Acquisition:
2015 / 10 / 27
Agreement:
Stream
Terms:
20% Ag up to a maximum of 1.2 Mozs of silver annually, until 7.0 Mozs are delivered; then
9% Ag for the life of the mine
Ongoing Payment:
30% of spot
The Cerro Moro silver-gold deposit is located within the Deseado Massif approximately 70 km southwest of the coastal port city of Puerto Deseado in the Santa Cruz province of Argentina. Cerro Moro contains a number of high-grade epithermal gold and silver deposits, some of which will be mined via open pit and some via underground mining methods. The plant has the capacity to process 1,000 tpd and consists of a crushing, grinding and flotation circuit.
The Proven and Probable Reserve estimate as of June 30, 2023 is 1.2 Mt with an average grade of 276 g/t silver for 11.3 Moz and 7.4 g/t gold for 301,900 ounces. The Reserve NSR cut-off values are $210.71/t (underground) and $124.72/t (open-pit) based on $1,600/oz gold and $19.00/oz silver.
On June 26, 2018, Yamana declared commercial production and in January 2019, Sandstorm began purchasing silver ounces from Cerro Moro. Following completion of the Yamana acquisition on March 31, 2023, production for the remainder of the year was 3.55 Moz of silver and 84.6 koz of gold. In 2023, Pan American invested $25.4 million in sustaining capital, primarily on near-mine exploration, underground mine development and mine equipment replacements and refurbishments.
