Yamana Gold has discovered a very-high-grade, gold-silver vein system at Pampa Augusta Victoria, 30 km north of its El Peñón operations in northern Chile. The vein system is structurally controlled, low-sulphidation quartz, stockworks, and hydrothermal breccias emplaced within acidic volcanic rocks. The rocks are exposed in a structurally controlled window that is approximately 400 km2 in surface area. Comparable to El Peñón, the gold mineralization is surrounded by a halo of silver mineralization that grades greater than 30 g/mt silver.

Yamana has completed 21 reverse circulation drill holes totaling 6,368 m at the property. The main structure has been traced along strike for 270 m and down dip to 200 m and is open in all directions. “The discovery of Pampa Augusta Victoria supports Yamana’s view that there is significant unrealized value at El Peñón and potential remains to further increase production and extend the mine life,” Yamana said in a press release. “With only approximately 35% of the surrounding area explored to date, El Peñón has exceptional exploration upside.”

Yamana has budgeted $18.4 million for exploration at El Peñón during 2010.