Yamana Gold drills 24 m of 4.86 g/t Au at GuaYamana Gold Inc (C:YRI)
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Tuesday January 16 2007 - News Release
Mr. Peter Marrone reports
YAMANA EXPLORATION UPDATE
Yamana Gold Inc. has released an update at the Gualcamayo gold project in Argentina, and an updated resource and reserve estimate at the San Andres mine in Honduras.
Gualcamayo gold project, Argentina
Yamana is pleased to report on its most recent results from the continuing exploration program at its Gualcamayo gold project in San Juan province, Argentina. A total of 16 diamond drill holes and nine reverse circulation drill holes were completed to provide infill drilling at the main QDD (Quebrada del Diablo) zone and the Amelia Ines-Magdalena zones for the continuing feasibility study. The table entitled, "Summary of significant new diamond drilling results, QDD and Amelia-Magdalena," provides the intercept results.
The drilling was extremely successful, with one hole 06QD-377 returning 4.86 grams per tonne gold over 24 metres within a zone of 2.11 g/t Au over 84 m. This intercept appears to be a new zone to the southwest and may represent the extension of a lower zone intercepted in previous drilling (hole QDR-260, which intercepted 4.44 g/t Au over 22 m and hole QDR-261, which intercepted 5.53 g/t Au over 40 m). Of significant importance is that this zone is now open to the south and the company plans to drill additional holes to test the continuity of the zone and its southern extension. This zone may also ultimately be linked to the lower QDD west zone, where the company recently announced several significant drill results, including QD-343, which intercepted 5.14 g/t Au over 47.11 m.
The company is proceeding to develop the pit design for the main QDD resource and believes that the resources will support a larger operation than the currently planned 16,000 tonnes per day. This expansion could be further enhanced by the Amelia/Magdalena areas and the potential from the underground areas, which are located close to the mine infrastructure.
Highlights of drill results include:
hole QD-326, which intersected 2.88 g/t Au over 24.12 m from 8.95 m to 33.07 m, including 4.95 g/t Au over 11.51 m from 15.75 m to 27.26 m;
hole QDR-327, which intersected 1.24 g/t Au from zero m to 104 m, including 3.55 g/t Au over 18 m from 70 m to 88 m;
hole QDR-363, which intersected 1.01 g/t Au over 80 m from 154 m to 234 m and 3.99 g/t Au over 12 m from 324 m to 336 m;
hole QD-369, which intersected 1.76 g/t Au over 71.83 m from 115.60 m to 187.43 m, including 4.96 g/t Au over 13.15 m from 142.85 m to 156.80 m;
hole QD-373, which intersected 0.75 g/t Au over 72 m from 106.60 m to 178.60 m, including 5.23 g/t Au over 4.0 m from 118.70 m to 122.70 m, followed by 1.12 g/t Au over 112.20 m from 204.70 m to 316.90 m, including 2.38 g/t Au over 17.5 m from 222.55 m to 240.05 m; and
hole QD-377, which intercepted 0.80 g/t Au over 71.63 m from 191.73 to 263.36 m, followed by 2.11 g/t Au over 84.04 m from 301.54 m to 385.58 m, including 4.86 g/t Au over 24.00 m from 322.40 m to 346.40 m.
"We are extremely pleased with the ongoing drill results from our recently acquired Gualcamayo project," said Peter Marrone, president and chief executive officer of Yamana. "The new results indicate that we have significant potential to develop a large underground operation, as well as expand the planned open pit. The current infill drilling program at Gualcamayo is very encouraging, and Yamana is studying the potential to expand the open pit and bring in the western extension, including Amelia and Magdalena. Additionally, the potential for future underground mining is excellent. This zone could have significant positive impact on the Gualcamayo project due to its apparent continuity, thickness and favourable metallurgy. Yamana plans to work towards developing this zone for inclusion into the 2009 mine plan. We continue to plan on starting operations in mid-2008."
San Andres, Honduras
In 2006, a total of 19,942 m in 124 holes of diamond and reverse circulation drilling were completed at San Andres to better define the areas in immediate proximity to the East Ledge open pit, as well as to test the area between the East Ledge and Twin Hills pits. The latter part of the 2006 program also began to test the limits of the newly defined resource of the South Twin Hills area. Current production from the East Ledge pit is approximately 80,000 ounces per year, with development of the Twin Hills pit planned for 2008.
