YAMANA GOLD PROVIDES UPDATE ON 2010 EXPLORATION
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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:
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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
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"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."
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Mercedes
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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:
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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
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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.
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.
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