TIDMYAU
YAMANA GOLD PROVIDES UPDATE ON 2010 EXPLORATION
TORONTO, Nov. 29 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today
announced an exploration update for its Mercedes and Pilar projects, the Pampa
Augusta Victoria regional discovery at its El Penon mine as well as exploration
results at its Jacobina and Fazenda Brasileiro mines. The Company's Mercedes
and Pilar mines are currently under construction and production will commence
in 2012 and 2013, respectively, as previously announced.
Summary:
Mercedes, Mexico
Results: Expansion of the new Diluvio zone within the Lupita
vein system and extension of the Lagunas zone, a
bonanza grade area in the Barrancas vein system
Significance: Results support significant increases in mineral
resources and opportunity for development of multiple
vein structures
Opportunity: Mineral resources expansion and the availability of
ore from multiple vein structures will allow the
Company to evaluate opportunities for production
increases above original feasibility study levels
Pilar, Brazil
Results: Deposit continues to be open along strike and down dip
with a further down dip extension that almost doubles
dip length from 450 to 850 metres. In addition, a step
out hole confirms mineralization two kilometres from
known mineral resource
Significance: Results support significant increases in mineral
resources
Opportunity: Mineral resource expansion will extend mine life and
allow the Company to evaluate opportunities for
production increases above original feasibility study
levels
Fazenda Brasileiro, Brazil
Results: Increase in size and confirmation of continuity of the
Lagoa do Gato deposit and CLX2 deposit
Significance: Results support an increase in mineral resources
Opportunity: Extension of mine life at the level of at least
current production requiring modest development work
primarily as CLX2 is located at the footwall of
existing mine workings
Jacobina, Brazil
Results: More extensive mineralization at Canavieras and Morro
do Vento at better grades than reserve grade
Significance: Higher grade mineralized zones are expected to
increase overall mineral resources and mineral
reserves at higher than current reserves grade
Opportunity: Higher grade ore would increase production without
requiring any change to plant design or increase in
plant capacity
Pampa Augusta Victoria, El Penon, Chile
Results: Extension of Victoria and Victoria Este vein systems,
discovered earlier this year, which form part of the
Pampa Augusta Victoria vein structure at El Penon
along with the discovery of the "Elizabeth system", a
sub parallel vein structure which has been traced for
170 metres
Significance: Results will support an initial mineral resource
estimate in a completely new area for discovery
Opportunity: Further supports a regional exploration effort at El
Penon and creates the possibility for additional ore
bodies within hauling distance of the El Penon mine
"2010 has been an excellent year for exploration success at Yamana. For the
full year, we will have spent over $80 million," commented Darcy Marud, Senior
Vice President, Exploration. "The results highlighted here are those that we
believe will have the biggest impact on the overall increases to mineral
resources and mineral reserves expected this year. We have also had other
successes which will contribute to future growth of mineral resources and will
create numerous opportunities for production increases and expansions. Our 2011
program will again be aggressive as we continue to pursue known targets and
identify new mineral resources."
Mercedes
--------
Mercedes is Yamana's development stage project located in Sonora, Mexico. The
project is currently under construction and is expected to commence production
in 2012.
Mercedes is a gold-silver, low-sulphidization vein/stockwork system.
Mineralization at Mercedes is contained in four main target areas: Mercedes,
Barrancas, Klondike and Lupita (see Figure 1). A total 40,450 metres of
drilling has been completed in 141 holes in 2010. There are currently four
drill rigs on site.
Following the significant mineral resource increase at Mercedes in 2009, the
Company has undertaken an extensive exploration program in 2010 advancing
concurrently with mine construction with the following core objectives:
1) Upgrade of mineral resources and mineral reserves in areas of
known mineralization and existing ore bodies with infill drilling
2) Increase mineral resources and mineral reserves with step-out
drilling around areas of known mineralization
3) Discovery of new areas of mineralization
The Company was successful in achieving all of these objectives, primarily at
the Barrancas and Lupita vein structures. Drilling efforts are detailed below.
