VANCOUVER, April 1 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) reports that for the year-ended
December 31, 2008 the Company recorded a net loss of $105.3 million. All
amounts in this news release are in US dollars, unless otherwise stated.
This loss was primarily a result of the voluntary shutdown of the Jerritt
Canyon facilities for the majority of 2008 resulting in $13.1 million in
shutdown costs and the corresponding $76.4 million impairment recorded by
management on the mineral properties. In addition to these items, the Company
also recorded a negative margin of $9.8 million due to higher than normal
operating costs as a result of the extensive infrastructure work that was
carried out during operations. This work focused on the upgrading and
modernizing of both its mines and milling facilities at Jerritt Canyon in
Nevada in order to be certain that it will be able to meet all of the
Company's safety, economic and environmental goals for the foreseeable future.
Presently the Company has an outstanding milling facility and 80,000
contained ounces of gold in material above ground ready for processing. The
expected cost to produce gold from this material is less than $300 per ounce
and therefore the Company expects it will be able to deal with all of its
outstanding liabilities during the ten months it will take to process the
Together with the excess cash flows and a loan that the Company is
negotiating, depending on the economic viability, our targets are the
1. Restart ore production from the SSX mine at Jerritt Canyon.
2. Restart ore production from the Smith mine at Jerritt Canyon.
3. Restart near mine exploration to increase reserves and resources
which presently stand at 717,000 ounces in a proven and probable
reserve and two million ounces in a measured and indicated resource
and a further 500,000 ounces are included in an inferred resource.
4. Negotiate ore milling contracts with mining companies within trucking
distance of Jerritt Canyon.
5. Investigate the opportunities to purchase producing or near
production mines within trucking distance of Jerritt Canyon.
6. Advance the permitting and opening of Starvation Canyon in the
southern part of the Jerritt Canyon property, Nevada.
7. Advance the permitting and opening of the Ketza River in the Yukon
8. Build strategic partnerships.
9. Strengthen the operational management of the Company.
The Company's Financial Statements and Management Discussion and Analysis
can be found on http://www.yukon-nevadagold.com/s/FinancialStatements.asp or
Yukon-Nevada Gold Corp. is a North American gold company 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
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 properties.
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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,