VANCOUVER, May 16 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) (the "Company") announced
results for its first quarter of 2008. All amounts in this news release are in
US dollars, unless otherwise stated.
"The first quarter of 2008 was a significant quarter for the Company as
we temporarily closed our producing assets for eight weeks in order to allow
us to invest in the refurbishment and modernization of these assets." said
Graham Dickson, the Company's President and Chief Executive Officer. "These
changes to the mines and plant more closely align the operation of the
Company's producing assets with the Corporate culture that emphasizes safety
and sound environmental stewardship as the route to increased profitability."
continued Mr. Dickson.
The Company's Gross Margin from mining operations was reported as a loss
of $619,000 for the quarter and this was clearly one effect of the temporary
shutdown. Another effect was the reduction in the amounts of gold produced
from the Company's own ore and that produced from purchased ore. Those amounts
fell to 8,055 ounces and 6,266 ounces respectively for a total production of
14,291 ounces of gold. The Company experienced a net loss of $8,884,000 after
taxes.
The gold ounces produced from Jerritt Canyon ore were sold at an average
executed price of $906 per ounce and were produced at a cash cost of $881 per
ounce.
Yukon-Nevada Gold's President and Chief Executive Officer,
Graham C. Dickson, commented, "The decision to curtail production for the
greater part of the first quarter and for part of the second quarter was made
in order to provide the Company with a more reliable and safer production
facility as it proceeds to further its plans for far greater production from
its own ores at Jerritt Canyon. The Company will continue to improve both our
safety and environmental performance with a resultant overall improvement in
operations throughout the next two years".
The Company engages in the forward sales of gold produced from ore
purchased from third parties. This practice ensures that the Company achieves
an acceptable profit margin on this activity. The Company is not hedged on any
gold produced from its own Jerritt Canyon ore.
The Company's excess cash is invested in short-term investments, all with
a maturity date of less than 90 days from the date of purchase (these
investments are classified as "cash" on the balance sheet). All investments
are in "Bearer Deposit Notes" or Bankers Acceptances issued by major Canadian
chartered banks. The Company does not have asset-backed securities in its
investment portfolio.
Details of the company's financial results are described in the unaudited
consolidated financial statements and management's discussion and analysis
which will be available on the company's website and on www.sedar.com.
If you would like to receive press releases via email please contact
nicole@yngc.ca and specify "Yukon-Nevada Gold Corp. releases" in the subject
line.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
WARNING: The Company relies upon litigation protection for
"forward-looking" statements.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
%SEDAR: 00004098E
For further information: Yukon-Nevada Gold Corp., Nicole Sanches,
Investor Relations Manager, Tel: (604) 688-9427, Email: nicole@yngc.ca,
www.yukon-nevadagold.com; CHF Investor Relations, Jacqueline Wagenaar, Account
Manager, Tel: (416) 868-1079 ext. 289, Email: jacqueline@chfir.com,
www.chfir.com