Barrancas Vein - Lagunas Zone
A total of 45 infill holes have been completed in the Lagunas zone (formerly
Barrancas Norte) and the new Lagunas northwest extension area, covering a
strike length of 400 metres and a vertical range of up to 250 metres (see
Figure 2a). Drilling has confirmed the high grade intercepts first discovered
in 2009, and expanded the dimensions of the vein zone.
Infill Program
The drill program is expected to convert mineral resources to mineral reserves.
The best results from the infill drilling include the intercepts below at a
cutoff of 2.0 grams per tonne gold equivalent.
-------------------------------------------------------------------------
Hole Width (metres) Gold grams/tonne Silver grams/tonne
-------------------------------------------------------------------------
M10-547D: 15.24 12.87 59.8
-------------------------------------------------------------------------
M10-556D: 1.45 57.80 178.0
-------------------------------------------------------------------------
And 6.02 11.01 70.7
-------------------------------------------------------------------------
M10-557D: 4.88 20.58 31.4
-------------------------------------------------------------------------
M10-572D: 20.3 8.74 57.3
-------------------------------------------------------------------------
A complete table of results to date can be found at www.yamana.com.
Northwest Extension Program
Step-out drilling on the northwest extension of Lagunas has encountered local
bonanza-grade gold values in two parallel vein zones. These zones are open on
strike to the northwest and at depth (see Figure 2a). These newly discovered
mineralized zones are expected to add additional mineral resources. The best
results include the intercepts below at a cutoff of 2.0 grams per tonne gold
equivalent.
-------------------------------------------------------------------------
Hole Width (metres) Gold grams/tonne Silver grams/tonne
-------------------------------------------------------------------------
M10-581D: 1.53 128.81 280.3
-------------------------------------------------------------------------
M10-584D 6.09 13.26 57.9
-------------------------------------------------------------------------
And 3.25 37.48 110.3
-------------------------------------------------------------------------
A complete table of results can be found at www.yamana.com.
Barrancas Vein - Centro Zone
A total of 34 additional holes were drilled to complete 30-metre infill
drilling of the Centro Zone, covering a strike length of 270 metres and
vertical range up to 225 metres (see Figure 2a).
Best results include the intercepts below at a cutoff of 2.0 grams per tonne
gold equivalent.
-------------------------------------------------------------------------
Hole Width (metres) Gold grams/tonne Silver grams/tonne
-------------------------------------------------------------------------
M10-519D: 16.88 4.68 57.7
-------------------------------------------------------------------------
M10-521D: 5.18 10.85 80.4
-------------------------------------------------------------------------
M10-535D: 3.48 10.06 50.1
-------------------------------------------------------------------------
M10-538D: 3.79 5.68 34.7
-------------------------------------------------------------------------
And 4.10 7.30 60.5
-------------------------------------------------------------------------
A complete table of results can be found at www.yamana.com.
Lupita Vein - Diluvio Zone
The Diluvio zone is a 2010 discovery made by the Company within the Mercedes
project area. As originally announced on August 4, 2010, a 13 hole widely
spaced drill program completed earlier in the year intersected a broad zone of
multi-stage low sulphidation carbonate-quartz-adularia veins and stockworks
ranging from 10 to 150 metres in true width. This zone is approximately 600
metres northeast of the known mineral resource in the Lupita area.
Drilling of the Diluvio zone in the Lupita vein has continued with eight new
drill holes completed further to the northeast along strike. The goal of this
additional drilling was to define the mineralized zone on a 60 x 60 metre drill
grid (see Figure 2b). All holes drilled to-date continue to intersect broad
zones of high and low angle multi-stage veins and stockwork hosted within
lithic tuff and andesite flows. Preliminary results indicate the extension of
strike length of the Diluvio zone by approximately 50 metres along strike. The
zone is still open down-dip and to the northwest. Oriented core is being
measured in order to determine orientations on the multitude of high and low
angle vein zones that have been intersected in the Diluvio zone. This drill
program will likely result in an increase to the overall mineral resources in
the Lupita vein structure. Assay results have been received for the upper third
of hole L10-076D, which returned 4.66 metres at 12.06 grams per tonne gold and
63.8 grams per tonne silver from 194.22 to 198.88 metres. All other assays are
still pending.
