VANCOUVER, Sept. 14, 2011 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce that the Board of Directors has approved a
resolution to initiate mining at Starvation Canyon located in the
southern end of its wholly-owned gold production Jerritt Canyon
property in Nevada, USA. It is anticipated that the daily production at
Starvation Canyon will be 300 tons per day initially ramping up to 600
tons per day during the first six months of production. Jerritt Canyon
is operated by Queenstake Resources USA Ltd., ("Queenstake") a wholly
owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the "Company").
Starvation Canyon will be an underground operation similar to the other
operating underground mines at the Company's Jerritt Canyon
operations. All environmental approvals have been received for the
commencement of mine construction. Portal work is scheduled to begin in
April 2012 and development is scheduled to begin in July 2012 with ore
production scheduled to begin in January 2013. Ore from Starvation
Canyon will be hauled approximately 30 miles, mostly on State highways,
to the Jerritt Canyon roaster and processing facility.
Proven and Probable ore reserves for Starvation Canyon are currently
125,000 tons grading 0.262 oz/t gold and 237,900 tons grading 0.265
oz/t gold respectively totaling 363,000 tons with a grade of 0.264 oz/t
Measured and Indicated resources for Starvation Canyon are currently
5,500 tons at 0.365 oz/t gold and 496,900 tons at 0.284 oz/t gold
A surface drilling program is planned for 2011 that will include both
geotechnical core drilling and deposit infill drilling to convert
inferred resources to measured or indicated resources.
The Reserves and Resources mentioned in this news release were
calculated as of January 1, 2011 and the NI 43-101 Technical Report can
be found on SEDAR, www.sedar.com and on our website here: http://www.yukon-nevadagold.com/s/JerrittCanyon.asp?ReportID=195388
This news release was reviewed and approved by the Company's Vice
President of Exploration, Todd Johnson, M.Sc., the Qualified Person
under NI 43-101 for purposes of this release.
Yukon-Nevada Gold Corp. is a North American gold producer in the
business of discovering, developing and operating gold deposits. The
Company holds a diverse portfolio of gold, silver, zinc and copper
properties in the Yukon Territory and British Columbia in Canada and in
Nevada in the United States. The Company's focus has been on the
acquisition and development of late stage development and operating
properties with gold as the primary target. Continued growth will occur
by increasing or initiating production from the Company's existing
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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
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.
SOURCE Yukon-Nevada Gold Corp.
For further information:
Yukon-Nevada Gold Corp.
Senior Director, Institutional Investor Relations
Tel: (604) 688-9427
Investor Relations Manager
Tel: (604) 688-9427 ext 224
CHF Investor Relations
Director of Operations
Tel: (416) 868-1079 ext. 225
Chairman Tel: +49 711 25 35 92 40