VANCOUVER, Aug. 21 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) has released results for the
three and six months ended June 30, 2008. All amounts in this news release are
in United States dollars, unless otherwise stated.
For the three and six months ended June 30, 2008, the Company reported a
net loss of $5.7 million and $14.6 million, respectively, due to the shutdown
which extended over both quarters and ongoing challenges in profitably mining
the Jerritt Canyon properties. These factors resulted in reduced production
for the quarter from the Company's own ore and from the purchased ore, which
fell to 9,094 ounces, compared with 14,291 ounces in the first quarter.
As a result of continuing cost pressures the Company made the decision
subsequent to the end of the second quarter to suspend the underground mining
operations at Jerritt Canyon effective August 8, 2008 in order to focus on
developing a profitable mine plan that will enable Jerritt Canyon to return to
profitability. The Company has also been forced to shutdown the mill in order
to perform repair work on a critical part that malfunctioned in the drying
circuit, resulting in the lay-off of the remaining workforce. A professional
engineering firm has been contracted to provide essential on-site activities
including ongoing environmental monitoring.
The Company has also had certain assets encumbered under the terms of the
Security Agreement with Newmont USA Limited (Newmont) until certain disputes
in the agreement can be settled. The Company is currently in discussions with
Newmont to resolve this matter however it is currently not yet determinable
when or if these restrictions will be removed.
In the second quarter at Ketza River in the Yukon Territory, the Company
focused on completing the geotechnical work required for mine planning,
metallurgical test work and on completing its highly successful exploration
program. The expansion of deposits within the projected open pits will add
value to the expected Pre-feasibility Study. The project group efforts will
now be on the completion of that study.
Details of the Company's financial results are described in the unaudited
consolidated financial statements, and management's discussion and analysis,
which will be available on the Company's website, www.yukon-nevadagold.com and
on SEDAR, www.sedar.com.
We are pleased to announce Shaun Heinrichs, CA, has accepted the Interim
Chief Financial Office position.
We seek Safe Harbor.
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
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,