Investor Q & A
1) Why is Yamana’s mining and exploration focus primarily in Brazil? Will Yamana look outside the Americas?
Brazil has one of the ten largest economies in the world with a large industrial base. The country’s geological potential is abundant and relatively under-explored. Additionally, the government permitting process is efficient and expedient since mining is culturally embedded in Brazil. Yamana also takes advantage of quality mining equipment that is made locally, the skilled local labor force and a well developed infrastructure including abundant hydroelectric power and transportation networks. All this combined with a relatively weak Real, makes Brazil an excellent choice for Yamana.
Yamana remains Americas focused, as this is a key area of expertise. Many companies make the mistake of growing too quickly and expanding globally before they are ready. Particularly, Yamana looks at properties in mine friendly jurisdictions with geopolitical stability, near existing infrastructure.
2) Does Yamana have any concerns regarding possible changing political situations in South America?
Yamana has excellent government relations in Brazil, Chile, and Argentina and considers these countries partners in the Company’s success. Yamana is a leading employer in Brazil and provides direct employment opportunities to approximately 9,300 individuals in South America.
3) How are your exploration and development projects proceeding?
Yamana has made construction decisions on three development stage projects, C1 Santa Luz in Brazil, Mercedes in Mexico and Ernesto/Pau-a-Pique, all of which are expected to commence production in 2012.
Additional growth is expected from other pending projects, which include QDD Lower West and Pilar where feasibility studies are expected to be completed in 2010.
Value enhancing projects such as the 100% owned Agua Rica project in Argentina, continues to advance. Yamana continues to evaluate the development of the project with one or more strategic partners. The project received its environmental license in 2009 and the permitting process is advancing. Agua Rica is a large scale copper, gold, silver and molybdenum deposit with an estimated 26.5 year mine life. Optimization initiatives are underway with a new mine plan already completed and Yamana is working towards a full update to the feasibility study.
In 2009, Yamana discovered new areas of mineralization at nearly all of its mines and projects, with the most prospective of these being Suruca at the Chapada mine. In addition, Yamana discovered Lagartixa at Jacobina which demonstrates higher grade than its current reserve grade, Lagoa do Gato zone at Fazenda Brasileiro, Centenario and Polvorin at Minera Florida, and Salamanca at Gualcamayo. At El Penon, during the first quarter of 2010, Yamana announced the discovery of the high grade gold and silver vein Pampa Augusta Victoria which is approximately 30 kilometres north of El Penon. Further, positive drill results confirm the prospectivity at Pilar in Brazil. These positive results are expected to drive significant reserve and resource growth in 2010.
Yamana remains committed to organic growth and continues to focus on a robust portfolio of exploration and development projects for its next wave of growth.
4) I am receiving information from Yamana Gold from shares in a company that were converted into Yamana Gold Inc. How do I find out what my previous shares are worth now?
CIBC Mellon is Yamana Gold’s transfer agent and they can answer your questions on the share exchange. They can be reached by phone at 416-643-5500 or 1-800-387-0825, or by email at inquiries@cibcmellon.com