Claudia in terms of dispersal of assets looks somewhat like Gualcamayo mine. The difference is that Yamana is not only willing to take the country risk;but also a cost risk since G mine has a 1.1 g/t rating whereas Claudia is 4 g/t .  So MRZ could be a big winner if the political side irons itself out.

 

 

 

 

Gualcamayo Mine Royalty

Yamana’s Next Leg of Growth

Royalty

 

 

? 1.0% NSR

Project

 

 

? Gualcamayo Mine (San Juan, Argentina)

Asset Overview

?

 

An open pit, heap leach, gold operation

?

 

Completed first full year of production in 2010

?

 

Expected to expand production from the current

~159 koz in 2011 to over 200 koz by 2014

?

 

Low cash costs of ~US$500/oz

?

 

2.2 Moz of gold reserves at 1.16 g/t Au

Target Production

(Size/Date)

 

1

?

 

155-180 koz (2012E)

?

 

180-190 koz (2013E)

Mine Life

 

 

? 9+ years

Status

 

 

? Producing

Resource

 

2

? 2.2 Moz Au reserves

?

 

1.7 Moz Au resources

Current Offer

?

 

C$16.5 Million Cash

?

 

1 Million Warrants

?

 

Transaction to close in November 2012

1

 

Yamana disclosures. Note: Yamana quotes gold production in Gold Equivalent Ounces (“GEO”) based