Yamana Makes Second High-Grade Silver Strike in Argentina
SPOKANE, WASHINGTON--Yamana Resources Inc. announces that
first-pass scout drilling has intercepted high-grade silver with
gold on a second property in its wholly owned Santa Cruz
Vanguardia project. This is on Bacon (see map A), 150 kilometers
southeast of Lejano, where Yamana recently discovered high-grade
silver associated with gold and base metals (see Yamana release
Feb. 18, 1998).
Yamana tested North Bacon and South Bacon, 8.5 kilometers apart,
with a total of 33 shallow reverse-circulation (RC) drill holes,
for 1,059 meters. On North Bacon, rock-chip samples on the
discovery outcrop (see map C) found 4.7 meters of 5,213 g/t Ag and
6.87 g/t Au, with highly geochemically anomalous epithermal
pathfinder elements, notably arsenic and antimony, and low
base-metal content. The 18 RC drill hole program on North Bacon
yielded a number of high-grade, precious-metal intercepts (see
assay table). Two drill holes, 18 meters apart, which probed the
discovery outcrop, produced exceptional results: Hole 1: 14 m of
737 g/t Ag and 1.30 g/t Au, including 10 m of 1,017 g/t Ag with
1.80 g/t Au Hole 16: 24 m of 664 g/t Ag and 0.68 g/t Au,
including 6 m of 2,579 g/t Ag and 2.62 g/t Au Certified assays
were provided by Acme Analytical Laboratories Ltd. in Santiago,
Chile. Silver and gold values were obtained by fire assay, with
base-metal values coming from atomic absorption techniques. A
second independent lab is conducting check assays on the more
important drill samples.
Bacon, 44 square kilometers, is located along a provincial
highway, at 350 meters above sea level. Like Lejano, Bacon lies
within a recently recognized large, emerging silver district,
approximately 100 by 300 kilometers (see map A), within the
western region of the larger epithermal precious-metals province,
about one-third the size of the state of Nevada, known as
Vanguardia. This province is defined by the huge Deseado Massif, a
thick pile of Jurassic-age (150 million years) rhyolitic volcanics
hosting the epithermal mineralization associated with Cerro
Vanguardia (3 million oz Au and 35 million oz Ag), Manantiel
Espejo (500,000 oz Au and 35 million oz Ag) and Fachinal (600,000
oz Au and 25 million oz Ag).
The silver district is a product of mineralogical zonation across
the precious-metals province, where Yamana currently holds 15
properties (836 km2). In the west, where Yamana has seven
properties (covering 425 km2), including Bacon and Lejano, the
silver-to-gold ratio is typically greater than 100:1; in the
central region, covering Mincorp's Cerro Vanguardia deposit and
three Yamana properties 62 km2), including Estrella, it is 10:1;
and, in the east, where Yamana has five properties (349 km2)
including Martinetas and Goleta, this ratio is generally 1:1.
Unlike Lejano, the North Bacon discovery is not a gossan capping
semi-massive lead-sulfides, but rather, is a precious-metal-rich,
quartz fault-vein (i.e., a quartz-injected fault) exhibiting
classically epithermal textures, including episodic banding, along
with pathfinder element geochemistry. This vein is hosted within a
subregional fault zone which runs eastward for about 9 kilometers
across the property.
"So far, only about one-fifth of this major structure has been
closely examined," said Matt Hughes, the Yamana geologist who
discovered both Bacon and Lejano. "There are at least two other
big alteration zones along this complex, east-trending fault zone.
One of these starts about 1.3 kilometers beyond the drilled area
and is about 1.5 kilometers by 250 meters, and there's another 1.5
kilometers beyond that which is at least 1 kilometer long and 500
meters wide."
The explored portion of the main quartz vein pinches and swells
from a few centimeters up to 20 meters in thickness, along a
strike length of at least 1.2 kilometers (see map B), with several
subparallel vein splays. The apparent dip of the vein is vertical
to 45 degrees southward (see map D). Outcrops show only inci-pient
oxidation, with some sulfides exposed at surface - total sulfide
content is generally less than 2 percent - and there is a distinct
quartz-veinlet stockwork zone of mineralization in the footwall of
the principal quartz vein. The volcanic host rock is a fairly
homogeneous rhyolitic, crystal lithic tuff.
Eighteen shallow RC angle holes, for 556 meters, in widely spaced
sets, were drilled on North Bacon. Thir-teen reached their target,
and five fell short. Most importantly, Hole 5 was lost before
penetrating the depth projection of an outcropping structure which
assays 6,918 g/t Ag and 5.17 g/t Au, over 2 meters.
On the east end of the drilled portion of North Bacon, the main
structure flares into a stockwork system that was to be tested by
Holes 6 to 9 and 10 to 14. Holes 6 to 9, which were not completed
to the designed depth, found runs of less than 30 g/t Ag. However,
drilling in the other stockwork hit (Hole 13) 2 meters of 334 g/t
Ag with 0.43 g/t Au and (Hole 14) 4 meters of 644 g/t Ag with 0.75
g/t Au.
Noted Mel Klohn, Yamana's Santa Cruz Vanguardia Project Manager,
"We're highly encouraged by the North Bacon drill intercepts. This
appears to be a really good, solid vein system, with high-grade
shoots and enough untested extent, both in length and depth to
comprise a target of substantial size. We drilled a few lean spots
here and there, but most veins are like that - a piece of Swiss
cheese standing on edge."
