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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
The maps are available by contacting the company at the number
above or by accessing CCN's Internet Website at
cdn-news.com.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: YAMANA RESOURCES INC.
TSE SYMBOL: YRI
JANUARY 25, 1999
Yamana's North Bacon Seven-Million-Ounce Initial Silver
Resource
SPOKANE, WASHINGTON--Yamana Resources Inc. is pleased to report
that it has established an initial inferred resource of more than
7 million ounces of equivalent silver in the northern area of its
100 percent owned Bacon property in Santa Cruz province,
Argentina. Richard Walters, President and COO of Yamana, comments,
"North Bacon exhibits distinct potential to become a commercially
viable mining operation."
This inferred resource is open to depth beyond the 75-meter limit
used for its calculation and is contained solely within the Veta
Martha Silver Shoot (see Veta Martha long section A-A' and map
S-13), a 200-meter segment of a more than 1.5-kilometer-long
quartz vein system. It is only one of a number of silver shoots
thought to lie within this quartz fault-vein (i.e.,
quartz-injected fissure) system, which exhibits classic epithermal
textures, and Yamana expects to build substantially on this
initial resource.
Yamana made the preliminary resource estimation and Micon
International Limited, mineral industry consultants, audited and
corroborated this estimate. Using two potential plunge
interpretations of the mineralization, Micon produced uncut
inferred resource estimates of:
- 215,092 tonnes at 1,050.0 Ag-equivalent grams per tonne and
- 224,887 tonnes at 986.0 Ag-equivalent grams per tonne,
representing contained silver-equivalent ounces of:
- 7,270,000 and
- 7,150,000, respectively.
Yamana and Micon have calculated this estimate in accordance with
the Proposed Standards for Public Mineral Exploration and Mining
Companies as set out by the Mining Standards Task Force of the
Toronto Stock Exchange and the Ontario Securities Commission in
their Interim Report of June 1998. The U.S. Securities and
Exchange Commission's standards normally do not permit reference
to "inferred resources" in SEC filings. The Company believes that
the inferred resource would probably be categorized as "other
mineralized material" by the U.S. Securities and Exchange
Commission.
Some noteworthy factors in this resource estimate are: 1) assays
are uncut (see next paragraph); 2) gold assays are converted to
silver-equivalent assays where 1 gram per tonne of gold is
equivalent to 60 grams per tonne of silver; 3) the entire true
width of the vein is used as the potential mining width rather
than just the mineralized part of the vein; and 4) a specific
gravity of 2.58, as determined by Lakefield Chile S.A., is used as
a tonnage factor.
Drilling encountered bonanza-grade intercepts in the Veta Martha
Silver Shoot of up to 12,000 g/t Ag over 1 meter. The silver
mineralization is characteristically "nuggety." Yamana has
requested of Micon a second inferred resource assessment using cut
assays, a method commonly used in North American precious-metals
mines for accounting of the so-called "nugget effect." This method
does not deny the existence of high-grade values but attempts to
limit their impact and, thus, possibly their potential to
over-influence grade determinations for the deposit.
Assays from the second drilling campaign (see Yamana press release
Dec. 18, 1998) are now complete, and the attached Assay Summary
table integrates all check assays and includes all drill holes not
previously reported.
Reverse-circulation (RC) drill holes 77 through 81 encountered
geochemically anomalous epithermal pathfinder elements (arsenic,
lead, etc.) along the probable far-west structural extension of
the North Bacon mineralized fault system. More drilling will be
required to set the western limit of mineralization.
In addition to the Veta Martha Silver Shoot, Yamana has identified
five more segments of the quartz vein system where it expects to
greatly expand the inferred resource (see Drill Plan Map):
Veta Martha Oeste - Reconnaissance RC holes 82 and 83 encountered
good silver values about 40 meters below surface, probably
representing the top of another silver shoot which, based on an
indicated strike length of 275 meters, is potentially larger than
the Veta Martha Silver Shoot. R82 (see map S-29) intercepted 4.0
meters (3.40 meters true thickness [tt]) of 380 g/t Ag with 0.42
g/t Au and R83 encountered 2.0 meters (1.70 meters tt) of 317 g/t
Ag and 0.36 g/t Au.
