YAMANA GOLD PROVIDES 2011 EXPLORATION UPDATE
TORONTO, June 22, 2011 /CNW/ --
(All dollar amounts are expressed in United States dollars unless
otherwise specified)
TORONTO, June 22, 2011 /CNW/ - YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (LSE:YAU) ('Yamana' or 'the Company') today
announced mid-year highlights from its 2011 exploration program at
existing operations, development projects and a new discovery, Arco Sul
in Brazil.
2011 Exploration Highlights:
-- El Peñón, Chile - The further delineation of the sub-parallel
Victoria vein system, within the Pampa Augusta Victoria vein
system, with some significant near surface gold and silver
values. The Victoria vein system is now described as a near
surface, oxidized, high grade core of mineralization occurring
over 400 metres along strike and 100 metres down dip and
remains open along strike and down dip.
-- Chapada, Brazil - Significant gold and copper mineralization
has been discovered at Corpo Sul, southwest of and on strike
with the main Chapada pit, and the previously discovered Suruca
deposit to the northeast of the pit. Copper and gold
mineralization has now been identified at Chapada along a
strike length of almost 12 kilometres.
-- Jacobina, Brazil -The continued confirmation of grades that are
higher than the current mineral reserve grade of 2.5 grams per
tonne (g/t) gold.
-- Mercedes, Mexico - The continued confirmation of higher than
average grades at Lagunas Norte and significant widths at
Diluvio which are expected to increase mineral resources.
-- Pilar, Brazil - The extension of mineralization, opening up
exploration potential towards Tres Buracos to the north for
over 2.0 kilometres, as well as the extension of mineralization
for 2.6 kilometres down dip of the current resource. These
extensions are expected to rapidly add further mineral resource
growth at the project.
-- Fazenda Nova, Brazil - A new discovery, Arco Sul, located just
south of the decommissioned Fazenda Nova mine in Goiás State,
Brazil. To date, drilling has delineated high grade gold values
along almost one kilometre of strike length.
The Company's exploration budget was increased by approximately 25% to
$105 million which was announced in May, 2011. This increase partially
resulted from the significant cash flow being generated by the Company
and the success of the 2010 program as well as the success already
achieved in 2011.
Exploration will continue to focus on mineral resource discovery and
development as well as mineral reserve growth at existing operations,
development projects and on new discoveries to continue developing the
Company's project pipeline. A total of 420,000 metres of drilling at
20 projects will be completed as part of the 2011 program.
Existing Operations
El Peñón, Chile
The high grade underground gold-silver El Peñón mine is located in
northern Chile, 160 kilometres southeast of Antofagasta. The 2010
regional exploration program at El Peñón led to the discovery of a new
vein system located 30 kilometres to the northeast, Pampa Augusta
Victoria (PAV). To date three sub-parallel vein systems have been
identified within PAV: Victoria, Victoria Este and most recently
Elizabeth.
During 2011 approximately $4.5 million of the total $25 million in
exploration spending at El Peñón will be focused on PAV with the
objective of completing an initial mineral reserve and mineral resource
estimate. The majority of the drilling is being completed on the
Victoria vein, which, to date, has returned significant near surface
gold and silver values.
