While we are awaiting U samples to clear customs,YAM shares are...

While we are awaiting U samples to clear customs,YAM shares are keenly being soaked at 1.2c. previously YAM was doing a deal with a relutant ASARCO on its JV in Gold-----with the current gold price the proven deposit should be commercial

from a previous report----

Yamarna Joint Venture Project
(Currently 80% Asarco Exploration Company / 20% Yamarna)
Yamarna entered into a Joint Venture and a Farm-In Agreement with Asarco Exploration Company Inc. (“Asarco”) during
the 1997 financial year which became the governing relationship for the Yamarna Gold Project for the next seven years.
Prior to this Yamarna had independently established a resource at the Attila zone through its own exploration efforts.
On 27 August 2004 Yamarna announced that it had entered into conditional arrangements with Aquila Resources Limited
(“Aquila”) and Asarco under which Aquila has the right to acquire from Asarco an interest of up to 70% in the Yamarna Joint
Venture Project. Through an agreement between Yamarna and Aquila, Yamarna will increase its participating interest in
the project from its existing 20% to 30% in exchange for waiving its pre-emptive rights, surrendering its free carry to
decision to mine stage and its royalty entitlement. Yamarna will also have an option to acquire an additional 10%
participating interest (to move to a 40% participating interest) from Aquila on the basis of the same purchase price paid by
Aquila to Asarco (or 12.5% of the purchase consideration).
The terms of the purchase consideration offered to Ascaro by Aquila were as follows:
(a) up-front cash consideration of $7.5 million payable at settlement; and
(b) a further cash payment, limited to $3.5m, once JORC compliant gold reserve milestones are attained (the amount
of the payment will depend on the timeframe within which those milestones are attained);
(c) a 2.3% royalty on gross revenue payable on production ounces in excess of 218,750 ounces derived by Aquila
from its share of production from a designated area surrounding the North Khan discovery.
The total consideration Aquila was to provide for Asarco’s 70% interest in the joint venture was capped at $15 million.
On 27 September 2004 Aquila announced that it had notified Asarco that it will not be proceeding with arrangements to
acquire Asarco’s interest in the Yamarna Joint Venture. From Aquila’s perspective the decision to proceed with the
acquisition was highly dependent on the results of a drilling program that formed part of Aquila’s due diligence. Whilst the
results did provide encouragement in Aquila’s view they were not sufficient for Aquila to proceed with the proposed
acquisition at the price originally announced.
The directors of Yamarna are informed that Aquila intends to continue discussions with the view of seeking revised terms.
Yamarna has entered into an agreement with Aquila to jointly develop the project in the event that Aquila is successful in
acquiring Asarco’s interest.
Recent Activity
A Reverse Circulation drilling program comprising 1532 metres in 15 holes was initiated by Asarco at the request of Aquila
during August – September to determine whether there is a high-grade gold resource within 400m of strike of the discovery
intercept YARC 303 (33m @ 7.4 g/t Au) announced in May 2004.
The recent drilling determined that YARC 303 had drilled sub-parallel to the dip of the mineralized zone which is six to eight
metres in true width on that section.