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News Release for YAMANA RESOURCES INC.
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
DECEMBER 8, 1998
Yamana Confirms Rich Silver Lode Strike at Bacon, in
Santa Cruz, Argentina (x)
SPOKANE, WASHINGTON--Yamana Resources Inc. announces that the
recently completed second drilling campaign has confirmed a
high-grade silver-gold quartz lode system on North Bacon, part of
its Bacon property in Santa Cruz province, Argentina. Bacon is one
of 20 properties making up the Company's wholly owned Santa Cruz
project.
This latest round of drilling started on September 22, 1998 and
ended on November 18, completing 48 drill holes for 2,375 meters.
Assays are pending for 4 of the 48 holes. This campaign focused on
a 250-meter section, known as Veta Martha (see map), of the more
than 1.5-kilometer-long, eastward-striking quartz-vein system. The
program had a two-fold purpose: scout drilling to further explore
indicated extensions of the vein system; and pattern drilling
involving fences every 25 meters across Veta Martha, designed to
build a silver resource.
At least six diamond drill core holes (DDH) hit highs of more than
5,000 g/t (160 ounces per tonne [opt]) Ag over true thicknesses
(tt) of 0.5 to 1.5 meters within wider intervals of excellent
grade (see table). The best drill intercept comes from DDH 37,
which intercepted 8.10 meters (tt) of 2,989 g/t Ag with 4.42 g/t
Au. Thirteen meters above this intercept, a trench (S 16) was cut
across an outcrop of vein, yielding 1.9 meters (tt) of about
39,000 g/t (1,255 opt) Ag with 108 g/t (3.5 opt) Au.
Observed Richard Walters, Yamana's Executive VP and Chief
Operating Officer, "I am confident that we have found a
commercially viable silver deposit, the magnitude of which is yet
to be determined. Much of the near-surface precious-metals
mineralization has an in-situ value exceeding $500 per tonne, and
that can be classified as direct shipping rock." He added that
potentially economic mineralization is known to extend to at least
65 meters downdip in one or more sections of the quartz vein.
The Bacon property lies in the southern portion of a newly
recognized silver district in western Santa Cruz where several
recent discoveries have attracted international attention from
both the mining industry and investors. The North Bacon discovery
is a precious-metals-rich, quartz fault-vein exhibiting classic
epithermal textures. Geologically, the North Bacon discovery is
akin to those epithermal precious-metals deposits of the Tonopah
district in south central Nevada, which produced 174 million
ounces of silver and 1.86 million ounces of gold.
Yamana's Bacon property package consists of 321 square kilometers
of mineral rights and 357 square kilometers of overlying surface
rights. A two-year option to purchase Estancia 1st de Abril was
recently consummated, providing both unlimited access and a local
operations base. This land package lies northwest of, and adjacent
to, the Manantial Espejo deposit owned by Black Hawk Mining and
Barrick Gold, with reported reserves and resources in all
categories of 7.9 million tonnes grading 191 g/t Ag and 2.87 g/t
Au. (At a ratio of 60:1 Ag:Au, this is equivalent to about 1.5
million ounces of gold or 89.3 million ounces of silver.)
The top of the silver-rich shoot identified by drill fence S 14
(DDHs 37 and 49) was exposed by the trench on drill fence S 16. A
portable diamond power saw was used to cut a strip of rock 2.5
centimeters deep and 7.6 centimeters wide by 6.2 meters long from
the bottom of the trench. This sampling produced what Walters
described as "truly bonanza results" - a 3.8-meter (tt) interval
of about 20,144 g/t Ag with 54.5 g/t Au, including 1.9 meters (tt)
of 39,280 g/t Ag and 108 g/t Au, within which is 0.67 meters (tt)
of 83,278 g/t Ag and 53.2 g/t Au. This trench, combined with DDHs
37-39, 49, 69-71 and 73 (see map and table), identifies a shoot of
high-grade silver, at least 150 meters long, within the Veta
Martha quartz vein.
