Yamana approves US$80mn exploration budget, discloses plans for 2010
Toronto-based miner Yamana Gold (TSX: YRI; NYSE: AUY) has approved an exploration budget of US$80mn for 2010, the company said in a statement.
The company also disclosed exploration objectives for 2010 in Brazil, Argentina, Chile and Colombia.
According to the statement, some of Yamana's areas of focus in 2010 will include defining the size and potential of a new mineralized zone at the Suruca mine, 6km northeast of the Chapada mine in central Brazil.
Also in Brazil, the company said it will provide a resource estimate at Caiamar by mid-2010 with a further update by the end of the year.
Since purchasing Caiamar in July 2009, Yamana has completed 28 holes totaling 14,000m of exploration drilling. A total of US$3.4mn has been budgeted for exploration and 25,000m of drilling is planned at Caiamar, located in central Brazil's in Goiás state. In the first year of drilling, Yamana will assess the deposit's potential and evaluate the potential of the regional Caiamar concessions, in addition to defining the orebodies, the statement said.
Caiamar is located 38km from Yamana's Pilar project, 300km northwest of capital Brasilia. At Pilar, Yamana aims to upgrade the mineral resource to the indicated category and increase total overall mineral resources.
At Yamana's Fazenda Brasileiro property the company seeks to extend mine life and expand its Lagoa do Gato mineral resource, continue defining new near mine targets and upgrade mineral resources to support future production. Lagoa do Gato is located 4km northeast of Fazenda Brasileiro, which is in northeast Brazil, 180km from Bahia state capital Salvador.
In Argentina, the company is expanding the resource at QDD Lower West in San Juan province and continue exploration efforts at Salamanca, 10km north of Yamana's Gualcamayo gold mine.
"Yamana recently completed a core drilling campaign comprised of 17 drill holes for a total of 3,000m concentrating on the Salamanca mineralized tensional gash," the company said.
Results to date continue to compare to results from the three known mineral deposits at Gualcamayo, which have mineral resource grades of 1.08g/t gold at QQD and 2.6g/t gold at both QDD Lower West and AIM.
In northern Chile, Yamana is upgrading known deposits at El Peñón from 500,000oz gold equivalent to the indicated mineral resource category. Also, the company said it is expanding the footprint of Minera Florida with successful exploration at Chancón-Membrillo. The objective at Minera Florida is to upgrade 150,000oz gold equivalent to the indicated resource category.
"With that objective completed, 2010 exploration will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources to the indicated resource category and a broader regional exploration program," the statement said. "The 2010 exploration program is to include 69,500m of exploration drilling and 24,550m of infill drilling with a budget of US$18.4mn, US$5.8mn higher than the original budgeted amount."
In central Colombia, Yamana recently acquired an exploration concession and project called Solferino in the province of Antioquia.
"Colombia remains within Yamana's geographical focus on stable jurisdictions in the Americas. Yamana believes Colombia has significant exploration potential," the statement said.