Total measured and indicated mineral resources, as set out in the table entitled, "Mineral resource estimate, San Andres mine, as of Oct. 31, 2006," as of Oct. 31, 2006, are 62,298,000 tonnes at 0.66 g/t Au containing 1.29 million ounces of gold. This is an increase of 455,000 ounces of gold, or 54 per cent over the previous disclosed measured and indicated resource of 835,000 ounces of gold present when Yamana acquired the property on Feb. 28, 2006. Most of this increase has come from the successful upgrading of previous inferred mineral resources to the indicated category, as well as addition of new resources between and adjacent to the East Ledge and Twin Hills areas.
SUMMARY OF SIGNIFICANT NEW DIAMOND DRILLING RESULTS,
QDD AND AMELIA-MAGDALENA
Total Interval Au
Hole No. length From To (1)(m) (g/t)
(m) (m) (m)
06QD-233 414.70 97.75 99.70 1.95 5.09
132.30 147.30 15.00 1.45
Incl. 132.30 139.00 6.70 2.51
156.73 188.70 31.97 0.55
194.06 242.70 48.64 0.60
Incl. 222.50 233.70 11.20 0.87
06QD-276 200 0.00 52.60 52.60 0.41
06QDR-311 124.90 0.00 18.00 18.00 2.20
06QD-315 293.6 62.54 82.89 20.35 0.56
103.74 124.40 20.66 0.60
145.77 230.12 84.35 1.04
Incl. 175.42 202.85 27.43 1.52
06QD-318 330.4 14.25 177.46 163.21 0.84
Incl. 50.87 96.41 45.54 1.88
06QD-319 266 133.10 159.90 26.80 0.99
Incl. 156.21 159.90 3.69 4.89
169.45 186.00 16.55 0.82
06QDR-323 210.00 14.00 30.00 16.00 0.46
76.00 148.00 72.00 0.88
06QD-324 319.90 8.95 33.07 24.12 2.88
Incl. 15.75 27.26 11.51 4.95
156.80 252.50 95.70 0.64
Incl. 183.15 203.90 20.75 1.34
06QDR-325 216.00 144.00 162.00 18.00 0.60
06QDR-326 186.00 0.00 26.00 26.00 0.43
142.00 180.00 38.00 0.50
06QDR-327 306.00 0.00 104.00 104.00 1.24
Incl. 70.00 88.00 18.00 3.55
142.00 152.00 10.00 0.40
242.00 276.00 34.00 0.54
06QD-353 25.45 12.80 25.45 12.65 1.9039
06QD-359 84.45 38.35 44.85 6.50 0.46
06QDR-360 400.00 132.00 214.00 82.00 0.79
230.00 350.00 120.00 0.91
06QD-362 121.25 35.50 89.25 53.75 0.59
06QDR-363 348.00 78.00 86.00 8.00 1.20
116.00 122.00 6.00 3.47
154.00 234.00 80.00 1.01
324.00 336.00 12.00 3.99
06QDR-366 400.00 94.00 284.00 190.00 0.53
Incl. 102.00 112.00 10.00 1.43
204.00 220.00 16.00 1.04
06QDR-367 210.00 0.00 86.00 86.00 0.68
102.00 124.00 22.00 0.78
06QD-369 250.00 69.65 76.80 7.15 0.37
115.60 187.43 71.83 1.76
Incl. 142.85 156.00 13.15 4.96
200.90 204.26 3.36 3.42
06QD-370 160.05 115.30 124.75 9.45 0.35
06QD-372 186.50 86.20 90.43 4.23 1.23
116.60 129.64 13.04 0.62
141.50 157.40 15.90 1.91
168.60 176.60 8.00 0.43
06QD-373 347.30 50.10 54.10 4.00 1.48
80.10 86.10 6.00 0.34
106.60 178.60 72.00 0.75
Incl. 118.70 122.70 4.00 5.23
204.70 316.90 112.20 1.12
Incl. 222.55 240.05 17.50 2.38
Incl. 264.70 310.88 46.18 1.24
06QD-375 150.30 10.80 44.05 33.25 1.66
Incl. 10.80 15.35 4.55 8.73
06QD-376 105.00 NSV NSV NSV NSV
06QD-377 461.30 122.18 134.00 11.82 1.43
160.00 171.35 11.35 0.32
191.73 263.36 71.63 0.80
301.54 385.58 84.04 2.11
Incl. 322.40 346.40 24.00 4.86
MINERAL RESOURCE ESTIMATE, SAN ANDRES MINE,
AS OF OCT. 31, 2006
Classification Kt Au (g/t) Koz
Measured 14,748 0.70 326
Indicated 47,550 0.64 964
Total measured 62,298 0.66 1,290
and indicated
Inferred 1,339 0.53 22
Note: Assumed cut-off grade of 0.4 g/t Au for
oxide zone and 0.66 g/t Au for mixed zone;
$450 (U.S.) per ounce Au price.
