Yamana Gold Provides Update on Exploration at Chapada

Wed Aug 22, 2012 8:11am EDT

* Reuters is not responsible for the content in this press release.

  TORONTO, ONTARIO, Aug 22 (MARKET WIRE) --
YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY)(LSE:YAU) ("Yamana" or the "Company")
today announced further results from the 2012 exploration program at
Corpo Sul, the newly discovered mineralized zone located directly
adjacent to the main pit at Chapada, Brazil, one of the Company's
flagship operations. To date, 20,000 metres of diamond drilling has been
completed out of a total planned program of 27,000 metres.

    Results since the discovery of Corpo Sul, in 2011, have established the
zone as an extension of the main Chapada pit with grades in excess of
expected grades being mined in future years at the operation. The
discovery had previously been anticipated to supplement future throughput
at Chapada improving the future production profile. Recent results and
pace of discovery are now interpreted as being more significant. With
continued drilling at 200 metre spacing, along with the apparent
homogeneity of the mineralization, the Company has increased confidence
in the continuity of the higher grades and the eventual increased size of
Corpo Sul. 

    Since the Company's news release of June 5, 2012, 33 additional drill
holes have been completed on the southwest extension of Corpo Sul with
assays still pending on 19 of those holes. The additional drilling has
further defined the geometry and grade continuity of Corpo Sul from the
southwest limits of the 2011 mineral resource for an additional strike
length of 2.9 kilometres.

    Results from the most recently received assays include drill hole CS-73
which intersected 82.82 metres averaging 0.36 g/t gold and 0.40% copper
and 200 metres and 400 metres further to the north, respectively, drill
hole CS-100 returned 144.15 metres averaging 0.35 g/t gold and 0.40%
copper and drill hole CS-110 returned 144 metres averaging 0.44 g/t gold
and 0.34% copper including a higher grade core of 48 metres of 0.92 g/t
gold and 0.57% copper. All of these high grade intersections are within
700 metres of the current Corpo Sul mineral resource and will extend the
currently modeled mineral resource to the southwest.

    See Table 1 for a complete list of drill results received.

    Table 1


----------------------------------------------------------------------------
                                From        To     Width        Au        Cu
Section      Hole No.       (metres)  (metres)  (metres)     (g/t)       (%)
----------------------------------------------------------------------------
A0           CS-109            70.00    143.00     73.00       NSV      0.14
----------------------------------------------------------------------------
             and              203.35    233.12     29.77       NSV      0.25
----------------------------------------------------------------------------
             and              261.00    267.00      6.00      0.16      0.35
----------------------------------------------------------------------------
             and              317.00    378.00     61.00      0.12      0.27
----------------------------------------------------------------------------
             incl             331.25    362.00     30.75      0.16      0.36
----------------------------------------------------------------------------
  B          CS-85            183.26    221.00     37.74      0.11      0.22
----------------------------------------------------------------------------
             CS-78            207.78    242.00     34.22      0.19      0.23
----------------------------------------------------------------------------
  D          CS-102           187.18    205.41     18.23      0.24      0.17
----------------------------------------------------------------------------
  E          CS-91            240.78    256.00     15.22      0.10      0.14
----------------------------------------------------------------------------
  E1         CS-108           123.62    234.18    110.56      0.11      0.20
----------------------------------------------------------------------------
             incl             183.00    213.00     30.00      0.19      0.29
----------------------------------------------------------------------------
             and              245.98    293.00     47.02       NSV      0.16
----------------------------------------------------------------------------
             CS-73            160.18    243.00     82.82      0.36      0.40
----------------------------------------------------------------------------
             incl             169.00    214.00     45.00      0.50      0.55
----------------------------------------------------------------------------
             CS-82            165.25    187.00     21.75      0.18      0.21
----------------------------------------------------------------------------
             CS-92            171.00    205.00     34.00      0.14      0.16
----------------------------------------------------------------------------
  E2         CS-99             23.44    311.00    287.56      0.13      0.21
----------------------------------------------------------------------------
             incl              25.92     92.00     66.08      0.21      0.36
----------------------------------------------------------------------------
             CS-100           119.85    264.00    144.15      0.35      0.40
----------------------------------------------------------------------------
             incl             126.26    194.69     68.43      0.55      0.48
----------------------------------------------------------------------------
  F          CS-110            87.00    231.00    144.00      0.44      0.34
----------------------------------------------------------------------------
             incl             114.00    162.00     48.00      0.92      0.57
----------------------------------------------------------------------------


