Yamana provides exploration update

TORONTO, Jan. 7 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced an exploration update and provided its exploration objectives for 2010.

Highlights from the 2009 exploration program included:

    
    -   New gold mineralized zone, Suruca, discovered at Chapada, traced
        along strike by at least 500 metres and average thickness of 70
        metres. The discovery hole SU-11 returned 81.0 metres of 1.2 g/t Au.
    -   New mineralized zone discovered at Fazenda Brasileiro, Lagoa do Gato,
        traced along strike for 1,200 metres and open in all directions with
        three separate gold mineralized zones. Lagoa do Gato exhibits
        substantially higher grade than the current mineral reserve grade at
        Fazenda Brasileiro. Drilling indicated economic grades and widths:

        -  FLG-010: 12.4 metres of 3.33 g/t Au
        -  FLG-016: 22.0 metres of 3.62 g/t Au
        -  FLG-017: 37.0 metres of 2.34 g/t Au
        -  FLG-022: 22.0 metres of 5.50 g/t Au
        -  FLG-026: 14.8 metres of 7.04 g/t Au

    -   New mineralized zone discovered at Jacobina, Lagartixa, which is the
        displaced northern continuation of the Canavieiras deposit. Lagartixa
        exhibits substantially higher grade than the current mineral reserve
        grade at Jacobina. Drilling has tested the gold mineralized reefs for
        600 metres of strike length. The discovery hole LGX-02 returned 3
        metres of 6.03 g/t Au.
    -   Positive drill results confirmed and extended the Jordino deposit at
        Pilar. Drill holes have extended the Pilar deposit down dip. Selected
        deep holes include:

        -  JD123: 4.0 metres of 6.67 g/t Au
        -  JD125: 0.7 metres of 6.56 g/t Au
        -  JD129: 1.0 metres of 16.35 g/t Au

    -   New gold mineralized zone, Salamanca, discovered within 10 kilometres
        of Gualcamayo. Drilling has delineated mineralization along a strike
        length of at least 250 metres which is still open along strike. The
        best results received from latest drilling include:

        -  09S-01: 30.0 metres of 1.72 g/t Au
        -  09S-03: 52.75 metres of 2.9 g/t Au
        -  09S-14: 63.7 metres of 1.1 g/t Au

    -   Two new vein deposits, Centenario and Polvorin, discovered at Minera
        Florida. Both deposits are located near current mine infrastructure.
        Selected results include:

        -  ALH0075: Centenario: 5.15 metres of 11.39 g/t Au, 17 g/t Ag and
           2.21% Zn
        -  ALH0686: Centenario: 13.65 metres of 9.02 g/t Au, 18 g/t Ag and
           0.76% Zn
        -  ALH0739: Centenario: 6.72 metres of 11.14 g/t Au, 179 g/t Ag and
           1.05% Zn
        -  ALH0006: Polvorin: 7.39 metres of 5.50 g/t Au, 9 g/t Ag and
           1.66% Zn
        -  ALH0674: Polvorin: 2.25 metres of 11.60 g/t Au, 49 g/t Ag and
           1.94% Zn
        -  ALH0810: Polvorin: 2.05 metres of 12.79 g/t Au, 9 g/t Ag and
           1.55% Zn

    Yamana's 2010 exploration budget is expected to be approximately US$75 -
$80 million with the goal of increasing mineral reserves and mineral
resources.

    Main areas of focus in 2010 include:

    -   Define size potential of new mineralized zone, Suruca, at Chapada
    -   Focus Jacobina exploration towards discovery and extension of higher
        grades at Canavieiras and new mineralized zones
    -   Extend Pilar's mineral resource
    -   Complete resource estimate at Caiamar in Brazil by mid-2010 with
        further update by end of year
    -   Expand the resource at QDD Lower West in Argentina and continue
        exploration efforts at Salamanca
    -   Extend known deposits at El Penon and upgrade inferred resource
    -   Expand footprint of Minera Florida with successful exploration at
        Chancon-Membrillo
    

Yamana continues with its near-mine exploration program and its efforts to look for new opportunities and on the ground purchases elsewhere in the Americas. The Company is focused on developing its future based on its exploration successes and organic growth.

BRAZIL

Suruca - Chapada, Brazil

Yamana has intersected a new mineralized zone at Suruca, located approximately 6 kilometres northeast of Yamana's Chapada Mine in central Brazil.

Drilling intersections show two mineralized levels, the upper level has an average thickness of 70 metres and the lower level has an average thickness of approximately 20 metres. Exploration drilling to date has defined significant mineral intercepts with continuity along a 500 metre strike length. This mineral trend is wholly within a much larger soil geochemical gold anomaly that extends for over five kilometres on the surface.