Additional exploration results from the 2010 program are expected at Mercedes
in the first quarter of 2011, along with an update on the development of the
project.
Pilar
-----
Pilar is Yamana's development stage project located in Goias, Brazil
approximately 80 kilometres from the Company's Chapada mine. A construction
decision was made in 2010 and the project is currently in the permitting stage
with production expected to begin in 2013.
Pilar is an orogenic gold deposit hosted in graphite and chlorite schists.
Three main mineralized areas have been outlined along a strike length of
approximately four kilometres. They are from south to north, Jordino, Ogo and
Tres Buracos. The main deposit, Jordino, has been previously drilled
continuously along a strike length of two kilometres and a dip extension in
excess of 400 metres. Three main, structurally controlled ore bodies, HG1, HG2
and HG3, have been defined to date.
The Company has undertaken an aggressive exploration program concurrently with
mine development which began this year. The objective of the 2010 exploration
program at Pilar was threefold:
1) to infill drill the areas containing mineral reserves to support
mine development
2) to infill drill areas containing mineral resources in order to
upgrade to mineral reserves
3) to extend the known areas of mineralization
During 2010, the focus of exploration was on extending the main Jordino
mineralization down dip and to that end, 30,000 metres of diamond drilling has
been completed this year (see Figure 3). In the north portion of Jordino,
mineralization has been confirmed at over a 900 metre extent with significant
gold grades (see Figure 4). This down dip extension is currently almost double
the dip extent of the current mineral resource implying significant exploration
upside and mineral resource growth. The deepest hole in this northern
extension, JD-357, intersected 0.48 metres of 9.3 grams per tonne gold (g/t Au)
at a depth of 508.02 metres indicating that mineralization remains open.
Holes JD-362 and JD-365 returned significant intersections indicating that
mineralization remains open to the south. Hole JD-367, the northernmost hole
intersected all three mineralized horizons, HG1, HG2 and HG3 establishing that
the Jordino deposit remains open northwards. Results are detailed in the table
below.
-------------------------------------------------------------------------
Hole Depth Width (metres) Gold grams/tonne Horizon
-------------------------------------------------------------------------
JD-357: 508.02 0.48 9.3 HG1
-------------------------------------------------------------------------
JD-362: 443.09 6.91 7.48 HG2
-------------------------------------------------------------------------
and 467.60 0.50 2.03 HG1
-------------------------------------------------------------------------
JD-365: 364.00 1.00 6.42 HG2
-------------------------------------------------------------------------
and 391.00 1.00 4.29 HG1
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JD-367 35.93 0.51 5.33 HG3
-------------------------------------------------------------------------
and 123.03 0.53 16.30 HG2
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and 150.0 1.17 1.53 HG1
-------------------------------------------------------------------------
In addition, an exploration step out hole JD364 was drilled two kilometres down
dip from existing mineralization and intersected the HG1 and HG2 mineralized
zones at a vertical drill depth of greater than 800 metres. The best results
from JD364 were 0.5 metres of 6.2 g/t Au in HG1 and 0.5 metres of 4.58 g/t Au
in HG2 (see Figure 3).
This step out hole has demonstrated mineralization down a dip extent of at
least two kilometres which is more than three times the current strike length
of the current mineral resource. Drilling continues on this target to further
confirm the down dip extent through infill drilling.
These results are expected to increase and upgrade existing mineral resources
and mineral reserves as well as adding additional mineral resources. An updated
mineral resource estimate will be completed for the 2010 year end.
Fazenda Brasileiro
------------------
The Fazenda Brasileiro mine is one of Yamana's underground mines which is
located in northeast Brazil and currently produces approximately 70 - 80,000
ounces of gold a year. The mine has been in operation for over 20 years and is
known to have produced historically at rates of up to 150,000 ounces of gold
per year.
In 2009, the Company undertook a comprehensive exploration program to find new
areas of mineralization at Fazenda Brasileiro and two significant mineralized
zones have been discovered: Lagoa do Gato and more recently, CLX2 (see Figure
5).
Lagoa do Gato and CLX2 represent potential higher grade sources of ore for the
mill.
