Yamana Gold Incorporated

Yamana Gold Inc (Canadian, TSE:YRI, NYSE:AUY) is a gold producer with significant gold and copper-gold production from seven operating mines in Brazil, Chile and the U.S., as well as gold development stage properties, exploration properties, and land positions throughout North and South America. It had a total gold production of 314,000 oz for 2006 with 283,000 oz as commercial production. The company grew by the acquisition of RNC Gold Inc. for $53 million, then divested La Libertad Mine and Cerro Querra, achieving a net cost of $28 million for the San Andrés operating mine in Honduras; by acquiring Desert Sun Mining Corp. for $632 million which added the Jacobina operating mine in addition to 155 kilometres of exploration concessions along the strike length of the Bahia Gold Belt; and by acquiring Viceroy Exploration Ltd. for $549 million adding Gualcamayo as an advanced-stage feasibility project and expanding Yamana's operations into Argentina. It reached an agreement with Northern Orion and made an offer for Meridian Gold in July, 2007. Pending completion of the Meridian Gold takeover transaction, the company's portfolio will also include mines and properties in Chile, Mexico and the United States.

Press Release Source: Yamana Gold Inc.

Yamana Provides 2008 and 2009 Operating Outlook

TORONTO, ONTARIO--(MARKET WIRE)--Jan 14, 2008 -- YAMANA GOLD INC. (Toronto:YRI.TO - News)(NYSE:AUY - News)(LSE:YAU.L - News) today announced its operating outlook including production and cost guidance for 2008 and 2009, as well as fourth quarter operational highlights.


Gold production is expected to total up to 1.3 million gold equivalent ounces (GEO) in 2008 increasing to 1.6 million gold equivalent ounces in 2009 from mines currently in production and mines under construction. Estimated gold and copper production for 2008 and 2009 is detailed below. Silver production of approximately 10 million ounces for 2008 and 2009 is treated as a gold equivalent.

Gold Production Estimates (oz) 2008E 2009E
Chapada 170-175,000 175-180,000
El Penon (GEO) 425-435,000 425-435,000
Sao Francisco 130-140,000 145-155,000
Gualcamayo 85-95,000 240-250,000
Jacobina 135-145,000 180-190,000
San Andres 75-85,000 90-100,000
Fazenda Brasileiro 85-90,000 95-100,000
Minera Florida (GEO) 65-70,000 125-135,000
Sao Vicente 5-10,000 55-65,000
Alumbrera 60-65,000 55-60,000
Rossi (GEO) 30-40,000 30-40,000
Total GEO (including silver) 1,265-1,350,000 1,530-1,620,000

Copper (lbs) (Chapada) 155-160,000,000 160-165,000,000


Co-product cash cost per GEO (US$) $ 285-295 $ 290-310
Co-product cash cost per lb (US$) $0.60-0.65 $0.60-0.65
By-product cash cost per GEO (US$) $(40) - $0 $ 40 -$80

Cash costs and gold equivalent ounces were calculated using the following metal prices and exchange rates:

2008 2009
Gold (US$/oz) 700 700
Silver (US$/oz) 13.00 13.00
Copper (US$/lb) 3.00 3.00
Zinc (US$/tonne) 2,600.00 2,600.00

BRL Real/US$ 1.90 1.90
ARS Peso/US$ 3.10 3.10
CLP Peso/US$ 510.00 550.00

Yamana to build new 103 000 oz/y gold mine in Brazil

Canadian gold-miner Yamana Gold has approved the construction of a new 103 328 oz/y openpit gold mine, in Brazil's Bahia state.

Yamana, which bought rivals Meridian Gold and Northern Orion Resources last year, produced 933 000 gold-equivalent ounces (which include silver produced as a byproduct, but not copper) in 2007, and said earlier this month that it expects output to rise to as much as 1,35-million gold-equivalent ounces this year.

The company announced on Wednesday that it would spend $139-million to build the C1 Santa Luz mine, with production expected to begin in early 2010.

The mine will have a throughput of 2,5-million tons a year, and production costs are expected to range between $390/oz and $410/oz.

However, the company is looking at ways to reduce operating costs and believes that cash costs below $400 per ounce are achievable, mainly by intgrating services and administration with its Fazenda Brasileiro mine, which is about 60 km to the south of C1 Santa Luz.

The project has total measured and indicated resources of 2,3-million ounces of gold, and an inferred resource of 0,2-million ounces of gold.

Yamana is also conducting an infill drill programme, as well as exploration aimed at delineating new satellite ore bodies, and is targeting to add at least 400 000 new reserve ounces before production begins.

“At a minimum, this would add an additional three years of mine life,” the firm said on Wednesday.

This, in turn, would reduce life-of-mine cash costs.

“Given the large existing resource base and the significant exploration potential at and surrounding the mine, Yamana expects that C1 Santa Luz will produce at levels of more than 100 000 ounces per year for well in excess of 10 years,” the company said.

Yamana also said on Wednesday that it had increased the resource estimate at its El Penon mine, also in Brazil, where it now expected production to increase from about 430 000 gold equivalent ounces in 2008 to over 500 000 gold equivalent ounces in 2010.

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