UPDATE 1-Yamana may boost production at two new mines

* Says significant new discoveries at Mercedes, Pilar

* Pilar mine in permitting, on track for 2013 production

* Yamana to spend $80 million on exploration in 2010
(In U.S. dollars unless noted)

TORONTO, Nov 29 (BestGrowthStock) – Yamana Gold (YRI.TO: ) said on
Monday it has made new discoveries at its two main development
projects that could increase production from the mines to
levels above those estimated in its original feasibility
studies.

The mid-tier gold miner said its exploration program had
found significant new resources at its Mercedes silver and gold
project in Mexico, which will start production in 2012.

The Toronto-based company also said new discoveries at the
Pilar gold project in Brazil could extend that mine’s life.
Pilar is in the permitting stage and expected to come online in
2013.

Yamana, which has operations across Latin America, said it
will spend C$80 million ($78.5 million) on exploration in 2010,
and that its 2011 exploration program will be “aggressive”.

Spot gold was trading at $1,365.15 per ounce on Monday.
Shares in Yamana closed up slightly on Monday at C$11.52 on the
Toronto Stock Exchange.

($1=$1.02 Canadian)
(Reporting by Julie Gordon; editing by Peter Galloway)

UPDATE 1-Yamana may boost production at two new mines