Yamana has completed 15 holes totaling 2,866 metres to date. The significant drill intersections are summarized below. (See Map A)

    
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)    Interval (m)           (g/t)
    -------------------------------------------------------------------------
                         7.0            24.7            17.7            0.22
    SU-04           ---------------------------------------------------------
                        17.1            23.0             5.9            0.35
    -------------------------------------------------------------------------
    SU-08              255.5           256.3             0.8            0.42
    -------------------------------------------------------------------------
                       112.0           193.0            81.0            1.20
                    ---------------------------------------------------------
                       147.0           148.0             1.0           48.90
                    ---------------------------------------------------------
                       158.0           159.0             1.0            9.21
                    ---------------------------------------------------------
                       186.0           187.4             1.3            3.98
    SU-11           ---------------------------------------------------------
                       190.0           191.0             1.0            3.17
                    ---------------------------------------------------------
                       203.0           231.0            28.0            1.26
                    ---------------------------------------------------------
                       210.0           211.0             1.0           21.30
                    ---------------------------------------------------------
                       225.0           225.6             0.6            5.00
    -------------------------------------------------------------------------
                         7.0            13.0             6.0            1.35
                    ---------------------------------------------------------
                         7.0             8.0             1.0            7.32
    SU-13           ---------------------------------------------------------
                        83.6           139.0            55.4            0.44
                    ---------------------------------------------------------
                        84.3            86.0             1.7            6.46
    -------------------------------------------------------------------------
                        52.5           127.2            74.7            0.89
                    ---------------------------------------------------------
                        59.0            60.0             1.0            9.36
                    ---------------------------------------------------------
                        72.0            73.0             1.0            3.05
                    ---------------------------------------------------------
                        76.0            77.0             1.0            3.67
                    ---------------------------------------------------------
                        87.3            88.7             1.3            4.50
    SU-15           ---------------------------------------------------------
                       116.3           117.1             0.8           16.40
                    ---------------------------------------------------------
                       140.3           188.0            39.7            0.37
                    ---------------------------------------------------------
                       176.0           177.0             1.0            8.18
                    ---------------------------------------------------------
                       203.0           233.0            30.0            0.54
                    ---------------------------------------------------------
                       218.0           219.0             1.0            9.56
                    ---------------------------------------------------------
                       248.0           268.0            20.0            0.35
    -------------------------------------------------------------------------
    

These drilling results demonstrate the potential to add ounces from the areas surrounding the mine further extending Chapada's already long mine life of 17 years. Chapada has historically shown the ability to increase its mineral reserve base as demonstrated in 2008 when mineral reserves increased a full 50% from the previous year. The Company's efforts have not only been to increase mineral reserves and resources at Chapada, but to use it as a launching point for a regional exploration program. Suruca represents real potential and is a result of these efforts. Objectives for Chapada in 2010 include defining a mineral resource in the Suruca target by 2011.

Fazenda Brasileiro, Brazil

At Yamana's Fazenda Brasileiro mine, the Company continues to outline significant exploration potential. The mine was originally acquired in 2003 with 2.5 years of mine life remaining based on known mineral reserves. Yamana has since been mining at Fazenda Brasileiro for 6 years. Recently two new areas have been discovered, CLX(2) and Lagoa do Gato, which give Yamana high confidence that significant potential remains at Fazenda Brasileiro. Historical efforts have been to consistently increase the mine life. Current efforts and recent discoveries are intended to redefine Fazenda Brasileiro with the possibility, relating to CLX(2) and Lagoa do Gato, of discovering a new mine. Yamana's exploration focus has been the replacement of mineral reserves and resources at Fazenda Brasileiro. The objective in 2010 will continue these efforts, focusing on meaningfully increasing mineral reserves and resources in these new areas.

    
    Lagoa do Gato
    -------------
    

Geophysical interpretation suggests that the Weber structure, which hosts Yamana's Fazenda Brasileiro mine, may continue to the northeast through the Rio Itapicuru Greenstone Belt in a zone called Lagoa do Gato, which is located 4 kilometres northeast from Fazenda Brasileiro. This zone consisted of a series of small open pits mined earlier in the 1980s during Fazenda Brasileiro's heap leach operation. Deeper exploration drilling beneath those pits has intersected mafic lenses with significant high grade mineralization.

Drilling to date has identified three mineralized levels and has been traced for 1,200 metres, all still open along strike (See Map B). The Lagoa do Gato trend is at least eight kilometres long, defined by a high magnetic signature. A total of 4,000 metres of diamond drilling have been completed to date. The most significant intersections are summarized as follows:

    
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
    FLG-003           123.00          125.05            2.05            0.98
    -------------------------------------------------------------------------
                      155.60          168.00           12.40            3.33
                    ---------------------------------------------------------
    FLG-010           157.30          159.00            1.70            8.95
                    ---------------------------------------------------------
                      215.00          227.00           12.00            1.00
    -------------------------------------------------------------------------
                      118.45          120.00            1.55            1.04
                    ---------------------------------------------------------
                      125.00          129.00            4.00            0.68
    FLG-011         ---------------------------------------------------------
                      132.00          136.00            4.00            0.88
                    ---------------------------------------------------------
                      138.00          140.00            2.00            0.58
    -------------------------------------------------------------------------
    FLG-014           105.00          117.00           12.00            1.22
    -------------------------------------------------------------------------
    FLG-015            84.00           87.00            3.00            1.57
    -------------------------------------------------------------------------
                       77.75           80.35            2.60            2.74
                    ---------------------------------------------------------
                       87.00          109.00           22.00            3.62
    FLG-016         ---------------------------------------------------------
                       87.00           98.00           11.00            6.48
                    ---------------------------------------------------------
                      104.00          109.00            5.00            1.32
    -------------------------------------------------------------------------
                      283.00          310.00           27.00            2.34
                    ---------------------------------------------------------
    FLG-017           283.00          288.00            5.00            3.63
                    ---------------------------------------------------------
                      290.00          307.00           17.00            2.28
    -------------------------------------------------------------------------
                       76.00           79.00            3.00            1.75
    FLG-018         ---------------------------------------------------------
                      106.00          108.00            2.00            1.78
    -------------------------------------------------------------------------
                       53.70           55.55            1.85            0.76
                    ---------------------------------------------------------
                       64.00           67.00            3.00            1.00
    FLG-019         ---------------------------------------------------------
                       76.00           78.00            2.00            0.93
                    ---------------------------------------------------------
                       97.50          108.00           10.50            1.34
    -------------------------------------------------------------------------
                       47.00           48.00            1.00            2.00
                    ---------------------------------------------------------
                       93.00           96.00            3.00            0.66
    FLG-021         ---------------------------------------------------------
                      145.00          153.00            8.00            3.99
                    ---------------------------------------------------------
                      164.00          168.80            4.80            0.64
    -------------------------------------------------------------------------
                      127.00          149.00           22.00            5.50
                    ---------------------------------------------------------
                      137.35          139.00            1.65           63.82
                    ---------------------------------------------------------
                      169.00          174.00            5.00            0.54
    FLG-022         ---------------------------------------------------------
                      176.00          181.00            5.00            0.67
                    ---------------------------------------------------------
                      189.00          191.00            2.00            1.44
                    ---------------------------------------------------------
                      203.00          206.00            3.00            6.83
    -------------------------------------------------------------------------
                       10.00           26.00           10.00            1.47
                    ---------------------------------------------------------
    FLG-024            30.00           32.00            2.00            1.22
                    ---------------------------------------------------------
                       41.00           42.00            1.00            2.54
    -------------------------------------------------------------------------
                      119.00          122.00            3.00            1.23
    FLG-025         ---------------------------------------------------------
                      137.70          138.85            1.00            1.64
    -------------------------------------------------------------------------
                      105.00          108.00            3.00            3.68
                    ---------------------------------------------------------
    FLG-026           156.65          171.45           14.80            7.04
                    ---------------------------------------------------------
                      166.00          168.00            2.00           20.52
    -------------------------------------------------------------------------
                      116.00          124.00            8.00            1.48
                    ---------------------------------------------------------
                      142.00          143.00            1.00           10.25
                    ---------------------------------------------------------
    FLG-027           150.00          151.00            1.00            5.75
                    ---------------------------------------------------------
                      179.00          182.20            3.20            1.24
                    ---------------------------------------------------------
                      199.00          203.00            4.00            1.03
    -------------------------------------------------------------------------
                      104.85          114.10            9.25            1.12
                    ---------------------------------------------------------
                      161.00          163.00            2.00            1.20
    FLG-028         ---------------------------------------------------------
                      170.00          176.00            6.00            1.28
                    ---------------------------------------------------------
                      181.00          185.00            4.00            1.48
    -------------------------------------------------------------------------
    FLG-029           107.00          110.45            3.45            0.96
    -------------------------------------------------------------------------
    FLG-030           103.60          106.00            2.40            2.05
    -------------------------------------------------------------------------
    FLG-031           126.00          128.40            2.40            2.68
    -------------------------------------------------------------------------
    FLG-032           208.00          209.00            1.00            1.19
    -------------------------------------------------------------------------

    Yamana has 20,000 metres of drilling planned for 2010 to continue efforts
at these two new areas. At CLX(2), 10,000 metres of infill drilling is planned
to focus on upgrading the mineral resource and 10,000 metres of exploration
drilling is planned for extending Lagoa do Gato.

    Objectives at Fazenda Brasileiro for 2010:

    -   Continue to extend the Lagoa do Gato mineral resource
    -   Further extend the mine life at Fazenda Brasileiro
    -   Continue defining new near mine targets
    -   Upgrade mineral resources to support future production
    

Jacobina, Brazil

Exploration at Jacobina in 2009 focused on near mine efforts and has provided a promising new discovery. Although most of the proven and probable mineral reserves at Jacobina are in areas that are comparatively lower grade, exploration upside is in areas with grade higher than the current mine grade. With the discoveries in 2009, exploration efforts in 2010 will be to more aggressively pursue higher grade areas of mineralization for future mining.

