VANCOUVER, Jan. 31, 2012 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce results from its 2011 surface drilling program
at the Starvation Canyon Project ("Starvation") which is located at its
wholly-owned Jerritt Canyon gold operation in Nevada, USA. Jerritt
Canyon is operated by Queenstake Resources USA Ltd., ("Queenstake") a
wholly owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the
TJ-366 intersected 28.97 meters at 18.86 g/t gold;
TJ-364A intersected 9.15 meters at 7.68 g/t gold; and
TJ-367 intersected 7.63 meters at 6.31 g/t gold.
The Company initiated a 130,000 foot surface drilling program at Jerritt
Canyon in 2011 that tested multiple projects throughout the Company's
119 square mile land position. The program was designed to either
explore for and/or to convert resources to reserves that are amenable
to either open pit or underground mining methods.
This press release updates the 2011 surface program at the Starvation
project. The program consisted of a ground geophysical survey, surface
diamond drilling geotechnical drilling, and surface reverse circulation
drilling that targeted conversion and expansion of resources within and
proximal to the current underground resource. In addition two water
monitor wells were established to enable regulatory permit compliance
in advance of initiating the planned underground mine development in
April, 2012 (see YNG news release dated September 14, 2011).
The results of the 2011 Starvation program are discussed below.
Resource conversion assay results received as of December 31, 2011 are
shown in Table 1. Surface plan maps illustrating the geophysical grid,
drill hole locations, as well as a drill hole assay summary table can
be found on the Company website here http://www.yukon-nevadagold.com/i/pdf/StarvationDrillingMaps_2011.pdf and here http://www.yukon-nevadagold.com/i/pdf/StarvationDrillAssayResults_2011.pdf.
Resource Conversion Drilling
As part of the pre-development due diligence process, a total of twelve
reverse circulation (RC) drill holes, totaling 6,790 ft. (2,071m) were
completed in 2011. These resource conversion drill holes were designed
to target inferred resources as reported in the most recently published
(January 6, 2012) NI 43-101. Ten drill holes comprised the original
drill plan. Two additional monitor wells (STV-U & STV-D) were drilled
for the purpose of water sampling (regulatory required) up and down
gradient of the water table proximal to the deposit. Drill footage for
these two holes totaled 1,220 ft. (372m). Each of these monitor well
drill holes were sampled during their initial drilling prior to
subsequent reaming and pipe installation.
As of December 31, 2011 assay results have been received for eleven of
the resource conversion holes as well as both of the monitor wells.
The significant assay results received to date are listed in Table 1
and are highlighted by drill hole TJ-366 which intersected 95 feet
(29m) grading 0.550 opt (18.86 g/t) from a hole depth of 415.0-510.0
ft. (126.57-155.55m), and drill hole TJ-370 which returned assays
covering 55 feet (16.77m) grading 0.370 opt (12.69 g/t) at a hole depth
of 600.0-655.0 ft. (183.00-199.77m).
Table 1. Significant 2011 RC Drill Hole Assay Results from Starvation
(1) Gold grade reported in Troy ounces per ton (opt) and grams per tonne
(2) Drill holes with no significant assays include: TJ-365, TJ-371,
TJ-372, and TJ-373;
(3) Resource conversion drill holes with assays pending include: TJ-368A
(4) Geotechnical drill holes with assays pending include: TJ-352
(5) Two drill holes (TJ-364 & 368) were re-drilled (TJ-364A & 368A) as
they were originally unable to be completed to the design depth due to
poor ground conditions.
Geotechnical diamond core drilling has been conducted in advance of the
planned development of the Starvation deposit. The lithology and
structure at Starvation are interpreted to be consistent with that of
the SSX-Steer and Smith Mines.
Twelve drill holes totaling 5,251 ft. (1,602m) were completed for this
program (TJ-352 thru TJ-363) and was supervised by Golder & Associates,
Inc. (Reno, Nevada, USA). The drilling accomplished the dual purpose of
providing drill core for engineering analysis and laboratory testing,
as well as drill penetrations for subsequent assay analysis for the
purpose of resource conversion. This drill program was designed to
provide drill core throughout the limits of the resource as well as
along the proposed decline that will access the resource.
As of December 31, 2011 laboratory test-work was still in progress.
Subsequent sampling and assaying of drill core is pending completion of
this work. A final report, from Golder & Associates is anticipated
prior to the end of the March, 2012.
During June, 2011 a Titan 24 Magnetotellurics (MT) and Induced
Polarization/Resistivity (DCIP) geophysical survey was conducted at the
Starvation deposit and adjacent areas by Quantec Geoscience
("Quantec"). The Titan 24 instrumentation has the capability for
ground penetration in excess of 2,300 ft. (700m) beneath the surface.
The survey was designed to: (1) determine if the Starvation Canyon
deposit is associated with a distinct IP and/or MT geophysical
signature since it is a known undisturbed deposit, and (2) to test
prospective undrilled adjacent ground. The Starvation mineralization
occurs along a major northwest-trending structure (oriented at
290/110˚) which projects to the northwest onto prospective undrilled
ground of the West Starvation target that is located at the
intersection with a major northeast/southwest trending fault zone. The
northeast/southwest trending fault zone crosses the length of the
Jerritt Canyon property and is spatially related with several
historically mined Au deposits and current resources.
The results of the survey have successfully identified a discrete
signature (anomaly) associated with the Starvation deposit. In
addition the geophysical interpretations identify several other
anomalies within the West Starvation target area that are both similar,
as well as different, to the determined Starvation signature. In
addition to defining several anomalies, the geophysical results possess
a resolution that is potentially showing an excellent correlation with
The Company is extremely excited with the results of the recent
geophysical survey and the potential significant implications for
future district-wide exploration. Drill holes planned for 2012 in the
West Starvation target area will test these geophysical anomalies and
structural intersections. This future drilling will prove the viability
of the Titan 24 geophysics to help explore for deep buried gold
deposits beneath exposed upper plate rocks at Jerritt Canyon.
Assaying of all samples from the 2011 surface drill program reported in
this news release were conducted by ALS Laboratory Group in Reno,
Nevada using standard fire assay techniques. Assay intercepts are
reported as drilled. True widths have not yet been calculated; given
the geometry of the mineralization at Jerritt Canyon, the concept of
true width is not always meaningful before delineation drilling has
been completed. The company's 2010 and 2011 Quality Assurance and
Quality Control protocols are available at the Company's website: http://www.yukon-nevadagold.com/i/pdf/JC_Assay_Protocols.pdf
The information in this news release was compiled and written by William
Hofer B.Sc., Chief Geologist, Jerritt Canyon Mine. The information
contained in this news release has been reviewed and approved by the
Company's Vice President of Exploration, Todd Johnson, M.Sc. (Qualified
Person per the requirements of NI 43-101).
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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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