Yamana (NYSE:AUY) in New Discoveries at Mercedes, Pilar Mines

Two new discoveries at its Mercedes project in Mexico and its Pilar project in Brazil could result in higher production than originally estimated by Yamana (NYSE:AUY).

Yamana said they found a significant amount of new resources at Mercedes silver and gold project, which is scheduled to begin production in 2012.

At their Pilar project, the new discoveries are expected to extend the life of the mine, which should have production begin in 2013.

Yamana says their exploration strategy in 2011 will be very aggressive.

Investors have tired of waiting for the company, which has done nothing as far as share price goes for over four years.

Yamana is trying to do something to generate interest again, and new finds resulting in higher production are a good point to begin with.

About $78.5 million has been committed to exploration by Yamana in 2010.