The North Bacon drilling revealed some sites of anomalous copper,
with values up to 0.8 percent over 2 meters, but generally less
than 0.1 percent. This copper is thought to be coming from silver
sulfosalts, especially freibergite, which can contain up to 18
percent silver in its crystal lattice, and which is the
ore-bearing mineral of the famous Sunshine silver mine in Idaho.
Field geologists also tentatively identified native silver in a
Bacon rock sample which has been submitted for x-ray diffraction
analysis to determine exactly which minerals and elements are
present. The drilling found only traces of lead and zinc.
"When the microprobe analysis is completed, I expect we'll find a
wonderful array of argentiferous sulfosalts at North Bacon," Klohn
said, "including boulangerite, which we have also tentatively
identified, argentite-acanthite and other silver minerals."
The next phase of drilling at North Bacon will be aimed at
starting to establish a geologic resource, beginning with a return
to the incomplete holes, such as Hole 5, near the almost 7,000 g/t
Ag outcrop. Drilling will also include tightening up the drill
hole pattern along strike of the mineralized zones as well as
step-outs to extend them. Deeper probes are planned to check for
plunging shoots of the rich outcrops. There are also major
structural intersections concealed in topographic lows (see map B)
which deserve drill testing.
First-pass drilling on South Bacon, an extension of the Manantiel
Espejo structural trend, consisted of 15 RC holes for 503 meters.
These holes probed a 150- by 250-meter area within a structural
zone more than 3 kilometers long. This is composed of a swarm of
narrow quartz veins and veinlets within a broader zone of
argillically altered andesite. Drilling encountered a lot of
strongly geochemically anomalous gold and silver, such as (Hole
23) 8 meters of 42 g/t Ag with 0.13 g/t Au, including 2 meters of
162 g/t Ag; and (Hole 28) 12 meters of 50 g/t Ag and 0.26 g/t Au,
including 2 meters of 123 g/t Ag. In addition, reconnaissance
outcrop sampling 3 kilometers west along strike from the drilled
area, produced samples containing 36 to 182 g/t Ag and 0.1 to 0.2
g/t Au.
Noted Walters, "At this point, South Bacon does not represent a
discovery like we have at North Bacon and Lejano. However, the
gold and silver values, combined with high arsenic and strong
hydrothermal alteration, especially the presence of silica
replacing carbonate minerals, provide good evidence that we are
dealing with high-level mineralization above a bulk-tonnage-type
precious-metal target. South Bacon warrants deeper drilling."
Meanwhile, at Lejano, Yamana has beefed-up its exploration team
and activities, and is enhancing local infrastructure in
preparation for continued drilling, scheduled to begin as soon as
possible. Geologic and topographic mapping of the entire mineral
zone - with emphasis on a large undrilled gossan 2 kilometers away
and along the strike of the South Ridge - together with
subregional reconnaissance surveys, are under way.
Walters summarized, "Our persistence in frontier exploration in
this precious-metals province has been productive. We've recently
made two, significant precious-metals discoveries in western Santa
Cruz, both with potential to become high-grade silver mines. We're
continuing with our aggressive drilling programs to test
established targets and build precious-metal resources; at the
same time, we are maintaining our reconnaissance activities
throughout the Santa Cruz project."
Yamana Resources Inc. is a Canadian exploration company holding
interests in projects in Argentina, Chile, Paraguay, Papua New
Guinea, Indonesia 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, 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 general risks of mineral exploration such
as uncertainties involved in interpreting the nature and extent of
geological formations on the basis of limited drilling and the
uncertain reliability of geochemical data and the interpretation
thereof 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. 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.
/T/
SANTA CRUZ, ARGENTINA
NORTH BACON
DRILL HOLE ASSAY SUMMARY
-------------------------------------------------
Drill Interval Intercept Au Ag
Hole # (meters) (meters) g/t g/t
-------------------------------------------------
1 10 - 20 10 1.80 1,017
or 10 - 24 14 1.30 737
-------------------------------------------------
2 4 - 10 6 0.25 279
or 4 - 14 10 0.19 196
-------------------------------------------------
3 20 - 34 14 0.19 219
or 16 - 34 18 0.16 178
Bottoms in mineralization
-------------------------------------------------
4 2 - 4 2 0.10 248
or 2 - 12 10 0.06 81
5(x) No significant mineralization(x)
-------------------------------------------------
6(x) No significant mineralization(x)
-------------------------------------------------
7(x) 8 - 10 2 0.01 19
-------------------------------------------------
8(x) 12 - 14 2 0.01 15
-------------------------------------------------
9(x) 38 - 40 2 0.01 24
Bottoms in mineralization
-------------------------------------------------
10 14 - 18 4 0.05 20
-------------------------------------------------
11 6 - 8 2 0.07 24
-------------------------------------------------
12 10 - 20 10 0.01 10
-------------------------------------------------
13 24 - 26 2 0.43 334
or 20 - 28 8 0.12 101
-------------------------------------------------
14 8 - 12 4 0.75 644
or 2 - 12 10 0.32 275
-------------------------------------------------
15 10 - 14 4 0.69 399
or 6 - 24 18 0.17 99
-------------------------------------------------
16 4 - 10 6 2.62 2,579
or 2 - 26 24 0.68 664
-------------------------------------------------
17 12 - 19 7 0.63 503
Bottoms in mineralization
-------------------------------------------------
18 4 - 16 12 0.28 235
-------------------------------------------------
(x) Did not reach target depth.
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Yamana Resources Inc.
Greg W. Taylor
Vice President, Corporate Development
(509) 838-6615
(509) 838-0714 (FAX)
E-mail: gwtaylor@yamana.com
Home page: yamana.com |
