NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
JUNE 12, 1998
Latest Drill Holes Show More High-Grade Silver at Lejano
Deposit
SPOKANE, WASHINGTON--Yamana Resources Inc. reports that assay
results from the final six holes of the drill season on South
Ridge (see Yamana release May 27, 1998) have further increased the
size of the mineral deposit at Western Lejano in its wholly owned
Santa Cruz Vanguardia, Argentina, project. This is a polymetallic
deposit, which is exceptionally rich in silver, where iron, lead,
zinc, and copper sulfides impregnate and cement a large fissure
zone.
To date, drilling, geologic mapping, and geophysical data confirm
that the main mineralized gossan zone at South Ridge in Western
Lejano has a strike length of at least 500 meters, with
indications it may run for over 1 kilometer, averaging 20 to 22
meters in thickness, with a proven dip length of at least 100
meters. The geophysical (induced polarization / resistivity)
survey shows that the main mineral horizon plunges to a depth of
greater than 180 meters.
Yamana's drill testing and field surveys also reveal that a large
segment of the main gossan is displaced about 100 meters to the
north by a fault (see map). A fence of holes across the Rumba area
(previously called Tumba) found the faulted offset of the main
gossan, indicating the mineral deposit could have a total strike
length in excess of 1 kilometer.
The best assay results for the six holes (see assay table) came
from reverse-circulation (RC) angle holes 74 and 75 (see
cross-section), which probed the southeast portion of the main
gossan near the fault, proving its 500-meter strike length. Hole
74 intercepted 24 meters of approximate true thickness (tt) of 118
g/t Ag, 0.12 g/t Au, and 1.0 percent Pb, including 2 meters of 916
g/t Ag, 1.05 g/t Au, and 4.0 percent Pb. Hole 75, drilled 20
meters to the northeast, intercepted 40 meters (tt) averaging 75
g/t Ag with 0.06 g/t Au and 0.7 percent Pb, including 2 meters of
606 g/t Ag, 0.23 g/t Au, and 2.5 percent Pb.
These assays complete results from the 44-hole RC campaign (1,846
meters) drilled on South Ridge during 1998, part of an 81-hole
program (3,260 meters) drilled on Western and Eastern Lejano.
Thirty-one of the South Ridge holes were drilled into the main
gossan, 17 of which hit a high-grade core averaging 3.5 meters
(tt) containing a length-weighted average of 550 g/t Ag, 1.56 g/t
Au, and 6.1 percent Pb. Lower-grade disseminated mineralization
encases this core of semi-massive sulfides, forming a deposit
averaging 20 to 22 meters thick, based on the results of five
geologic cross-sections generated from drill holes: 79; 34-35;
7-15; 74-75; and, 70-71. Based on the 31 holes which penetrated
this deposit, its average grade is projected to be about 200 g/t
Ag, 0.5 g/t Au, and 2.5 percent Pb.
Drilling has also shown the down-dip length of the deposit is at
least 100 meters, but it is expected to extend considerably
further. Richard Walters, Yamana's Exec. VP and COO, said, "Given
the indicated dimensions and average grade of the South Ridge
discovery, we could have 18 to 20 million ounces of silver per 100
meters of dip length." Walters added, "A geologic rule-of-thumb is
that a fissure's dip length is likely to be about one-half of its
strike length. We need more drilling to prove it but, logically,
this mineral deposit could extend for 500 meters down dip."
Both holes 80 and 81 are incomplete, falling short of intended
depths. Analysis indicates that the deposit dips about 45 degrees
in the southeast sector of the main gossan, and steepens along its
strike to the northeast, becoming 60 to 65 degrees in the area of
holes 79 and 80. As a result of this higher-than-expected dip
angle, as well as complications caused by water conditions, hole
80 was terminated about 35 meters short of its targeted
intersection with the mineral deposit. Hole 81, the last hole of
the campaign, ended after only 12 meters due to mechanical
problems with the drill and the onslaught of winter storms.
However, both holes 80 and 81 encountered geochem-ically anomalous
metal values characteristic of the deposit's hanging wall, with
hole 80 ending in sulfide mineralization which is strongly
anomalous in both silver and base metals. In fact, the entire
116-meter length of hole 80 averages 9 g/t Ag, 0.1 percent Pb, and
0.3 percent Zn, reflecting the dispersion of sulfides forming a
halo overlying the deposit. Hole 81 encountered similar values.
Yamana plans to deploy diamond core drills to begin definition
drilling at both Lejano and Bacon (see release March 3, 1998)
beginning in September, following the southern winter.
Yamana Resources Inc. is a Canadian exploration company holding
interests in projects in Argentina, Chile, Paraguay, Papua New
Guinea, Indonesia, and Washington state.
/T/
Hole Intercept Interval g/t Au g/t Ag percent Pb
No. (meters) (meters)
--------------------------------------------------------------------------
74 0 - 24 24 0.12 118 1.0
incl. 18 - 24 6 0.39 384 1.9
incl. 20 - 22 2 1.05 916 4.0
--------------------------------------------------------------------------
75 2 - 42 40 0.06 75 0.7
incl. 22 - 36 14 0.13 170 1.3
incl. 34 - 36 2 0.23 606 2.5
--------------------------------------------------------------------------
76 6 - 10 4 0.10 69 0.6
--------------------------------------------------------------------------
77 6 - 22 16 0.39 94 1.0
incl. 14 - 20 6 0.69 174 1.9
incl. 14 - 16 2 1.50 317 3.6
--------------------------------------------------------------------------
80 0 - 116 (EOH) 116 0.03 9 0.1
incl. 74 - 100 26 0.03 20 0.2
Hole incomplete - did not reach target depth
--------------------------------------------------------------------------
81 0 - 14 (EOH) 14 0.01 10 0.2
Hole incomplete - did not reach target depth
--------------------------------------------------------------------------
/T/
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 the potential
extent of 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 limited amount
of geological data available, the uncertain reliability of
drilling results and geophysical and geological data and the
interpretation thereof, the need for adequate financing for future
exploration and development efforts 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 dates on which
they are made, and Yamana assumes no obligation to update
forward-looking statements should circumstances or management's
estimates or opinions change.
-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
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