UPDATE 1-Yamana Gold to build gold-silver mine in Argentina

Wed Feb 11, 2015 6:21pm EST
 
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(Adds more project details)

Feb 11 (Reuters) - Yamana Gold Inc will go ahead with the construction of a mine at its Cerro Moro gold and silver project in Argentina, the Toronto-based gold miner said on Wednesday.

The cost to build and sustain the mine is expected to be $398 million, Yamana said in a statement.

Production is expected to begin in the second half of 2017, it said adding that under the current plan, the mine will produce on average 102,000 ounces of gold and 5 million ounces of silver a year.

All-in sustaining costs, the gold industry's benchmark cost metric, are expected to be between $547 to $557 per ounce of gold and $7.60 to $7.80 per ounce of silver over the life of the mine, Yamana said.

The announcement comes a day after Yamana rival Kinross Gold Corp said it will not proceed with a $1.6 billion expansion of its Tasiast mine in Africa because of the current weak and volatile price of gold. (Reporting by Nicole Mordant in Vancouver; Editing by Grant McCool and Alan Crosby)