CLX2
The discovery of CLX2 is significant for the following reasons:
(a) CLX2 is at the footwall contact of the principal area being mined
at Fazenda Brasiliero and is therefore easily and immediately
accessible from existing mine workings and capital requirements
for development are expected to be very modest
(b) The strike length is currently 500 metres (see Figure 6) and it
is completely open with only 15 per cent of the area having been
drill tested
(c) Widths and grades are better than areas currently being mined and
are comparable to historical widths and grades of previous ore
bodies that produced well in excess of 100,000 ounces per year
and as much as 150,000 ounces per year
(d) CLX2 represents the best and most immediate opportunity for an
increase in grades, increase in mineral resources, extension of
mine life and possibly production increases at Fazenda Brasiliero
Best results include the intercepts below.
-------------------------------------------------------------------------
Length Gold
Hole From To (metres) grams/tonne Structure/ML
-------------------------------------------------------------------------
FSS-935 155 156 1 4.97 Canto
-------------------------------------------------------------------------
FSS-937 136.5 138.45 1.95 7.32 CLX 2
-------------------------------------------------------------------------
FSS-940 121.6 123.8 2.2 2.35 Canto
-------------------------------------------------------------------------
FSS-942 111 115.2 4.2 2.56
--------------------------------------------------------- Canto
incl. 114 115.2 1.2 7.42
-------------------------------------------------------------------------
FSS-945 83.8 84.6 0.8 4.93 CLX 2
-------------------------------------------------------------------------
FSS-945 98 99 1 2.84 Canto
-------------------------------------------------------------------------
FSS-946 154.8 162.1 7.3 6.87 CLX 2
-------------------------------------------------------------------------
FSS-948 6 7 1 6.26 CLX 2
-------------------------------------------------------------------------
FSS-952 139.45 154.7 15.25 4.59
--------------------------------------------------------- CLX 2
Incl. 142.5 146.5 4 7.21
-------------------------------------------------------------------------
FSS-953 170.6 172.4 1.8 8.37 CLX 2
-------------------------------------------------------------------------
FSS-957 152.9 163 11 7.48
---------------------------------------------------------
incl. 152.9 156.1 3.2 21.79 CLX 2
---------------------------------------------------------
incl. 160 163 3 6.42
-------------------------------------------------------------------------
FSS-958 161 169 8 4.17 CLX 2
-------------------------------------------------------------------------
FSS-960 168 170.85 2.85 10.4 CLX 2
-------------------------------------------------------------------------
FSS-965 164 174 10 8.76 CLX 2
-------------------------------------------------------------------------
FSS-1024 152.1 153.4 1.3 1.82 Canto
-------------------------------------------------------------------------
FSS-1024 163 164 1 1.51 Canto
-------------------------------------------------------------------------
FSS-1025 95 96 1 24.00 CLX 2
-------------------------------------------------------------------------
FSS-1027 31 35.15 4.15 2.25 CLX 1
-------------------------------------------------------------------------
FSS-1027 170 172 2 1.68 CLX 2
-------------------------------------------------------------------------
FSS-1029 160.3 165.35 5.05 6.65
--------------------------------------------------------- CLX 2
incl. 163.05 164.2 1.15 21.6
-------------------------------------------------------------------------
A complete table of results to date can be found at www.yamana.com
Lagoa Do Gato
The Lagoa do Gato deposit was also discovered in 2009 and to date, just one
quarter of the mineralized trend has been drilled. During the first half of
2010 the focus of exploration was on converting inferred mineral resources to
indicated mineral resources and only a few extension holes have been completed
(see Figure 7). Both infill and extension drilling of 8,000 metres to date,
confirm the continuity of mineralization.
Lagoa do Gato is characterized by mineralized ore shoots within a 10 kilometre
long by 400 metre wide shear zone at the northwestern extension of the Weber
Belt.
Best results include the intercepts below.