Select results of recent drilling from the main zone of mineralization
are highlighted below (at a 1.0 g/t gold equivalent cutoff):
______________________________________________________________________
| Hole | From | To | Width* | Gold | Silver | Gold |
| | | | | (g/t) | (g/t) | equivalent |
| |(metres) |(metres) |(metres) | | | (g/t) |
|__________|_________|_________|_________|_______|________|____________|
|SUI0003C | 38.60 | 46.57 | 7.97 | 5.13 | 1,774 | 40.61 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0005C | 27.45 | 29.47 | 2.02 | 1.08 | 3,426 | 69.60 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0006C | 49.27 | 54.30 | 5.03 | 40.55 | 2,602 | 92.59 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0007C | 71.39 | 75.54 | 4.15 | 21.57 | 2,238 | 66.33 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0010C | 79.62 | 85.32 | 5.70 | 8.63 | 443 | 17.49 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0011C | 36.20 | 37.50 | 1.30 | 10.36 | 1,937 | 49.10 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0012C | 63.50 | 73.50 | 10.00 | 2.24 | 664 | 15.52 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0013C | 28.00 | 30.00 | 2.00 | 17.95 | 2,426 | 66.47 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0014C | 56.00 | 58.58 | 2.58 | 11.27 | 3,943 | 90.13 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0015C | 63.00 | 69.08 | 6.08 | 5.53 | 963 | 24.79 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0016C | 79.57 | 81.20 | 1.63 | 2.60 | 487 | 12.34 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0017C | 26.00 | 28.20 | 2.20 | 7.29 | 2,021 | 47.71 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0021C | 60.00 | 66.50 | 6.50 | 11.79 | 1,067 | 33.13 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0028 | 9.00 | 11.00 | 2.00 | 22.10 | 4,508 | 112.26 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0029C | 66.27 | 67.36 | 1.09 | 6.25 | 677 | 19.79 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0037C | 132.30 | 138.50 | 6.20 | 5.94 | 1,057 | 27.08 |
|__________|_________|_________|_________|_______|________|____________|
|SUI0038C | 116.00 | 118.00 | 2.00 | 17.49 | 1,207 | 41.63 |
|__________|_________|_________|_________|_______|________|____________|
'C' denotes diamond drilling
*Width in metres does not represent the true width
The Victoria vein system can now be described as a near surface, high
grade core of mineralization that has been traced along a strike length
of over 400 metres and to a vertical depth of at least 100 metres from
the surface at 1,750 metres elevation to 1,625 metres elevation. The
mineralization remains open along strike and down dip. The near
surface, highly oxidized nature of this mineralization will facilitate
rapid low cost development and recoveries which should be in the range
of the original near surface mineralization at El Peñón (approximately
95 percent for gold and 90 percent for silver).
Exploration drilling will continue throughout 2011 to further extend
mineralization at Victoria both along strike and down dip and will also
expand and confirm the resource potential of the Victoria Este and
Elizabeth veins.
Chapada, Brazil
The Chapada open pit gold-copper mine is located northwest of Brasilia
in Goias State. The $4.7 million 2011 exploration program that includes
23,000 metres of diamond drilling will principally target the southern
extension of the Chapada pit at Corpo Sul and the southern extension at
Suruca, a satellite deposit that is located six kilometres northeast of
Chapada.
Past shallow surface drilling at Corpo Sul had identified several small,
oxide gold occurrences along strike of the known ore body currently
being mined. Early results from current diamond drilling completed
beneath the oxide zones have returned very encouraging gold/copper
values from sulphide mineralization that indicates the Chapada ore body
continues to the southwest. Results have been received from seven drill
holes, three located immediately adjacent to the Chapada open pit (NM
series holes) and four located approximately 1.7 kilometres further
along strike to the southwest (CS series holes). All of the holes have
returned mineralization similar in grade and composition to that
currently being mined.