R 4 Area - Previously unreported diamond drill hole (DDH) 76 (see
map S-2) intersected 2.7 meters (2.28 meters tt) of 922 g/t Ag
with 1.16 g/t Au 40 meters below surface and beneath two other
intercepts of significant but weaker silver mineralization. Cross
section S-2 shows the silver grade of the vein increases with
depth, indicating the start of yet another probable silver shoot
of substantial size.
Veta Medio - Previously unreported DDH 84 (see map D-84)
intersected 1.6 meters (1.03 meters tt) of 468 g/t Ag and 0.50 g/t
Au more than 70 meters below surface exposures of veined outcrops
carrying only traces of silver. Shallow RC holes indicate the
silver grade of these veins increases with depth. DDH 84 confirms
this, intersecting the top of a possible silver shoot.
Veta Nordeste - Two diamond drill holes tested a vein splay off
Veta Martha. DDH 61 intersected 3.0 meters (1.03 meters tt) of 438
g/t Ag with 0.13 g/t Au and 38 meters to the east, along strike of
the vein, DDH 62 intersected 0.9 meters (0.32 meters tt) of 2,409
g/t Ag and 2.25 g/t Au. Although narrow, this latter intercept
represents a diluted grade of 770 g/t Ag with 0.72 g/t Au over a
minimum mining width of 1 meter, indicating the start of yet
another possible silver shoot.
Sugar Hill - DDH 64 intersected 1.4 meters (0.81 meters tt) of 359
g/t Ag and 0.41 g/t Au at a depth of 17 meters, thought to
represent an extension of Veta Martha Este, an untested segment of
the Veta Martha vein. Yamana believes this drill hole opens the
possibility of one or more silver shoots to be found in this area.
Yamana is organizing a third drilling campaign to test these five
segments of the vein system, together with some outlying targets.
Of particular interest is the Far North Bacon quartz vein system
where surface sampling has returned values of up to 6,821 g/t Ag
and 19.27 g/t Au across 0.30 meters true thickness. The planned
campaign involves over 4,500 meters of combined RC and DDH
drilling and is anticipated to commence in mid-February.
Mel Klohn, Yamana's Vice President and Chief Geologist, says,
"Based on hard field evidence, I am optimistic that this new
drilling could more than triple the inferred silver resource." A
portion of the drilling will be committed to converting the
inferred resource of the Veta Martha Silver Shoot to an indicated
silver resource. Yamana's management firmly believes that North
Bacon ultimately holds promise for discovery of a 50-million-ounce
silver deposit.
Although classed as a precious-metals deposit, Bacon is foremost a
silver deposit - and one of exceptionally high grade. The Veta
Martha Silver Shoot averages about 1,000 g/t Ag and, by weight,
there is 530 times more silver than gold in it. Further, it
appears there may be 1,000 times more silver than gold in the
overall deposit, based on the average silver-to-gold ratios of the
drill-hole assays from outside the Veta Martha Silver Shoot.
While preparing for the upcoming drilling, Yamana is proceeding
with metallurgical testing of the Veta Martha Silver Shoot.
Pittsburgh Mineral & Environmental Technology, Inc. is performing
a detailed mineralogical analysis on a suite of 20 core samples
from various drill holes in the inferred resource. This work will
be pivotal for directing the metallurgical assessment and
minimizing process testing. Based on those results,
recommendations will be made on the most effective bench-scale
flotation tests to be run for recovery and concentration of the
silver minerals. Yamana will select an industry-recognized
contractor to conduct these tests.
Yamana predicts that the silver contained in the North Bacon
deposit will be readily recoverable using standard mill and
flotation methods. This deposit's ore mineralogy is characteristic
of many epithermal silver deposits being mined throughout the
world, notably Coeur d'Alene Mines Corporation's Fachinal deposit
nearby in Chile.