The 66 holes drilled so far represent only an initial appraisal of
the epithermal silver mineralization carried in the extensive
Bacon quartz vein system, said Mel Klohn, Yamana's Santa Cruz
Project Manager. "These mineral systems are difficult to evaluate
because veins abruptly pinch and swell both along strike and
downdip; only a certain percentage of the vein will be
mineralized; the geometry of the mineralization will be irregular;
and, typically, extreme grade variances are encountered in closely
spaced drill holes."
Other drill targets both east and west of Veta Martha have also
produced encouraging results:
- At Sugar Hill, Yamana geologists collected a small float
sample of vein material that returned 16,761 g/t Ag with 16.69
g/t Au. DDH 64, drilled near this site, penetrated a vein 17
meters down its dip from the surface, encountering 357 g/t Ag over
0.8 meters (tt).
- At Veta Medio, a previous fence of RC holes, numbers 6-9,
encountered a series of quartz veins 0.5 to 1 meter thick (tt) and
all running about 20 to 25 g/t Ag. A 169-meter angle hole, DDH 84,
has been drilled beneath this fence and results are pending.
- At Veta NE, a sample of quartz-veined subcrop returned 4,158
g/t Ag with 6.00 g/t Au. Nearby, DDH 62 intersected 0.32 m (tt) of
2,317 g/t Ag, 26 meters below the surface.
- At Veta Martha Oeste, strong silver mineralization was
intersected in two scout holes, RC 82 and 83, which are 300-meter
and 200-meter step outs, respectively, west of DDH 39, along the
projection of Veta Martha. RC 83 intersected 1.7 meters (tt) of
315 g/t Ag and RC 82 hit 1.7 meters (tt) of 473 g/t Ag with 2.01
g/t Au, both 40 to 44 meters below the surface and within thicker
sections of lesser silver mineralization.
Observed Klohn, "The assay returns, together with the
mineralogical and textural characteristics at these four sites
indicate our drill penetrations may have nicked the top of more
high-grade silver shoots. These are all good indications that we
are dealing with a very large, silver-pregnant hydrothermal
system."
Extensive surface sampling north of the drilled area has
discovered two other promising drill targets:
- At Far North Bacon, 85 rock-chip samples have proved up two
prominent quartz-sulfide vein structures about 1 kilometer
northeast of and subparallel with Veta Martha. The larger vein is
traceable for about 1.5 kilometers along strike, and includes a
500-meter section 1 to 6 meters wide containing between 100 and
300 g/t Ag, with gold values ranging up to 2.3 g/t Au. The smaller
vein, which runs for about 1 kilometer in tandem with the larger,
is up to 1 meter wide, and includes a 150-meter section containing
detectable pyrargyrite (ruby silver). The best sample assays 6,821
g/t Ag, with 19.27 g/t Au.
- The eastward-striking Argenta Centro quartz-vein system lies 6
kilometers north of Veta Martha within an area about 0.5 by 3
kilometers. A suite of 61 rock-chip samples taken on three of the
main vein structures shows the sulfide-rich system to be dominated
by base metals (Cu, Pb and Zn) with supplementary precious
metals. Different samples contain up to 3.1% Cu, 4.7% Pb, and 8.8%
Zn. Gold is consistently anomalous, with values up to 3.35 g/t Au.
Silver values commonly range from 5 to 30 g/t Ag, with a high of
314 g/t Ag.
Remaining assay results of the latest Bacon drilling campaign will
be reported as soon as they become available, probably before the
year's end. A third drilling campaign on North Bacon is
anticipated to begin next year, and will include the new targets.
Meanwhile, metallurgical tests for precious-metals extraction will
be conducted.
Yamana has engaged mineral industry consultants, Micon
International Limited, to perform an independent technical audit
of its Bacon project. Following site visits in October, Micon's
senior geologist, Andrew P.G. Abraham, Ph.D., who conducted the
initial stage of the audit, released his preliminary findings.
