“If there is a question mark from FTC, it could drag formonths. Federal TradeCommission, but antitrust experts and industry analysts sayEMC’s offer could get delayed for weeks or months, while theyexpect NetApp’s to win quick approval. The zone begins approximately 250 metres northwest of the Mercedesgrade shell on an apparent sub-parallel structural trend. Within the trend,Au-Ag bearing stockwork zones up to 25 metres wide have been identified,containing fissure veins to 9.0 metres in width.
The zone has been tested byvery wide-spaced holes and is open at depth. The veins display many of thesame stages of quartz-carbonates and epithermal characteristics as theMercedes vein. Lupita—— Drilling has focused on testing the down-dip continuity along a 600-metrestrike length of the Lupita vein zone, located at the contact between theupper host andesite and lower lithic tuff. Mercedes continues to show a high geologicalpotential given the size of the property and the results of geological andgeophysical studies to date, which support a feasibility study andconstruction decision for Mercedes expected by the first quarter of 2010. TheCompany presently anticipates the completion of construction and commencementof commissioning within 24 to 30 months.Pilar, BrazilIn April 2009, Yamana delivered an update to Pilar’s resource estimate of12.6 million tonnes grading 3.61 g/t gold containing 1.46 million gold ounces,which demonstrated a substantial increase in inferred resource of 51% and agrade increase of 48% year-over-year. The increase in resource is entirelyfrom the high-grade Jordino deposit which is the largest and most prospective,and now represents approximately 85% of total contained gold ounces.Pilar is located east of the Crixas Greenstone Belt which hosts the SerraGrande gold mine and the Guarinos Greenstone Belt which is east of the CrixasBelt and similar in shape and size.
The Crixas and Pilar gold mineralizationhave very similar structural control, hydrothermal alteration, stratigraphyand tectonic history, and are approximately 40 kilometres apart. Yamanacontrols approximately 65,000 hectares of mineral claims and permits thatcover the majority of the Guarinos and Pilar Greenstone belts.Yamana has budgeted US$4.1 million for exploration in 2009 for the Pilarproject. Approximately 20,000 metres of diamond drilling are planned, of whichapproximately 12,000 metres will be focused on growing the resource alongstrike and down dip. Infill drilling and tunneling, primarily at Jordino, isalso planned to further define the current inferred resource to upgrade theresource category.
The Company’s view is that an initial mineable resourcelevel of one million ounces would support a development decision.Drilling to date this year has focused on extending the main Jordinomineralization down dip and the Company continues to report positive results(see map attached). Drill hole 117 extended mineralization significantly alongstrike by 1,000 metres and under cover rocks of the Araxa Group. Yamana believes Pilar is highly prospective and is an importantnear development stage project for the Company with the potential to beaccelerated. A feasibility study and construction decision is expected in thefirst quarter of 2010.Minera Florida, ChileMinera Florida has been a very successful operating mine for more than 20years with exploration at and around the mine still in early stages andprospective targets that remain underexplored. Exploration efforts havefocused on the delineation of the newly discovered Centenario deposit and thePolvorin deposit (see map attached).