A structural and stratigraphic analysis undertaken in 2008 concludes that the Serra da Lagartixa area (Lagartixa Hill), located 2.5 kilometres from the mine site, possibly consists of the north continuity of the Canavieiras Block displaced by a main listric fault (See Map C). Canavieiras is the most significant resource of the Jacobina Mine and the possibility that it continues to the north opens important exploration upside for this mine.

The Lagartixa Block is 1,500 metres long with 300 metres of outcropping mineralized conglomerate reef confirmed by old artisanal mining workings and chip samples. This reef is thought to be the reef called Maneira, which represents the topmost reef of Canavieiras.

Three holes have been completed to date and the positive results to date are confirming the continuity of the Maneira Reef 700 metres down dip and 600 metres along strike (See Map D). More drilling is necessary to confirm if there is a gap along such continuity. Yamana considers these results significant and will concentrate most of 2010 on near mine drilling in this target.

Following are the significant Serra da Lagartixa intersections to date:

    
    -------------------------------------------------------------------------
                                                                  Gold Grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
    LGX-02               801             804               3            6.03
    -------------------------------------------------------------------------
                       216.5             217             0.5            3.14
    LGX-03       ------------------------------------------------------------
                      234.72           235.2               1            5.17
    -------------------------------------------------------------------------

    Objectives at Jacobina for 2010:

    -   Upgrade most of the inferred mineral resource to the measured and
        indicated category
    -   Rapidly accelerate the definition of higher grade areas by 2012
    -   Continue to focus on Canavieiras to develop Canavieiras North
    -   Regional development and identification of new ore bodies in a
        regional exploration plan between Jacobina and Pindobasu
    

Pilar, Brazil

In April 2009, Yamana delivered an update to Pilar's inferred mineral resource estimate of 12.6 million tonnes grading 3.61 g/t gold containing 1.4 million gold ounces, which was a substantial increase in inferred mineral resource of 51% and a grade increase of 48% year over year.

In 2009, Yamana completed 26,000 metres of infill drilling spacing 50x50 metres and 7,000 metres of exploration drilling. The Company also commenced construction of an exploration ramp to determine the continuity of grade.

Drilling in 2009 was focused on extending the main Jordino mineralization down dip and the Company continues to report positive results. The following extension drilling results, plus the results presented in the previous June 2009 news release, continue to show positive drill intercepts between 100 and 300 metres down dip from the mineral resource update provided in April 2009 (See Map E). A total of 12,000 metres of extension drilling has been completed since the last mineral resource and best intersections since the June 2009 news release are summarized below:

    
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
                         353             357               4            6.67
                 ------------------------------------------------------------
                         353             354               1           19.95
    JD123        ------------------------------------------------------------
                         379             380               1            5.65
                 ------------------------------------------------------------
                         390             391               1            3.23
    -------------------------------------------------------------------------
                         307             309               2            3.02
                 ------------------------------------------------------------
    JD125             272.32             275            2.68            2.28
                 ------------------------------------------------------------
                      272.32             273            0.68            6.56
    -------------------------------------------------------------------------
                      270.66             276            5.34            3.48
    JD126        ------------------------------------------------------------
                         273             274               1           14.25
    -------------------------------------------------------------------------
                         300          300.87            0.87               8
                 ------------------------------------------------------------
    JD129                319             320               1             3.1
                 ------------------------------------------------------------
                         345             346               1           16.35
    -------------------------------------------------------------------------
                         167             168               1            2.09
                 ------------------------------------------------------------
                         171             172               1            2.81
    JD213        ------------------------------------------------------------
                         203             204               1            4.52
                 ------------------------------------------------------------
                         215             216               1            4.21
    -------------------------------------------------------------------------
                      251.22          251.93            0.71             3.4
    JD216        ------------------------------------------------------------
                         280          281.23            1.23            24.6
    -------------------------------------------------------------------------
                       57.98           58.75            0.77             263
                 ------------------------------------------------------------
                          62              63               1            2.97
                 ------------------------------------------------------------
    JD222             202.89          205.49             2.6            2.74
                 ------------------------------------------------------------
                      204.96          205.49            0.53            3.43
                 ------------------------------------------------------------
                      215.72             217            1.28            4.29
    -------------------------------------------------------------------------
    

The drilling program for 2010 includes 18,000 metres of extension drilling, of which 50% is expected to be completed by the end of the first quarter of 2010. Drilling continues to be at the main high grade Jordino deposit and the area between Jordino and Tres Buracos as it continues to appear open down plunge and along strike.

Objectives for Pilar in 2010:

    
    -  Upgrade inferred mineral resource to the indicated category
    -  Determine continuity of grade
    -  Increase total overall mineral resource
    

Caiamar, Brazil

Since its purchase in July 2009, Yamana has completed 28 holes totaling 14,000 metres of exploration drilling at the Caiamar target.