"Yamana has established a strong and experienced exploration team
supported by competent and diligent technical staff," he reported,
noting that Yamana follows sample procedures and protocols which
are "standard to the exploration industry." The report concluded,
"Micon believes that the North Bacon target offers excellent
potential for further discovery of epithermal silver-gold
mineralization."
Yamana Resources Inc. is a Canadian minerals exploration company
with projects in Argentina, Chile, Paraguay, Indonesia, Papua New
Guinea, and Washington state.
FORWARD-LOOKING STATEMENTS: 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, the commercial viability of
the silver deposit on the Bacon property, the amenability of the
deposit to standard recovery methods, Yamana's planned exploration
and drilling program, 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. Certain important factors that could cause actual
results to differ materially from Yamana's expectations include
the uncertain reliability of drilling results and other
geophysical or geochemical data and the interpretation thereof,
uncertainties relating to the extent, continuity, grade and nature
of the mineral deposit, the possibility of unanticipated costs and
expenses or cost overruns or inadequacy of cash resources,
political and economic conditions in the world economy or the
conditions in the nations in which the company does business,
metal prices and other factors 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.
Forward-looking statements are based on the estimates and opinions
of management on the date the statements are made, and Yamana does
not undertake any obligation to update forward-looking statements
should conditions or management's estimates or opinions change.
/T/
Santa Cruz, Argentina
NORTH BACON DRILL HOLES
September - November 1998 Drill Campaign
PRELIMINARY ASSAY SUMMARY
---------------------------------------------------------------
Downdip
Vein
Diamond Interval Inter- True Silver Gold Length
cept of
Drill or (meters) (meters) Thick- (g/t) (g/t) Pene-
RC Hole ness tration
No. (meters) Average Average From
Surface
(meters)
---------------------------------------------------------------
34 Hole abandoned / No assay
---------------------------------------------------------------
35 5.5 - 8.0 2.5 2.09 1,539 0.98 6
incl. 7.0 - 7.5 0.5 0.42 3,179 1.34
---------------------------------------------------------------
36 2.0 - 8.5 6.5 5.50 419 0.38 6
incl. 7.5 - 8.5 1.0 0.85 1,197 1.74
---------------------------------------------------------------
37 10.0 - 20.0 10.0 8.10 2,989 4.42 13
incl. 15.5 - 16.5 1.0 0.81 12,747 22.58
---------------------------------------------------------------
38 17.5 - 22.0 4.5 3.65 4,831 5.91 17
incl. 18.5 - 20.0 1.5 1.22 8,110 11.80
---------------------------------------------------------------
39 17.0 - 26.0 9.0 7.29 1,591 1.78 20
incl. 22.5 - 24.0 1.5 1.21 6,958 7.08
---------------------------------------------------------------
40 10.0 - 12.0 2.0 1.52 238 0.27 9
---------------------------------------------------------------
41 6.0 - 8.0 2.0 1.52 137 0.16 6
---------------------------------------------------------------
42 57.5 - 58.5 1.0 0.81 151 0.18 50
---------------------------------------------------------------
43(x) 3.8 - 5.1 1.3 1.05 46 0.02 4
---------------------------------------------------------------
44 3.5 - 4.5 1.0 0.92 150 0.30 3
---------------------------------------------------------------
45 & 46 Hole abandoned / No assay
---------------------------------------------------------------
47(x) 4.9 - 5.6 0.7 0.60 79 0.05 5
---------------------------------------------------------------
48 2.2 - 7.2 5.0 4.67 2,267 3.05 4
incl. 5.3 - 5.9 0.6 0.51 12,570 17.72
---------------------------------------------------------------
49 48.0 - 51.0 3.0 2.43 2,528 3.56 41
incl. 48.0 - 50.0 2.0 1.62 3,735 5.28
---------------------------------------------------------------
50(x), 52(x) ,53(x) None greater than 3.0 g/t Ag