Based on the current inferred resource of only the Veta Martha
Silver Shoot, an internal preliminary cash flow analysis shows
that a 200-tonne-per-day underground mining operation, capitalized
at US$7.5 million and producing about 2 million ounces of
equivalent silver per year, would have an internal rate of return
of 53 percent, with the capital investment being recovered after
16 months.
Vic Bradley, Yamana's CEO, considers that, "This economic
projection will improve as continued drilling builds the silver
resource and begins to convert it into reserves. I believe that
these positive developments represent a significant start towards
rewarding the faith in Yamana shown by investors who participated
in the success of both financings in 1998 - the worst year on
record for exploration companies."
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, the commercial viability of
the silver deposit on the Bacon property, the amenability of the
deposit to standard recovery methods, 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.
/T/
---------------------------------------------------------------
Santa Cruz, Argentina
NORTH BACON DRILL HOLES
September - November 1998 Drill Campaign
ASSAY SUMMARY
---------------------------------------------------------------
Diamond Interval Intercept True Silver Gold
Drill or (meters) (meters) Thickness (g/t) (g/t)
RC Hole No. (meters) Average Average
Core Size
---------------------------------------------------------------
Veta Martha
---------------------------------------------------------------
34 RC Hole abandoned / No assay
---------------------------------------------------------------
35 HQ 5.5 - 8.0 2.5 2.09 1,539 0.98
incl. 7.0 - 7.5 0.5 0.42 3,179 1.34
8.0 - 14.0 6.0 4.87 59 0.03
---------------------------------------------------------------
36 HQ 2.0 - 8.5 6.5 5.50 419 0.38
incl. 7.5 - 8.5 1.0 0.85 1,971 1.74
8.5 - 10.0 1.5 1.26 57 0.11
---------------------------------------------------------------
37 HQ 8.0 - 10.0 2.0 1.62 83 0.07
10.0 - 20.0 10.0 8.10 2,989 4.42
incl. 15.5 - 16.5 1.0 0.81 12,747 22.58
20.0 - 22.0 2.0 1.62 58 0.08
---------------------------------------------------------------
38 HQ 17.5 - 22.0 4.5 3.65 4,831 5.91
incl. 18.5 - 20.0 1.5 1.22 8,110 11.80
22.0 - 25.0 3.0 2.43 61 0.12
---------------------------------------------------------------
39 HQ 17.0 - 26.0 9.0 7.29 1,591 1.78
incl. 22.5 - 24.0 1.5 1.21 6,958 7.08
---------------------------------------------------------------
40 HQ 10.0 - 12.0 2.0 1.52 238 0.27
---------------------------------------------------------------
41 HQ 0.5 - 8.0 7.5 6.20 44 0.05
incl. 6.0 - 8.0 2.0 1.65 137 0.16
---------------------------------------------------------------
42 HQ 57.5 - 58.5 1.0 0.81 151 0.18
---------------------------------------------------------------
43 NQ(x) 3.8 - 5.1 1.3 1.05 46 0.02
---------------------------------------------------------------
44 NQ 3.5 - 4.5 1.0 0.92 150 0.32
---------------------------------------------------------------
45 NQ, 46 NQ Holes abandoned / No assay
---------------------------------------------------------------
47 NQ(x) 4.9 - 5.6 0.7 0.60 79 0.05
---------------------------------------------------------------
48 HQ 2.2 - 7.2 5.0 4.67 2,267 3.05
incl. 5.3 - 5.9 0.6 0.51 12,570 17.72
7.2 - 12.0 4.8 4.45 91 0.07
---------------------------------------------------------------
49 HQ 48.0 - 51.0 3.0 2.43 2,528 3.56
incl. 48.0 - 50.0 2.0 1.62 3,735 5.28
---------------------------------------------------------------
51 HQ 74.6 - 81.4 6.8 3.84 141 0.08
incl. 77.2 - 79.8 2.6 1.46 284 0.17
---------------------------------------------------------------
55 HQ 96.0 - 104.3 8.3 4.28 47 0.07
incl. 100.0 - 101.6 1.6 0.80 128 0.16
---------------------------------------------------------------
56 HQ(x) 58.0 - 59.2 1.2 0.93 34 0.01
---------------------------------------------------------------
58 HQ(x) 33.9 - 35.9 2.0 1.62 72 0.01