Results from recent drilling are highlighted below (at a 0.3 g/t gold
equivalent cutoff):
__________________________________________________________
| Hole |From |To |Width * |Gold |Copper |
| |(metres) |(metres) |(metres) |(g/t) |(%) |
|________|__________|__________|__________|_______|________|
| NM-49| 115.50| 162.00| 46.50| 0.40| 0.28|
|________|__________|__________|__________|_______|________|
| Incl.| 127.00| 139.00| 12.00| 0.60| 0.30|
|________|__________|__________|__________|_______|________|
| NM-50| 39.78| 148.92| 109.14| 0.20| 0.30|
|________|__________|__________|__________|_______|________|
| Incl.| 127.42| 148.92| 21.50| 0.22| 0.40|
|________|__________|__________|__________|_______|________|
| NM-51| 116.00| 146.50| 30.50| 0.33| 0.30|
|________|__________|__________|__________|_______|________|
| Inc.| 116.00| 135.50| 19.50| 0.37| 0.35|
|________|__________|__________|__________|_______|________|
| NM-51| 154.00| 161.50| 7.50| 0.50| 0.27|
|________|__________|__________|__________|_______|________|
| NM-51| 191.32| 227.70| 36.38| 0.14| 0.21|
|________|__________|__________|__________|_______|________|
| Incl.| 172.51| 180.00| 7.49| 0.31| 0.26|
|________|__________|__________|__________|_______|________|
| NM-52| 58.00| 72.00| 14.00| 0.44| 0.86|
|________|__________|__________|__________|_______|________|
| Incl.| 61.00| 68.62| 7.62| 0.55| 1.08|
|________|__________|__________|__________|_______|________|
| CS-06| 0.00| 20.25| 20.25| 0.48| 0.35|
|________|__________|__________|__________|_______|________|
| CS-06| 20.25| 53.00| 32.75| 0.22| 0.49|
|________|__________|__________|__________|_______|________|
| Incl.| 20.25| 31.00| 10.75| 0.38| 0.94|
|________|__________|__________|__________|_______|________|
| CS-08| 0.62| 10.00| 9.38| 0.15| 0.14|
|________|__________|__________|__________|_______|________|
| CS-08| 10.00| 91.37| 81.37| 0.47| 0.47|
|________|__________|__________|__________|_______|________|
| Incl.| 70.00| 86.00| 16.00| 0.80| 0.60|
|________|__________|__________|__________|_______|________|
| CS-09| 221.20| 242.38| 21.18| 0.19| 0.26|
|________|__________|__________|__________|_______|________|
| Incl.| 235.00| 242.38| 7.38| 0.22| 0.33|
|________|__________|__________|__________|_______|________|
| CS-10| 0.00| 29.14| 29.14| 0.21| 0.32|
|________|__________|__________|__________|_______|________|
| CS-10| 29.14| 195.00| 165.86| 0.18| 0.27|
|________|__________|__________|__________|_______|________|
| Incl.| 29.14| 51.00| 21.86| 0.17| 0.40|
|________|__________|__________|__________|_______|________|
| Incl.| 81.00| 151.00| 70.00| 0.24| 0.30|
|________|__________|__________|__________|_______|________|
| Incl.| 170.00| 195.00| 25.00| 0.26| 0.30|
|________|__________|__________|__________|_______|________|
*Width in metres does not represent the true width
The drilling at Corpo Sul has identified gold and copper mineralization
along a minimum strike length of 1.7 kilometres, to a depth of almost
200 metres and mineralization remains open along strike and down dip.
With the discovery of Suruca in late 2009 and the positive results at
Corpo Sul this year, copper and gold mineralization has now been
identified along a strike length of almost 12 kilometres including the
main Chapada deposit.
During the remainder of 2011, diamond drilling will continue to focus on
the expansion and delineation of mineralization at Corpo Sul and the
southern extension of Suruca towards the Chapada pit.
Jacobina, Brazil
The Jacobina mine in Bahia State in northeastern Brazil consists of a
complex of underground gold deposits. The objectives of the 2011
exploration program are to upgrade current mineral resources to mineral
reserves at Canavieiras and Morro do Vento, to improve overall mineral
reserve grade for the mine, and to add new mineral resources along
strike extensions in those zones. The 2011 exploration budget of $5
million includes 14,000 metres of diamond drilling.
In 2011, 19 drill holes have been completed at the Canavieiras deposit
and results from the first 10 holes confirm grades that are higher than
the current mineral reserve grade.
