Positive news out!Looks pretty good;
Yamana's Newly Acquired Viceroy Hits Additional Higher Grade Holes in QDD Lower West & Magdalena Zones at Gualcamayo
18:10 EST Monday, Nov 13, 2006
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TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Yamana Gold Inc. (Yamana) (TSX:YRI)(AMEX:AUY)(AIM:YAU) is pleased to report results of sixteen (16) diamond drill holes from the current exploration program on its newly acquired Gualcamayo project in San Juan Province, Argentina. Yamana recently completed the acquisition of Viceroy Exploration Ltd., which owned 100% of the Gualcamayo project.
The drilling included the following:
- Follow-up drill holes in the Quebrada del Diablo ("QDD") Lower West zone to determine the true width, continuity and extent of this zone;
- In-fill drilling at Magdalena to upgrade Inferred resources to the Measured and Indicated category.
The drilling was extremely successful with several high grade intercepts in the QDD Lower West zone. Furthermore, three of the new drill holes (holes QD-332, QD-333 and QD-347) intercepted a second zone near surface that will likely expand the limits of the current pit design and improve the strip ratio on the west side.
"The drill results continue to confirm our expectations of the upside at the Gualcamayo project," said Peter Marrone, President and Chief Executive Officer of Yamana. "The mineralized areas are proving to be much wider and more extensive with consistently higher grades giving us the potential for a larger open pit. We have committed about US$12 million to an exploration program at Gualcamayo next year which will include driving an adit to provide better access for definition drilling of the deeper zone. We are very optimistic that the future results will continue to confirm the high potential of this mineral-rich area of Argentina."
"As we continue our exploration efforts at Gualcamayo with Yamana's strong support of the project we look forward to outlining further areas of mineralization that we think will result in an ore body significantly larger than what we have today," said Patrick Downey, formerly President and CEO of Viceroy Exploration Ltd., and now Executive Vice President Operations, Yamana.
Highlights of drill results include (all lengths are core length): QDD Lower West
- Hole QD-313: 90.85m @ 1.65 g Au/t from 86.10 to 176.95 m, incl. 27.56m @ 3.68 g Au/t from 90.04 to 117.60m;
- Hole QD-330: 171.30m @ 1.60 g Au/t from 245.60 to 416.90 m, incl. 52.25m @ 3.13 g Au/t from 273.60 to 325.85m;
- Hole QD-332:49.60m @ 3.86 g Au/t from 37.30 to 86.90 m, incl. 6.25m @ 25.62 g Au/t from 76.75 to 83.00m;
- Hole QD-343: 188.50m @ 2.24 g Au/t from 194.30 to 382.80 m, incl. 41.77m @ 5.14 g Au/t from 281.83 to 323.60m;
- Hole QD-347: 61.97m @ 2.06 g Au/t from 143.51 to 205.48 m, incl. 41.80m @ 2.81 g Au/t from 161.50 to 203.30m;
- Hole QD-358: 142.99m @ 0.90 g Au/t from 260.87 to 403.86 m, incl. 44.24m @ 1.44 g Au/t from 316.50 to 360.74 m and 7.87m @ 3.52 g Au/t from 262.73 to 270.60m; and
- Hole QD-302 (deepened): 61.22m @ 3.26 g Au/t from 308.15 to 369.37m, incl. 40.10m @ 4.06 g Au/t from 321.40 to 361.50m.
Magdalena
- Hole QD-364: 43.30m @ 3.55 g Au/t from 68.00 to 111.80 m, incl. 25.96m @ 4.61 g Au/t from 78.74 to 104.70 m and 2.55m @ 11.91 g Au/t over 2.55 m from 109.25 to 111.80m;
- Hole QD-365: 63.86m @ 2.03 g Au/t from 53.94 to 117.80 m, incl. 8.45m @ 7.63 g Au/t from 63.70 to 72.15m; and
- Hole QD-352, which intersected 15.33 m @ 7.06 g Au/t from 11.20 to 26.53 m, incl. 13.66 g Au/t @ 5.65 m from 13.15 to 18.80 m.
The following is a brief explanation of the drilling results for each area:
QDD Lower West
The drilling in this zone was designed to test the true width, down dip extension and strike of this zone which was originally discovered by hole QD-309. This hole returned 129.7m @ 2.62 g Au/t including 99.87m @ 3.23 g Au/t (see News Release #2006.15, dated July 11, 2006).
The recent results now indicate that the zone in the area of hole QD-309 has a true thickness of more than 100 m and extends down dip more than 140m. Drilling has confirmed that this zone extends more than 400m along strike. Further definition drilling will be required to determine the zone's ultimate strike length, thickness and down dip extent. Within the QD-309 area, the zone contains a higher grade core of greater than 3.0 g Au/t with a true thickness of more than 100 m and down dip continuity of more than 75m.
Hole QD-358 indicates that the zone continues to the west. The Company plans additional holes above and below hole QD-358 to determine whether the same high grade core continues in this direction.
As a follow up to the Lower West zone, the Company plans to develop an exploration adit to determine the down dip extension of the zone and to find out if this is part of the higher grade "feeder" system linked to the QDD fault zone some 500m to the southeast.
This adit will also be used to provide drill platforms so that sufficient drilling can be completed to bring this Inferred resource to the Measured and Indicated category.
In addition, the recent drilling intersected significant ore grade mineralization closer to surface than previously interpreted. This could modify the existing pit design and reduce the strip ratio in this area.
Magdalena
The recently published resource estimate (see News Release #2006.20, dated September 6, 2006) had the entire Magdalena zone in the Inferred category due to the previous wide spaced drilling. This most recent drilling was designed to test the geological model and to increase the confidence in the resource estimate.
Significant results from three holes drilled at Magdalena show that not only is the overall model generally correct, but that there is a very significant zone of high grade mineralization which is more continuous than previously thought. This could have a significant impact on the contained ounces and potential project economics. Drilling is continuing to better define this resource and upgrade it to the indicated category.
Quality Control
Exploration on the Gualcamayo project is being conducted under the supervision of Mr. Rick Diment, P.Geo., the Company's Qualified Person as defined under NI 43-101. All samples were collected in accordance with industry standards. Samples were submitted to Alex Stewart Assayers Argentina, S.A., in Mendoza, Argentina, a certified ISO 9001:2000 certified lab, for fire assay and ICP analysis. Check assays were submitted to ALS Chemex, an ISO-9001:2000 certified lab, in their Santiago, Chile facility. Accuracy and precision of results are tested through the systematic inclusion of standards, blanks and check assays.
About Yamana
Yamana is a Canadian gold producer with significant gold production, gold and copper gold development stage properties, exploration properties, and land positions in Brazil, Argentina and Central America. Yamana expects to produce gold at intermediate company production levels in 2006 in addition to significant copper production by 2007. Company management plans to continue to build on this base through the advancement of its exploration properties and by targeting other gold consolidation opportunities in Brazil, Argentina and elsewhere in Latin America. Viceroy Exploration Ltd. continues as a public company pending completion of the customary compulsory acquisition process which follows the successful takeover bid of Viceroy by Yamana.