Caiamar is located approximately 38 kilometres from Yamana's Pilar project and just east of the Crixas Greenstone Belt, in the northern portion of a regional Shear Zone within the Guarinos Greenstone Belt. Mineralization consists of arserno-pyrite rich quartz breccias hosted in metagraywacke layers.

A total of US$3.4 million has been budgeted for regional exploration and 25,000 metres of drilling at Caiamar. The objective of the drill program for the first year will be to assess the potential of the deposit and evaluate the regional potential inside the Caiamar concessions, in addition to defining the ore bodies.

Drilling to date has confirmed the occurrence of mineralized shoots along an area of 2.5 kilometres length and 700 metres wide. The holes CA-007, CA-004 and CA-014 have already confirmed the continuity of central mineralized shoot 500 metres down dip (Map F). Positive drilling intersections to date are summarized as follows:

    
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
                      391.50          392.00            0.50            1.94
                 ------------------------------------------------------------
    CA-001            394.00          394.50            0.50            1.43
                 ------------------------------------------------------------
                      414.00          414.50            0.50            1.37
    -------------------------------------------------------------------------
                      375.00          376.00            1.00            1.13
                 ------------------------------------------------------------
    CA-002            397.00          399.00            2.00            1.64
                 ------------------------------------------------------------
                      418.84          419.60            0.76            2.09
    -------------------------------------------------------------------------
    CA-003            679.35          680.36            1.01            1.68
    -------------------------------------------------------------------------
    CA-004            614.00          614.50            0.50            4.74
    -------------------------------------------------------------------------
                      242.00          243.00            1.00             1.9
    CA-006       ------------------------------------------------------------
                      260.58          262.24            1.66            1.43
    -------------------------------------------------------------------------
                      554.71          555.21            0.50            5.94
    CA-007       ------------------------------------------------------------
                      556.23          556.72            0.49            7.52
    -------------------------------------------------------------------------
                      369.00          370.00            1.00            5.83
    CA-011       ------------------------------------------------------------
                      397.00          399.00            2.00            1.23
    -------------------------------------------------------------------------
                      410.52          411.00            0.48            1.12
                 ------------------------------------------------------------
                      465.46          466.00            0.54            3.14
    CA-013       ------------------------------------------------------------
                      469.00          469.50            0.50            2.11
                 ------------------------------------------------------------
                      471.47          471.92            0.45            1.32
    -------------------------------------------------------------------------
                      564.30          565.00            0.70            2.00
    CA-014       ------------------------------------------------------------
                      569.00          570.00            1.00            3.04
    -------------------------------------------------------------------------
                      146.00          147.00            1.00            2.69
    CA-022       ------------------------------------------------------------
                      256.00          257.00            1.00            6.28
    -------------------------------------------------------------------------
    CA-023            393.00          394.00            1.00            1.50
    -------------------------------------------------------------------------
    CA-025            487.00          488.00            1.00            0.96
    -------------------------------------------------------------------------
                      573.09          573.59            0.50            3.36
                 ------------------------------------------------------------
                      573.59          574.09            0.50            2.04
    CA-040       ------------------------------------------------------------
                      575.07          575.55            0.48            2.36
                 ------------------------------------------------------------
                      575.55          576.00            0.45            2.68
    -------------------------------------------------------------------------
                      161.00          162.00            1.00            1.19
                 ------------------------------------------------------------
    CA-082-A          217.09          218.00            0.91            2.54
                 ------------------------------------------------------------
                      230.00          231.00            1.00            0.98
    -------------------------------------------------------------------------
    CA-093            220.00          220.50            0.50            7.99
    -------------------------------------------------------------------------
                       93.00           94.00            1.00            1.25
    CA-105       ------------------------------------------------------------
                      151.00          151.50            0.50            9.26
    -------------------------------------------------------------------------
                      156.50          157.00            0.50            7.99
                 ------------------------------------------------------------
                      215.35          215.84            0.49            1.61
    CA-107       ------------------------------------------------------------
                      223.06          223.85            0.79            1.14
                 ------------------------------------------------------------
                      242.00          242.50            0.50            13.6
    -------------------------------------------------------------------------
                      244.00          244.50            0.50            2.02
                 ------------------------------------------------------------
                      277.20          278.00            0.80            3.12
                 ------------------------------------------------------------
    CA-120            283.00          283.50            0.50            1.29
                 ------------------------------------------------------------
                      291.48          292.00            0.52            5.28
                 ------------------------------------------------------------
                      293.50          294.00            0.50            7.23
    -------------------------------------------------------------------------
    

A total of approximately 15,000 metres of drilling has been completed in 2009 with a total of 15,000 metres planned for 2010.

Objectives for Caiamar in 2010:

    
    -  Confirm mineral resource based on historical drilling through infill
       drilling
    -  Provide a mineral resource estimate by mid-2010
    -  Provide a subsequent update to the mid-year mineral resource estimate
       by extension drilling by the end of 2010

    ARGENTINA

    Salamanca - Gualcamayo, Argentina
    

Exploration efforts continued at the Salamanca area located approximately 10 kilometres north of Yamana's Gualcamayo gold mine within the Gualcamayo mine area in Argentina.