Results from recent drilling are highlighted below (at a 0.5 g/t gold
cutoff):
___________________________________________________________
| Hole | From | To | True Thickness | Gold |
| | (metres) | (metres) | (metres) | (g/t) |
|__________|__________|__________|________________|_________|
|CANIF09 | 540.50| 563.00| 13.85| 7.04|
|__________|__________|__________|________________|_________|
|CANIF11 | 587.76| 589.24| 0.74| 1.26|
|__________|__________|__________|________________|_________|
|CANIF12 | 138.00| 142.45| 2.03| 2.92|
|__________|__________|__________|________________|_________|
|CANIF13 | 587.16| 588.50| 0.61| 4.47|
|__________|__________|__________|________________|_________|
|CANIF13 | 595.00| 597.50| 1.15| 0.86|
|__________|__________|__________|________________|_________|
|CANIF13 | 637.30| 651.00| 6.28| 3.40|
|__________|__________|__________|________________|_________|
|CANIF13 | 673.50| 686.00| 5.73| 2.44|
|__________|__________|__________|________________|_________|
|CANIF13 | 705.17| 709.21| 1.85| 13.10|
|__________|__________|__________|________________|_________|
|Incl. | 706.52| 708.46| 0.89| 25.87|
|__________|__________|__________|________________|_________|
|CANIF15 | 331.00| 333.50| 2.10| 8.30|
|__________|__________|__________|________________|_________|
|CANIF15 | 348.50| 350.00| 1.26| 1.24|
|__________|__________|__________|________________|_________|
|CANIF15 | 368.50| 370.80| 1.93| 3.26|
|__________|__________|__________|________________|_________|
|CANIF16 | 293.30| 297.63| 3.55| 7.97|
|__________|__________|__________|________________|_________|
|CANIF16 | 302.00| 304.00| 1.64| 5.08|
|__________|__________|__________|________________|_________|
|CANIF16 | 321.50| 322.92| 1.16| 1.52|
|__________|__________|__________|________________|_________|
|CANIF16 | 344.52| 349.58| 4.14| 3.63|
|__________|__________|__________|________________|_________|
|CANIF16 | 362.86| 364.49| 1.34| 21.27|
|__________|__________|__________|________________|_________|
|CANIF16 | 371.86| 376.50| 3.80| 2.39|
|__________|__________|__________|________________|_________|
|CANIF17 | 297.49| 304.87| 6.58| 1.66|
|__________|__________|__________|________________|_________|
|CANIF17 | 339.40| 349.17| 8.71| 2.52|
|__________|__________|__________|________________|_________|
|CANIF17 | 357.30| 361.30| 3.56| 1.10|
|__________|__________|__________|________________|_________|
|CANIF18A | 468.20| 474.10| 3.92| 1.65|
|__________|__________|__________|________________|_________|
|CANIF18A | 490.40| 494.00| 2.39| 3.51|
|__________|__________|__________|________________|_________|
|CANIF18A | 505.50| 510.50| 3.33| 1.70|
|__________|__________|__________|________________|_________|
|CANIF18A | 521.00| 522.65| 1.10| 1.59|
|__________|__________|__________|________________|_________|
|CANIF18A | 528.00| 532.15| 2.76| 1.83|
|__________|__________|__________|________________|_________|
|CANIF18A | 540.00| 548.50| 5.65| 5.51|
|__________|__________|__________|________________|_________|
|CANIF18A | 564.50| 568.00| 2.33| 3.59|
|__________|__________|__________|________________|_________|
|CANIF21 | 361.00| 363.60| 1.56| 1.17|
|__________|__________|__________|________________|_________|
|CANIF21 | 389.80| 392.08| 1.37| 2.03|
|__________|__________|__________|________________|_________|
|CANIF21 | 464.30| 468.00| 2.22| 1.19|
|__________|__________|__________|________________|_________|
|CANIF21 | 470.00| 472.50| 1.50| 1.84|
|__________|__________|__________|________________|_________|
|CANIF21 | 474.75| 480.70| 3.56| 12.10|
|__________|__________|__________|________________|_________|
|CANIF21 | 485.30| 486.50| 0.72| 1.68|
|__________|__________|__________|________________|_________|
|CANIF24 | 525.50| 527.50| 1.18| 8.69|
|__________|__________|__________|________________|_________|
|CANIF24 | 560.00| 561.45| 0.85| 1.35|
|__________|__________|__________|________________|_________|
|CANIF24 | 584.88| 602.50| 10.36| 7.21|
|__________|__________|__________|________________|_________|
|CANIF24 | 619.30| 624.00| 2.76| 8.85|
|__________|__________|__________|________________|_________|
Development Projects
Mercedes, Mexico
Mercedes is a gold/silver project located in Sonora Mexico and is
currently in development with production expected to begin in mid-2012.
