey human resources ramp-up is progressing on target, with over 200 employees and contractors hired in a variety of functions including mine development, surface construction and resource development.
  • Permitting is advancing as expected, with the approval of Provincial Highway 117’s left-turn lane construction for 2021 signed by the Minister. Construction is currently underway and is expected to be completed by the end of the year. Decree amendment analysis and mining leases are currently under discussion with the relevant authorities.
  • During the second quarter, the shaft collar construction was completed, and engineering progress occurred on the headframe and hoist rooms, paste plant, power line/substation and surface workshop/warehouse. The headframe and hoist room construction is slated to begin in the third quarter of 2021.
  • Procurement progressed well during the quarter, with the main highlights being the purchase of the sinking hoist, contract for the auxiliary hoist being awarded, and tenders sent for the service hoist, production hoist. Lastly, the first bids for tender for the mobile underground fleet have been received and are being analyzed.

As Canadian Malartic transitions from open pit to underground mining, underground production will offset a significant portion of the corresponding decline in open pit production. Production from open pit mining from 2021 through 2028 is expected to be approximately 3.9 million ounces (100% basis) with annual production trending lower on a yearly basis to approximately 123,000 ounces (100% basis) by 2028. Underground production will start in 2023 and increase yearly, adding approximately 932,000 ounces (100% basis) during the 2023-2028 construction period—at cash costs(2) of $800 per ounce—including approximately 385,000 ounces (100% basis) by 2028.

Net proceeds from the sale of the 932,000 ounces (100% basis) of underground production would significantly reduce the external cash requirements for the construction of the Odyssey project which, assuming the gold price used in the financial analysis for the project of $1,550 per ounce, would reduce the projected capital requirements in half.

MARA Project Continuing Progress

The MARA Joint Venture held by the Company (56.25%), Glencore International AG (25%) and Newmont Corporation (18.75%) continues to advance engagement with local communities and stakeholders, advance the feasibility study and the Project's permitting process. The feasibility study, which will provide updated mineral reserves, production and project cost estimates for the Project, is being overseen by the Technical Committee comprised of members of the three companies. Key technical results are expected during 2021, and the Company notes that a considerable amount of information in the pre-feasibility study is already at feasibility study level, mostly as a result of the Integration Transaction. The full feasibility study report and submission of the ESIA are expected in late 2022.

After obtaining all required permits from the respective authorities including citizen participation and social consultation seminars, the MARA Project began activities at site. Work continued to progress well during the quarter, including environmental base line studies and sampling, as well as geotechnical, hydrological and other field engineering activities. The metallurgical drilling program at the Agua Rica site is well underway, reaching 1,410 meters in 7 drillholes by the end of the second quarter, with the remaining drillholes to be completed early in the third quarter. The drilling activities will continue with the geotechnical program to support the feasibility study, and the Company is reviewing a drilling program for resource delineation and resource expansion drilling for later in the year. Confirmatory metallurgical test-work for the newly collected samples is being advanced at two prominent laboratories in British Columbia, Canada.

The MARA Project will rely on processing ore from the Agua Rica site at the Alumbrera plant in the Catamarca Province of Argentina. The project design minimizes the environmental footprint of the project in consideration of the input of the local stakeholders, and MARA is planned to be a multi-decade, low cost copper-gold operation with annual production in the first 10 years of 556 million pounds of copper equivalent and a life of mine annual production of 469 million pounds of copper equivalent on a 100% basis. MARA will be among the top 25 copper producers in the world when in production, and poses one of the lowest capital intensity of the comparable projects globally. The MARA Project represents both a significant strategic value opportunity and a solid development and growth project, which the Company intends to continue to advance through the development and value realization process, through Yamana’s controlling interest in the project.

OTHER INITIATIVES - STRATEGIC, OPTIMIZATION AND MONETIZATION

As a complement to the advancement of the internal exploration opportunities, the Company will consider the acquisition of earlier stage development assets or companies that align with Yamana's objectives for capital allocation and financial results, jurisdiction, geology and operational expertise. Such opportunities will typically be funded through internal resources, meet minimum return levels that far exceed cost of capital and would meet the Company's minimum requirements to achieve mineral reserve and mineral resource inventories, mine life and per year production rate. Furthermore, preference would be given to geological and operational characteristics where the Company has an identified expertise and excellent opportunities for value enhancement. Such opportunities would also extend an existing regional presence or lead to that longer-term objective. Although the Company has an established portfolio of early-to-later-stage organic growth projects, the Company also considers it prudent to consider opportunities to extend regional presences in quality jurisdictions that offer geological and operational synergies and similarities to its current portfolio of assets. The Company's recent acquisition of several properties adjacent to the Wasamac project from Globex Mining is illustrative of this strategy.

From time to time, the Company’s strategy includes holding investments in prospective companies. This may be for several reasons such as the disposition of certain assets for shares or in other cases, resulting from an investment for portfolio purposes. The ownership of shares in the Nomad Royalty Company is an example of the former. An investment may also give the Company an opportunity to further evaluate related opportunities. Normally, these investments are held through a cycle, although are otherwise treated as any other portfolio investments. The acquisition by the Company of 24 million shares of Ascot Resources Ltd. ("Ascot") during the quarter, representing 6.4% of the outstanding shares, for aggregate consideration of $16.5 million is an example of the latter. In line with its investment strategy, the Company also holds interests in other exploration stage companies in Canada including Quebec and British Columbia, amongst other prominent areas.

GENERATIVE EXPLORATION PROGRAM

During the second quarter, exploration drilling and other field activities continued to ramp up in most jurisdictions as responses to COVID-19 restrictions were managed and vaccination campaigns gained a foothold over the COVID-19 spread. Drilling activities continued in Brazil at Lavra Velha, Jacobina Norte and at the São Francisco discovery at Borborema, while initial exploration drilling was initiated late in the quarter at the Colier property. Exploration in Chile in the quarter included surface work at early stage projects near the El Peñón mine and elsewhere in preparation for RC scout drilling programs later in the year. In Argentina, surface work was completed on the Company’s Las Flechas property, where drilling in 2021 is planned to test breccia-related high-sulphidation epithermal gold targets. At Monument Bay, Manitoba, deep drilling continued during the quarter, designed to test the down plunge projections of modeled, plunging high-grade zones at the Twin Lakes target, and drilling was initiated at the recently acquired advanced Wasamac property, in the Abitibi belt, Quebec.

KEY STATISTICS

Key operating and financial statistics for the second quarter 2021 are outlined in the following tables.

