VANCOUVER, Feb. 6, 2012 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce that it has restarted production following
commissioning of a new ore dryer, fine-crushing conveying system and
Distributed Control System ("DCS") 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 "Company").
A shutdown of production was initiated on January 6, 2012 in order to
complete a winterization and refurbishment program which included
constructing a new drying facility and reconfiguring the conveying
system in fine crushing. During the shutdown, the old ore dryer was
replaced with a new ore dryer closer to the front end of the circuit.
In addition, a new DCS was installed for the entire plant.
Commissioning of the new ore dryer, fine-crushing conveying and the DCS
commenced on January 23, 2012.
Testing of the new crushing and drying installations continued from
January 23, 2012 through February 1, 2012 with the first day of
production with both roasters operating on February 3, 2012.
Gold production resumed January 25, 2012 and the first shipment was on
January 31, 2012.
The forecast for February 2012 plant production is an average of 3,300
tons per day and production of 9,000 ounces of gold. March 2012
production is forecasted to average 3,900 tons per day with gold
production of approximately 12,500 ounces (annualized run rate of
150,000 gold ounces). The milling facility is currently permitted to
run at 90 tons per hour per roaster (4,320 tons per day for 24 hours
operation) and recent testing has shown that air emissions are within
limits at 110 tons per hour, so permission has been sought to increase
roaster throughput to this level. If permission is obtained, the plan
is to gradually ramp the daily production up to 4,600 tons per day by
Q4 2012. As more high grade ore becomes available from continued
ramp-up of the underground mines through 2012, gold production is
expected to increase
Randy Reichert, Chief Operating Officer commented, "After much hard work
to achieve steady state production this represents the end of a
significant capital expenditure phase and a major milestone for the
Company, and with the new installations running well, will lead to more
consistent operations and sustained production growth at Jerritt
Please visit our website to view photos of the upgrades at Jerritt
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