VANCOUVER, June 26 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) (the "Company") clarifies its
operational strategy for the next two years at both Jerritt Canyon, Nevada and
Ketza River, Yukon Territory.
"In light of the increased reliability of the Jerritt Canyon processing
facilities since the planned shut down earlier this year, the Company has
initiated a plan to increase the rate of gold production from mines at Jerritt
Canyon to over 200,000 ounces per year by the end of 2010, an increase of 66%
from 2007," said Graham Dickson, the Company's President and Chief Executive
Officer. This significant increase will be realized by improving
infrastructure and increasing development to access a larger percentage of the
current reserve and through near mine exploration. Development is also
progressing on schedule at Starvation Canyon in the southern part of the
property and a program of infill drilling is planned for the summer. Other
changes to the mines and plant are intended to more closely align operation of
the Company's producing assets with a Corporate culture that emphasizes safety
and sound environmental stewardship as the route to increased profitability.
The Company's plan to initiate production from open pit mining at the
Ketza River property in the Yukon Territory continues on schedule. Recently
reported drill results have shown that the potential to expand open pit
resources in both the Manto and Shamrock Zones is excellent. Diamond drilling
continues on numerous targets within the property.
The Company's mine expansion, mine start ups, plant and equipment upgrade
programs will be funded in the majority from internal cash flow. Monies
required in excess of its internal cash flow will be funded by debt. Further
details will be provided in the second quarter report to be released by
August 15th, 2008.
The Company engages in the forward sales of gold produced entirely from
ore purchased from third parties. This practice ensures that the Company
achieves an acceptable profit margin on this activity. The Company is not
hedged on any gold produced from its own Jerritt Canyon ore.
The Company's excess cash is invested in short-term investments, all with
a maturity date of less than 90 days from the date of purchase (these
investments are classified as "cash" on the balance sheet). All investments
are in "Bearer Deposit Notes" or Bankers Acceptances issued by major Canadian
chartered banks. The Company does not have asset-backed securities in its
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 Arizona and Nevada in the
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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.
For further information:
For further information: Yukon-Nevada Gold Corp.: Nicole Sanches,
Investor Relations Manager, Tel: (604) 688-9427, Email: email@example.com,
www.yukon-nevadagold.com; CHF Investor Relations: Jacqueline Wagenaar, Account
Manager, Tel: (416) 868-1079 ext. 289, Email: firstname.lastname@example.org,