    Note: 0.1 g/t gold cutoff, 0.1% copper cutoff and 0.3 g/t Au and 0.3% Cu
(including). Results from 19 drill holes are pending. Complete drill
results to date for Corpo Sul can be found at
www.yamana.com/CorpoSuldrillcomplete.

    To the southwest on section A0 (see Figure 1), drill hole CS-109
intersected mineralization thus extending the strike length of Corpo Sul
by approximately 400 metres to the southwest, increasing the known strike
length to just under 3 kilometres. The alteration and mineralization were
intersected deeper than anticipated suggesting a major fault has offset
the Corpo Sul deposit. Additional drilling will be required to better
understand the sense of movement and displacement which is planned as
part of the 2012 and 2013 exploration programs.

    To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/yri0822fig1.pdf.

    The current drill results at Corpo Sul confirm the expansion of the
mineralized zone and continue the recent exploration success at Chapada
which commenced with Suruca in 2010 and Corpo Sul in 2011. Mineralization
and mineral resources have now been traced along a combined strike length
of almost 16 kilometres centered by the main Chapada pit. 

    These new discoveries have led to the initiation of a prefeasibility
study that is now underway, which will define the role of Suruca and
Corpo Sul in the future production at Chapada. This study is expected to
be completed by year end, and it is expected to include a new mineral
resource at Corpo Sul using the current drilling information. Corpo Sul
is expected to initially contribute higher grade ore to Chapada and it
will eventually be considered, depending on its size, as a stand alone
ore body.

    In 2013, the Company expects to begin evaluating the area to the
southeast of Corpo Sul (see Figure 2) and Chapada on targets that have
already been identified with the goal of unlocking further value at
Chapada. Exploration success to date has ensured a sustainable annual
production level of 150,000 ounces of gold and 135 million pounds of
copper beginning in 2014. Continued exploration success is expected to
extend this sustainable production level for a longer mine life.

    To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/yri0822fig2.pdf.

    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 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. For additional
information on these programs for Chapada please refer to the following
technical report: "Chapada Mine and Suruca Project, Goias State, Brazil
Technical Report" pursuant to National Instrument 43-101 of the Canadian
Securities Administrators dated March 7, 2011 under the Company's profile
at www.sedar.com.

    Qualified Persons

    Darcy Marud, P.Geo., Senior Vice President Exploration and Sergio
Brandao, P. Geo., Director of Exploration, Brazil for Yamana Gold Inc.
have reviewed and approved the scientific and technical information
contained within this press release relating to Chapada and serve as the
Qualified Persons 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.
Yamana plans to continue to build on this base through existing operating
mine expansions, throughput increases, development of new mines, the
advancement of its exploration properties and by targeting other gold
consolidation opportunities with a primary focus in the Americas.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release
contains "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, the Chilean Peso, the Argentine Peso, and
the Mexican 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
mineral resources, risk related to non-core mine dispositions, risks
related to acquisitions, 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 and the risk of government expropriation or
nationalization 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, 2011 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 ended on the dates
presented in the Company's plans and objectives 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.

    (All dollar amounts are expressed in United States dollars unless
otherwise specified)

Contacts:
Yamana Gold Inc.
Lisa Doddridge, Vice President,
Corporate Communications and Investor Relations
416-945-7362 or 1-888-809-0925
lisa.doddridge@yamana.com

Copyright 2012, Market Wire, All rights reserved.

-0-
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.