Financial Summary

(In millions of United States Dollars, except for per share and per unit amounts)

Three months ended June 30
20212020
Revenue$437.4  $303.4  
Cost of sales excluding depletion, depreciation and amortization(173.8) (126.3) 
Depletion, depreciation and amortization(108.6) (76.3) 
Total cost of sales(282.4) (202.6) 
Temporary suspension, standby and other incremental COVID-19 costs(12.7) (19.2) 
Mine operating earnings142.3  81.6  
General and administrative expenses(17.0) (25.4) 
Exploration and evaluation expenses(7.8) (2.9) 
Net (loss) earnings attributable to Yamana equity holders(43.9)   
Net (loss) earnings per share - basic and diluted (i)(0.05)   
Cash flow generated from operations after changes in non-cash working capital153.5  92.2  
Cash flow from operations before changes in non-cash working capital(2)167.8  118.1  
Revenue per ounce of gold$1,817  $1,713  
Revenue per ounce of silver$25.96  $16.83  
Average realized gold price per ounce (2)$1,817  $1,713  
Average realized silver price per ounce (2)$26.05  $16.83  

(i)     For the three months ended June 30, 2021, the weighted average number of shares outstanding was 965,595 thousand (basic and diluted).


Operating Summary

CostsThree months ended June 30
(In United States Dollars)20212020
Per GEO sold (1)  
Total cost of sales$1,170  $1,146  
Cash Costs (2)$720  $715  
AISC (2)$1,081  $1,125  


 Three months ended June 30
Gold Ounces20212020
Canadian Malartic (50%) (3)92,106 56,785 
Jacobina47,503 45,646 
Cerro Moro14,488 8,175 
El Peñón39,492 35,760 
Minera Florida23,813 17,775 
TOTAL217,402 164,141 


 Three months ended June 30
Silver Ounces20212020
Cerro Moro736,823  730,571  
El Peñón891,255  1,277,238  
TOTAL1,628,078  2,007,809  

For a full discussion of Yamana’s operational and financial results and mineral reserve and mineral resource estimates, please refer to the Company’s Management’s Discussion & Analysis and Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2021, which are available on the Company's website at www.yamana.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

The Company will host a conference call and webcast on Friday, July 30, 2021, at 9:00 a.m. ET.

Second Quarter 2021 Conference Call 
  
Toll Free (North America): 1-800-806-5484
Toronto Local and International:416-340-2217
Toll Free (UK):00-80042228835
Passcode:4990591#
Webcast: www.yamana.com
  
Conference Call Replay 
  
Toll Free (North America):1-800-408-3053
Toronto Local and International:905-694-9451
Toll Free (UK): 00-80033663052
Passcode:1816940#

The conference call replay will be available from 12:00 p.m. ET on July 30, 2021, until 11:59 p.m. ET on August 30, 2021.

Qualified Persons

Scientific and technical information contained in this news release has been reviewed and approved by Sébastien Bernier (P. Geo and Senior Director, Geology and Mineral Resources). Sébastien Bernier is an employee of Yamana Gold Inc. and a "Qualified Person" as defined by Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Yamana

Yamana is a Canadian-based precious metals producer with significant gold and silver production, development stage properties, exploration properties, and land positions throughout the Americas, including Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through expansion and optimization initiatives at existing operating mines, development of new mines, the advancement of its exploration properties and, at times, by targeting other consolidation opportunities with a primary focus in the Americas.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Investor Relations and Corporate Communications
416-815-0220
1-888-809-0925
Email: investor@yamana.com

FTI Consulting (UK Public Relations)
Sara Powell / Ben Brewerton
+44 7931 765 223 / +44 203 727 1000
Email: Yamana.gold@fticonsulting.com

Credit Suisse (Joint UK Corporate Broker)
Ben Lawrence / David Nangle
Telephone: +44 (0) 20 7888 8888

Joh. Berenberg Gossler & Co. KG (Joint UK Corporate Broker)
Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800

Peel Hunt LLP (Joint UK Corporate Broker)
Ross Allister / David McKeown / Alexander Allen
Telephone: +44 (0) 20 7418 8900

END NOTES

(1) GEO assumes gold ounces plus the gold equivalent of silver ounces using a ratio of 68.01 for the three months ended June 30, 2021, and 105.14 for the three months ended June 30, 2020.

(2) A cautionary note regarding non-GAAP performance measures and their respective reconciliations, as well as additional line items or subtotals in financial statements is included in Section 11: Non-GAAP Performance Measures and Additional Subtotals in Financial Statements in the Company's MD&A for the three and six months ended June 30, 2021 and in the 'Non-GAAP Performance Measures' section below.

(3) Included in the 2020 comparative gold production figure is 2,651 of pre-commercial production ounces related to the Company's 50% interest in the Canadian Malartic mine's Barnat pit, which achieved commercial production on September 30, 2020. Pre-commercial production ounces are excluded from sales figures, although pre-commercial production ounces that were sold during their respective period of production had their corresponding revenues and costs of sales capitalized to mineral properties, captured as expansionary capital expenditures.

(4) Net earnings (loss) and adjustments to net earnings (loss) represent amounts attributable to Yamana Gold Inc. equity holders.

(5) Calculated on 200,000 exposure hours basis including employees and contractors. This value does not include Canadian Malartic in which we hold a 50% interest.

(6) Historical production for the Francoeur and Arntfield mines is from the Francoeur NI 43-101 Technical Report published by Richmont Mines in August 2012; Historical production for the Wasamac mine is from the Wasamac NI 43-101 Technical Report published by Monarch Gold in December 2018. Both NI 43-101 Technical Reports are available on SEDAR at www.sedar.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation and within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, plans or future financial or operating performance, results of feasibility studies, repayment of debt or updates regarding mineral reserves and mineral resources. Forward-looking statements are characterized by words such as “plan", “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company’s expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met, the impact of proposed optimizations at the Company's projects, changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, silver, copper and zinc), currency exchange rates (such as the Canadian Dollar, the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset dispositions, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks associated with infectious diseases, including COVID-19, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture operations, title disputes or claims, limitations on insurance coverage, timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws contained in Industry Guide 7. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) contained in Industry Guide 7.  Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101. However, these terms are not defined terms under Industry Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations. In contrast, issuers reporting pursuant to Industry Guide 7 report mineralization that does not constitute “mineral reserves” by Commission standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this news release may not be comparable to similar information made public by U.S. companies reporting pursuant to Industry Guide 7.

NON-GAAP PERFORMANCE MEASURES

The Company has included certain non-GAAP performance measures to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:

  • Cash Costs per GEO sold;
  • All-in Sustaining Costs per GEO sold;
  • Net Debt;
  • Net Free Cash Flow and Free Cash Flow Before Dividends and Debt Repayment
  • Average Realized Price per ounce of gold/silver sold; and
  • Adjusted Earnings

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.

For definitions and descriptions of the non-GAAP measures, other than those noted and reconciled below and additional subtotals in financial statements, refer to Section 11: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of the Company's MD&A for the three and six months ended June 30, 2021.

