Here's the news:
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
JUNE 1, 1999
Yamana Strikes Bonanza-Grade Gold at Martinetas
TORONTO, ONTARIO--Yamana Resources announces that a recently
completed 40-hole drilling program on its wholly owned Martinetas
property, Santa Cruz, Argentina, has yielded bonanza-grade gold on
the Coyote vein with one diamond core hole (DDH) intersecting 5.00
meters of 731.62 g/t Au, including 0.80 meters of 1,594.55 g/t Au
(51.27 oz/t) with 1,780.0 g/t Ag (57.2 oz/t). On a separate target
2 kilometers away, another DDH intersected 47.00 meters of 6.68
g/t Au, including 3.05 meters of 89.53 g/t Au with 98.9 g/t Ag. A
single DDH in a previously untested sector between these two
discoveries hit 16.50 meters of 1.98 g/t Au with 8.9 g/t Ag.
Based upon internal calculations, Yamana believes the "Coyote Gold
Shoot" in the Coyote epithermal quartz vein contains an inferred
resource(x) of more than 2.5 tonnes of bonanza-grade gold (about
80,000 ounces), and is open to depth. Drilling indicates high
potential for other gold shoots in several widespread quartz vein
swarms.
A total of 192 drill holes for 8,679 meters have been completed on
Martinetas over the last four years, with emphasis recently
shifting from low-grade, bulk-tonnage to high-grade vein swarm
targets, similar to those of the nearby Cerro Vanguardia mine.
This mine recently commenced production and has a 1999 output
forecast at 300,000 ounces of gold and 1.4 million ounces of
silver at a total cash cost of less than US$120 per ounce of gold.
Richard Walters, Yamana's President and Chief Operating Officer,
offered, "Again, Yamana has tenaciously applied its cash resources
to another intensive drilling campaign, this time making three
gold discoveries." Walters further stated, "The very high grade of
the Coyote Gold Shoot bodes well for development - even in the
face of a 20-year-low gold price."
Martinetas and Yamana's adjacent Microonda and Goleta properties,
collectively known as "Micmar" (see Map A, attached), cover 202
square kilometers. All three of these gold properties have
previously yielded encouraging drilling results and have been the
subject of numerous Yamana press releases, the most recent being
Yamana Release January 14, 1998. Micmar is in the eastern zone of
the Santa Cruz epithermal precious-metals mining district where
elevations are less than 200 meters above sea level. The property
is crossed by Argentina's main north-south highway (Ruta 3) and a
major gas pipeline.
Geologically, Micmar covers a 12-kilometer-wide circular volcanic
complex - probably a collapsed volcanic feature known as a
"caldera." High-grade gold has been found in a number of separate
areas around the margins of the complex (Map A, attached), with
mineralization localized in volcanic domes, breccias, and
cross-trending fissures and vein systems. Seven of the drilled
areas display promise for development of gold resources.
Mineralization is wide open on all seven areas, and could likely
be expanded by follow-up drilling. Apart from three areas on
Martinetas, the Molino prospect on Goleta holds the greatest
potential for a gold deposit discovery. There, a series of drill
holes encountered a shallow-dipping, tabular body of
mineralization localized on the contact between volcanics and lake
sediments, open downdip, with the best hole showing 8.00 meters of
21.00 g/t Au, including 2.00 meters of 57.56 g/t Au (see Yamana
release January 14, 1998).
A renewed drilling campaign during March and April 1999 examined
three sectors on Martinetas containing five targets (Map B,
attached). Forty holes for 1,720 meters were completed as 20
reverse-circulation (RC) holes (500 meters) and 20 DDHs (1,220
meters). Every hole hit gold mineralization. Drill hole Assay
Highlights are set out in Table I, and a detailed Assay Summary is
provided as Table 2 on Yamana's Web site. These assay results were
provided by Yamana's wholly owned, full-service fire assay
laboratory located at its Bema operations center in Santa Cruz.
Acme Analytical Laboratories (Chile) Ltda. was used for numerous
spot assay checks; they also checked the entire sample assay
sequence of certain holes. All check sample pulps were prepared at
Yamana's Bema lab under the close supervision of two qualified
persons. The checks verify the Bema results. A comparative assay
table is available to interested parties upon request.
