Yamana continues to build on its successful 2010 exploration program with plans to spend approximately $105 million in 2011. The exploration program will focus on several new areas of mineralization discovered in 2009 and 2010 as well as increasing mineral reserves and mineral resources. Yamana anticipates the continuation of growth in mineral reserves and mineral resources in 2011.
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Exploration Highlights |
| Chapada-Suruca | Brazil (100% Yamana-owned) |
In 2010, exploratory drilling at the Suruca deposit in Goiás State doubled the strike length of gold mineralization. A pre-feasibility study was also completed which identified more than one million ounces of gold in mineral reserves. Suruca is six kilometres northeast of Yamana’s Chapada gold-copper mine and was discovered in 2009. The deposit is expected to add substantial gold-only production growth to the Chapada operation beginning in 2013. Exploration of the deposit will continue in 2011. |
| El Peñón | Chile (100% Yamana-owned) |
Exploration around the El Peñón gold-silver mine in northern Chile continues to be productive. The Pampa Augusta Victoria vein system was discovered 30 kilometres north of the mine in 2009, and subsequent exploration identified the Elizabeth vein system. Pampa Augusta Victoria is a grassroots discovery by Yamana geologists and is similar to other high grade veins discovered previously at El Peñón. Additional emphasis on grassroots exploration is planned for 2011. |
| Gualcamayo | Argentina (100% Yamana-owned) |
At the Gualcamayo gold mine in the San Juan province, recent exploration has resulted in the discovery of the Rodado and Salamanca zones. Underground development is being completed at Rodado to allow for exploration drilling of the QDD Lower West deposit, which underlies the main open pit mine and remains open to the west. The Rodado tunnel will allow for drilling of the extension of QDD Lower West for approximately one kilometre of additional strike length. |
| Jacobina |
Discovered new mineralized zone, Lagartixa, which exhibits substantially higher grade than the current mineral reserve grade. The goal in 2010 is to define Lagartixa’s potential and to upgrade inferred resources to indicated resources at the Morro do Vento and Canavieiras deposits. |
| Minera Florida |
Discovered two high grade vein deposits, Centenario and Polvorin. |
| Fazenda Brasileiro |
Discovered new mineralized zones, Lagoa do Gato and CLX2, which exhibit substantially higher grade than the current mineral reserve grade. |
| Mercedes |
Discovered two high grade vein deposits, Las Barrancas and Lupita. During the development period, Yamana has undertaken a significant exploration program given the strong upside potential as highlighted by an over 50 percent year over year increase in cumulative total mineral resources from 2008 and 2009. The Company will further evaluate the potential to increase annual expected production from 120,000 gold equivalent ounces as it advances its exploration program. |
| Pilar |
Following Pilar's recently completed feasibility study which included its first mineral reserve estimate and a 32 percent increase in total mineral resources including reserves for the Jordino deposit, Yamana continued with its extension drilling program with the view of further increasing mineral resources. Yamana believes that Pilar has the potential to significantly increase in size. |
| Caiamar |
Purchased exploration concession, Caiamar, located approximately 38 kilometers from Pilar in Brazil. An initial mineral resource estimate is expected by the end of 2010. |
| Other |
Purchased exploration concession, Solferino, in Colombia.
Yamana continues to advance the Jeronimo project in Chile and intends to deliver a feasibility study in the first quarter of 2012.
Yamana entered into an exploration agreement with Petrominera SE in late 2010 to explore prospective ground in Argentina.
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