GEO PRODUCTION AND SALES

Production and sales of silver are treated as a gold equivalent in determining a combined precious metal production or sales unit, commonly referred to as gold equivalent ounces ("GEO"). Specifically, guidance GEO produced are calculated by converting silver production to its gold equivalent using relative gold/silver metal prices at an assumed ratio and adding the converted silver production expressed in gold ounces to the ounces of gold production. Actual GEO production and sales calculations are based on an average realized gold to silver price ratio for the relevant period.

CASH COSTS AND ALL-IN SUSTAINING COSTS

The Company discloses “Cash Costs” because it understands that certain investors use this information to determine the Company’s ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities.

The measure of Cash Costs and All-in Sustaining Costs (AISC), along with revenue from sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flows from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial measure. The terms Cash Costs per GEO sold and AISC per GEO sold do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

Cash Costs include mine site operating costs such as mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations, but are exclusive of amortization, reclamation, capital, development and exploration costs. The Company believes that such measure provides useful information about its underlying Cash Costs of operations. Cash Costs are computed on a weighted average basis as follows:

  • Cash Costs per GEO sold - The total costs used as the numerator of the unitary calculation represent Cost of Sales excluding DDA, net of treatment and refining charges. These costs are then divided by GEO sold. Non-attributable costs will be allocated based on the relative value of revenues for each metal, which will be determined annually at the beginning of each year.

AISC figures are calculated in accordance with a standard developed by the World Gold Council (“WGC”) (a non-regulatory, market development organization for the gold industry). Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies.

AISC per sold seeks to represent total sustaining expenditures of producing and selling GEO from current operations. The total costs used as the numerator of the unitary calculation represent Cash Costs (defined above) and includes cost components of mine sustaining capital expenditures including stripping and underground mine development, corporate and mine-site general and administrative expense, sustaining mine-site exploration and evaluation expensed and capitalized and accretion and amortization of reclamation and remediation. AISC do not include capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, income tax payments, borrowing costs and dividend payments. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of AISC does not include depletion, depreciation and amortization expense as it does not reflect the impact of expenditures incurred in prior periods.

  • AISC per GEO sold - reflect allocations of the aforementioned cost components on the basis that is consistent with the nature of each of the cost component to the GEO production and sales activities.

NET DEBT

The Company uses the financial measure "net debt", which is a non-GAAP financial performance measure, to supplement information in its consolidated financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance. The non-GAAP financial performance measure of net debt does not have any standardized meaning prescribed under IFRS, and therefore it may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Net debt is calculated as the sum of the current and non-current portions of long-term debt net of the cash and cash equivalent balance as at the balance sheet date. Cash related to the MARA Project is added back to the net debt calculation on the basis that the cash is specific to the MARA Project, and not available to the Company for the purposes of debt reduction.

When the cash and cash equivalent balance exceeds the total debt, the Company is in a "net cash" position.

A reconciliation of Net Debt at June 30, 2021 and December 31, 2020 is provided in Section 11 of the Company's MD&A for the three and six months ended June 30, 2021, which is available on the Company's website and on SEDAR.

NET FREE CASH FLOW AND FREE CASH FLOW BEFORE DIVIDENDS AND DEBT REPAYMENTS

The Company uses the financial measure "Net Free Cash Flow" and "Free Cash Flow Before Dividends and Debt Repayment", which are non-GAAP financial measures, to supplement information in its Consolidated Financial Statements. Net Free Cash Flow and Free Cash Flow do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance with respect to its operating cash flow capacity to meet non-discretionary outflows of cash or to meet dividends and debt repayments. The presentation of Net Free Cash Flow and Free Cash Flow are not meant to be substitutes for the cash flow information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Net Free Cash Flow is calculated as cash flows from operating activities adjusted for advance payments received pursuant to metal purchase agreements, non-discretionary expenditures from sustaining capital expenditures and interest paid related to the current period. Free Cash Flow further deducts remaining capital expenditures and payments for lease obligations. Reconciliations of Net Free Cash Flow and Free Cash Flow are provided below.

Reconciliation of Cash Flows from Operating Activities to non-GAAP MeasuresThree months ended June 30
(In millions of United States Dollars)20212020
Cash flows from operating activities$153.5  $92.2  
Adjustments to operating cash flows:  
  Amortization of deferred revenue4.5  3.9  
  Temporary suspension, standby and other incremental COVID-19 costs12.7  19.2  
Non-discretionary items related to the current period  
  Sustaining capital expenditures(46.1) (26.5) 
  Interest paid(21.8) (22.5) 
  Payment of lease liabilities(4.3) (4.0) 
  Cash used in other financing activities(2.2) (2.0) 
Net free cash flow$96.3  $60.3  
Discretionary and other items impacting cash flow available for dividends and debt repayments  
  Expansionary and exploration capital expenditures$(47.4) $(23.1) 
  Cash flows used in other investing activities$2.0  $(0.3) 
  Effect of foreign exchange of non-USD denominated cash$0.3  $1.3  
Free cash flow before dividends and debt repayments$51.2  $38.2  

AVERAGE REALIZED METAL PRICES

The Company uses the financial measures "average realized gold price" and "average realized silver price", which are non-GAAP financial measures, to supplement in its Consolidated Financial Statements. Average realized price does not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures employed by other companies. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance vis-à-vis average market prices of metals for the period. The presentation of average realized metal prices is not meant to be a substitute for the revenue information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.

Average realized metal price represents the sale price of the underlying metal before deducting treatment and refining charges, and other quotational and pricing adjustments. Average realized prices are calculated as the revenue related to each of the metals sold, i.e. gold and silver, divided by the quantity of the respective units of metals sold, i.e. gold ounce and silver ounce. Reconciliations of average realized metal prices to revenue are provided in Section 11 of the Company's MD&A for the three and six months ended June 30, 2021, which is available on the Company's website and on SEDAR.

ADJUSTED EARNINGS OR LOSS AND ADJUSTED EARNINGS OR LOSS PER SHARE

The Company uses the financial measures “Adjusted Earnings or Loss” and “Adjusted Earnings or Loss per share” to supplement information in its Consolidated Annual Financial Statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance. The presentation of adjusted measures are not meant to be a substitute for Net Earnings or Loss or Net Earnings or Loss per share presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Adjusted Earnings or Loss and Adjusted Earnings or Loss per share are calculated as net earnings excluding non-recurring items, items not related to or having a disproportionate effect on results for a particular periods and/or not directly related to the core mining business such as (a) share-based payments and other compensation, (b) unrealized foreign exchange (gains) losses related to revaluation of deferred income tax asset and liability on non-monetary items, (c) unrealized foreign exchange (gains) losses related to other items, (d) unrealized (gains) losses on derivatives, (e) impairment losses and reversals on mineral interests and other assets, (f) deferred income tax expense (recovery) on the translation of foreign currency inter-corporate debt, (g) mark-to-market (gains) losses on other assets, (h) one-time tax adjustments to historical deferred income tax balances relating to changes in enacted tax rates, (i) reorganization costs, (j) non-recurring provisions, (k) (gains) losses on sale of assets, (l) any other non-recurring adjustments and the tax impact of any of these adjustments calculated at the statutory effective rate for the same jurisdiction as the adjustment. Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance. Earnings adjustments for the comparative period reflect both continuing and discontinued operations.

