EXPLORATION 1999 – Yamana revises resource

Mining consultant Micon International has upgraded the silver resource at the North Bacon property in Patagonia region of southern Argentina, Yamana Resources (YRI-T) reports.

The revised estimate covers a larger portion of the Veta Martha silver shoot, bringing the resource to 7.3 million oz. silver and 8,000 oz. gold.

The indicated and inferred resource amounted to 473,024 tonnes averaging 478 grams silver and 0.53 gram gold per tonne.

The first resource covered a 200-metre segment of Veta Martha to a depth of 75 metres (T.N.M., Feb. 15/99). The new calculation doubled the tonnage from the previous estimate, and included mineralization west of the main ore shoot, plus Veta Nord Este and Veta Medio.

Yamana asked Micon to produce the resource using cut values to reduce the possibility of overestimating the size of the deposit. High-grade values cut to the 97.5th percentile (capped at 12,100 grams silver and 12.9 grams gold per tonne) reduced the cut-grade resource to 77% of the uncut resource.

The calculation used a modified longitudinal polygonal method on an east-raking oreshoot, and a slightly higher specific gravity of 2.61.

Meanwhile, Yamana has resumed drilling at North Bacon, as part of an effort to target all segments of the 1.5-km Veta Martha system.

Yamana has also sent 20 core samples for metallurgical testing. Initial results indicate that mineralization could be amenable to physical concentration (gravity separation and flotation). The next bench-scale tests will estimate recovery factors.

In other news, the company acquired back-in rights, held by Barrick Gold (ABX-T), for Yamana’s properties in Kalimantan, Indonesia, in exchange for 750,000 shares. Barrick remains the junior’s largest shareholder with 11.4% of the outstanding shares.