Annual production from the mine is estimated to be 120,000 gold
equivalent ounces. Mercedes is a gold-silver vein/stockwork system with
mineralization contained in four areas: Mercedes, Barrancas, Klondike
and Lupita.
The 2011 exploration budget of $8.5 million includes approximately
45,000 metres of diamond drilling focused on the expansion of mineral
reserves and mineral resources, particularly at the Lagunas Norte and
Diluvio zones within the Barrancas and Lupita vein zones. Three core
rigs are currently on site and a total of 20,815 metres have been
drilled in 55 holes year-to-date. Exploration success is expected to
continue the rapid, low cost mineral resource development at Mercedes
resulting in an opportunity to extend the mine life and increase annual
production levels.
Barrancas Vein- Lagunas Norte Zone
Drilling at the Lagunas Norte zone continues to intersect one or more
epithermal structures of 0.5 to 14.0 metres in width within a major
northwest-trending shear zone. Lagunas Norte is a blind ore shoot on
the Barrancas trend, covered by 70 to 120 metres of post-mineral
material. The grades encountered to date at Lagunas Norte are, on
average, significantly higher than the average mineral reserve and
mineral resource grades within the Mercedes project area.
Results from recent drilling are highlighted below (at a 2.0 g/t gold
equivalent cutoff):
_______________________________________________________________
| Hole | From | To | Interval* | Gold | Silver |
| | (metres) | (metres) | (metres) | (g/t) | (g/t) |
|___________|__________|__________|___________|________|________|
|M10-587D | 238.65| 246.28| 7.63| 60.61| 205.40|
|___________|__________|__________|___________|________|________|
|M11-597D | 255.12| 265.18| 10.06| 9.20| 103.50|
|___________|__________|__________|___________|________|________|
|M11-599D | 232.56| 237.74| 5.18| 44.48| 362.10|
|___________|__________|__________|___________|________|________|
|M11-600D | 259.84| 264.57| 4.73| 17.75| 206.90|
|___________|__________|__________|___________|________|________|
|M11-602D | 243.23| 249.63| 6.40| 21.62| 74.50|
|___________|__________|__________|___________|________|________|
|M11-605D | 269.44| 273.71| 4.27| 12.39| 25.50|
|___________|__________|__________|___________|________|________|
|M11-609D | 308.15| 312.12| 3.97| 17.59| 121.30|
|___________|__________|__________|___________|________|________|
|M11-616D | 380.09| 384.66| 4.57| 6.27| 62.00|
|___________|__________|__________|___________|________|________|
*Interval in metres does not represent the true width
To view complete drill results please see the following link: http://files.newswire.ca/797/MercedesDrillResults.pdf
The Lagunas Norte ore shoot is currently defined along 130 metres of
strike length and is an extension to the Lagunas zone, which has now
been identified over 400 metres along strike and up to 150 metres down
dip. The total length of the Barrancas zone is 1,100 metres, including
Barrancas Centro, Lagunas and Lagunas Norte.
The Lagunas Norte discovery is currently not reflected in Mercedes'
mineral reserves and mineral resources and it is expected that
continued exploration success will contribute significantly to mineral
resources growth in 2011.
Lupita Vein - Diluvio Zone
Drilling at Lupita has continued to define the dimensions of the Diluvio
zone. Diluvio is a blind ore shoot that was discovered in April 2010.
It is located between 180 and 350 metres below the surface and does not
outcrop. Mineralization encountered in this zone is much wider than in
any other area at Mercedes and although lower grade than the Lagunas
Norte zone, the widths of mineralization could potentially support bulk
underground mining. The recent drill campaign continues to confirm
continuity of this zone, with gold/silver mineralization delineated in
an area of approximately 600 metres by 250 metres containing multiple
vein/stockwork zones of up to 140 metres in width.
