Before Yamana purchased the project in mid-2009, a total of 16,000 metres of drilling and 2,000 metres of underground development in 2 metre x 2 metre sections and three levels (55 metres, 110 metres and 150 metres) were conducted by previous companies.

Highlights

In 2009, Yamana conducted 15,000 metres of drilling at Caiamar which has similar geology and prospectivity as Pilar. The Company believes that the combination of these two areas will meaningfully increase the potential for increased resources and rapid advancement of project development.
The objective of 2009’s drill program was to assess the potential of the deposit and evaluate the regional potential inside the Caiamar concessions, in addition to defining the ore bodies’ geometry and grade.
As part of the 2009 drill program, Yamana re-logged and re-sampled the previous holes and expects to start an underground panel sampling and initial extension drilling program of 3,700 metres.
Yamana believes that it can rapidly validate and extend the existing resource.
Drilling to date has confirmed the occurrence of mineralized shoots along an area of 2.5 kilometres length and 700 metres wide. Three holes have already confirmed the continuity of the central mineralized shoot 500 metres down dip.
A total of 15,000 metres of drilling is planned for 2010 with a mineral resource estimate targeted for mid-2010 with a subsequent update to the mid-year mineral resource estimate by extension drilling targeted for the end of 2010.