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Gold/Mining/Energy : Yamana Resources INC. T- YRI

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To: Tom Harper who wrote (1217)5/11/1998 8:19:00 PM
From: Greg W. Taylor  Read Replies (1) of 2346
 
Sorry if I appeared vague. It was not intentional. The only question around here about Lejano vs. Bacon is 'Which is the better target?' And that, of course, remains speculation. The Bacon grades are incredible. Our COO, who has been in this business for 35 years, has never seen such high grade silver numbers. I'm sure there is someone who has, but I've not heard from them. At the same time, we don't yet know about size. On the other hand, the grades at Lejano are extremely good as well, and given the structures we are seeing in the area (which I've described in previous releases), there are signs of serious size as well

Beyond that, the primary unknown is the financing. With more cash will come a more aggressive drill program. There is nothing vague about the potential at both Bacon and Lejano. The specific plans for drilling at these two properties have not been set but we hope to be able to drill at both of them next season. The season should start in September. We may have two drills going, perhaps even three. I don't know the best place to start there but you can work out the permutations and combinations with, perhaps, two core and one RC drill.

The program will be driven by a combination of the geology -- where are the best targets for core drilling -- access, and drilling capability. Since we haven't finished drilling and IP at Lejano, we still have work to do before we set the program there.

I hope this helps.

Greg
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