VANCOUVER, July 9, 2012 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce the commencement of earthworks for the
establishment of the Starvation Canyon portal face located in the
southern portion of Jerritt Canyon in Elko County, Nevada. Jerritt
Canyon is a gold producing mine site operated by Queenstake Resources
USA Ltd., a wholly-owned subsidiary of Yukon-Nevada Gold Corp. (the
Permitting activities with the State of Nevada were completed in 2011
allowing the Company to begin advancing Starvation Canyon to an
underground mine project. The current plan is to have 150 feet of
portal development in place before winter starts.
Ore production from the Starvation Canyon mine will commence in 2013 at
a targeted rate of 300 to 600 ore tons per day. The Company will use
underground mining contractors for the initial phase while evaluating
equipment purchase options in the interim.
The 2011 surface exploration program at Starvation Canyon produced the
following highlights as reported in a news release dated January 31,
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 Starvation Canyon Measured and Indicated resource including reserves
as of December 31, 2011 is 5.9 kt averaging 0.294 opt containing 1,700
ounces and 519.4kt averaging 0.25 opt containing 130,000 ounces,
respectively. This information is referenced in the latest NI 43-101
which can be found here: http://www.yukon-nevadagold.com/i/pdf/Jerritt_43-101_Technical_Report_YE2011.pdf
Randy Reichert; Co-CEO and President, and COO states, "This is a quite
an exciting milestone that we have achieved at Jerritt Canyon. We are
looking forward to adding Starvation Canyon gold production to our
pipeline which includes production from our two existing mines; the
Smith and SSX/Steer mines."
The last previous major underground mine development at Jerritt Canyon
was the Steer Mine which started in 2004.
Additional activities in the south part of the Jerritt Canyon district
will include exploration drilling at the West Starvation target later
this year. The drilling will test several anomalies identified from
last year's Titan-24 direct current induced-polarization
magnetotelluric (DC-IP-MT) ground survey.
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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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