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

Highlights

In 2009, a total of US$3.4 million has been budgeted for regional exploration and 25,000 metres of drilling is being targeted.
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 define the ore bodies’ geometry and grade.
As part of the drill program, Yamana is re-logging and re-sampling 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.
Yamana’s Pilar and Caiamar projects share similar geology and prospectively and the Company believes that the combination of these two areas will meaningfully increase the potential for increased resources and rapid advancement of project development.
Caiamar is located approximately 50 kilometres from Yamana’s Chapada mine and the Company believes there would be synergies resulting from the operations at Chapada.