NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
DECEMBER 10, 1998
Santa Cruz, Argentina: Yamana Drills Silver-Rich Massive
Sulfides at Lejano; Moves on to Ciclon West
SPOKANE, WASHINGTON--Yamana Resources Inc. has completed its
latest round of drilling on Lejano, with initial drilling showing
a promising argentiferous massive sulfide lode, and has moved on
to begin drill testing of Ciclon West. Both properties lie in the
western silver district of the Santa Cruz precious-metals province
of Argentina.
Lejano is 150 kilometers north of Yamana's Bacon property (see
Yamana release Dec. 8, 1998). In two campaigns earlier this year,
81 shallow scout RC holes were drilled for 3,210 meters. The
majority of that drilling, 54 RC holes (2,094 meters), was in
western Lejano, particularly investigating a large metalliferous
oxide zone (gossan) on South Ridge.
The latest drilling at Lejano began on September 27, 1998 and
ended on November 24, with the completion of 33 holes for 4,094
meters, involving 17 diamond drill holes (DDHs) (1,536 meters) and
16 reverse-circulation (RC) holes (2,558 meters). The DDH drilling
provided samples for metallurgical testing using "HQ" sized core
(6.35 centimeters in diameter). Precious-metals extraction tests
of both gossan and sulfide materials are being organized.
Richard Walters, Yamana's Executive Vice President and COO, said,
"A massive amount of data is being generated by this drilling; our
current assay results are trailing by six weeks or more and the
majority of the results are still pending. We plan to release
complete results from this campaign once we have compiled and
evaluated them, likely early in the New Year."
The current program again focused on South Ridge, examining an
area more than 1 kilometer long and 250 meters wide containing
many gossan shows - the primary objective being to define the
limits, tenor and continuity of the mineralization on South Ridge,
both along strike and downdip. To this end, 12 fences, 50 to 100
meters apart, have been drilled across the zone, with some RC
holes up to 200 meters deep. The resulting database is being used
to construct geological cross sections and long sections, intended
to define the geometry of oxide and sulfide mineralization. The
program is also designed to assess the substantial gossan body on
South Ridge, and to probe for sulfide lodes which may underlie it.
Some RC holes also targeted an Induced Polarization (IP)
geophysical anomaly believed to be associated with this
mineralization.
Lejano hosts polymetallic mineralization with good silver and gold
values (see Yamana release May 27, 1998) on numerous sites spread
over a 4-square-kilometer area. These mineralized sites are
associated with concentric, inward-dipping, ring fracture zones
encircling rhyolite domes. This series of fissures is variously
cemented with base-metals sulfides, forming discrete massive
sulfide lodes which pinch and swell both downdip and along strike.
Surface oxidation has formed numerous gossans.
The initial focus of the latest campaign was on the west end of
South Ridge, where previous drilling (see Yamana release May 27,
1998) penetrated a sulfide lode. Then, RC holes 78 and 79 returned
an average of 4 meters (approximate true thickness (tt)) of 384.5
g/t Ag, 2.12 g/t Au, 0.33 percent Cu, 4.50 percent Pb, and 4.40
percent Zn. The recent drilling targeted downdip extensions of
this mineralization. DDH 87 encountered 2.0 meters (approx. tt) of
sulfides with 1,406 g/t Ag, 3.34 g/t Au, 0.41 percent Cu, 8.24
percent Pb, and 10.32 percent Zn, encased in low-grade stockwork
mineralization. RC 88, further downdip, intercepted 2 meters
(approx. tt) with 178 g/t Ag, 0.33 g/t Au, 0.01 percent Cu, 1.2
percent Pb, and 1.95 percent Zn, also encased in a halo of lower
grade mineralization.
The drill holes (all assays pending) around DDH 87 and RC 88
indicate the tabular massive sulfide body has a minimum strike of
250 meters, with at least 120 meters of dip length, and is 2 to 4
meters thick. It appears to be closed off at depth and to the
west, but remains open to the east, where other drill holes
(assays pending) indicate that it may extend an additional 200
meters, to a point under the South Ridge gossan. There, DDH 86 hit
1.4 meters of 1,520 g/t Ag and 6.88 g/t Au, possibly correlating
to the same zone in DDH 87. This intercept is partially oxidized
and just above the water table, under which fresh sulfides are
expected.
Yamana's recent drilling is also evaluating previously identified,
high-grade silver structures on North Ridge, in western Lejano,
and on Broken Hill Saddle, in eastern Lejano.
Following completion of the drilling program at Lejano, Yamana's
crews moved both the RC and DDH drills to Ciclon West, 20
kilometers to the west. Drilling there began on November 25,
following 4 kilometers of access road construction. Detailed
geologic mapping and surface rock-chip sampling, in conjunction
with a reconnaissance IP survey, have defined several drill
targets at Ciclon West. It is anticipated this first-pass drilling
will involve at least four DDH and eight RC holes, each to depths
of 100 to 250 meters.
Ciclon West is a polymetallic prospect which is geologically
similar to Lejano, except it is known to be considerably larger
and shows a more pervasive hydrothermal system.
Mineralization at Ciclon West is found over a vertical relief of
about 100 meters. The IP survey indicates it prevails to depths in
excess of 250 meters and is spread over at least 6 square
kilometers. Numerous dis-creet brecciated and silicified fault
structures carry good precious-metals values, frequently between 1
and 3 g/t Au (with a high of 7 g/t Au) and 100 and 500 g/t Ag
(with a high of 1,260 g/t Ag) and several percent lead and
anomalous zinc. These structures are many meters wide, with
lengths exceeding 1 kilometer.
This deep drilling targets these structural features, suspected to
be oxidized to a depth of 80 meters. It will also test for less
intense, disseminated and fracture-controlled
precious-metals-bearing sulfide mineral-ization amongst the
structures, the presence of which is indicated by the IP survey.
Yamana Resources Inc. is a Canadian minerals exploration company
with projects in Argentina, Chile, Paraguay, Indonesia, Papua New
Guinea, 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, 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.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Yamana Resources Inc.
Amy Martin
Investor Relations Coordinator
(509) 838-6615
(509) 838-0714 (FAX)
amartin@yamana.com
yamana.com
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