ARGENTINA – Reports out of South America, courtesy of LatinoMineria, indicate that Toronto-based Yamana Gold is ready to start construction at the Cerro Moro gold and silver project early next year. The project is on the outskirts of Puerto Deseado in the southern part of the country. Gold production could begin in late 2015.
The report followed a meeting of Yamana chairman and CEO Peter Marrone, and the head of the Argentine cabinet, Jorge Capitanich. Investment in the mine will evidently be a two-stage undertaking: US$150 million for the first stage and US$300 million for the final stage.
Yamana has not yet made the same announcement at home. According to the company’s website, a construction decision is anticipated next year and start-up in 2016. The mine is expected to be both open pit (30% of the ore) and underground (70%) feeding a 1,000-t/d processing plant. Work has already begun on a production-ready decline to reach the Escondida orebody. The company puts the initial capital costs below US$400 million and expected operating costs at below US$450 per ounce of gold. Work on the feasibility study is currently underway. Annual output is targeted at 200,000 oz/year of gold.
Yamana acquired the Cerro Moro project when it purchased Extorre Resources. Further information about the project is posted at Yamana.com.