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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: The Barracuda™ who wrote (1073)	3/19/1998 11:30:00 AM
From: G	Read Replies (1) \| Respond to of 2346

Greg what can u tell us on how the financing is proceeding?

To: The Barracuda™ who wrote (1073)	3/19/1998 1:39:00 PM
From: Greg W. Taylor	Read Replies (1) \| Respond to of 2346

Robert: As much as the market is pressing us to gamble now, the short answer is we'll likely have deep drill results sometime in October. There might be something sooner, but I'd say this is only a slight possibility. Meanwhile, we will be continuing scout hole drilling as late in the season as we can. As I have noted before, we are going back to continue shallow drilling at Lejano in the next week or two. I also know that people are anxious to see deep drilling but, with the limited information that we have on the surface, any attempt at deep drilling right now would be gambling with the company. In a fault vein system such as we have, there are just too many variables as to where the deeper mineralization is located. (I might draw the parallel of finding an oil slick on the ocean days or weeks -- let alone millions of years -- after a ship sank. Wouldn't you want to check the current and weather patterns before you sent your divers down to look for the wreck?) Our objective is to first test the surface areas including more of the South Ridge, the new East Ridge Gossan, and the soil covered areas between South and North Ridges and between South and East Ridges. The idea is to get a better feeling both for structure and for size of the near surface shows. And this doesn't count further testing of any new areas near the surface at Lejano OR anything at Bacon OR anything at Ciclon West or East OR any other land we might acquire in the area. I know that the market has become attracted to images of long, low to mid-grade intercepts penetrating from surface. We may find that kind of target in the near future. However, what we have now deserves more examination: bonanza-grade, gossans ABOVE the sulfide layer. Where do they go? Are they connected? What's going on underneath the extensive soil-cover? How large are these gossans? (And, 'yes', How deep do they go before the sulfide zone?) The next set of questions, however, is not so much "How deep are the gossans?" as it is "What happens at the contact zone / water table?" Will we find supergene enrichment that turns out to be a better target than the gossan? There are mines that have been built on just such a zone. And at this point in the discussion, we are likely only looking at a depth of 40 to 60 meters, levels we MAY be able to test late in this season. Meanwhile, what about ground geophysics? That's another whole area we are looking into. It's got to be done before deep drilling makes any sense. I guess my point is that we know we need to do more, deeper drilling but it's got to be systematic, only following a better examination of the first target level, the oxide cap, a layer which itself could turn out to be valuable, low-cost, high-grade deposit. If we drill deep now, we may well hit something else which is significant. But if we don't -- even though statistically, without much detailed information about faulting and structures and the like, the chances in a vein system are quite low -- we'll all be punished. We're going to get there as soon as we can once we've worked through the near surface research. I hope to have the next round of drill results from Lejano in four to six weeks. I hope this helps. Greg