Northern Sector - Two targets (see Map B, attached, and Maps C and
D on Yamana's Web site):
Coyote Vein Swarm - DDHs 23 and 73 have found what appears to be a
rich shoot of gold mineralization within the Coyote Vein Swarm
(see Map C on Yamana's Web site). The Coyote Vein Swarm has been
traced for more than 170 meters of strike length, being terminated
on the west by the Big Rib Fault and open to the east. DDH 23 hit
5.00 meters (2.50 meters true thickness) of 114.21 g/t Au (based
on 76 percent core recovery), including 2.00 meters of 276.10 g/t
Au, 30 meters below the surface (see Yamana release June 5, 1997).
DDH 73, 17.5 meters along vein strike from the collar of DDH 23,
returned 5.00 meters (2.50 meters true thickness) of 731.62 g/t Au
(based on 100 percent core recovery), including 0.80 meters of
1,594.55 g/t Au with 1,780.0 g/t Ag, also 30 meters below surface.
Both drill cores are speckled with abundant grains of visible
native gold and electrum (a natural alloy of gold and silver).
Five other DDHs outside of the gold shoot also penetrated the
Coyote vein, all hitting significant gold values - the best being
2.00 meters of 13.40 g/t Au with 24.6 g/t Ag (see Yamana release
January 14, 1998).
Yamana estimates the gold shoot within the Coyote quartz vein to
be 2.5 meters thick with strike and dip lengths of 30 meters each,
open downdip, with an average grade of 422.81 g/t Au with 283.4
g/t Ag. This equates to about 5,850 tonnes of 13.6 oz/t Au and 9
oz/t Ag, or nearly 2.5 tonnes of gold. High-density angle
core-hole drilling, probably on 5-meter centers, will be required
to prove up the Coyote Gold Shoot.
At current metals prices, Yamana feels that the gold and silver
contained in the Coyote Gold Shoot may not require beneficiation
prior to shipping to a smelter. The term for this run-of-mine
high-grade is "Direct Shipping Ore" (DSO). Alternatively, Yamana
believes that much of the mineralized material can be readily and
economically upgraded onsite to a raw gold concentrate suitable
for refinery feed. Preliminary metallurgical tests on DDH 23 found
that 60 percent of the gold is recoverable by coarse grinding with
gravity separation. Similar tests are being conducted on the drill
cores of DDH 73.
Cerro Oro Vein Swarm - This vein swarm is about 500 meters south
of the Coyote Vein Swarm and is at least 160 meters in strike
length (see Map D on Yamana's Web site). A series of short RC
holes mostly fell short of testing the principal vein discovered
by earlier drilling, encountering only associated veinlets.
Previously, RC 13 (see Yamana release December 18, 1996) cut the
principal vein intersecting 10.00 meters at 6.75 g/t Au, including
4.00 meters of 16.48 g/t Au. RC 45, located 150 meters along vein
strike from RC 13, yielded the best results of this campaign,
intersecting 21.50 meters of 2.11 g/t Au, including 2.00 meters of
11.46 g/t Au, thought to be a stringer zone of the principal vein.
Yamana believes that a gold resource can be developed on the Cerro
Oro Vein Swarm with continued drilling.
Central Sector - One target (see Map B, attached):
Only one hole, DDH 76, was drilled to test a large area of surface
mineralization with samples running up to 11.80 g/t Au. Recent
reinterpretation of the geology found that the single hole
previously drilled in this area, RC 11, was drilled in the wrong
direction, encountering only anomalous gold mineralization in the
footwall of a vein zone (see Yamana release February 11, 1997).
The drill was turned around for hole 76, intersecting 16.50 meters
of 1.98 g/t Au. Here, Yamana believes that additional drilling
could discover a gold resource.
South Sector - Two targets (see Map B, attached, and Map E on
Yamana's Web site):
T 1 Vein Swarm - Backhoe trenching 2 kilometers south of the
Northern Sector in 1997 exposed 2.00 meters of 32.63 g/t Au. RC
holes 7 through 10 and DDH 22 were subsequently drilled to test
the zone, but encountered only weak mineralization (see Yamana
release February 11, 1997). However, as in the Central Sector,
reinterpretation of the geology indicated that drilling was
incorrectly oriented. Eleven reoriented DDHs retested the T 1 Vein
Swarm, with seven returning multigram gold intercepts over
considerable thicknesses in volcanic and, for the first time, in
sedimentary host rocks. This raises the possibility of defining a
bulk-mineable gold deposit. Many of the thick intercepts are
centered on high-grade quartz veins. The highest results are in
DDH 58, which hit 47.00 meters of 6.68 g/t Au, including 3.05
meters of 89.53 g/t Au with 98.9 g/t Ag (based on 59 percent core
recovery). Eighty meters along strike, DDH 59 intersected 55.70
meters of 1.14 g/t Au, including 2.50 meters of 15.40 g/t Au with
14.0 g/t Ag.