---------------------------------------------------------------
59 HQ 52.0 - 67.0 15.0 7.80 89 0.15
incl. 53.3 - 60.3 7.0 3.64 153.2 0.23
incl. 55.3 - 56.6 1.3 0.68 338 0.63
---------------------------------------------------------------
60 NQ Hole drilled for mineral character specimens/ore
microscopy/petrology
---------------------------------------------------------------
63 HQ(x) 36.4 - 40.8 4.4 3.52 63 0.03
---------------------------------------------------------------
65 NQ 19.5 - 26.6 7.1 5.77 136(xx) 0.07
---------------------------------------------------------------
66 NQ 24.5 - 30.3 5.8 4.84 202 0.16
---------------------------------------------------------------
67 NQ None greater than 3.0 g/t Ag
---------------------------------------------------------------
68 HQ(x) 48.9 - 53.8 4.9 3.14 37 0.05
---------------------------------------------------------------
69 HQ 30.0 - 39.9 9.9 8.20 205 0.25
incl. 30.0 - 32.2 2.2 1.82 845 1.08
incl. 30.0 - 30.9 0.9 0.75 1,948 2.35
---------------------------------------------------------------
70 HQ 58.0 - 77.7 19.7 8.86 438 1.91
incl. 76.4 - 77.7 1.3 0.58 5,096 28.04
---------------------------------------------------------------
71 HQ 43.5 - 46.1 2.6 2.11 2,747 7.13
incl. 43.5 - 44.2 0.7 0.53 9,621 25.45
---------------------------------------------------------------
72 NQ 24.2 - 32.1 7.9 5.97 56 0.08
---------------------------------------------------------------
73 HQ 71.4 - 76.9 5.5 2.49 407 0.41
incl. 72.4 - 72.9 0.5 0.23 2,249 1.44
---------------------------------------------------------------
74 NQ 17.3 - 19.9 2.6 1.74 102(xxx)0.10
---------------------------------------------------------------
75 HQ(x) 40.3 - 42.9 2.6 1.66 67 0.01
---------------------------------------------------------------
76 HQ 52.0 - 54.7 2.7 2.28 922 1.16
incl. 53.6 - 54.7 1.1 0.96 1,436 2.57
---------------------------------------------------------------
Veta Martha Oeste
---------------------------------------------------------------
77 RC(x), 78 RC(x), 79 RC(x), 80 RC(x) & 81 RC(x)
None greater than 5.0 g/t Ag
---------------------------------------------------------------
82 RC 40.0 - 44.0 4.0 3.40 380 0.40
---------------------------------------------------------------
83 RC 42.0 - 48.0 6.0 5.10 138 0.15
incl. 46.0 - 48.0 2.0 1.70 317 0.36
---------------------------------------------------------------
85 RC Hole abandoned / No Assay
---------------------------------------------------------------
Veta Nordeste
---------------------------------------------------------------
54 NQ(x) 16.0 - 18.0 2.0 0.84 28 0.08
---------------------------------------------------------------
61 NQ 18.0 - 26.0 8.0 2.80 187 0.11
incl. 20.7 - 23.7 3.0 1.03 434 0.13
---------------------------------------------------------------
62 NQ 28.8 - 32.8 4.0 1.41 573 0.55
incl. 28.8 - 29.7 0.9 0.32 2,409 2.25
---------------------------------------------------------------
Veta Medio
---------------------------------------------------------------
57 NQ(x) 17.0 - 23.5 6.5 3.26 35 0.02
---------------------------------------------------------------
84 HQ 63.9 - 65.5 1.6 1.03 468 0.50
88.0 - 90.0 2.0 1.29 141 0.09
111.0 - 111.7 0.7 0.42 165 0.01
---------------------------------------------------------------
Sugar Hill
---------------------------------------------------------------
50 NQ(x), 52 NQ(x), 53 NQ(x) None greater than 3.0 g/t Ag
---------------------------------------------------------------
64 NQ 23.0 - 24.4 1.4 0.81 359 0.41
---------------------------------------------------------------
Downdip Vein
Diamond Length of
Drill or Penetration
RC Hole No. From Surface
Core Size (meters)
---------------------------------------------------------------
Veta Martha
---------------------------------------------------------------
34 RC Hole abandoned / No assay
---------------------------------------------------------------
35 HQ 6
incl.
