VANCOUVER, Aug. 8 /CNW/ - Yukon-Nevada Gold Corp. (Toronto Stock
Exchange: YNG; Frankfurt Xetra Exchange: NG6) announces its termination of
Investec's mandate to arrange and underwrite financing for mine expansion at
the Jerritt Canyon Project, Nevada.
In the face of continuing operating cost pressure in the mining industry
worldwide Yukon-Nevada Gold Corp. has decided to suspend its underground
operations at its Jerritt Canyon mines and focus solely on operating the
profitable 4,000 plus tons per day mill that has been refurbished over the
past six months. The Company will make all efforts to minimize the impact of
this decision on its employees, suppliers and the local community.
President and CEO Graham Dickson stated that "with our present mining
plan the underground operations were not showing the profitability needed to
continue or to expand the mining operations. The great exploration results
reported this year in the Mahala basin combined with our known reserves at the
SSX, Smith and Starvation Canyon mines will be modeled by our mining group
with the goal of detailing a mining plan capable of producing grade and tons
that can be mined profitably."
In the meantime Yukon-Nevada Gold will continue to process its own
stockpiled ore and the stockpiled ore of Newmont under its existing agreement
with which extends to the end of the year. Yukon-Nevada Gold is currently in
negotiations with Newmont with regard to a further milling agreement on a cost
plus basis at a rate of 3,000 tons per day.
Yukon-Nevada Gold is additionally pursuing further milling contracts for
ore generated in the Jerritt Canyon area which can be processed through either
its roasting facility or its separate wet milling facility.
At Ketza River the Company has completed its successful exploration
drilling for the season. The expansion of deposits within the open pits and
surrounding areas will add value to the expected Pre-Feasibility Study. The
completion of the Pre-Feasibility and permitting will now be the focus of the
project group's efforts.
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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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
Manager, Tel: (416) 868-1079 ext. 289, Email: email@example.com,