Drilling demonstrates continuity of mineralization over 250 meters
of strike length. The deposit is terminated, or possibly offset,
by the Big Rib Fault on the east, but is open to the west and to
depth.
R 24 Vein Swarm - Scout drilling 1 kilometer west of the T 1 Vein
Swarm has opened up a new area of interest with encouraging gold
intersections of 7 to 16 meters exceeding 1.00 g/t Au. This vein
system is likely a continuation or extension of the T 1 Vein
Swarm.
As with Bacon, Yamana is rapidly moving the Martinetas gold
deposits, particularly the Coyote Gold Shoot, to indicated
resources and prefeasibility. In conclusion, Victor Bradley, CEO
of Yamana, states, "I believe the combined value of the Bacon
silver and Martinetas gold exceeds Yamana's current market
capitalization. We are now completely focused on generating cash
from these two nicely compact and very rich mineral deposits."
Yamana Resources Inc. is a Canadian minerals exploration company
focused primarily on silver exploration and development in
Argentina, with additional precious-metals interests in Paraguay
and Washington state.
Richard R. Walters, President and Chief Operating Officer of
Yamana Resources Inc., is the qualified person who prepared and is
responsible for this news release.
(x)This inferred resource is calculated in accordance with the
Recommendations for Public Mineral Exploration and Mining
Companies set out by the Mining Standards Task Force of the
Toronto Stock Exchange and the Ontario Securities Commission in
their final Report of January 1999. The U.S. Securities and
Exchange Commission's standards normally do not permit reference
to "inferred or indicated resources" in S.E.C. filings. Yamana
believes that this resource would probably be categorized as
"mineralized material."
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 gold deposits on the Martinates property, the amenability of
the deposits 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/
TABLE 1
Santa Cruz, Argentina
MARTINETAS
April 1999 Drilling Program
ASSAY HIGHLIGHTS
All assays by Yamana's Bema lab
---------------------------------------------------------------
Hole No./T.D. Interval Intercept Au Ag
Inclination (meters) (meters) (g/t) (g/t)
---------------------------------------------------------------
NORTH SECTOR
---------------------------------------------------------------
Cerro Oro Vein Swarm
---------------------------------------------------------------
RC 37/20.0 13.50 - 19.00 5.50 1.07 1.4
-60 degrees
---------------------------------------------------------------
RC 38/25.0 20.00 - 23.50 3.50 1.01 1.0
-60 degrees
---------------------------------------------------------------
RC 39/25.5 3.50 - 6.50 3.00 5.11 1.6
-60 degrees incl. 3.50 - 4.00 0.50 23.66 0.6
---------------------------------------------------------------
RC 40/26.0 23.00 - 24.00 1.00 2.92 1.2
-60 degrees
---------------------------------------------------------------
RC 41/30.5 11.00 - 12.50 1.50 1.07 1.2
-60 degrees
---------------------------------------------------------------
RC 42/30.5 3.50 - 6.50 3.00 1.76 1.3
-60 degrees
---------------------------------------------------------------
RC 43/48.5 46.50 - 48.50 2.00 4.31 9.6
-60 degrees
---------------------------------------------------------------
RC 44/21.0 14.00 - 16.00 2.00 2.04 2.2
-60 degrees
---------------------------------------------------------------
RC 45/30.0 0.00 - 30.00 30.00 1.27 1.1
-60 degrees incl. 1.50 - 2.50 1.00 11.46 0.9
---------------------------------------------------------------
RC 46/25.0 0.00 - 25.00 25.00 0.86 1.2
-60 degrees incl. 1.50 - 5.50 4.00 3.45 2.4
incl. 2.50 - 3.00 0.50 21.58 8.4
---------------------------------------------------------------
RC 47/22.0 3.00 - 6.00 3.00 1.07 1.3
-60 degrees
---------------------------------------------------------------
RC 48/20.0 5.00 - 13.00 8.00 1.25 1.3
-60 degrees incl 10.50 - 11.50 1.00 8.37 1.5
---------------------------------------------------------------
RC 49/20.0 13.00 - 14.00 1.00 4.22 8.4
-60 degrees
---------------------------------------------------------------
RC 50/26.0 14.50 - 16.00 1.50 0.48 1.2
-60 degrees
---------------------------------------------------------------
RC 51/20.0 4.00 - 6.50 2.50 0.89 1.4
-60 degrees
---------------------------------------------------------------
RC 52/20.0 18.50 - 19.00 0.50 12.77 0.1
-60 degrees
---------------------------------------------------------------
RC 53/20.0 2.50 - 3.00 0.50 18.91 0.6
-60 degrees
---------------------------------------------------------------
North Sector (cont.)