---------------------------------------------------------------
51 77.2 - 79.8 2.6 1.46 284 0.17 76
---------------------------------------------------------------
54(x) 16.0 - 18.0 2.0 0.84 28 0.08 14
---------------------------------------------------------------
55 100.0 - 101.6 1.6 0.80 127 0.16 102
---------------------------------------------------------------
56(x) 58.0 - 59.2 1.2 0.93 34 0.01 49
---------------------------------------------------------------
57(x) 17.0 - 23.5 6.5 3.26 35 0.02 19
---------------------------------------------------------------
58(x) 33.9 - 35.9 2.0 1.62 72 0.01 31
---------------------------------------------------------------
59 52.0 - 67.0 15.0 7.80 90 0.16 61
---------------------------------------------------------------
60 Hole drilled for mineral character specimens/ore
microscopy/petrology 18
---------------------------------------------------------------
61 20.7 - 26.0 5.3 1.7 275 0.07 20
---------------------------------------------------------------
62 28.8 - 29.7 0.9 0.32 2,409 2.25 26
---------------------------------------------------------------
63(x0 36.4 - 40.8 4.4 3.52 63 0.03 32
---------------------------------------------------------------
64 23.0 - 24.4 1.4 0.81 359 0.40 17
---------------------------------------------------------------
65 19.5 - 26.6 7.1 5.77 136 0.07 20
---------------------------------------------------------------
66(x) 24.5 - 30.3 5.8 4.84 200 0.16 25
---------------------------------------------------------------
67 None greater than 3.0 g/t Ag
---------------------------------------------------------------
68(x) 48.9 - 53.8 4.9 3.14 37 0.05 47
---------------------------------------------------------------
69(x) 30.0 - 32.2 2.2 1.89 869 1.07 24
incl. 30.0 - 30.9 0.9 0.73 2,006 2.33
---------------------------------------------------------------
70 58.0 - 77.7 19.7 8.86 438 1.91 69
incl. 76.4 - 77.7 1.3 0.58 5,096 28.04
---------------------------------------------------------------
71(x) 43.5 - 46.1 2.6 2.11 2,722 7.25 35
incl. 43.5 - 44.2 0.7 0.53 9,562 26.20
---------------------------------------------------------------
72(x) 24.2 - 32.1 7.9 5.97 57 0.03 23
---------------------------------------------------------------
73(x) 71.4 - 76.9 5.5 2.49 401 0.39 71
incl. 72.4 - 72.9 0.5 0.23 2,259 1.27
---------------------------------------------------------------
74(x) 17.3 - 19.0 2.6 1.74 110 0.07 14
---------------------------------------------------------------
75(x) 40.3 - 42.9 2.6 1.71 67 0.01 34
---------------------------------------------------------------
76 Assays pending 49
---------------------------------------------------------------
77 & 80 None greater than 3.0 g/t Ag
---------------------------------------------------------------
78, 79 & 81 Assays pending
---------------------------------------------------------------
82(x) 40.0 - 44.0 4.0 3.40 378 1.24 40
incl. 40.0 - 42.0 2.0 1.70 473 2.01
---------------------------------------------------------------
83(x) 42.0 - 48.0 6.0 5.10 137 0.13 44
incl. 46.0 - 48.0 2.0 1.70 315 0.29
---------------------------------------------------------------
84 Assays pending
---------------------------------------------------------------
85 Hole abandoned / No Assay
---------------------------------------------------------------
/T/
All are in grams per tonne.
Status as of December 2, 1998.
Average = Average of Acme and Geolabs, except (hole #)(x) = Acme
only, and subject to adjustment on receipt of Geolabs assays.
Drill holes 34, 77 - 83 & 85 are reverse-circulation (RC) rotary
holes; all others are diamond drill core holes.
There is a map available by contacting the company at the number
above or by accessing CCN's Internet Website at
cdn-news.com.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Yamana Resources Inc.
Amy Martin
Investor Relations Coordinator
(509) 838-6615
(509) 838-0714 (FAX)
amartin@yamana.com
yamana.com
(x) Detail expanding on these results is available on Yamana's
Website or by contacting the Company.
INDUSTRY: PCS
SUBJECT: DRM |