Yamana recently completed a core drilling campaign comprised of 17 drill holes for a total of 3,000 metres concentrating on the Salamanca mineralized tensional gash. The high-grade gold values encountered support the interpretation that the main intercepted structure might continue deeper and maintain the robust gold tenor.

Results to date continue to compare favourably to results from the three known mineral deposits at Gualcamayo, which have mineral resource grades of 1.08 g/t gold at QDD, and 2.6 g/t gold at both QDD Lower West and AIM. The sediment hosted mineralization at Salamanca is consistent with the other known mineral deposits at Gualcamayo. New results, in addition to those released on September 30, 2009 include (See Map G and H):

    
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)    Interval (m)           (g/t)
    -------------------------------------------------------------------------
                          42              72              30            1.72
                 ------------------------------------------------------------
    09S-01                80             108              28            1.03
                 ------------------------------------------------------------
                          80              96              16             1.4
    -------------------------------------------------------------------------
                          41              92              51             1.1
                 ------------------------------------------------------------
    09S-02                41              54              13            2.22
                 ------------------------------------------------------------
                          85              92               7            1.61
    -------------------------------------------------------------------------
                          80          132.75           52.75             2.9
    09S-03       ------------------------------------------------------------
                          98             130              32            4.07
    -------------------------------------------------------------------------
                        43.3              62            18.7            1.01
    09S-10       ------------------------------------------------------------
                         137             148              11            1.08
    -------------------------------------------------------------------------
                        24.3              88            63.7             1.1
                 ------------------------------------------------------------
    09S-14                34              42               8            2.14
                 ------------------------------------------------------------
                          50              62              12            1.24
    -------------------------------------------------------------------------
    

A subsequent 2,000 metre drill program is scheduled to commence in early 2010 and will continue to explore the deeper levels as well as to test the strike continuation of the mineralized dilational bend at Salamanca.

These drilling results continue to confirm Yamana's view that Salamanca represents an important source of further gold ounces for Gualcamayo with the potential to extend the mine life. These results will be used to support a mineral resource estimate in the first half of 2010.

    
    Objectives for Gualcamayo in 2010:
    -   Drill program of 2,000 metres of drilling at Salamanca
    -   Provide a mineral resource estimate for Salamanca in the first half
        of 2010
    -   Extend the QDD Lower West high grade deposit along strike and down
        plunge
    -   Expand the resource at QDD Lower West through upgrading inferred
        mineral resource ounces to the measured and indicated category and
        adding new ounces
    

CHILE

El Penon, Chile

Exploration efforts in 2009 were principally focused on replacing ounces at El Penon and focusing on new areas of mineralization for exploration. With that objective completed, 2010 exploration will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources to the indicated resource category and a broader regional exploration program. The 2010 exploration program is to include 69,500 metres of exploration drilling and 24,550 metres of infill drilling with a budget of US$18.4 million, US$5.8 million higher than the original budgeted amount for 2009.

    
    Objectives for El Penon in 2010:
    -   Upgrade 500,000 gold equivalent ounces to the indicated mineral
        resource category
    -   Identify 500,000 ounces of new mineral resource
    -   Identify new vein zones that can sustain a longer mine life
    

Minera Florida, Chile

In 2009, two new zones of mineralization were discovered, Centenario and Polvorin.

At Centenario, 49 diamond drill holes totaling 7,594 metres were completed and outlined mineralization along a strike length of 250 metres and a dip length of 100 metres. The mineralization consists of quartz veins, veinlets and stockworks in andesite flows with widths varying from 0.25 to 8 metres but averaging between 1 and 3 metres.

At Polvorin, 43 diamond drill holes totaling 8,090 metres have outlined mineralization along 400 metres of strike length and up to 200 metres of dip length with an average width of approximately 2.0 metres. The mineralization is typified by zones of hydrothermal breccia with zones of massive quartz veins. Sulphide mineralization consists of disseminations of pyrite, sphalerite and magnetite with traces of galena.

The results from the drill program include (See Map I, J and K):

