Bad news for Yamana Resources (TSE).
Australian-based MIM Holdings has informed the junior that the Barda Gonzalez red-bed copper property in Neuquen, Argentina, does not meet its cut-off criterion of 100 million tons of reserves. Subsequently, the purchase option agreement has been terminated. However, the senior will continue to drill other targets in the Neuquen basin.
MIM arrived at its decision following the drilling of 180 reverse-circulation holes, bringing to 249 the total number of holes completed at Barda Gonzalez. The recent program provided information on ore grades, stripping ratios and sulphuric acid consumption. In addition, studies indicated the property would not be economic.