-------------------------------------------------------------------------
Length Gold
Hole From To (metres) grams/tonne Location
-------------------------------------------------------------------------
FLG-050 42 43 1 70.7 SW Extension
-------------------------------------------------------------------------
FLG-059 179.2 185 5.8 2.3 Central Extension
-------------------------------------------------------------------------
incl. 183 185 2 4.37 Central Extension
-------------------------------------------------------------------------
FLG-059 258 261 3 3.19 Central Extension
-------------------------------------------------------------------------
incl. 259 260 1 6.69 Central Extension
-------------------------------------------------------------------------
FLG-059 351 354 3 2.19 Central Extension
-------------------------------------------------------------------------
FLG-063 122.85 126 3.15 5.28 Infill
-------------------------------------------------------------------------
incl. 124 125 1 14.95 Infill
-------------------------------------------------------------------------
FLG-063 136.5 143 6.5 1.56 Infill
-------------------------------------------------------------------------
FLG-066 141 144 3 4.37 Infill
-------------------------------------------------------------------------
FLG-066 159 164 5 3.12 Infill
-------------------------------------------------------------------------
incl. 159 160 1 9.68 Infill
-------------------------------------------------------------------------
FLG-066 200 203 3 3.01 Infill
-------------------------------------------------------------------------
FLG-067 187 188 1 3.69 Infill
-------------------------------------------------------------------------
A complete table of results to date can be found at www.yamana.com.
Further Exploration
The Weber Belt containing the CLX2 zone has been identified as having
significant additional potential. There remains 10 kilometres of prospective
stratigraphy and structure to be drilled.
Jacobina
--------
Jacobina is located in northeast Brazil and currently produces approximately
100,000 - 120,000 ounces of gold per year.
The 2010 exploration program at Jacobina has been focused primarily on
extending and upgrading current mineral resources and identifying and
delineating higher grade mineral resources primarily at the Morro do Vento and
Canavieiras areas in order to increase the average feed grade to the mill (see
Figure 8).
A total of 13,000 metres in 18 holes have been completed year-to-date,
including infill and step out drilling. Initial results indicate that the
exploration effort has been very successful in achieving its goals.
Drilling at both Morro do Vento and Canavieiras will continue through the
fourth quarter of 2010 and into 2011. In 2011, efforts will focus on converting
the majority of inferred mineral resources at Canavieiras to mineral reserves.
The Canavieiras deposit and the Main Reef zone in the Morro do Vento deposit
are the highest grade mineralized zones which have been discovered to date in
the mining complex and represent the most significant near mine targets likely
to increase the grade of the mineral resources and mineral reserves.
Both Canavieiras and Morro do Vento drill results show grades in intersections
that are substantially higher than, in some case a multiple of, overall reserve
grade at Jacobina of 2.14 g/t. Much of the 2010 exploration focus has been on
these areas.
Canavieiras
-----------
Drilling at the Canavieiras deposit has intersected substantial widths of very
high grade mineralization especially in the LU reefs as highlighted by holes
CANIF02, CANIF04, CANIF05, CANIF06 and CANIF07 (see Figure 9).
-------------------------------------------------------------------------
From To True Thickness Gold
Hole (metres) (metres) (metres) grams/tonne Reef/Unity
-------------------------------------------------------------------------
CANIF02 337.00 340.78 2.17 2.14 MSPC/LVL
-------------------------------------------------------------------------
CANIF02 357.00 361.50 2.58 4.50 MSPC/LVL
-------------------------------------------------------------------------
CANIF02 436.50 438.20 0.98 3.44 MU/LU
-------------------------------------------------------------------------
CANIF02 458.80 464.00 2.98 5.93 MU/LU
-------------------------------------------------------------------------
CANIF04 278.44 280.40 1.26 1.45 HOLANDEZ
-------------------------------------------------------------------------
CANIF04 362.94 368.61 3.64 15.09 HOLANDEZ
-------------------------------------------------------------------------
CANIF04 408.00 413.50 3.54 1.50 MSPC
-------------------------------------------------------------------------
CANIF04 incl. 408.00 409.50 0.96 2.60 MSPC
-------------------------------------------------------------------------