    
    -------------------------------------------------------------------------
                               CENTENARIO VEIN
    -------------------------------------------------------------------------
    HOLE     From(m)   To(m)  Length(m)  Au(g/t)  Ag(g/t)  Zn(%)   AuEq(g/t)
    -------------------------------------------------------------------------
    ALH0075   293.2   298.35    5.15      11.39     17      2.21     12.13
    -------------------------------------------------------------------------
    ALH0664  123.95   128.00    4.05       2.54     17      1.50      3.11
    -------------------------------------------------------------------------
    ALH0666   44.23    45.89    1.66       1.51      2      0.09      1.56
    -------------------------------------------------------------------------
    ALH0667   48.44    53.11    4.67       2.26      9      0.17      2.42
    -------------------------------------------------------------------------
    ALH0669   126.9   136.20    9.30       9.53     13      0.67      9.86
    -------------------------------------------------------------------------
    ALH0670   40.83    43.16    2.33      15.91     12      0.35     16.14
    -------------------------------------------------------------------------
    ALH0675   79.45    88.84    9.39       6.94     12      1.21      7.38
    -------------------------------------------------------------------------
    ALH0677   71.36    77.09    5.73       5.07     13      1.06      5.49
    -------------------------------------------------------------------------
    ALH0686  150.74   164.39   13.65       9.02     18      0.76      9.45
    -------------------------------------------------------------------------
    ALH0691  109.68   113.78    4.10       9.66     10      0.59      9.93
    -------------------------------------------------------------------------
    ALH0695   99.64   101.78    2.14       4.91     11      0.92      5.27
    -------------------------------------------------------------------------
    ALH0698   99.98   102.50    2.52       6.65      4      0.88      6.91
    -------------------------------------------------------------------------
    ALH0700  133.08   133.33    0.25       1.08      1      0.39      1.18
    -------------------------------------------------------------------------
    ALH0704  170.36   181.01   10.65       5.18     14      0.83      5.56
    -------------------------------------------------------------------------
    ALH0708   153.4   154.36    0.96       2.12      4      0.30      2.24
    -------------------------------------------------------------------------
    ALH0711   50.41    52.60    2.19       2.41      2      0.06      2.45
    -------------------------------------------------------------------------
    ALH0714   40.18    41.24    1.06       4.96     30      0.25      5.43
    -------------------------------------------------------------------------
    ALH0716   83.23    92.55    9.32       5.14     13      0.68      5.47
    -------------------------------------------------------------------------
    ALH0717   90.44   107.66   17.22       1.29     10      0.95      1.64
    -------------------------------------------------------------------------
    ALH0719  165.86   167.84    1.98      15.99     21      2.03     16.75
    -------------------------------------------------------------------------
    ALH0722   94.84    95.22    0.38       2.59      5      0.19      2.71
    -------------------------------------------------------------------------
    ALH0726  173.72   174.15    0.43       1.96      1      0.03      1.98
    -------------------------------------------------------------------------
    ALH0729  119.56   123.80    4.24       5.54      9      0.49      5.77
    -------------------------------------------------------------------------
    ALH0732  139.87   144.50    4.63       1.00      5      0.21      1.13
    -------------------------------------------------------------------------
    ALH0736   96.76    98.62    1.86       2.16      5      0.73      2.40
    -------------------------------------------------------------------------
    ALH0739  159.78   166.50    6.72      11.14    179      1.05     13.84
    -------------------------------------------------------------------------
    ALH0751  104.87   105.85    0.98      11.84     14      0.72     12.20
    -------------------------------------------------------------------------
    ALH0754  108.78   114.64    5.86       2.96      7      1.39      3.37
    -------------------------------------------------------------------------
    ALH0758   94.15    95.51    1.36       1.26      6      0.40      1.42
    -------------------------------------------------------------------------
    ALH0760   80.02    82.36    2.34       9.52     18      1.09     10.01
    -------------------------------------------------------------------------
    ALH0763   76.34    79.82    3.48       1.04      2      0.94      1.28
    -------------------------------------------------------------------------
    ALH0766   58.69    61.48    2.79       1.15      6      2.42      1.77
    -------------------------------------------------------------------------
    ALH0796   103.8   105.71    1.91       3.19     10      0.66      3.47
    -------------------------------------------------------------------------
    ALH0802   110.3   113.41    3.11       2.12      5      0.55      2.32
    -------------------------------------------------------------------------
    ALH0809  166.54   166.92    0.38       3.03    361      0.46      8.11
    -------------------------------------------------------------------------
    Au Eq = Au + (Ag/72.6) + (Zn/4.4)

