Here's some news - Lejano resource expanded
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
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
MARCH 17, 1998
Yamana Expands High-Grade Silver Discovery at Lejano
SPOKANE, WASHINGTON--Yamana Resources Inc. announces that ongoing
geologic studies have dramatically expanded precious-metal
mineralization at Lejano (60 square kilometers) (map A), including
the identification of a second high-grade silver gossanous zone.
This new zone, East Ridge, returned assays up to 2,151 g/t Ag,
8.77 g/t Au with 7.1 percent Pb. East Ridge is located about 2
kilometers along structural trend from the South Ridge gossan (map
B), where recent first-phase drilling intercepted bonanza-grade
silver and high-grade lead with associated gold values (see Yamana
release Feb. 18, 1998). Lejano is part of Yamana's wholly owned
Santa Cruz Vanguardia project in Argentina.
Nineteen rock-chip samples on East Ridge, each covering several
square meters, were taken from a 90- by 120-meter area of gossans,
altered tuffs and late-phase hydrothermal silica ribs (map C). All
samples are geochemically anomalous in both precious and base
metals, with the six gossan samples averaging 699 g/t Ag and 3.77
g/t Au with 3.2 percent Pb. The mostly soil-covered zone marking
East Ridge contains interspersed subcropping caps of iron oxides
in rock which has been chemically ravaged by hydrothermal
alteration, reflecting underlying sulfide lodes.
The hydrothermally altered host rock is generally soft, broken and
easily eroded, resulting in large soil-covered areas with
scattered outcrops of structural silicification and leached
semi-massive sulfides, or gossans. One aspect of this alteration
is an intense and broad manganese oxide (pyrolusite) halo
surrounding the mineralized structures.
Other rock-chip panel samples taken outside the area identified in
map C also show good assay values. A scout sample of gossan 200
meters to the south shows 227 g/t Ag, 2.08 g/t Au and 1.9 percent
Pb. Samples taken 100 meters to the west show anomalous silver
values in the 10 to 25 g/t range, in rhyolite breccias. Another
reconnaissance sample taken 100 meters to the north found 159 g/t
Ag, 0.12 g/t Au and 0.5 percent Pb, in iron-stained rhyolite
tuffs. About 1 1/2 kilometers further to the northwest, first-pass
sampling picked up nearly 50 g/t Ag with 0.24 g/t Au from
silicified zones in rhyolitic rocks.
Studies of Landsat images and field mapping at Lejano have led to
the identification of a large nest of circular volcanic
structures, approximately 15 kilometers across. The strongest
mineralization occurs in volcanic tuffs and breccias along a
distinctive ring fracture zone, about 1 kilometer wide and 4 to 5
kilometers in diameter, where it is intersected tangentially by a
linear, regional fault zone (map B). So far, ground reconnaissance
has traced mineralization semi-continuously for at least 4
kilometers along the southern rim of this smaller feature, which
is thought to be a caldera.
Richard Walters, Yamana's Executive VP and COO, said, "With all of
this, it's now apparent that we are dealing with a major system of
mineralization, and we have yet to find its limits."
"The whole zone has been shattered," added Mel Klohn, Yamana's
project manager at Santa Cruz. "We have discovered a large,
geologically complex site which is highly prospective for
epithermal precious-metal lodes; the rock has been both
structurally and chemically very well prepared to host
high-quality orebodies."
As soon as the mapping at Lejano is completed, Yamana intends to
launch a second phase of reverse-circulation (RC) drilling of 50
to 60 scout holes, for about 2,000 meters, before winter. This
program will be aimed at testing East Ridge, continued testing
along South Ridge, probing of a number of soil-covered areas
between the two ridges, as well as between the South and North
Ridge drilled areas.
"This target zone is very complex," Walters said. "Before we
launch a deeper drilling campaign later in the year, we need to
continue gathering information about the geology and mineral
trends through our shallow RC program, along with a planned
induced polarization geophysical survey to map any deep-lying
sulfide accumulations."