Coyote Vein Swarm
---------------------------------------------------------------
RC 54/25.0 0.00 - 4.00 4.00 0.39 0.5
-60 degrees
---------------------------------------------------------------
RC 55/22.0 18.50 - 20.50 2.00 0.82 1.5
-60 degrees
---------------------------------------------------------------
RC 56/22.5 0.00 - 22.50 22.50 1.26 2.1
-60 degrees
incl. 18.50 - 22.50 4.00 6.04 6.8
incl. 19.00 - 20.00 1.00 18.94 2.2
---------------------------------------------------------------
D 70/61.00 11.90 - 16.00 4.10 0.80 2.4
-60 degrees
---------------------------------------------------------------
D 71/55.40 12.00 - 13.50 1.50 3.06 3.0
-60 degrees 51.00 - 52.50 1.50 2.66 2.8
---------------------------------------------------------------
D 72/60.40 23.50 - 60.40 36.90 0.77 4.2
-60 degrees
incl. 31.00 - 32.50 1.50 3.50 8.2
incl. 40.00 - 41.50 1.50 8.57 12.8
---------------------------------------------------------------
D 73/59.80 22.00 - 28.00 6.00 0.81 42.4
-60 degrees 28.00 - 33.00 5.00 731.62 464.0
incl. 30.20 - 31.00 0.80 1,594.55 1,780.0
33.00 - 36.00 3.00 0.68 25.0
---------------------------------------------------------------
D 74/40.30 24.15 - 26.20 2.05 5.26 26.0
-60 degrees
---------------------------------------------------------------
D 75/31.10 9.50 - 15.50 6.00 0.47 7.6
-60 degrees
---------------------------------------------------------------
CENTRAL SECTOR
---------------------------------------------------------------
D 76/68.63. 2.00 - 47.00 45.00 0.95 12.1
-60 degrees incl.30.50 - 47.00 16.50 1.98 8.9
---------------------------------------------------------------
SOUTH SECTOR
---------------------------------------------------------------
T 1 Vein Swarm
---------------------------------------------------------------
D 57/60.30 3.70 - 27.00 23.30 2.32 4.3
-60 degrees incl. 7.50 - 10.50 3.00 9.68 4.8
---------------------------------------------------------------
D 58/60.00 1.50 - 48.50 47.00 6.68 9.5
-60 degrees incl. 9.80 - 12.85 3.05 89.53 98.9
---------------------------------------------------------------
D 59/70.15 14.40 - 70.10 55.70 1.14 2.6
-60 degrees incl.30.50 - 33.00 2.50 15.40 14.0
---------------------------------------------------------------
D 60/79.50 40.00 - 48.00 8.00 1.70 3.6
-80 degrees
---------------------------------------------------------------
D 61/70.10 15.00 - 16.50 1.50 0.50 3.4
-60 degrees
---------------------------------------------------------------
D 62/40.20 0.00 - 8.20 8.20 2.50 8.2
-60 degrees
---------------------------------------------------------------
D 63/51.55 32.00 - 39.50 7.50 1.26 2.9
-60 degrees
---------------------------------------------------------------
T 1 Vein Swarm (cont.)
---------------------------------------------------------------
D 64/83.05 28.50 - 56.50 28.00 1.21 5.8
-80 degrees incl.51.00 - 53.50 2.50 9.32 30.5
---------------------------------------------------------------
D 65/64.75 6.70 - 43.00 36.30 1.31 3.0
-60 degrees incl.16.15 - 20.75 4.60 7.80 5.6
---------------------------------------------------------------
D 66/52.30 19.00 - 45.00 26.00 0.83 2.8
-60 degrees incl.34.50 - 40.85 6.35 2.49 4.4
---------------------------------------------------------------
D 67/98.15 89.00 - 93.50 4.50 0.42 4.5
-60 degrees
---------------------------------------------------------------
R 24 Vein Swarm
---------------------------------------------------------------
D 68/32.50 14.00 - 21.50 7.50 1.19 9.6
-60 degrees
---------------------------------------------------------------
D 69/81.20 37.00 - 38.50 1.50 0.68 2.9
-60 degrees
---------------------------------------------------------------
/T/
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