VANCOUVER, June 18, 2012 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce that its wholly-owned Jerritt Canyon processing
facility in Nevada has reached steady-state operation. After facing a
series of challenges in reaching target gold production rates earlier
this year following a planned shutdown in January, Jerritt Canyon has
operated continuously over the last month processing an average of
4,112 tons per day. Jerritt Canyon is operated by Queenstake Resources
USA Ltd., ("Queenstake") a wholly-owned subsidiary of Yukon-Nevada Gold
Corp. ("YNG" or the "Company").
In the first half of June the plant has processed an average of 4,200
tons per day, 7% higher than planned production of 3,933 tons per day.
In the past month including the first fifteen days of June, gold
recoveries were over 12,000 ounces recovered to the CIL circuit, 11,218
ounces were shipped with the remainder still in plant inventory. At
this level of production the Company is generating positive cash flow
from operations as well as covering the maintenance capital required to
continue to operate the facility effectively going forward.
A further increase in crushing circuit availability will be achieved by
the replacement of an inadequately manufactured bucket elevator
supplied and installed during the recent shutdown, which was the cause
of serious downtime in the first four months of this year. Construction
required to replace this component with two conventional belt conveyors
is expected to be completed during the next four weeks. A backup mobile
crushing and screening plant has been installed and tested in order to
ensure continued plant performance during the replacement phase.
On April 25 the Company received an order allowing it to operate both
roasters at 110 tons per hour per roaster, an increase of 22%. This was
an important step in the operation ramping production up to 4,600 tons
per day by the end of 2012 and 4,800 tons per day in Q1 2013. The
Company will be pursuing further increases in the allowed operating
rate as the year progresses and the emissions technology installed is
shown to be effective.
Randy Reichert, Chief Operating Officer commented, "Our team at Jerritt
Canyon has worked incredibly hard to bring the operation to commercial
levels. We are now seeing the results of this effort and the operation
is in excellent shape to meet our gold production target for 2012 of
between 140,000 and 150,000 ounces."
This news release was reviewed and approved by the Company's Chief
Operating Officer, Randy Reichert, M.Sc. P.Eng., 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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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
Tel: +49 711 25 35 92 40