Proven and probable mineral reserves as set out in the table entitled, "Mineral reserve estimate, San Andres mine, as of Oct. 31, 2006," are estimated at 21.7 million tonnes at 0.71 g/t Au containing 499,000 ounces of gold. Reserves are included within the measured and indicated resource sited above.
MINERAL RESERVE ESTIMATE, SAN ANDRES MINE,
AS OF OCT. 31, 2006
Classification Kt Au (g/t) Koz
Proven 5,939 0.77 148
Probable 15,806 0.69 352
Total 21,745 0.71 499
Note: Assumed cut-off grade of 0.4 g/t Au for
oxide zone and 0.66 g/t Au for mixed zone;
$450 (U.S.) per ounce Au price.
"The substantial expansion of the measured and indicated resource is very encouraging for future long-term growth at San Andres," said Peter Marrone. "Yamana plans to initiate metallurgical studies on the potential for dump leaching at San Andres in 2007 to further improve the project. Providing that economics and metallurgical results are favourable, there is potential to dramatically increase reserves and the current life of mine by mining a much larger percentage of the identified measured and indicated resource. We continue to monitor the issues relating to the adoption of a new mining law in Honduras, which will be important to the expansion plans and further developments at the mine. We have shown our support for efforts to adopt this new law."
The new block model was prepared by Yamana personnel, and independently audited and verified by Dr. Lawrence Cochrane, PEng, of Scott Wilson Roscoe Postle Associates Inc. Dr. Lawrence is an independent qualified person as defined by National Instrument 43-101. As part of its verification process, Scott Wilson RPA also prepared block models from the open pit blast hole data and the mineral resource estimates from these models compared very well with the resource estimate from the drill hole model.
Dr. Robert Hodder, PGeo, a well known expert on epithermal gold systems, has completed a detailed alteration study on the deposit employing advanced petrographic and analytical techniques to support geological fieldwork. He has concluded that the epithermal system is far more extensive and continuous than previously recognized. The system extends from the lowest level exposed in the Water Tank Hill area, through the East Ledge pit (middle of system), to the highest level in the Twin Hills area. The best-grade mineralization is inside the quartz-kaolinite-alunite zone of alteration that is related to zones of faulting and brecciation. A number of additional exploration targets have been identified and these will be followed up in 2007.
All core samples were sent to CAS de Honduras, S. de R.L. in Tegucigalpa, Honduras, a commercial laboratory, for sample preparation and assay. Both Yamana and CAS have an established quality assurance/quality control program consisting of insertion of blanks and standards, and analysis of duplicate assays and/or interlaboratory checks. High-grade gold analyses are reassayed using gravimetric methods. Scott Wilson RPA reviewed results of the QA/QC programs and concluded that the accuracy and precision of the assays are to acceptable industry standards.
Exploration on the Gualcamayo project is being conducted under the supervision of Rick Diment, PGeo, a qualified person as defined by National Instrument 43-101. All samples were collected in accordance with industry standards. Samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for fire assay and ICP analysis. Check assays were submitted to ALS Chemex, an ISO-9001:2000 certified lab, in its Santiago, Chile, facility. Accuracy and precision of results are tested through the systematic inclusion of standards, blanks and check assays.
Yamana exploration in 2007
Yamana will continue its exploration programs in 2007, having allocated a total budget of approximately $32-million, focusing primarily at and around Gualcamayo in Argentina, on the Bahia gold belt near and north of the Jacobina mine, on the Itapicuru greenstone belt north of the Fazenda Brasileiro mine, and on the Santa Elina gold belt south of Sao Francisco mine. Total drilling on all projects in 2007 is expected to be approximately 150,000 m.
Yamana began trading on the New York Stock Exchange effective Friday, Jan. 12, 2007, under the symbol AUY.
© 2007 Canjex Publishing Ltd.