Results from recent drilling are highlighted below (at a 1.0 g/t gold
equivalent cutoff):
____________________________________________________________________
| Hole | | From | To | Width* | Gold | Silver |
| | | (metres) | (metres) | (metres) | (g/t) | (g/t) |
|_________|_____|__________|__________|__________|________|__________|
| L10-077 | | 212.75| 243.23| 30.48| 2.05| 16.20|
|_________|_____|__________|__________|__________|________|__________|
| L10-077 | and| 309.03| 316.38| 7.35| 2.57| 8.70|
|_________|_____|__________|__________|__________|________|__________|
| L10-077 | and| 328.57| 337.18| 8.61| 2.64| 8.10|
|_________|_____|__________|__________|__________|________|__________|
| L10-078 | | 340.46| 345.66| 5.20| 7.47| 9.10|
|_________|_____|__________|__________|__________|________|__________|
| L10-078 | and| 361.05| 380.09| 19.04| 3.64| 41.50|
|_________|_____|__________|__________|__________|________|__________|
| L10-079 | | 267.61| 302.67| 35.06| 3.22| 11.40|
|_________|_____|__________|__________|__________|________|__________|
| L10-079 | and| 336.20| 334.30| 6.10| 4.71| 114.70|
|_________|_____|__________|__________|__________|________|__________|
| L10-081 | | 261.52| 292.00| 30.48| 2.81| 5.40|
|_________|_____|__________|__________|__________|________|__________|
| L11-094 | | 260.30| 302.97| 42.67| 3.71| 12.00|
|_________|_____|__________|__________|__________|________|__________|
| L11-094 | and| 331.93| 348.69| 16.76| 4.19| 97.40|
|_________|_____|__________|__________|__________|________|__________|
| L11-095 | and| 248.10| 290.78| 42.68| 2.36| 4.90|
|_________|_____|__________|__________|__________|________|__________|
| L11-096 | | 253.89| 331.02| 77.13| 2.46| 7.30|
|_________|_____|__________|__________|__________|________|__________|
| L11-096 | and| 351.43| 369.72| 18.29| 2.32| 27.60|
|_________|_____|__________|__________|__________|________|__________|
| L11-105 | | 330.09| 354.48| 23.85| 1.78| 7.20|
|_________|_____|__________|__________|__________|________|__________|
| L11-107 | | 327.35| 405.85| 78.50| 1.33| 11.80|
|_________|_____|__________|__________|__________|________|__________|
| L11-109 | | 418.79| 430.98| 12.19| 5.88| 41.18|
|_________|_____|__________|__________|__________|________|__________|
*Width in metres does not represent the true width
To view complete drill results please see the following link: http://files.newswire.ca/797/MercedesDrillResults.pdf
The continued exploration success and growing mineral resources at
Mercedes are being evaluated to potentially increase mining and
production rates as well as the extension of mine life.
Pilar, Brazil
Pilar is a development stage project located in Goias, Brazil
approximately 80 kilometres from the Company's Chapada mine. The
project is currently in the permitting stage with production expected
to begin in the first quarter of 2013. Annual production from the mine
is estimated to be 100,000 ounces of gold. The Pilar gold deposit is
hosted by 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.
During 2011, approximately 45,000 metres of diamond drilling will be
completed as part of a $9.8 million exploration budget. The drilling
is focused on the expansion of the Jordino resource both down dip,
which has been shown to be open for more than two kilometres of dip
length, and along strike to the north towards Tres Buracos, where a
small near surface, inferred mineral resource exists. Year-to-date, 74
drill holes have been completed totaling 24,000 metres and drill
results confirm that growth in mineral reserves and mineral resources
will continue in 2011.
Of particular note, JD-387 intersected the HG1 mineralized horizon 2.6
kilometres down dip of the current mineral resource to the southwest.
Although the intersection was modest, 0.6 metres of 4.72 g/t gold, it
indicates that the mineralized system continues over more than 2,000
metres of dip length as this hole lies along the same trend as holes
JD-406, JD-386 and previously released hole JD-364.
The most important geological discovery to date in 2011 is from
northwest of the Jordino mineral resource area at the Ogo deposit where
hole JD-431 has extended the HG1 mineralization along strike by 830
metres. It extends the HG1 deposit below a zone previously thought to
be the footwall of the Jordino zone thus opening up exploration
potential to the north for over 2.0 kilometres.
The Company has already increased the capacity of the mill by 30 percent
from feasibility study level and continues to assess potential
increases to production and mine life with a strategic plan to fully
utilize the increased capacity beginning sometime in 2014.
