The Millo project, Peru, located 570 kilometers southeast of Lima, is a 70/30 joint venture with Southwestern Resources, whereby Yamana is earning a 70% interest in the project by funding all exploration costs through the completion of a pre-feasibility. The project, totaling 6,700 hectares, is comprised of both a high sulphidation vuugy silica and low sulphidation epithermal veins. The project lies within a prominent northwest-trending belt of high grade vein mines including Arcata and Ares, and high sulphidation mineralization systems discovered at Crespo and Queshca.

A first phase of drilling was completed in early 2007 and consisted of twelve holes on the Uchuro epithermal vein system. The first phase results are highlighted by the following drill intersections: 20.30 metres of 317 grams per tonne silver and 2.65 grams per tonne gold in hole PTT-004, 17.30 metres of 162 grams per tonne silver and 1.80 grams per tonne gold in PTT-005 and 0.70 metres of 814 grams per tonne silver and 27.10 grams per tonne gold in PTT-007.

A second phase of drilling is currently underway and consists of approximately 3,200 meters of drilling in eleven holes.

DRILLING AT UCHURO, MILLO PROJECT PERU