GOLD MINING: Yamana’s Gualcamayo mine reaches commercial production

ARGENTINA — Toronto-based Yamana Gold celebrated the first quarter of commercial production from the Gualcamayo gold mine with an official inauguration ceremony. The open pit and heap leach mine is located in San Juan province. Eventually, an underground mine may be developed.

Yamana built the mine in less than two years since the start of construction in August 2007. Ore processing began in late December 2008, and Yamana declared commercial production on July 1, 2009. The mine employs 1,200 people, including contractors, and more than 90% of them are Argentine.

The Gualcamayo mine presently has total measured and indicated mineral resources of 98.6 million tonnes at an average grade of 1.10 g/t Au, totalling 3.5 million oz of gold. That estimate includes proven and probable mineral reserves of 83.7 million tonnes at an average grade of 1.08 g/t Au, totalling 2.9 million oz of gold. Initial mine life will be at least 13 years. The inferred resource is 12.8 million tonnes, at an average grade of 1.04 g/t Au, totalling 428,000 oz of gold. This represents an increase in total measured and indicated mineral resources of 66% since mid 2006, Yamana noted in its recent news release.

Detailed information is posted at www.Yamana.com.