VANCOUVER, June 11 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) announces that its subsidiary,
Queenstake Resources USA, Inc. ("Queenstake" or "the Company") has taken
action to have more direct management of the Jerritt Canyon operations in
order to accelerate and complete installation of the new
mercury-emission-control system at its wholly owned Jerritt Canyon Mine
located in Nevada, in response to the Stop Order 2009-6 issued by Nevada
Division of Environmental Protection ("NDEP") last week.
Further to the recent NDEP Order 2009-4 resulting from a delay in the
fabrication of certain fiberglass ductwork, Queenstake was unable to meet a
deadline to complete the installation of new mercury - emission - control
equipment at the Jerritt Canyon Mine by May 30, 2009. Therefore, in compliance
with NDEP Order 2009-4 and a subsequent NDEP Stop Order 2009-6 received at
4:00 PM Friday June 5, 2009, Queenstake a wholly owned subsidiary of Yukon
Nevada Gold Corp. ("YNG"), has taken steps to focus all operations at the
Jerritt Canyon Mine on the completion of the requirements of those orders. The
Orders require the Company to comply with all the previous compliance
standards including the airborne mercury emissions.
The Company will now focus its entire workforce together with its outside
consultants presently engaged in complying with those orders, on fast tracking
and completing the required work. It is estimated that this and other work
required to bring the Company back into full compliance will be completed by
June 30. A submission to allow return to fully licensed operational status
subject to the above work being completed is being prepared in parallel with
the above work program undertaking.
The newly appointed President and CEO Mr. Robert Baldock said, "In order
to achieve this program, the Company has decided to be more actively involved
in the Jerritt Canyon facilities. I have asked the newly appointed COO to take
over responsibility for management of the operations including the supervision
of staff and contractors at site. This will give the Company more direct
control of its mining and milling operations, facilitating the financing of
the operations and re-start of the mill and mine."
At the same time, the Company has been undertaking a significant
maintenance and upgrade program of its milling and ore treatment facilities to
allow continuous and reliable 24/7 operations. This program will be further
upgraded to include any outstanding compliance issues ahead of submission of
the Company Start-up Plan to NDEP.
The Company reserves and resources at Jerritt Canyon, not accounting for
2008 mining and depletion, are 717,300 ounces of gold in the proven and
probable categories and 1,961,100 in the measured and indicated categories as
reported in the April 16, 2008 NI 43-101 report which can be found on
www.sedar.com or on our website here:
http://www.yukon-nevadagold.com/i/pdf/Jerritt-NI430101-Apr08.pdf. In addition,
there are ounces already mined and stockpiled on the run-of-mine ("ROM") pad.
These ROM pad resources will allow the Company to achieve the presently
budgeted throughput of 3,300 tons per day. Upon recommencement of milling it
is sufficient to produce at the rate of at least 2,000 ounces of gold per week
for the next nine months at a cost per ounce of approximately USD $300.
The mill facility is currently licensed to treat 4,320 tpd with an
overall potential capacity of 6,000 tpd.
To ensure ongoing operations once the ROM stockpile is processed, the
Company has hired an experienced mine manager and additional staff who are
presently planning the re-commencement of profitable underground mining
operations. The Company's mined ore would be supplemented by toll treating ore
from presently identified customers who either have no mill or have
insufficient capacity in their own facilities. The Company is presently in
discussions with two "within economic haulage distance" companies and the
combination of these ore sources would allow the Company to achieve at least
the permitted throughput of 4,320 tpd once operations are permitted to
There will be a job fair held on June 11th at 11:00am PST at the Hilton
Garden Inn Hotel, 3650 East Idaho Street, Elko, Nevada.
Following a year-long investigation into mercury emissions, in March 2008
the NDEP ordered Queenstake Resources to install new state-of-the-art emission
control equipment at the Jerritt Canyon Mine by the end of that year. Before
the NDEP's order was satisfied, Queenstake, by its own action, stopped mining
and processing ore at Jerritt Canyon Mine in August 2008. The facility
remained shut down while the new emission control systems were designed. Staff
from Queenstake and the NDEP worked together to resolve several air emission
issues related to the roasting operation. YNGC's newly designed mercury
control and removal system is expected to control mercury and other emissions
to levels well below the emissions standards.
NDEP issued an Order March 25, allowing Queenstake to restart ore
processing operations after the mine's initial environmental compliance was
satisfied. Since that time the Company was not able to meet the May 30
deadline to complete all of the work on the new mercury control and removal
system and has received the above order to close down operations while all of
the outstanding issues are completed. Queenstake has successfully complied
with other requirements of operation of NDEP Order 2009-4.
This news release was reviewed and approved by the Company's Senior
Geologist, Todd Johnson, M.Sc., the Qualified Person for purposes of this
YNG is a North American gold producer in the business of discovering,
developing and operating gold deposits. YNG holds a diverse portfolio of gold,
silver, zinc and copper properties in the Yukon Territory and British Columbia
in Canada and in Arizona and Nevada in the United States. YNG'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 YNG's existing properties.
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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.
For further information:
For further information: Yukon-Nevada Gold Corp., Nicole Sanches,
Investor Relations Manager, Tel: (604) 688-9427, Email: firstname.lastname@example.org,
www.yukon-nevadagold.com; CHF Investor Relations, Jacqueline Wagenaar, Account
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