The terms “Adjusted Earnings or Loss” and “Adjusted Earnings or Loss per share” do not have a standardized meaning prescribed by IFRS, and therefore the Company’s definitions are unlikely to be comparable to similar measures presented by other companies. Management uses these measures for internal valuation of the core mining performance for the period and to assist with planning and forecasting of future operations. Management believes that the presentation of Adjusted Earnings or Loss and Adjusted Earnings or Loss per share provide useful information to investors because they exclude non-recurring items, items not related to or not indicative of current or future period's results and/or not directly related to the core mining business and are a better indication of the Company’s profitability from operations as evaluated by internal management and the board of directors. The items excluded from the computation of Adjusted Earnings or Loss and Adjusted Earnings or Loss per share, which are otherwise included in the determination of Net Earnings or Loss and Net Earnings or Loss per share prepared in accordance with IFRS, are items that the Company does not consider to be meaningful in evaluating the Company’s past financial performance or the future prospects and may hinder a comparison of its period-to-period profitability.

ADDITIONAL LINE ITEMS OR SUBTOTALS IN FINANCIAL STATEMENTS

The Company uses the following additional line items and subtotals in the Consolidated Financial Statements as contemplated in IAS 1: Presentation of Financial Statements:

  • Gross margin excluding depletion, depreciation and amortization - represents the amount of revenue in excess of cost of sales excluding depletion, depreciation and amortization. This additional measure represents the cash contribution from the sales of metals before all other operating expenses and DDA, in the reporting period.
  • Mine operating earnings/loss - represents the amount of revenue in excess of cost of sales excluding depletion, depreciation and amortization, depletion, depreciation and amortization, temporary suspension, standby and other incremental COVID-19 costs, and net impairment write-downs/reversals.
  • Operating earnings/loss - represents the amount of earnings/loss before net finance costs, other income/costs and income tax expense/recovery. This measure represents the amount of financial contribution, net of all expenses directly attributable to mining operations and overheads. Finance costs and other income/costs are not classified as expenses directly attributable to mining operations.
  • Cash flows from operating activities before income taxes paid and net change in working capital - excludes the payments made during the period related to income taxes and tax related payments and the movement from period-to-period in working capital items including trade and other receivables, other assets, inventories, trade and other payables. Working capital and income taxes can be volatile due to numerous factors, such as the timing of payment and receipt. As the Company uses the indirect method prescribed by IFRS in preparing its statement of cash flows, this additional measure represents the cash flows generated by the mining business to complement the GAAP measure of cash flows from operating activities, which is adjusted for income taxes paid and tax related payments and the working capital change during the reporting period.
  • Cash flows from operating activities before net change in working capital - excludes the movement from period-to-period in working capital items including trade and other receivables, other assets, inventories, trade and other payables. Working capital can be volatile due to numerous factors, such as the timing of payment and receipt. As the Company uses the indirect method prescribed by IFRS in preparing its statement of cash flows, this additional measure represents the cash flows generated by the mining business to complement the GAAP measure of cash flows from operating activities, which is adjusted for the working capital change during the reporting period.

The Company’s management believes that this presentation provides useful information to investors because gross margin excluding depletion, depreciation and amortization excludes the non-cash operating cost item (i.e. depreciation, depletion and amortization), cash flows from operating activities before net change in working capital excludes the movement in working capital items, mine operating earnings excludes expenses not directly associated with commercial production and operating earnings excludes finance and tax related expenses and income/recoveries. These, in management’s view, provide useful information of the Company’s cash flows from operating activities and are considered to be meaningful in evaluating the Company’s past financial performance or the future prospects.

(All amounts are expressed in United States Dollars unless otherwise indicated.)
(See end notes on at end of press release)       


Today’s News

Wheeler River JV Approves Feasibility Study for Phoenix Deposit

Saskatoon, Saskatchewan – TheNewswire – September 22, 2021 – UEX Corporation (TSX:UEX) (OTC:UEXCF) (“UEX” or the “Company”) is pleased to announce…

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Saskatoon, Saskatchewan - TheNewswire - September 22, 2021 - UEX Corporation (TSX:UEX) (OTC:UEXCF) (“UEX” or the “Company”) is pleased to announce that its 50% owned subsidiary, JCU (Canada) Exploration Company, Limited (“JCU”) and Denison Mines Corp. (“Denison”) have approved the initiation of an independent Feasibility Study (“FS”) for the In-Situ Recovery mining operation proposed for the Phoenix uranium deposit on their Wheeler River Joint Venture (“WRJV”).    The WRJV has also appointed leading global consulting and engineering firm Wood PLC to lead and author the FS in accordance with Canadian Securities National Instrument 43-101.

The Wheeler River Joint Venture is 10% owned by JCU and 90% by Denison, who is the operator of the WRJV.  JCU is 50% owned by UEX and 50% by Denison.

Key objectives of the FS are expected to include an updated estimate of mineral resources, mine design optimization, processing plant optimization, and a Class 3 capital cost estimate.  The project designs in the FS are also expected to incorporate the results of various technical assessments, as well as feedback received from consultation efforts, carried out as part of the ongoing Environmental Assessment.

Further details of the approved feasibility study objectives and the appointment of Wood PLC can be found in Denison’s news release dated September 22, 2021 and filed on Denison’s profile on SEDAR.com

The initiation of the Phoenix Feasibility Study is a milestone moment for the Wheeler River Joint Venture.  The potential of the Phoenix Deposit makes Wheeler River a cornerstone asset and a key driver behind UEX’s acquisition of JCU.  We are excited to see the joint venture move forward with this important step of the evaluation process and we eagerly await the final results of the Study.

--- Roger Lemaitre, UEX’s President and CEO

Qualified Persons

The technical information in this news release has been reviewed and approved by Roger Lemaitre, P.Eng., P.Geo., UEX’s President and CEO, who is considered to be a Qualified Person as defined by National Instrument 43-101.

About UEX

UEX is a Canadian uranium and cobalt exploration and development company involved in an exceptional portfolio of uranium projects. 

UEX’s directly-owned portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt which in 2020 accounted for approximately 8.1% of the global primary uranium production.  In addition to advancing its uranium development projects through its ownership interest in JCU,  UEX is currently advancing several other uranium deposits in the Athabasca Basin which include the Paul Bay, Ken Pen and Ōrora deposits at the Christie Lake Project , the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, the Horseshoe and Raven deposits located on its 100%-owned Horseshoe-Raven Development Project and the West Bear Uranium Deposit located at its 100%-owned West Bear Project.

