TORONTO – Yamana Gold is is spinning out some of its non-core assets in Brazil, specifically the Fazenda Brasileiro and Pilar mines, and the C1 Santa Luz project. A new subsidiary, Brio Gold Inc., will be formed to hold three of these properties.
Brio Gold is expected to produce more than 130,000 oz of gold annually from the two producing mines. C1 Santa Luz has the potential to produce upwards of 100,000 oz of gold a year with a successful modifications to the processing flowsheet. There are potential increases in output levels and opportunities to reduce costs with the development of the Maria Lazarus deposit at Pilar and other exploration lands.
Gil Clausen has been tapped as CEO of Brio Gold. He will be joined by VP exploration Mark Stevens, VP technical services Lance Newman, and CFO Joseph Longpre. All men were executives of Augusta Resource Corp. when it was acquired by Yamana earlier this year.
Yamana is retaining the Agua Rica gold-copper-molybdenum project in Argentina and preparing for third party evaluation of its potential. The company says it will continue to pursue options for the property that may include potential joint ventures or the sale of some or all of the project. Agua Rica could be developed using the infrastructure of the Alumbrera copper mine or as a stand alone project.
Please see Yamana.com for more information about the possibilities for the Agua Rica project.