News Release
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
JULY 4, 1997
Yamana Resources Seeks New Partner In Santa Cruz,
Vanguardia, Argentina
SPOKANE, WASHINGTON--Yamana Resources Inc. is seeking a new
partner for its extensive properties in the Santa Cruz, Vanguardia
epithermal gold district following Rio Algom Limited's decision to
terminate its earn-in option as of August 31, 1997. Rio Algom
noted that although drilling has intercepted significant gold and
silver on three of Yamana's 18 properties, the project did not
meet its corporate target concept.
Rio Algom, principally a base metals producer, will have spent
US$4 million during the 1996-97 exploration season examining
several targets; for the coming season, Rio Algom would have had
to commit an additional US$3.5 million on some of the at least 16
untested targets identified so far. "We are very pleased with
Yamana's team and with the way our money was spent," a Rio Algom
spokesman said, " and we may be looking at working with them again
in another project."
Victor Bradley, Yamana's President and CEO, said, "Rio Algom made
a major contribution to what we remain convinced is an important
project in an emerging gold and silver district resembling Nevada
40 or 50 years ago. These epithermal gold systems are complex and
they take commitment. As we've seen next door to us at Cerro
Vanguardia, they can by very large and potentially, very
profitable." Asked whether Yamana would consider funding the
program itself from the Company's cash holdings, Bradley said
"Absolutely. We plan to go ahead with this project regardless.
However, we are explorers, not miners, and our strategic
preference would be for a partner with an understanding of
epithermal systems as well as the determination and the stamina to
stay the course."
Yamana, which has been operating the project, has had inquiries
from other potential partners in the past and is now preparing a
detailed technical presentation package. Winter conditions in the
region preclude site visits before early September.
Yamana Resources is a Canadian exploration company holding
interests in 12 projects encompassing more than 90 properties
covering over 36,000 square kilometers (8.9 million acres) in
Argentina, Chile, Paraguay, Papua New Guinea, Indonesia and
Washington state.
CAUTIONARY STATEMENT This News Release includes certain
"forward-looking statements" within the meaning of Section 21E of
the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included
in this release, including, without limitation, statements
regarding potential mineralization and reserves, exploration
results, and future plans and objectives of Yamana, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Yamana's expectations are disclosed under the
heading "Risk Factors" and elsewhere in Yamana's documents filed
from time to time with The Toronto Stock Exchange, the United
States Securities and Exchange Commission and other regulatory
authorities. All subsequent written and oral forward-looking
statements attributable to Yamana or persons acting on its behalf
are expressly qualified in their entirety by this notice.
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