UEX is also 50:50 co-owner of JCU with Denison.  JCU’s portfolio of projects includes interests in some of Canada’s key future uranium development projects, notably a 30.099% interest in Cameco’s Millennium Uranium Development Project, a 10% interest in Denison Mines Wheeler River Project, and a 33.8123% interest in Orano Canada’s Kiggavik Project, located in the Thelon Basin in Nunavut, as well as minority interests in nine other grassroots uranium projects in the Athabasca Basin.

UEX is also leading the discovery of cobalt in Canada, with three cobalt-nickel exploration projects located in the Athabasca Basin of northern Saskatchewan, including the only primary cobalt deposit in Canada.  The 100% owned West Bear Project hosts the West Bear Cobalt-Nickel Deposit, the newly discovered Michael Lake Co-Ni Zone, and the West Bear Uranium Deposit.  UEX also owns 100% of two early-stage cobalt exploration projects, the Axis Lake and Key West Projects.

FOR FURTHER INFORMATION PLEASE CONTACT

Roger Lemaitre

President & CEO

(306) 979-3849

Forward-Looking Information

This news release contains statements that constitute "forward-looking information" for the purposes of Canadian securities laws. Such statements are based on UEX's current expectations, estimates, forecasts and projections. Such forward-looking information includes statements regarding the West Bear Co-Ni Property, the Christie Lake Property drill program, the Hidden Bay Property, the Shea Creek Property, UEX's drill hole results, uranium, cobalt and nickel prices, outlook for our future operations, plans and timing for exploration activities, and other expectations, intentions and plans that are not historical fact. Such forward-looking information is based on certain factors and assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from UEX's expectations include uncertainties relating to the, interpretation of drill results and geology, assay confirmation, additional drilling results, continuity and grade of deposits, fluctuations in uranium, cobalt and nickel prices and currency exchange rates, changes in environmental and other laws affecting uranium, cobalt and nickel exploration and mining and other risks and uncertainties disclosed in UEX's Annual Information Form and other filings with the applicable Canadian securities commissions on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by UEX will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking information. Except as required by applicable law, UEX disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

 

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Today’s News

Aguila American Gold Acquires Lida Copper-Silver Project in Nevada

Vancouver, British Columbia–(Newsfile Corp. – September 22, 2021) – Aguila American Gold Limited (TSXV: AGL) (OTCQB: AGLAF) (WKN: A2DR6E) ("Aguila"…

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Vancouver, British Columbia--(Newsfile Corp. - September 22, 2021) - Aguila American Gold Limited (TSXV: AGL) (OTCQB: AGLAF) (WKN: A2DR6E) ("Aguila" or the "Company") is pleased to announce it has secured through staking 100% ownership of the Lida copper project, located in Esmeralda County, Nevada. The project was identified during an extensive and ongoing generative program targeting copper deposits within the most mining supportive jurisdictions of North America. Initial surface sampling and mapping has commenced to test this exciting new project.

Aguila is focused on copper and precious metal acquisition, exploration and development within the major mining belts of western North America. The Company continues to target under-explored areas, including the recently acquired Lida and Cora projects where post-mineralization cover masks areas of high geological prospectivity in the vicinity of major mines.

The Lida project lies in south-central Esmeralda County within the richly gold and copper endowed Walker Lane Mineral Belt. The project is secured by 33 granted BLM lode mining claims covering a total of 2.75 sq km, and is easily accessed by two wheel drive vehicles utilizing existing access.

The Walker Lane Mineral Belt is a broad northwest striking fault zone that trends for more than 500km through western Nevada and eastern California. It is famous as a host to numerous large copper, gold and silver deposits and mines including Round Mountain, Comstock Lode, Northumberland, Goldfield, Tonopah, Pumpkin Hollow, New York Canyon and Silicon. Almost all discoveries within the Walker Lane belt have been made in outcrop, providing an exceptional opportunity for new deposits to be discovered under shallow cover.

Key Points

  • The Lida copper project lies within the Walker Lane Mineral Belt of Nevada, one of the richest mining districts in North America for gold, copper and silver.
  • Nevada was ranked as the top mining jurisdiction globally for mining investment in the 2020 Fraser Institute Annual Survey of Mining Companies.
  • Lida was prioritised as a target by Aguila due to the association of widespread surface copper mineralization with a discrete magnetic high. This signature is similar to most major mineralization systems within the Walker Lane belt.
  • Widespread copper oxide mineralization within shale and quartzite of the Campito Formation is reported in historical exploration records. The Campito Formation overlies the Deep Spring Formation and Reed Dolomite which are comprised of prospective limestone, dolomite and quartzite.
  • Recent site visits by Aguila have demonstrated that many of the 100's of prospecting pits across an area of 2km x 2km expose extensive oxide copper within fault structures and quartzite. The area of prospecting pits is constrained to the immediate north, south and east of Lida by shallow cover.
  • The most recent exploration documented at Lida was by Conoco Inc in the 1970s, who identified a large IP anomaly, covering 2km by 500m, underneath the copper mineralised area. Shallow drilling failed to test the target or penetrate the Campito Formation to more prospective carbonate host rocks.
  • The positive association between structurally controlled copper oxide mineralization, propylitic alteration, copper-mineralized breccia pipes, and the regional magnetic high with no modern exploration defines a high-priority copper target. The largely impermeable Campito Formation may overlie a pyrite rich (chargeable), shallow buried porphyry copper-molybdenum system.
  • Aguila will immediately commence field activities with mapping and sampling followed by a detailed magnetic survey.
  • Aguila continues to progress its project generation and acquisition strategy for copper and precious metals in highly prospective mineral belts. The rapidly growing demand for copper due to the accelerating uptake of electric vehicles and the supporting infrastructure, aligned with the growing uncertainty of sustainable ethical supply, makes North American targets a high priority.

"The newly staked Lida project represents another exciting step for Aguila into copper exploration in the Western US," said Mark Saxon, CEO of Aguila American Gold Limited. "Lida caught our eye immediately due to the abundance of surface copper oxide mineralization within a small area of outcrop surrounded by thin post-mineralization cover. The association with a magnetic high in the Walker Lane Mineral Belt is a consistent signature with major porphyry and epithermal systems. Major mining companies exploring north and south highlights the pedigree of the terrane.

The timing could not be better, as secure global copper supplies are tightening and price is rising, coinciding with strong demand growth as a result of a global infrastructure, electrification and renewable energy boom. We look forward to applying modern exploration techniques to this under explored district."