CANIF04 423.00 426.00 1.93 2.40 LVL
-------------------------------------------------------------------------
CANIF04 475.75 485.13 6.03 4.94 MU
-------------------------------------------------------------------------
CANIF04 510.00 519.00 5.79 10.58 LU
-------------------------------------------------------------------------
CANIF05 346.49 349.50 1.60 2.17 MSPC
-------------------------------------------------------------------------
CANIF05 371.00 376.11 2.71 2.88 LVL
-------------------------------------------------------------------------
CANIF05 392.50 395.50 1.59 6.93 LVL
-------------------------------------------------------------------------
CANIF05 434.00 442.00 4.24 1.34 MU/QTO
-------------------------------------------------------------------------
CANIF05 466.81 470.00 1.69 2.27 MU/QTO
-------------------------------------------------------------------------
CANIF05 478.38 479.52 0.60 3.33 MU
-------------------------------------------------------------------------
CANIF05 495.00 509.40 7.63 5.68 LU
-------------------------------------------------------------------------
CANIF05 568.13 574.57 3.41 6.63 SPC
-------------------------------------------------------------------------
CANIF06 437.00 440.00 1.81 4.33 MSPC
-------------------------------------------------------------------------
CANIF06 449.64 459.50 5.93 1.73 LVL
-------------------------------------------------------------------------
CANIF06 475.00 480.00 3.01 3.78 LVL
-------------------------------------------------------------------------
CANIF06 502.40 514.50 7.28 5.31 MU
-------------------------------------------------------------------------
CANIF06 528.00 536.00 4.81 11.00 LU
-------------------------------------------------------------------------
CANIF07 339.00 344.00 3.66 1.52 MSPC
-------------------------------------------------------------------------
CANIF07 349.50 357.00 5.49 2.64 MSPC
-------------------------------------------------------------------------
CANIF07 400.00 407.50 5.49 2.45 LVL
-------------------------------------------------------------------------
CANIF07 415.00 431.63 12.16 2.66 MU
-------------------------------------------------------------------------
CANIF07 incl. 415.00 419.64 3.39 4.19 MU
-------------------------------------------------------------------------
CANIF07 442.00 450.30 6.07 5.91 LU
-------------------------------------------------------------------------
CANIF07 incl. 444.50 448.70 3.07 8.48 LU
-------------------------------------------------------------------------
CANIF11 310.50 337.15 13.73 3.30 HOLANDEZ
-------------------------------------------------------------------------
CANIF11 incl. 319.75 337.15 8.96 4.61 HOLANDEZ
-------------------------------------------------------------------------
These intersections will significantly add to the 2010 mineral resource.
Morro do Vento
--------------
At Morro do Vento the most significant results have been intersected in the
Main Reef (see Figure 10). The Main Reef was the principal mine exploited by
past owners and remains open to depth and along strike. Drill holes MVTEX03 and
MVTEX06 both intersected the Main reef with wide intersections of high grade
gold. Additional drilling will be completed to better define the ultimate size
potential of the Main Reef deposit.
-------------------------------------------------------------------------
True
From To Thickness Gold
Hole (metres) (metres) (metres) grams/tonne Reef/Unity
-------------------------------------------------------------------------
MVTEX01 61.00 72.00 9.43 8.22 ULTRAMAFIC ROCKS
-------------------------------------------------------------------------
MVTEX01 400.70 404.60 3.16 1.27 MU/LU
-------------------------------------------------------------------------
MVTEX03 736.00 738.31 2.30 6.90 MAIN REEF
-------------------------------------------------------------------------
MVTEX04 361.82 369.00 6.45 2.04 MU/LU
-------------------------------------------------------------------------
MVTEX04 378.50 381.00 2.25 2.24 MU/LU
-------------------------------------------------------------------------
MVTEX05 13.00 14.00 0.42 3.45 ULTRAMAFIC ROCKS
-------------------------------------------------------------------------
MVTEX06 485.40 489.50 4.06 1.97 HANGWALL
-------------------------------------------------------------------------
MVTEX06 497.00 502.54 5.49 7.27 MAIN REEF
-------------------------------------------------------------------------
Pampa Augusta Victoria, El Penon
--------------------------------
The exploration at Yamana's El Penon mine in northern Chile was expanded in
2010 to include a regional exploration program in addition to mine and
near-mine exploration efforts. In the first of these regional exploration
programs, the Company discovered the Pampa Augusta Victoria vein structure
within 30 kilometres of the El Penon mine.
