Paso Yobái
Capital of gold and yerba mate: a yerba-growing colony transformed by a 1990s gold rush.
What it is
Paso Yobái is one of Paraguay's most unusual places: a yerba mate district where, since the mid-1990s, small-scale gold mining has reshaped both the economy and the landscape. In its rural communities, yerba plantations, small mining operations and an industrial concession sit side by side. For visitors, the best time is August, with the patron-saint feast on the 15th and the Itaju Festival, famous for raffling off chests of rocks containing gold nuggets. It's also a window onto the environmental dilemmas of mining in the country.
What to see and do
- Itaju Festival (August), with folk dancing and a raffle of gold-bearing rocks
- Patron-saint feast of Our Lady of the Assumption (August 15), with a procession, choir contest and torín (a playful mock bullfight)
- A landscape of yerba plantations and rural settlements
- Buying yerba mate from local growers
Did you know…?
Itaju means gold in Guaraní — literally, 'yellow stone.'
Local lore says the gold was discovered by chance by an Ecuadorian tourist visiting a company in the area.
The district has thousands of hectares of yerba plantations and several well-known yerba mate brands.
History
It was founded on April 20, 1923, as an agricultural colony by Swiss businessman Jorge Naville, on land previously inhabited by the Mbya Guaraní. Yerba mate drove the local economy for decades, hauled to Villarrica in ox carts. In the mid-1990s gold was discovered by chance and artisanal mining took off; today it employs about a quarter of the population, amid heated debate over the use of mercury and cyanide.
Tips
- There are no formal tourist visits to the mines: don't enter tunnels or processing areas, where mercury and cyanide are used.
- Roads to the rural communities are dirt; ask about conditions if it has rained.
- For the August festival, book accommodation in Independencia or Villarrica.
Best time: August, for the patron-saint feast on the 15th and the Itaju Festival. It's winter: mild days and cool nights.
What to try
- Mate or tereré (cold-brewed yerba mate) made with locally grown yerba
Activities
Festivals and events here
Itaju (Gold) Festival of Paso Yobái
In the “gold capital,” the festival raffles off chests of rocks hiding gold nuggets, amid dances and music.
FestivalPaso Yobái, Guairá15AugNuestra Señora de la Asunción · Paso Yobái
In the days before, the town holds the National Itaju Festival (itaju means «gold» in Guaraní), with a raffle of gold nuggets from the local mines.
Patron saintPaso Yobái, GuairáNearby
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Researched and reviewed in September 2026 with 4 sources. A second reviewer checked dates, coordinates and lodging. Hours and prices may change.