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Figure 1: Location map for the Lida copper project in central western Nevada, USA

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7326/97277_image1.jpg

The Lida copper project lies in Esmeralda County, Nevada, approximately 28km southwest of Goldfield within the highly productive Walker Lane Mineral Belt. Walker Lane is a 500km long continental scale structural zone which is host to numerous world class gold and copper deposits and mining districts including Goldfield1 (4.7 Mt @ 28 g/t Au), Yerrington2 (162 Mt @ 0.54% Cu), Pumpkin Hollow3 (553 Mt @ 0.45% Cu), Comstock (16.3 Moz Au eq.) and Rio Tinto's New York Canyon (142 Mt @ 0.35% Cu).

Aguila's claims cover an area of low to moderate relief and sparse vegetation. The prospect is accessible by two-wheel drive vehicles and can be reached by US Highway 95. Up to several hundred prospecting pits, known locally as "dog holes" have been mapped over an area of 2km by 2km, with many exposing fracture-controlled copper within the quartzite and shales of the Campito Formation or located on gossans associated with intrusive breccia.

Small scale, historical mining activity was undertaken in the 18th and early 19th century focused on the No 1 shaft, which targeted structurally controlled primary copper mineralization comprising chalcopyrite, bornite and chalcocite. A structural zone adjacent to the No 1 shaft was reported to contain copper mineralization across a width of up to 30m.

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Figure 2: Prospect Map showing historical exploration activity (shafts, exploration pits, IP anomaly)

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The bedrock geology at Lida comprises northeast striking, northwest dipping Lower Cambrian limestones of the Poleta Formation overlying the quartzites/shales of the Campito Formation. Iron rich breccia bodies with a pipe-like geometry have been mapped and appear associated with copper mineralization. Hydrothermal alteration includes widespread propylitic-style with local skarn-hornfels alteration associated with intrusive dikes.

Previous documented exploration was primarily conducted by Conoco during the 1970's, which comprised of sampling, geophysics (induced polarisation) and shallow drilling. Conoco identified a large and strong IP anomaly, approximately 2km in length and 500m wide, which trends north-easterly across the prospect coincident with the widespread structurally controlled copper mineralization, small intrusions and widespread propylitic alteration. Drilling did not penetrate the quartzite. Minor pyrite identified in drilling by Conoco within the quartzite is unlikely to account for the strong IP anomaly and may be associated with a pyrite rich "phyllic" porphyry shell.

Aguila believes the Campito Formation formed a relatively impermeable "cap" though which hydrothermal fluids only vented along structures to form the widespread fracture and vein-controlled mineralization found at surface.

The Lida project was staked to test beneath the widespread propylitic alteration and structurally controlled copper oxide mineralization with coincident IP anomaly for a preserved porphyry copper or copper skarn system. Porphyry copper systems in Nevada consistently exhibit a higher degree of preservation than in neighboring Arizona.

Initial exploration will consist of detailed mapping and sampling in addition to a high-resolution magnetic survey. Results will be shared as they become available.

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Figure 3: Site photographs from Lida Project during reconnaissance visit. Area shows an extensive mining history and regular copper oxide mineralization as per photo "d".

To view an enhanced version of Figure 3, please visit:
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The Company has obtained and is continuing to review the historic exploration data. Although the historic exploration data was generated by reputable companies, Aguila cannot verify the data or determine the quality assurance and quality control measures applied in generating the data. Accordingly, the Company cautions that the exploration data reported in this news release may not be reliable. Readers are cautioned that a "qualified person" (as defined by National Instrument 43-101) has not yet completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.

  1. Production to 1986, Ruetz J W, 1987 - The Geology of the Goldfield district: in Johnson J L (Ed.), 1987 Bulk Mineable Precious Metal Deposits of the Western United States - Guidebook for Field Trips Geol. Soc. Nevada pp 114-119.
  2. Production to 1982, Harris N B, Einaudi M T 1982 - Skarn deposits in the Yerington District, Nevada: metasomatic skarn evolution near Ludwig: in Econ. Geol. v77 pp 877-898.
  3. Nevada Copper, NI 43-101 Technical Report was filed on SEDAR in April 16, 2019.

Technical Background

The Company has obtained historic exploration data for this press release from the Nevada Bureau of Mines and Geology and other public archives. Although historic exploration data was generated by reputable companies applying practice of the day, Aguila cannot verify the data or determine the quality assurance and quality control measures applied in generating the data. Furthermore, there is no guarantee that the exploration history is fully captured. Additional drilling may have been undertaken, however the Company has not been made aware of or obtained additional data. Accordingly, the Company cautions that the exploration data reported in this news release may not be reliable. Readers are cautioned that a "qualified person" as defined by National Instrument 43-101 has not completed sufficient work to be able to verify the historical information, and therefore the information should not be relied upon.

The qualified person for the Company's projects, Mr. Mark Saxon, the Company's Chief Executive Officer, a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, has reviewed and verified the contents of this release.

About Aguila American Gold Ltd (TSXV: AGL) (OTCQB: AGLAF) (WKN: A2DR6E)

Aguila American Gold is an emerging copper and precious metal company enhancing shareholder value through exploration and discovery.

ON BEHALF OF THE BOARD,

"Mark Saxon"

Mark Saxon
President & CEO

For further information, please contact:

aguila.gold
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
info@aguila.gold

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements.

These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, except as may be required by applicable securities laws.

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Today’s News

Talisker Intercepts 1.98 g/t over 62.05 Metres at Pioneer Extending Mineralization to 600 Metres Along Strike

TORONTO, ON / ACCESSWIRE / September 22, 2021 / Talisker Resources Ltd. (" Talisker " or the " Company ") (TSX:TSK)(OTCQX:TSKFF) is pleased to announce…

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TORONTO, ON / ACCESSWIRE / September 22, 2021 / Talisker Resources Ltd. (" Talisker " or the " Company ") (TSX:TSK)(OTCQX:TSKFF) is pleased to announce results from drill hole SB-2021-069 at its 100% owned flagship Bralorne Gold Project. Hole SB-2021-069 is the second stepout hole located 600 metres to the northwest of previously released hole (SB-2021-025) and 400 metres from released holes SB-2021-26, 40, 48 and 55 targeting newly discovered bulk-tonnage mineralization at Pioneer.

Key Points:

  • Hole SB-2021-069 intersected 1.98 g/t over 62.05m from 399.0 to 461.05m.
  • Additional intercepts up-hole from the main intercept include 62.60 g/t over 0.5m within 5.65 g/t over 8.40m between 158.0 to 166.4m on the 222 Vein.
  • Hole SB-2021-069 is located 400 metres along strike to the northwest from previously released holes SB-2021-026 (1.17 g/t Au over 106.75m), SB-2021-040 (1.02 g/t over 114.15m), SB-2021-048 (1 g/t over 116.25m) and SB-2021-055 (0.68 g/t over 51.50m and 0.87 g/t over 34.55m) which together confirmed a 1.1km vertical panel of mineralization from surface.
  • SB-2021-069 is located 600m along strike to the northwest from previously released hole SB-2021-025 that intercepted 1.36 g/t over 68.9m within 0.8 g/t over 220m.
  • Stepout hole SB-2021-063 drilled 400 metres to the northwest of hole SB-2021-025 is expected to be released to market shortly.
  • Stepout hole SB-2021-072 drilled 800 metres northwest of hole SB-2021-025 is being processed at the lab with results expected shortly.

