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

To: Elizabeth Andrews who wrote (2110)	5/26/1999 8:23:00 AM
From: kfdkfd	Respond to of 2346

Yamana cries silver Bonanza By PETER KUITENBROUWER The Financial Post Silver is a hot commodity. Even so, it was one heck of a day yesterday for Yamana Resources Inc., whose stock jumped almost 200% on volume of three million shares after it released drill results it said were "unparalleled in modern times." "The market said, 'We love ya!' and then volume begets volume," said Andrew Muir, a mining analyst at Canaccord Capital Corp. in Vancouver. The stock closed at $1.19, up 79c. And it's all due to a silver "bonanza" on a sheep ranch in Argentina. The shares took off at lunchtime on the Toronto Stock Exchange, as the exchange lifted a halt on the stock following a Yamana news release about its drilling program containing adjectives the TSE called "out of the norm." "Yamana's Bacon Silver Grades Unparalleled in Modern Times," read the headline on the release. The release says, "the phenomenal grades of the silver pockets of Bacon's Veta Martha ore can be compared to the famous bonanza ore pockets found in historical mining districts, such as Creede, Colo., and Comstock, Nev." Neil Winchester, head of market surveillance at the TSE, said, "These are not words generally spoken by mining companies in press releases. But we're not doubting it." It's all true, insists Dick Walters, the geologist who is president of Spokane, Wash.-based Yamana, which is incorporated in Canada. He hinted there is more to come. "This is not counting the other stuff that's coming down the pipe, which you will hear about next week," he said. Mr. Muir at Canaccord bristled when he heard of those words. "It bothers me when he starts saying that to the press," he said. "He should put out a news release." Mr. Walters insists two independent labs have verified the results released yesterday, which show a phenomenal grade of 20,000 grams of silver per tonne of ore on the find in Argentina's southernmost province of Santa Cruz. "It's unprecedented," agreed Mr. Muir. "The Spaniards used to find this stuff. That's why they were so evil to all those natives." The hitch -- as Mr. Muir was quick to point out -- is that this a small find. "The grade caught everyone's eye -- but they tended to turn a blind eye to the limited tonneage potential. Barrick Gold isn't going to take them out at $7 a share." Mr. Walters said "the key here is the grade. It's the bounce on the ounce that counts. Ours is packaged like something I've never seen before." At those grades, much of the ore can be shipped straight to the smelter with no refining -- a rare treat that jacks up the profitability of the mine. He said the company can earn about $12-million (US) in profit on the mine.