Technical Report on the Chapadamine , Goiás State, Brazil

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Technical Report on the Chapadamine , Goiás State, Brazil YAMANA GOLD INC. TECHNICAL REPORT ON THE CHAPADAMINE , GOIÁS STATE, BRAZIL NI 43-101 Report Qualified Persons: Hugo M. Miranda, ChMC (RM) Chester M. Moore, P.Eng. Avakash Patel, P.Eng. Luiz E. C. Pignatari, ChMC(RM) March 2 1, 201 8 RPA55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I T + 1 (416) 947 0907 www.rpacan.com Report Control Form Document Title Technical Report on the Chapada Mine, Goiás State, Brazil Client Name & Address Mr. Luke Buchanan Director, Operations Yamana Gold Inc. Royal Bank Plaza, North Tower 200 Bay Street, Suite 2200 Toronto, Ontario M5J 2J3 Document Reference Status & FINAL Project #2941 Issue No. Version Issue Date March 21, 2018 Lead Authors Hugo Miranda (Signed) Chester Moore (Signed) Avakash Patel (Signed) Luiz E. C. Pignatari (Signed) Peer Reviewer Deborah McCombe (Signed) Project Manager Approval Chester Moore (Signed) Project Director Approval Deborah McCombe (Signed) Report Distribution Name No. of Copies Client RPA Filing 1 (project box) Roscoe Postle Associates Inc. 55 University Avenue, Suite 501 Toronto, ON M5J 2H7 Canada Tel: +1 416 947 0907 Fax: +1 416 947 0395 [email protected] www.rpacan.com TABLE OF CONTENTS PAGE 1 SUMMARY ...................................................................................................................... 1-1 Executive Summary ....................................................................................................... 1-1 Economic Analysis ......................................................................................................... 1-6 Technical Summary ....................................................................................................... 1-6 2 INTRODUCTION ............................................................................................................. 2-1 3 RELIANCE ON OTHER EXPERTS ................................................................................. 3-1 4 PROPERTY DESCRIPTION AND LOCATION ................................................................ 4-1 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................................... 5-1 6 HISTORY ........................................................................................................................ 6-1 7 GEOLOGICAL SETTING AND MINERALIZATION .......................................................... 7-1 Regional Geology .......................................................................................................... 7-1 Local Geology ................................................................................................................ 7-5 Property Geology ......................................................................................................... 7-11 Mineralization .............................................................................................................. 7-18 8 DEPOSIT TYPES ............................................................................................................ 8-1 9 EXPLORATION ............................................................................................................... 9-1 10 DRILLING .................................................................................................................... 10-1 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................ 11-1 Quality Assurance and Quality Control ........................................................................ 11-6 12 DATA VERIFICATION ................................................................................................. 12-1 13 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................... 13-1 Suruca ......................................................................................................................... 13-7 14 MINERAL RESOURCE ESTIMATE ............................................................................. 14-1 Database ..................................................................................................................... 14-2 Geological interpretation .............................................................................................. 14-4 Raw Assays ............................................................................................................... 14-10 Compositing and Exploratory Data Analysis .............................................................. 14-10 Outlier Treatment ....................................................................................................... 14-12 Density ...................................................................................................................... 14-13 Variography ............................................................................................................... 14-14 Block Model ............................................................................................................... 14-18 Grade Interpolation .................................................................................................... 14-18 Block Model Validation ............................................................................................... 14-20 Cut-off Grade and Optimized Pit Shell ....................................................................... 14-26 Classification ............................................................................................................. 14-27 Yamana Gold Inc. – Chapada Mine, Project #2941 Technical Report NI 43-101 – March 21, 2018 Page i www.rpacan.com Mineral Resources ..................................................................................................... 14-30 15 MINERAL RESERVE ESTIMATE ................................................................................ 15-1 Dilution And Ore Loss .................................................................................................. 15-2 Cut-off Grade ............................................................................................................... 15-2 Reconciliation .............................................................................................................. 15-3 16 MINING METHODS ..................................................................................................... 16-1 Ground Conditions/Slope Stability ................................................................................ 16-1 Mine Design ............................................................................................................... 16-11 Life of Mine Plan ........................................................................................................ 16-14 Waste Rock ............................................................................................................... 16-16 Mine Equipment ......................................................................................................... 16-17 Manpower .................................................................................................................. 16-20 Mine Infrastructure ..................................................................................................... 16-20 17 RECOVERY METHODS .............................................................................................. 17-1 Sulphide Ore ................................................................................................................ 17-1 Oxide Ore .................................................................................................................... 17-5 18 PROJECT INFRASTRUCTURE .................................................................................. 18-1 19 MARKET STUDIES AND CONTRACTS ...................................................................... 19-1 Markets and Contracts ................................................................................................. 19-1 20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ......................................................................................................................................... 20-1 Project Permitting and Environmental Status ............................................................... 20-1 Social or Community Requirements ............................................................................. 20-3 Mine Closure ............................................................................................................... 20-3 21 CAPITAL AND OPERATING COSTS .......................................................................... 21-1 Operating Costs ........................................................................................................... 21-2 Manpower .................................................................................................................... 21-2 22 ECONOMIC ANALYSIS............................................................................................... 22-1 23 ADJACENT PROPERTIES .......................................................................................... 23-1 24 OTHER RELEVANT DATA AND INFORMATION ........................................................ 24-1 25 INTERPRETATION AND CONCLUSIONS .................................................................. 25-1 26 RECOMMENDATIONS................................................................................................ 26-1 27 REFERENCES ...........................................................................................................
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