Yamana Gold hosts official inauguration ceremony for the Gualcamayo mine in
San Juan, Argentina
Provides exploration update on an exciting new area 10 km north of Gualcamayo mine
Working in collaboration with both the community and appropriate governing authorities, Yamana was able to develop the Gualcamayo mine quickly. Construction of the Gualcamayo mine was substantially completed in less than 20 months following receipt of a positive feasibility study and the start of construction in
"The inauguration at the Gualcamayo mine is really a celebration of Yamana's growing presence in the
"The commencement of commercial production at Gualcamayo in July of this year represents another significant achievement for the Company - delivering earnings and cash flow from yet another Yamana mining operation and giving us strong operating presence in another mining friendly country," said Ludovico Costa, Yamana's president and chief operating officer. "As with all of Yamana's mines, at Gualcamayo we are continuing to evaluate ways to maximize output and cash flow both in the near and longer term."
The current workforce at Gualcamayo is approximately 1,200 individuals, inclusive of contract and direct employees, more than 90% of whom are Argentine.
Yamana would like to thank all of those who have contributed to the completion of Gualcamayo and those who have made the inauguration today possible. The Company would like to also thank all the participants at today's inauguration ceremony.
About Gualcamayo
The Gualcamayo property is located in northern San
The Gualcamayo mine presently has total measured and indicated mineral resources* of 98.6 million tonnes at an average grade of 1.10 grams per tonne, totaling 3.5 million ounces of gold, which includes proven and probable mineral reserves of 83.7 million tonnes at an average grade of 1.08 grams per tonne, totaling 2.9 million ounces of gold, supporting an initial mine life of at least 13 years. In addition, the inferred resource is 12.8 million ounces of gold, at an average grade of 1.04 grams per tonne, totaling 428,000 ounces of gold. This represents an increase in total measured and indicated mineral resources of 66% since mid 2006.
Production from the Gualcamayo mine is expected to be more than 120,000 ounces of gold for 2009 and to increase in later years as QDD fully ramps up and with production contributions from the other deposits.
Yamana continues to advance its exploration efforts at QDD Lower West and a feasibility study update is expected in 2010.
As part of a broader exploration program at Gualcamayo, an entirely new area of mineralization, Salamanca, is being explored within the Gualcamayo area. Salamanca may represent a new area for the addition of resource ounces for Gualcamayo.
* For further details on Yamana's mineral reserves and mineral resources please see the Company's Annual Information Form for the year ended December 31, 2008 available at www.sedar.com Exploration Update - Salamanca, Gualcamayo, Argentina -----------------------------------------------------
The Salamanca area is located approximately 10 kilometres north of Yamana's Gualcamayo gold mine and is within the Gualcamayo mine area (see map A at http://files.newswire.ca/797/yamana_maps.doc).
Recent drilling results support Yamana's view that Salamanca represents an important source of further gold ounces for Gualcamayo. These results will be used to support a mineral resource estimate in the first half of 2010.
The Company is currently conducting a 2,000 metre diamond drillhole program at Salamanca which is designed to further evaluate previously identified sediment-hosted gold mineralization. The previous program completed 14 holes and 2,100 metres of drilling. The current drill program is designed to test for strike length extensions and to investigate the potential for structural repetitions of the mineralized areas down dip and to the west. The current drill holes are located within the known mineralized strike length and confirm or increase the thickness, strike length and grade of the mineralized zone.
Ten drill holes have been completed to date. Geochemical results for the first seven holes have been received and are summarized below (also see maps B and C at http://files.newswire.ca/797/yamana_maps.doc):
------------------------------------------------------------------------- Hole ID From (m) To (m) Interval (m) Au (g/t) ------------------------------------------------------------------------- 09S-06 62.55 124.8 62.25 1.72 09S-06 including 64 94 30 2.23 ------------------------------------------------------------------------- 09S-07 40 114 74 1.2 09S-07 including 62 86 24 1.6 ------------------------------------------------------------------------- 09S-08 40 84 44 1.44 09S-08 including 40 68 28 1.81 09S-08 100 106.25 6.25 1.46 09S-08 112 118 6 1.8 ------------------------------------------------------------------------- 09S-09 46.85 136 89.15 1.63 09S-09 including 46.85 84 37.15 1.5 09S-09 including 92 118 26 1.71 09S-09 including 122 136 14 2.77 09S-09 231.7 278 46.3 1.56 ------------------------------------------------------------------------- 09S-11 33.3 56 22.7 1.22 09S-11 194 204 10 1.05 ------------------------------------------------------------------------- 09S-12 22.1 76 53.9 1.25 09S-12 including 45 61.7 16.7 1.53 09S-12 154 184.45 30.45 1.16 ------------------------------------------------------------------------- 09S-13 10.1 46 35.9 1.44 09S-13 including 10.1 23.1 13 1.95 ------------------------------------------------------------------------- Significant results from the previous drill program located in the targeted area are summarized below. These results have not been subjected to current QA/QC protocols. ------------------------------------------------------------------------- Hole ID From (m) To (m) Interval (m) Au (g/t) ------------------------------------------------------------------------- S96-1 0 19.5 19.5 2.4 ------------------------------------------------------------------------- S96-2 4 66.15 62.15 1.01 ------------------------------------------------------------------------- S96-4 66.14 102.5 36.4 2.15 ------------------------------------------------------------------------- S96-5 30.1 69.5 39.4 1.17 ------------------------------------------------------------------------- S97-3 58.3 118.25 51.3 1.50 S97-3 including 58.3 107 41.05 1.85 S97-3 including 58.3 80.3 18.85 2.66 ------------------------------------------------------------------------- S97-5 57.1 149.9 92.8 1.12 S97-5 including 131.25 149.9 18.65 2.07 S97-5 214.4 284.26 69.86 1.79 S97-5 including 221.2 275.75 54.55 1.95 -------------------------------------------------------------------------
Results to date compare favourably to results from the three known mineral deposits at Gualcamayo, which have 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.
Quality Assurance and Quality Control
Yamana incorporates a Quality Assurance and Quality Control (QAQC) 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. Geochemical assays are completed by ALS Chemex (the primary lab) and
Qualified Person
About Yamana
Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" within the meaning of the
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.
For further information: Letitia Wong, Director, Investor Relations, (416) 815-0220, Email: [email protected]; MEDIA INQUIRIES: Mansfield Communications Inc., Hugh Mansfield, (416) 599-0024
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