Let me firstly say that I have never been a fan of...

Let me firstly say that I have never been a fan of Yamana...

Their track record speaks for itself!

29-Apr-1993 1.00 NON REN RIGHTS AT RATIO 1: 2 EXPIRING 30/04/93 BKSCLOSE 10/05/93

05-Jan-1995 0.88 NON REN RIGHTS AT RATIO 2:5 EXPIRING 05/01/95 BKSCLOSE 13/01/95

22-May-1997 20.00 20:1 RECON

09-Mar-1998 0.91 1:5 NON REN RIGHTS @$0.25 WITH ONE FREE OPTION

30-Oct-1999 0.90 1:2 NON-REN RIGHTS @$0.04 WITH ONE FREE OPTION

14-Aug-2000 0.98 1:8 NON REN RIGHTS @$0.03 WITH ONE FREE ATTACHING OPTION

21-Jan-2002 0.96 1:6 NON REN RIGHTS @$0.011 PLUS 1 FREE ATTACHING OPTION

18-Feb-2004 0.90 1:3 NON REN RIGHTS @$0.008

Given the above, it would appear that dilution is the only thing YAM are good at...oh yeah...and they are also pretty good at maintaining a falling shareprice.

But could it be that this little dog has actually dug up something significant?

With 12.5 million tonnes @ only 1.82g/t (737,000 ounces), the Yamana project was always marginal at best. To be commercial, they needed two things...a higher AU$ gold price and some high grade reserves. Well 33m at 9.7 g/t isn't a bad intersection and with the rising AU$ gold price, may be just enough to tip the scales!

The shareprice is currently reflecting less than true asset backing of about 1c per share, which suggests that no value has been placed on this project at all...perhaps wisely.

It is only one hole so far, so nothing to get too exited about, but it does suggest that high grade ore exists..which changes the whole dynamic of the project!

We will have to wait for more drilling results to confirm that they didn't simply drill lengthwise through a 1m wide high grade shoot or something...so next results fom this area will be very interesting!

If it turns out that the Yamana project does suddenly become commercial, it should have a significant effect on the shareprice...especially given YAM's free carried and funding arrangements with Asarco.

Will be watching from now on!

Cheers!