NEWS ROUNDUP — Yamana finances mine development

Northgate Exploration (NGX-T) will provide US$4 million to Yamana Resources (YRI-T) to develop the Bacon silver project in southern Argentina.

Yamana intends to build a small underground mine on the Veta Martha oreshoot and expand known resources through continued development.

Currently, Bacon contains 298,500 tonnes averaging 970 grams silver-equivalent, which translates into about 9.3 million oz. Gold represents 8% of the value of the resource.

Near the surface is a high-grade core, which Yamana believes contains more than 3 million oz. silver. The company recently signed an agreement with Noranda (NOR-T) to smelt and refine this material at the latter’s facility in Rouyn-Noranda, Que.

Meanwhile, Yamana is conducting engineering and environmental studies, as well as developing a mine plan.

Construction is expected to begin late in 2000, with startup tentatively scheduled for early 2001.