---------------------------------------------------------------
36 HQ 6
incl.
---------------------------------------------------------------
37 HQ
13
incl.
---------------------------------------------------------------
38 HQ 17
incl.
---------------------------------------------------------------
39 HQ 20
incl.
---------------------------------------------------------------
40 HQ 9
---------------------------------------------------------------
41 HQ
incl. 6
---------------------------------------------------------------
42 HQ 50
---------------------------------------------------------------
43 NQ(x) 3
---------------------------------------------------------------
44 NQ 3
---------------------------------------------------------------
45 NQ, 46 NQ Holes abandoned / No assay
---------------------------------------------------------------
47 NQ(x) 5
---------------------------------------------------------------
48 HQ 4
incl.
---------------------------------------------------------------
49 HQ 41
incl.
---------------------------------------------------------------
51 HQ 76
incl.
---------------------------------------------------------------
55 HQ
incl. 102
---------------------------------------------------------------
56 HQ(x) 49
---------------------------------------------------------------
58 HQ(x) 31
---------------------------------------------------------------
59 HQ 61
incl.
incl.
---------------------------------------------------------------
60 NQ Hole drilled for mineral character specimens/ore
microscopy/petrology 18
---------------------------------------------------------------
63 HQ(x) 32
---------------------------------------------------------------
65 NQ 20
---------------------------------------------------------------
66 NQ 25
---------------------------------------------------------------
67 NQ None greater than 3.0 g/t Ag
---------------------------------------------------------------
68 HQ(x) 49
---------------------------------------------------------------
69 HQ
incl. 24
incl.
---------------------------------------------------------------
70 HQ 69
incl.
---------------------------------------------------------------
71 HQ 35
incl.
---------------------------------------------------------------
72 NQ 23
---------------------------------------------------------------
73 HQ 71
incl.
---------------------------------------------------------------
74 NQ 14
---------------------------------------------------------------
75 HQ(x) 34
---------------------------------------------------------------
76 HQ 49
incl.
---------------------------------------------------------------
Veta Martha Oeste
---------------------------------------------------------------
77 RC(x), 78 RC(x), 79 RC(x), 80 RC(x) & 81 RC(x)
None greater than 5.0 g/t Ag
---------------------------------------------------------------
82 RC 44
---------------------------------------------------------------
83 RC 39
incl.
---------------------------------------------------------------
85 RC Hole abandoned / No Assay
---------------------------------------------------------------
Veta Nordeste
---------------------------------------------------------------
54 NQ(x) 14
---------------------------------------------------------------
61 NQ 20
incl.
---------------------------------------------------------------
62 NQ
incl. 26
---------------------------------------------------------------
Veta Medio
---------------------------------------------------------------
57 NQ(x) 19
---------------------------------------------------------------
84 HQ 72
97
118
---------------------------------------------------------------
Sugar Hill
---------------------------------------------------------------
50 NQ(x), 52 NQ(x), 53 NQ(x) None greater than 3.0 g/t Ag
---------------------------------------------------------------
64 NQ 17
---------------------------------------------------------------
Ag & Au assays are in grams per tonne
Geolabs checks run on every Acme assay greater than 100g/t Ag
Average equals Average of Acme and Geolabs assays,
except HQ(x) or NQ(x) equals Acme only
HQ wireline core equals 6.35 cm diameter
NQ wireline core equals 4.76 cm diameter
RC equals reverse circulation rotary holes
(xx) Based on 37 percent core recovery.
(xxx)Hole lost before entering main vein.
/T/
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