Mercedes, Mexico ----------------
Drilling continued at Mercedes, focusing primarily on the central and northern portions of the Las Barrancas Trend, the Northwest Extension at Mercedes, and the Lupita vein zone. Drilling year to date totals 28,201 metres in 79 core holes.
Las Barrancas -------------
Drilling on the Barrancas Central and North targets continues to intersect multiple epithermal quartz-carbonate vein and stock work zones ranging from 1.0 to 23.0 metres in true width, in an area covered by 70-120 metres of post-mineral volcano-sedimentary rocks. Gold values in excess of 2.0 g/t gold equivalent (the current cut-off grade) have been intersected along most of a 900 metre strike length, covering a maximum vertical range of 180 metres (910 to 1,090 metre elevations). Drilling continues to intersect certain zones of high-grade gold mineralization (up to 16.0 g/t gold equivalent over a true width of 5.0 metres).
Significant drill results since the last update provided in the Company's
------------------------------------------------------------------------- Hole Vein Ore Shoot From To Interval Au Ag (m) (m) (m) g/t g/t ------------------------------------------------------------------------- M09-452D Barrancas Sur 247.03 255.12 8.09 11.68 68.9 ------------------------------------------------------------------------- M09-453D Barrancas Centro 193.11 194.89 1.78 10.75 172.0 ------------------------------------------------------------------------- M09-459D Barrancas Centro 138.37 143.3 4.93 7.60 28.2 Barrancas Centro 204.22 210.31 6.09 4.68 122.2 Barrancas Centro 245.35 256.03 10.68 4.07 62.2 Barrancas Centro 306.56 308.92 2.36 10.27 100.1 Barrancas Centro 318.82 333.42 14.60 5.82 186.2 ------------------------------------------------------------------------- M09-461D Barrancas Norte 216.78 224.33 7.55 9.08 57.5 ------------------------------------------------------------------------- M09-463D Barrancas Norte 220.77 223.38 2.61 7.75 97.0 ------------------------------------------------------------------------- M09-464D Barrancas Norte 177.51 183.86 6.35 15.59 63.0 ------------------------------------------------------------------------- M09-469D Barrancas Centro 285.90 289.03 3.13 9.51 116.1 Barrancas Centro 296.57 298.09 1.52 14.30 94.8 Barrancas Centro 303.40 306.32 2.92 6.71 51.0 Barrancas Centro 310.29 311.76 1.47 12.14 64.7 ------------------------------------------------------------------------- M09-470D Barrancas Centro 246.91 249.85 2.94 10.15 46.9 -------------------------------------------------------------------------
Drill results at Barrancas are encouraging as assays have confirmed the presence of additional high-grade gold mineralization around the drill holes reported in
Lupita ------
Initial 2009 drilling at Lupita confirmed the presence of over 2.0 g/t gold equivalent gold mineralization along portions of a 600 metre strike length of the Lupita vein zone, located at the contact between the upper host andesite and lower lithic tuff. Gold mineralization extends as much as 360 metres down-dip of surface outcrops and is open at depth.
Significant drill results since the last update provided in the Company's
------------------------------------------------------------------------- Hole Vein Ore Shoot From To Interval Au Ag (m) (m) (m) g/t g/t ------------------------------------------------------------------------- L09-027D Lupita 320.34 323.35 3.01 15.17 16.9 ------------------------------------------------------------------------- L09-028D Lupita 246.58 252.68 5.55 2.59 115.3 ------------------------------------------------------------------------- L09-029D Lupita 271.58 275.23 3.65 3.25 17.7 -------------------------------------------------------------------------
Drilling at Lupita has significantly expanded the potential within the vein zone, by demonstrating the presence of locally high-grade gold at greater depths within the vein zone. The drilling program is being expanded to in-fill and step-out around current drill holes on 60 metre centres. The Lupita vein will be the primary focus of drilling for the balance of September and into October of this year.
While additional drilling and other exploration efforts are ongoing, these results continue to demonstrate the potential for mineral resource expansion at Mercedes well beyond the current mineral resources. The Company target remains a mine life in excess of ten years and these results support this goal.
Agua Rica, Argentina --------------------
Yamana continues to focus on increasing the value of its Agua Rica project in the province of Catamarca in
The Company is now working on a number of optimization initiatives that could have a material positive impact on the project. Potential sources of upside for Agua Rica include:
1. Increasing the mineral reserve base and/or metal price. Mineral reserves from the 2006 feasibility study update were calculated based on US$425/oz gold, US$1.10/lb copper, and US$6.00/lb molybdenum. At current metal prices, contained metal in mineral reserves would increase more than 20 percent. 2. Recovery of the very rare metal rhenium and other metals not originally assumed in the feasibility study. Initial metallurgical testing of Agua Rica's molybdenum concentrate suggests that the deposit may contain a significant amount of rhenium. Rhenium is a dense metal used in alloys requiring high strength, corrosion resistance and a high melting point (approximately 3180 degrees C). Demand for rhenium has grown significantly as new applications are found and the amount of rhenium used in existing applications is increasing. Superalloys now account for approximately 70 to 80 percent of rhenium demand and catalysts account for a further 10 to 15 percent. Yamana has commissioned a detailed market study on rhenium and is also advancing further drilling and metallurgical testing relating to the recovery of large amounts of the metal. The possibility of achieving rhenium by-product credits may significantly add to the economics and potential of the project. 3. Alternative concentrate logistics are being evaluated, including using only rail or trucking concentrate instead of using pipeline and rail. This could significantly decrease permitting time and further add value and improve economics given a reduction in capital from eliminating the requirement to build a pipeline as well as new port facilities. 4. Relocating the waste area should have capital and operating cost benefits. 5. Accessing the mine from a different access point (from the west versus the south) should improve logistics and reduce capital and operating costs.
Yamana is also continuing to update other components of the feasibility study delivered in
The Company continues to advance the permitting process for Agua Rica as well. The main environmental license was obtained early in 2009. The Company is now beginning the compliance process for the conditions of the license and obtaining sectoral permits which are expected within 18 months.
Yamana has also begun a process for evaluating potential strategic partners for the development of Agua Rica. Yamana has previously indicated that its strategic plan for the development of Agua Rica would be in participation with one or more industry, strategic and financial partners. Yamana's primary objective is to benefit from the significant gold in the deposit at Agua Rica in addition to deriving further value from the other metals in the deposit.
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. All exploration diamond drill cores are split in half by mechanical or electrical sawing techniques and sampled at appropriate intervals for assay. The remaining core is stored on-site pending assay results. Quality Assurance standards, duplicates and blanks are routinely inserted into the sample stream as a control for assay accuracy, precision and contamination. The results of these checks are tracked and failures are reanalyzed. Results are incorporated into resource models following approval of the QAQC Manager.
Qualified Person
Mark Hawksworth, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data 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
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" within the meaning of the
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.
For further information: Jodi Peake, Vice President, Corporate Communications & Investor Relations, (416) 815-0220, Email: [email protected], www.yamana.com; Letitia Wong, Director, Investor Relations, (416) 815-0220, Email: [email protected]; MEDIA INQUIRIES: Mansfield Communications Inc., Hugh Mansfield, (416) 599-0024
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