El Penon currently produces approximately 400,000 - 420,000 gold equivalent
ounces per year and has a long track record of replacement of ounces and
mineral resource expansion. While the focus of the 2010 exploration program at
El Penon was focused on the North Block and existing vein structures near the
mine in order to replace mined ounces and increase mineral resources, the focus
of the regional exploration effort was to identify new mineralization within
hauling distance of the existing operation.
During 2010, there have been 91 reverse circulation drill holes and three
diamond drill holes totaling 38,835 metres completed that focused on extending
both the Victoria and Victoria Este vein systems within the Pampa Augusta
Victoria zone.
Mineralization is structurally controlled and consists of low sulphidation,
epithermal quartz veins, stockworks and hydrothermal breccias, similar to other
ore bodies at El Penon. These rocks are exposed in a structurally controlled
window that is approximately 400 square kilometres in surface area.
To date, the Victoria vein has been traced along strike for approximately 900
metres and 250 metres down dip. The Victoria Este vein system consists of three
different sub parallel structures with variable widths of between one to four
metres and a drill defined strike length of 500 metres. Neither the Victoria
nor the Victoria Este veins outcrop and they are still open in all directions.
A new sub parallel vein system, Elizabeth, was discovered in September 2010.
Drill holes DAV0032, DAV0089, DAV0090 and DAV0091 (Figure 11) intersected a new
mineralized structure 200 metres east of the Victoria Este vein system.
Mineralization is associated with veins, veinlets and hydrothermal breccias
hosted in andesites and, to date, has been traced along 170 metres of strike
length with vein widths of between one and five metres. Additional drilling is
underway to better define the horizontal and vertical dimensions of this new
discovery.
The best results received to date at Elizabeth include:
-------------------------------------------------------------------------
Gold Silver
Drill Hole From To Length grams/ grams/
Hole type (metres) (metres) (metres) tonne tonne Vein
-------------------------------------------------------------------------
DAV0032 RC 234 236 2 1.96 652.0 Elizabeth System
-------------------------------------------------------------------------
DAV0032 RC 322 324 2 0.13 404.0 Elizabeth System
-------------------------------------------------------------------------
DAV0089 RC 306 312 6 6.33 952.0 Elizabeth System
-------------------------------------------------------------------------
DAV0090 RC 224 226 2 3.62 1179.0 Elizabeth System
-------------------------------------------------------------------------
DAV0091 RC 434 442 8 4.94 712.0 Elizabeth System
-------------------------------------------------------------------------
The Company's efforts at Pampa Augusta Victoria have been significant and as a
result, new mineralized structures have been discovered. This district has
great potential given the likelihood of these structures to be extended in all
directions. Pampa Augusta Victoria is significant given the regional nature of
the discovery and the potential positive impact to current production levels
and mine life at El Penon.
Other Exploration
The 2010 exploration program also includes work at the Suruca gold area of the
Chapada mine, where a feasibility level study has been undertaken, near pit
drilling at the main Chapada pit, near mine exploration at El Penon,
exploration at Minera Florida, and Gualcamayo primarily in relation to the
extention of QDD Lower West, as well as other green fields exploration. Further
results from these programs are expected early in 2011.
Quality Assurance and Quality Control
Yamana incorporates a rigorous Quality Assurance and Quality Control program
for all of its mines and exploration projects which conforms to industry Best
Practices as outlined by the CSE and National Instrument 43-101. This includes
the use of independent third party laboratories and the use of professionally
prepared standards and blanks and analysis of sample duplicates with a second
independent laboratory.
Qualified Persons
Sergio Brandao, P. Geo., Director of Exploration, Brazil for Yamana Gold Inc.
has reviewed and confirmed the scientific and technical information contained
within this press release relating to Jacobina, Minera Fazenda Brasileiro and
Pilar and serves as the Qualified Person as defined in National Instrument
43-101.
Marcos Valencia, P. Geo., Manager of Resource and Geological Modelling for
Yamana Gold Inc. has reviewed and confirmed the scientific and technical
information contained within this press release relating to Minera Florida and
Pampa Augusta Victoria and serves as the Qualified Person as defined in
National Instrument 43-101.