"We are very pleased with the increasing grade in the results received from hole 69 now confirming 100 gram-metre intercepts over 600 metres along strike", stated Terry Harbort, President and CEO of Talisker, who added, "We are eagerly awaiting results from hole 72 which we believe will confirm this consistent near surface mineralization for a total strike length of 800m."

A total of 58,221m consisting of 101 holes have been drilled this year out of a planned and fully funded 100,000 metre diamond drill program. Since acquiring the asset and commencing drilling in February 2020, Talisker has drilled 80,401m consisting of 137 holes. Five drill rigs are currently active at the Bralorne Gold Project. There are currently 28 holes consisting of 11,579 samples at the assay laboratory and are expected to be received by the Company shortly.

Table 1: Received and Pending Intercepts with Visible Gold Count and Vein Count

Drill Hole

Intrusive Intercept Thickness (m)

Visible Gold Count

Major Veins

Minor Veins Count

Assay Results

Gram-metres

Section Line Closest to Collar

SB-2021-25

77

0

5

138

0.8g/t over 220m

176.00

515,700 E

SB-2021-26

108

3

14

172

1.17g/t over 106.75m

124.90

515,600 E

SB-2021-30

130

3

9

97

0.80g/t over 130.9m

104.72

515,600 E

SB-2021-40

440

12

22

626

1.02g/t over 114.15m

116.43

515,600 E

SB-2021-48

790

8

76

1378

1.0g/t over 116.25m

116.25

515,650 E

SB-2021-55

38

0

4

90

0.68g/t over 51.50

35.02

515,600 E

SB-2021-60

101

0

7

208

Results Pending

 

515,550 E

SB-2021-63

120

4

4

385

Results Pending

 

515,550 E

SB-2021-66

177

0

9

389

Results Pending

 

515,450 E

SB-2021-69

427

8

11

873

1.98g/t over 62.05m

124.10

515,300 E

SB-2021-70

200

1

10

624

Results Pending

 

515,250 E

SB-2021-72

237

3

25

1263

Results Pending

 

515,200 E

SB-2021-75

340

4

22

644

Results Pending

 

515,050 E

SB-2021-76

225

3

16

420

Results Pending

 

515,050 E

SB-2021-78

676

1

48

1178

Results Pending

 

515,250 E

          

SB-2021-069 Hole Description:

  • SB-2021-069 was drilled to a depth of 551.2 metres on an azimuth of 180 at a dip of -50.
  • Intersected granitic intrusive from surface to 453.5m followed by dioritic intrusive before reaching the Cadwallader break at 538.25m.
  • Granitic intrusive hosted 11 major veins including four veins between 0.5 and 2.5 m true width.

Table 2: Bralorne Gold Project - Drill Hole SB-2021-69

Diamond Drill Hole Name

From

(m)

To

(m)

Interval

(m)

Au

(g/t)