To view complete drill results please see the following link: http://files.newswire.ca/797/PilarDrillResults.pdf
New Discovery
Arco Sul, Brazil
Arco Sul is a new discovery that was made in late 2010. The discovery
was made one kilometre from the Company's decommissioned Fazenda Nova
mine in western Goiás State, Brazil and 380 kilometres from the
Company's Chapada Mine. The discovery is characterized by a zone of
stockwork and breccias that appear to be the strike and dip extension
of previously mined oxide ores at Fazenda Nova.
Discovery hole, BC-03, intersected four mineralized intervals with
average thicknesses of 20 metres each and average grades of 2.7 g/t
gold.
The best hole to date, BC-05 extended the mineralization of BC-03
approximately 400 hundred metres along strike to the southeast. The
hole intersected the same style of mineralization as in BC-03 but with
substantially higher grades. In addition, BC-07 extended mineralization
150 metres along strike to the north under the previously mined Fazenda
Nova open pit. Other significant intersections are detailed below:
Results from recent drilling are highlighted below (at a 0.30 g/t gold
cutoff):
__________________________________________________
| Hole | From | To | Width* | Gold |
| | (metres) | (metres) | (metres) | (g/t) |
|________|__________|__________|__________|________|
|BC-03 | 190.0| 225.0| 35.0| 2.58|
|________|__________|__________|__________|________|
| | 234.0| 253.2| 19.2| 2.69|
|________|__________|__________|__________|________|
| | 308.0| 331.0| 23.0| 3.56|
|________|__________|__________|__________|________|
| | 373.1| 393.4| 20.4| 2.00|
|________|__________|__________|__________|________|
|BC-05 | 94.4| 104.0| 9.3| 26.00|
|________|__________|__________|__________|________|
|BC-07 | 152.0| 157.3| 5.3| 8.46|
|________|__________|__________|__________|________|
| | 165.0| 167.4| 2.4| 7.40|
|________|__________|__________|__________|________|
|BC-08 | 125.5| 132.7| 7.2| 10.89|
|________|__________|__________|__________|________|
| | 255.0| 257.6| 2.6| 10.48|
|________|__________|__________|__________|________|
|BC-09 | 310.4| 316.0| 5.7| 4.21|
|________|__________|__________|__________|________|
|BC-11 | 167.0| 171.0| 4.0| 3.24|
|________|__________|__________|__________|________|
|BC-12 | 115.1| 117.37| 2.27| 4.28|
|________|__________|__________|__________|________|
*Width in metres does not represent the true width
To view complete drill results please see the following link: http://files.newswire.ca/797/ArcoSulDrillResults.pdf
Mineralization has been traced along strike for one kilometre and across
a width of 300 metres as shown by current drilling and geologic
interpretation. Diamond drilling began in September 2010 and 12 holes
totaling 5,286 metres have been drilled to date.
Additional drilling will be completed in 2011 to better understand the
geometry of mineralization.
Further exploration results will be reported with the Company's second
quarter results expected in early August.
To view a complete presentation on these exploration results, please
visit www.yamana.com.
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
Other than set forth herein, Sergio Brandão, 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 Arco Sul, Chapada, Jacobina and Pilar and serves as
the Qualified Person as defined in National Instrument 43-101.
Other than set forth herein, 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.
Other than set forth herein, Darcy Marud , P. Geo., SVP Exploration for
Yamana Gold Inc. has reviewed and confirmed the scientific and
technical information contained within this press release relating to
El Peñón and Pampa Augusta Victoria and serves as the Qualified Person
as defined in National Instrument 43-101.
As part of its rigorous QA QC protocols Yamana utilizes only
internationally recognized, third party, independent laboratories for
all analytical work.
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 parameters 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, 2010 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 this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/22/c8214.html
| Lisa Doddridge Vice President, Corporate Communications and Investor Relations (416) 945-7362 Email: lisa.doddridge@yamana.com | Linda Armstrong Director, Investor Relations (416) 945-7357 Email: linda.armstrong@yamana.com www.yamana.com |