Mark Hawksworth, P. Geo., Director of Exploration, Mercedes for Yamana Gold
Inc. has reviewed and confirmed the scientific and technical information
contained within this press release relating to Mercedes and serves as the
Qualified Person as defined in National Instrument 43-101.
About Yamana
Yamana is a Canadian-based gold producer with significant gold production, gold
development stage properties, exploration properties, and land positions in
Brazil, Argentina, Chile, Mexico and Colombia. Yamana plans to continue to
build on this base through existing operating mine expansions, throughput
increases, development of new mines, the advancement of its exploration
properties and by targeting other gold consolidation opportunities with a
primary focus in the Americas.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release
contains "forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Except for statements of historical fact relating to
the Company, information contained herein constitutes forward-looking
statements, including any information as to the Company's strategy, plans or
future financial or operating performance. Forward-looking statements are
characterized by words such as "plan," "expect", "budget", "target", "project",
"intend," "believe", "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions, assumptions and estimates
of management considered reasonable at the date the statements are made, and
are inherently subject to a variety of risks and uncertainties and other known
and unknown factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. These
factors include the Company's expectations in connection with the projects and
exploration programs discussed herein being met, the impact of general business
and economic conditions, global liquidity and credit availability on the timing
of cash flows and the values of assets and liabilities based on projected
future conditions, fluctuating metal prices (such as gold, copper, silver and
zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso
and the Argentine Peso versus the United States Dollar), possible variations in
ore grade or recovery rates, changes in the Company's hedging program, changes
in accounting policies, changes in the Company's corporate mineral resources,
risk related to non-core mine dispositions, changes in project parametres as
plans continue to be refined, changes in project development, construction,
production and commissioning time frames, risk related to joint venture
operations, the possibility of project cost overruns or unanticipated costs and
expenses, higher prices for fuel, steel, power, labour and other consumables
contributing to higher costs and general risks of the mining industry, failure
of plant, equipment or processes to operate as anticipated, unexpected changes
in mine life, final pricing for concentrate sales, unanticipated results of
future studies, seasonality and unanticipated weather changes, costs and timing
of the development of new deposits, success of exploration activities,
permitting time lines, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes or
claims, limitations on insurance coverage and timing and possible outcome of
pending litigation and labour disputes, as well as those risk factors discussed
or referred to in the Company's annual Management's Discussion and Analysis and
Annual Information Form for the year ended December 31, 2009 filed with the
securities regulatory authorities in all provinces of Canada and available at
www.sedar.com, and the Company's Annual Report on Form 40-F filed with the
United States Securities and Exchange Commission. Although the Company has
attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update forward-looking
statements if circumstances or management's estimates, assumptions or opinions
should change, except as required by applicable law. The reader is cautioned
not to place undue reliance on forward-looking statements. The forward-looking
information contained herein is presented for the purpose of assisting
investors in understanding the Company's expected financial and operational
performance and results as at and for the periods ended on the dates presented
in the Company's plans and objectives and may not be appropriate for other
purposes.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED
AND INFERRED MINERAL RESOURCES
This news release uses the terms "Measured", "Indicated" and "Inferred" Mineral
Resources. United States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States Securities
and Exchange Commission does not recognize them. "Inferred Mineral Resources"
have a great amount of uncertainty as to their existence, and as to their
economic and legal feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of Inferred Mineral Resources may not form the basis
of feasibility or other economic studies. United States investors are cautioned
not to assume that all or any part of Measured or Indicated Mineral Resources
will ever be converted into Mineral Reserves. United States investors are also
cautioned not to assume that all or any part of an Inferred Mineral Resource
exists, or is economically or legally mineable.
To view the maps associated with this release, please visit http://
files.newswire.ca/797/Yamana_Exploration_Nov_29.pdf
For further information: Lisa Doddridge, Vice President, Corporate
Communications and Investor Relations, (416) 815-0220, Email: investor(at)
yamana.com; or Linda Armstrong, Director, Investor Relations, (416) 815-0220,
Email: investor(at)yamana.com, www.yamana.com; MEDIA INQUIRIES: Mansfield
Communications Inc., Hugh Mansfield, (416) 599-0024
(YRI. AUY)
END
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