Zone

Method Reported

SB-2021-069

158

158.65

0.65

0.50

222 Vein

Au-AA26
SB-2021-069

158.65

159.15

0.5

6.37

Au-AA26
SB-2021-069

159.15

160.15

1

0.66

Au-AA26
SB-2021-069

160.15

160.65

0.5

4.21

Au-AA26
SB-2021-069

160.65

161.4

0.75

1.31

Au-AA26
SB-2021-069

161.4

161.9

0.5

1.93

Au-AA26
SB-2021-069

161.9

162.4

0.5

71.90

Au-AA26
SB-2021-069

162.4

163

0.6

4.74

Au-AA26
SB-2021-069

163

163.5

0.5

0.13

Au-AA26
SB-2021-069

163.5

164.2

0.7

0.08

Au-AA26
SB-2021-069

164.2

165.1

0.9

0.14

Au-AA26
SB-2021-069

165.1

165.6

0.5

0.27

Au-AA26
SB-2021-069

165.6

166.4

0.8

0.12

Au-AA26
SB-2021-069

399

399.5

0.5

1.38

Bulk Pioneer

Au-AA26
SB-2021-069

399.5

400.9

1.4

0.01

Au-AA26
SB-2021-069

400.9

402.25

1.35

0.02

Au-AA26
SB-2021-069

402.25

403.55

1.3

0.01

Bulk Pioneer

Au-AA26
SB-2021-069

403.55

404.75

1.2

0.01

Au-AA26
SB-2021-069

404.75

405.85

1.1

0.01

Au-AA26
SB-2021-069

405.85

406.4

0.55

0.03

Au-AA26
SB-2021-069

406.4

407.5

1.1

0.01

Au-AA26
SB-2021-069

407.5

408.9

1.4

0.01

Au-AA26
SB-2021-069

408.9

409.45

0.55

2.70

Au-AA26
SB-2021-069

409.45

410.65

1.2

0.07

Au-AA26
SB-2021-069

410.65

412

1.35

2.49

Au-AA26
SB-2021-069

412

413.4

1.4

0.09

Au-AA26
SB-2021-069

413.4

414.6

1.2

0.08

Au-AA26
SB-2021-069

414.6

415.9

1.3

0.02

Au-AA26
SB-2021-069

415.9

417.35

1.45

0.01

Au-AA26
SB-2021-069

417.35

418.5

1.15

0.01

Au-AA26
SB-2021-069

418.5

419.4

0.9

0.01

Au-AA26
SB-2021-069

419.4

419.95

0.55

0.14

Au-AA26
 
SB-2021-069

419.95

420.45

0.5

127.00

New Vein

Au-AA26
SB-2021-069

420.45

421.4

0.95

0.56

Au-AA26
SB-2021-069

421.4

422

0.6

0.65

Au-AA26
SB-2021-069

422

423.15

1.15

0.20

Au-AA26
SB-2021-069

423.15

423.65

0.5

2.41

Au-AA26
SB-2021-069

423.65

424.6

0.95

0.04

Au-AA26
 
SB-2021-069

424.6

425.9

1.3

0.01

Bulk Pioneer

Au-AA26
SB-2021-069

425.9

427.3

1.4

0.08

Au-AA26
SB-2021-069

427.3

428.6

1.3

0.07

Au-AA26
SB-2021-069

428.6

430.05

1.45

0.11

Au-AA26
SB-2021-069

430.05

431.45

1.4

0.02

Au-AA26
SB-2021-069

431.45

432.15

0.7

0.01

Au-AA26
SB-2021-069

432.15

433.2

1.05

0.18

Au-AA26
 
SB-2021-069

433.2

433.7

0.5

51.20

Main Vein

Au-AA26
SB-2021-069

433.7

434.6

0.9

0.27

Au-AA26
SB-2021-069

434.6

435.6

1

1.03

Au-AA26
SB-2021-069

435.6

437

1.4

7.98

Au-AA26
 
SB-2021-069

437

437.5

0.5

0.44

Bulk Pioneer

Au-AA26
SB-2021-069

437.5

439

1.5

0.02

Au-AA26
SB-2021-069

439

440.45

1.45

0.22

Au-AA26
SB-2021-069

440.45

441.75

1.3

0.13

Au-AA26
SB-2021-069

441.75

443

1.25

0.56

Au-AA26
SB-2021-069

443

444.05

1.05

1.00

Au-AA26
SB-2021-069

444.05

445.4

1.35

0.01

Au-AA26
SB-2021-069

445.4

446.4

1

1.92

Au-AA26
SB-2021-069

446.4

447.55

1.15

2.85

Bulk Pioneer

Au-AA26
SB-2021-069

447.55

448.7

1.15

0.26

Au-AA26
SB-2021-069

448.7

449.7

1

0.06

Au-AA26
SB-2021-069

449.7

450.4

0.7

0.21

Au-AA26
SB-2021-069

450.4

451.9

1.5

0.33

Au-AA26
 
SB-2021-069

451.9

453.3

1.4

0.00

Void

Au-AA26
 
SB-2021-069

453.3

453.9

0.6

1.54

Bulk Pioneer

Au-AA26
SB-2021-069

453.9

455.15

1.25

0.01

Au-AA26
SB-2021-069

455.15

456

0.85

0.01

Au-AA26
SB-2021-069

456

457.45

1.45

0.01

Au-AA26
SB-2021-069

457.45

458.65

1.2

0.01

Au-AA26
SB-2021-069

458.65

459.2

0.55

0.01

Au-AA26
SB-2021-069

459.2

460

0.8

0.03

Au-AA26
SB-2021-069

460

461.05

1.05

2.37

Au-AA26
 
Notes: Diamond drill hole SB-2021-069 has collar orientation of Azimuth 180; Dip -50. True widths are estimated at 40 - 90% of intercept lengths and are based on oriented core measurements where available. Method Reported includes the most up to date information as of the date of this press release.
        

Qualified Person

The technical information contained in this news release relating to the drill results at the Bralorne Gold Project has been approved by Leonardo de Souza (BSc, AusIMM (CP) Membership 224827), Talisker's Vice President, Exploration and Resource Development, who is a "qualified person" within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Talisker Resources Ltd.

Talisker (taliskerresources.com) is a junior resource company involved in the exploration of gold projects in British Columbia, Canada. Talisker's projects include two advanced stage projects, the Bralorne Gold Complex and the Ladner Gold Project, both advanced stage projects with significant exploration potential from historical high-grade producing gold mines, as well as its Spences Bridge Project where the Company holds ~85% of the emerging Spences Bridge Gold Belt and several other early-stage Greenfields projects. With its properties comprising 296,983 hectares over 346 claims, three leases and 198 crown grant claims, Talisker is a dominant exploration player in the south-central British Columbia. The Company is well funded to advance its aggressive systematic exploration program at its projects.

For further information, please contact:

Terry Harbort
President & CEO
Terry.harbort@talliskerresources.com
+1 416 361 2808

Related Links

https://taliskerresources.com/

Sample Preparation and QAQC

Drill core at the Bralorne project is drilled in HQ to NQ size ranges (63.5mm and 47.6mm respectively). Drill core samples are minimum 50 cm and maximum 160 cm long along the core axis. Samples are focused on an interval of interest such as a vein or zone of mineralization. Shoulder samples bracket the interval of interest such that a total sampled core length of not less than 3m both above and below the interval of interest must be assigned. Sample QAQC measures of unmarked certified reference materials (CRMs), blanks, and duplicates are inserted into the sample sequence and make up 9% of the samples submitted to the lab for holes reported in this release. Sample preparation and analyses is carried out by ALS Global in North Vancouver, British Columbia, Canada and SGS Canada in Burnaby, British Columbia, Canada. Drill core sample preparation includes drying in an oven at a maximum temperature of 60°C, fine crushing of the sample to at least 70% passing less than 2 mm, sample splitting using a riffle splitter, and pulverizing a 250 g split to at least 85% passing 75 microns (ALS code PREP-31 / SGS code PRP89). Gold in diamond drill core is analysed by fire assay and atomic absorption spectroscopy (AAS) of a 50g sample (ALS code Au-AA26 / SGS code GO_FAA50V10), while multi-element chemistry is analysed by 4- Acid digestion of a 0.25 g sample split with detection by inductively coupled plasma mass spectrometer (ICP-MS) for 48 elements (Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr). Gold assay technique (ALS code Au-AA26 / SGS code FAA50V10) has an upper detection limit of 100 ppm. Any sample that produces an over-limit gold value via the gold assay technique is sent for gravimetric finish (ALS method Au-GRA22 / SGS method GO_FAG50V) which has an upper detection limit of 1,000 ppm Au. Samples where visible gold was observed are sent directly to screen metallics analysis and all samples that fire assay above 1 ppm Au are re-analysed with method (ALS code Au-SCR24 / SGS code - 6 - GO_FAS50M) which employs a 1kg pulp screened to 100 microns with assay of the entire oversize fraction and duplicate 50g assays on the undersize fraction. Where possible all samples initially sent to screen metallics processing will also be re-run through the fire assay with gravimetric finish provided there is enough material left for further processing.

Caution Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Talisker's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to, among other things, effective time of the rights provided to New Gold under the Investor Rights Agreement, the completion of New Gold's strategic investment; the completion of the Offering, the use of proceeds, the operations of the Company and the timing which could be affected by the current global COVID-19 pandemic. Those assumptions and factors are based on information currently available to Talisker. Although such statements are based on reasonable assumptions of Talisker's management, there can be no assurance that any conclusions or forecasts will prove to be accurate.

While Talisker considers these statements to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include market risks and the demand for securities of the Company, risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined, risks relating to variations in grade or recovery rates, risks relating to changes in mineral prices and the worldwide demand for and supply of minerals, risks related to increased competition and current global financial conditions and the COVID-19 pandemic, access and supply risks, reliance on key personnel, operational risks, and regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks.

The forward-looking information contained in this news release is made as of the date hereof, and Talisker is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Figure 1: Pioneer zone with drill trace of SB-2021-069, vein intersections and geology.

Figure 2: Plan view map showing drill hole collar and traces within the Pioneer Zone with current strike extend of mineralization.

SOURCE: Talisker Resources Ltd.



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