    -------------------------------------------------------------------------
                                POLVORIN VEIN
    -------------------------------------------------------------------------
    HOLE     From(m)   To(m)  Length(m)  Au(g/t)  Ag(g/t)  Zn(%)   AuEq(g/t)
    -------------------------------------------------------------------------
    ALH0006  217.56   224.95    7.39       5.50      9      1.66      6.00
    -------------------------------------------------------------------------
    ALH0008  386.95   390.78    3.83       3.43      7      1.61      3.90
    -------------------------------------------------------------------------
    ALH0210   26.71    31.50    4.79       5.71     17      1.69      6.33
    -------------------------------------------------------------------------
    ALH0672  198.18   199.58    1.31       7.95      8      2.76      8.68
    -------------------------------------------------------------------------
    ALH0674  201.51   203.76    2.25      11.60     49      1.94     12.71
    -------------------------------------------------------------------------
    ALH0676  189.27   190.90    1.63       9.08     12      1.59      9.60
    -------------------------------------------------------------------------
    ALH0678  199.88   202.57    2.69       5.91     12      2.50      6.64
    -------------------------------------------------------------------------
    ALH0681  199.17   202.81    3.64       7.53     17      0.73      7.93
    -------------------------------------------------------------------------
    ALH0689  132.74   133.92    1.18       7.33   1293      1.15     25.40
    -------------------------------------------------------------------------
    ALH0707  187.93   188.63    0.70       1.73     14      0.12      1.95
    -------------------------------------------------------------------------
    ALH0712  100.32   101.61    1.29       2.13     11      1.25      2.57
    -------------------------------------------------------------------------
    ALH0715  207.89   210.09    2.20       4.55     24      3.21      5.61
    -------------------------------------------------------------------------
    ALH0720  195.93   198.00    2.07       5.94      6      0.33      6.10
    -------------------------------------------------------------------------
    ALH0723  232.17   232.92    0.75       2.13      5      0.40      2.29
    -------------------------------------------------------------------------
    ALH0788  229.47   230.40    0.93       2.86      7      4.08      3.87
    -------------------------------------------------------------------------
    ALH0794  205.77   206.25    0.48       5.80      7      1.03      6.13
    -------------------------------------------------------------------------
    ALH0800  197.55   198.51    0.96       6.85     34      5.20      8.50
    -------------------------------------------------------------------------
    ALH0807   96.41    98.20    1.79       4.27      6      0.15      4.40
    -------------------------------------------------------------------------
    ALH0810   91.01    93.06    2.05      12.79      9      1.55     13.27
    -------------------------------------------------------------------------
    ALH0811  133.01   135.05    2.04       4.33      6      0.43      4.50
    -------------------------------------------------------------------------
    Au Eq = Au + (Ag/72.6) + (Zn/4.4)
    

The exploration program for Minera Florida in 2010 includes 12,900 metres of exploration drilling for near mine targets and 18,000 metres of infill drilling to re-categorize inferred mineral resources to the indicated category. Multiple veins are to be explored with two new regional targets. Exploration also continues in the areas surrounding Minera Florida with the objective to identify new ounces.

    
    Objectives for Minera Florida in 2010:
    -   Upgrade 150,000 gold equivalent ounces from the inferred mineral
        resource category to the indicated resource category
    -   Identify a minimum of 100,000 ounces of new mineral resource
    -   Identify new vein zones that can sustain a longer mine life
    

OTHER AREAS

Solferino, Colombia

Yamana has recently acquired an exploration concession and project called Solferino located in the district of Anori, in the province of Antioquia in the central part of Colombia.

Solferino is a mesothermal vein system of quartz veins and veinlets, which form a stockwork with a width of more than 20 metres. Previous and more recent underground workings have defined a system with a length of 200 metres and a minimum vertical expression of 70 metres. Yamana has identified and sampled two main high-grade quartz veins.

Yamana has budgeted approximately US$1.0 million for exploration in 2010 for 5,000 metres of drilling. The exploration program at Solferino will be focused on defining mineral resource potential.

Colombia remains within Yamana's geographical focus on stable jurisdictions in the Americas. Yamana believes Colombia has significant exploration potential.

Upcoming Events:

This press release which is one of a series of announcements to come, will be followed initially by Yamana's 2010 and 2011 operational outlook and update, results from the Ernesto/Pau-a-pique feasibility study and an update on Agua Rica. The following summarizes the upcoming events:

    
    -   Operational outlook and update: January 2010
    -   Ernesto/Pau-a-pique feasibility study: January 2010
    -   Update on Agua Rica: January 2010
    -   Update to Yamana's mineral reserves and resources: February 2010
    -   Pilar feasibility study: mid-2010
    -   Caiamar mineral resource estimate: mid-2010
    -   Salamanca mineral resource estimate: H1-2010
    

Quality Assurance and Quality Control

Yamana incorporates a rigorous Quality Assurance and Quality Control program for all of its mines and exploration projects which conforms to industry Best Practices as outlined by the CSE and National Instrument 43-101. This includes the use of independent third party laboratories and the use of professionally prepared standards and blanks and analysis of sample duplicates with a second independent laboratory.

Qualified Persons

Walter Soechting, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Gualcamayo and Salamanca and serves as the Qualified Person as defined in National Instrument 43-101.

Greg Walker, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Minera Florida and serves as the Qualified Person as defined in National Instrument 43-101.

Sergio Brandao, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Suruca (Chapada), Jacobina, Fazenda Brasileiro, Pilar and Caiamar and serves as the Qualified Person as defined in National Instrument 43-101.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Colombia. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real and the Chilean Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, risk related to non-core mine dispositions, changes in project parametres as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2008 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods referenced and may not be appropriate for other purposes.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

This news release uses the terms "Measured", "Indicated" and "Inferred" Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

To see maps attached to this press release, please go to:

http://files.newswire.ca/797/Yamana_Jan._Maps.pdf



For further information: For further information: Letitia Wong, Director, Investor Relations, (416) 815-0220, Email: investor@yamana.com; MEDIA INQUIRIES: Mansfield Communications Inc., Hugh Mansfield, (416) 599-0024

Organization Profile

YAMANA GOLD INC.

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