Yamana Gold (AUY) Updates on Corpo Sul Projects; Drills Additional 50 Holes Since June Release
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Yamana Gold (NYSE: AUY) announced further results from the 2012 exploration program at Corpo Sul, the newly discovered mineralized zone located directly adjacent to the main pit at Chapada, Brazil, one of the Company's flagship operations. To date, 20,000 metres of diamond drilling has been completed out of a total planned program of 27,000 metres.
Results since the discovery of Corpo Sul, in 2011, have established the zone as an extension of the main Chapada pit with grades in excess of expected grades being mined in future years at the operation. The discovery had previously been anticipated to supplement future throughput at Chapada improving the future production profile. Recent results and pace of discovery are now interpreted as being more significant. With continued drilling at 200 metre spacing, along with the apparent homogeneity of the mineralization, the Company has increased confidence in the continuity of the higher grades and the eventual increased size of Corpo Sul.
Since the Company's news release of June 5, 2012, 33 additional drill holes have been completed on the southwest extension of Corpo Sul with assays still pending on 19 of those holes. The additional drilling has further defined the geometry and grade continuity of Corpo Sul from the southwest limits of the 2011 mineral resource for an additional strike length of 2.9 kilometres.
Results from the most recently received assays include drill hole CS-73 which intersected 82.82 metres averaging 0.36 g/t gold and 0.40% copper and 200 metres and 400 metres further to the north, respectively, drill hole CS-100 returned 144.15 metres averaging 0.35 g/t gold and 0.40% copper and drill hole CS-110 returned 144 metres averaging 0.44 g/t gold and 0.34% copper including a higher grade core of 48 metres of 0.92 g/t gold and 0.57% copper. All of these high grade intersections are within 700 metres of the current Corpo Sul mineral resource and will extend the currently modeled mineral resource to the southwest.
o the southwest on section A0 (see Figure 1), drill hole CS-109 intersected mineralization thus extending the strike length of Corpo Sul by approximately 400 metres to the southwest, increasing the known strike length to just under 3 kilometres. The alteration and mineralization were intersected deeper than anticipated suggesting a major fault has offset the Corpo Sul deposit. Additional drilling will be required to better understand the sense of movement and displacement which is planned as part of the 2012 and 2013 exploration programs.
The current drill results at Corpo Sul confirm the expansion of the mineralized zone and continue the recent exploration success at Chapada which commenced with Suruca in 2010 and Corpo Sul in 2011. Mineralization and mineral resources have now been traced along a combined strike length of almost 16 kilometres centered by the main Chapada pit.
These new discoveries have led to the initiation of a prefeasibility study that is now underway, which will define the role of Suruca and Corpo Sul in the future production at Chapada. This study is expected to be completed by year end, and it is expected to include a new mineral resource at Corpo Sul using the current drilling information. Corpo Sul is expected to initially contribute higher grade ore to Chapada and it will eventually be considered, depending on its size, as a stand alone ore body.
In 2013, the Company expects to begin evaluating the area to the southeast of Corpo Sul (see Figure 2) and Chapada on targets that have already been identified with the goal of unlocking further value at Chapada. Exploration success to date has ensured a sustainable annual production level of 150,000 ounces of gold and 135 million pounds of copper beginning in 2014. Continued exploration success is expected to extend this sustainable production level for a longer mine life.
Results since the discovery of Corpo Sul, in 2011, have established the zone as an extension of the main Chapada pit with grades in excess of expected grades being mined in future years at the operation. The discovery had previously been anticipated to supplement future throughput at Chapada improving the future production profile. Recent results and pace of discovery are now interpreted as being more significant. With continued drilling at 200 metre spacing, along with the apparent homogeneity of the mineralization, the Company has increased confidence in the continuity of the higher grades and the eventual increased size of Corpo Sul.
Since the Company's news release of June 5, 2012, 33 additional drill holes have been completed on the southwest extension of Corpo Sul with assays still pending on 19 of those holes. The additional drilling has further defined the geometry and grade continuity of Corpo Sul from the southwest limits of the 2011 mineral resource for an additional strike length of 2.9 kilometres.
Results from the most recently received assays include drill hole CS-73 which intersected 82.82 metres averaging 0.36 g/t gold and 0.40% copper and 200 metres and 400 metres further to the north, respectively, drill hole CS-100 returned 144.15 metres averaging 0.35 g/t gold and 0.40% copper and drill hole CS-110 returned 144 metres averaging 0.44 g/t gold and 0.34% copper including a higher grade core of 48 metres of 0.92 g/t gold and 0.57% copper. All of these high grade intersections are within 700 metres of the current Corpo Sul mineral resource and will extend the currently modeled mineral resource to the southwest.
o the southwest on section A0 (see Figure 1), drill hole CS-109 intersected mineralization thus extending the strike length of Corpo Sul by approximately 400 metres to the southwest, increasing the known strike length to just under 3 kilometres. The alteration and mineralization were intersected deeper than anticipated suggesting a major fault has offset the Corpo Sul deposit. Additional drilling will be required to better understand the sense of movement and displacement which is planned as part of the 2012 and 2013 exploration programs.
The current drill results at Corpo Sul confirm the expansion of the mineralized zone and continue the recent exploration success at Chapada which commenced with Suruca in 2010 and Corpo Sul in 2011. Mineralization and mineral resources have now been traced along a combined strike length of almost 16 kilometres centered by the main Chapada pit.
These new discoveries have led to the initiation of a prefeasibility study that is now underway, which will define the role of Suruca and Corpo Sul in the future production at Chapada. This study is expected to be completed by year end, and it is expected to include a new mineral resource at Corpo Sul using the current drilling information. Corpo Sul is expected to initially contribute higher grade ore to Chapada and it will eventually be considered, depending on its size, as a stand alone ore body.
In 2013, the Company expects to begin evaluating the area to the southeast of Corpo Sul (see Figure 2) and Chapada on targets that have already been identified with the goal of unlocking further value at Chapada. Exploration success to date has ensured a sustainable annual production level of 150,000 ounces of gold and 135 million pounds of copper beginning in 2014. Continued exploration success is expected to extend this sustainable production level for a longer mine life.
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