Walters observed that Lejano and Bacon (44 square kilometers) both
show geologic similarities to other bonanza-grade silver deposits
in the western hemisphere, including host-rock lithologies, rock
alteration assemblages, structural settings, and mineralogical
character. Analogies to Lejano are the Pachuca-Real Del Monte
deposits in Mexico (1.2 billion oz Ag and 6.2 million oz Au) and
Nevada's Comstock Lode (190 million oz Ag and 8.2 million oz Au).
Bacon is more akin to the Tonopah, Nevada, quartz fault-vein lodes
(175 million oz Ag and 1.9 million oz Au). These deposits,
however, are of Tertiary age, rather than Jurassic age, which
Yamana believes its properties are.
As part of its continuing efforts to expand the prospective area
at Lejano, Yamana has intensified its field programs and enhanced
its on-site operating facilities. One geologic team is mapping
Lejano to develop additional drill targets, focusing especially
along the rim of the caldera, while a second team is conducting
reconnaissance over the surrounding region. The latter includes
Landsat-guided field work which, so far, has resulted in the
addition of two new properties approximately 10 kilometers north
and west of Lejano: Ciclon East (95 square kilometers) and Ciclon
West (85 square kilometers). Ten of the 12 first-pass samples
taken at Ciclon West contain anomalous silver and gold values,
with three samples returning from 258 to 491 g/t Ag, 1.34 to 2.47
g/t Au and lead up to 2.1 percent. "These results are highly
encouraging," Klohn said, "especially given the fact that we have
not yet sampled the areas having the most obvious similarities to
Lejano." Klohn added that sampling has also begun at Ciclon East.
Yamana has followed up on the previously reported North and South
Ridge drill assay results presented by Acme Analytical
Laboratories Ltd. in Santiago, Chile, with 25 certified checks
from a second independent lab, ALS Geolab S.A., also in Santiago.
The gold and silver assay results from the two labs - both fire
assays with atomic absorption finishes - were generally within 5
percent of each other, which is considered within acceptable
industry standards.
Lead assays averaged about 10 percent lower at Geolab, a variation
described by Walters as reflecting the difficulty inherent in
generating precisely repeatable assays with atomic absorption
techniques when dealing with such high tenors of lead. Walters
noted, "While we believe we are dealing with normal lab bias, we
are having our lead samples rechecked at a third certified lab,
using wet chemical assay techniques which will yield more exact
results."
Given the strong results at Lejano, Yamana has lodged a
Manifestation of Discovery with the mines department covering the
mineralization, an important step in the legal process leading to
full mineral title with mining rights, subject to a three percent
mine-mouth royalty to the Province of Santa Cruz. Similar steps
are being taken to secure these rights for Bacon as well.
Lejano and the Ciclon properties, which are at altitudes of 700 to
750 meters, are all accessible by a network of maintained
provincial and federal roads, and lie within a 3 1/2-hour drive of
Las Heras (pop. 10,000), an important industrial service center
for nearby oil fields. There are also two regional airports within
a two-hour drive, both with regular scheduled flights. South
central Patagonia has a semi-arid climate, with open terrain of
sage- and grass-covered rolling hills.
While it is possible to work year-round, the short periods of
daylight, seasonally strong winds and cold temperatures from June
to August limit the amount of effective field work which can be
completed during this period. Klohn said drilling at Lejano can
continue until May, after which Yamana plans to return to drilling
at Bacon, where lower elevations normally allow a longer field
season.
Walters summarized, "With what we have already found in this new
silver district, and given the numerous targets we have yet to
drill at Lejano, Bacon and on the Ciclon properties, I think that
Argentina, which was named centuries ago after the Latin word for
silver, 'argentum,' by the Spanish Conquistadors who were looking
for a new route to the Inca silver mines, is finally starting to
live up to its name."
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. Yamana
assumes no obligation to update forward-looking statements. 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. |
