Yukon-Nevada Gold Corp. Reviews Progress at Jerritt Canyon, Nevada
30 December 2011 - 11:30AM
PR Newswire (Canada)
VANCOUVER, Dec. 30, 2011 /CNW/ - Yukon-Nevada Gold Corp. (the
"Company") presents an overview of the work completed at Jerritt
Canyon since the facility reopened in 2009. Jerritt Canyon is
located 50 miles north of Elko, Nevada and is operated by
Queenstake Resources USA Ltd., ("Queenstake") a wholly owned
subsidiary of the Company. This review covers the areas of: --
Environmental Compliance -- New Tailings Facility Construction --
Plant Upgrades -- Plant Winterization -- Fleet Renewal --
Underground Mine Re-start -- Open Pit Re-start -- Exploration --
Safety Environmental compliance was achieved by the issuance of a
Consent Decree in the fall of 2009 allowing the Company to restart
its milling operation. Since re-starting the plant in October 2009
the roasters have successfully been subject to independent engineer
stack testing for emission compliance for mercury, particulates,
sulfur dioxide and other emissions. The results of these tests have
allowed the frequency of the testing to be reduced by a factor of
three. Other items in the Consent Decree are also substantially
complete, with two key projects, the replacement of the second
quench tank and the installation of the new ore dryer circuit, set
to be finished in the shutdown commencing early January. The
remaining project to complete is the clean-up of the rock drainage
areas on the property, which will be performed over the coming year
in compliance with the requirements of the Consent Decree. A new
tailings storage facility ("TSF") was approved for construction in
July 2011. This facility, which is double lined, is mostly
completed and waits commissioning in 2012. The old TSF, which has
more than sufficient life to last until the new facility is
operating, will be closed and reclaimed using the bonded monies
already in place. Plant upgrades including a new digital control
system will and are allowing for better and more continuous
operation of the plant. This has been enhanced by restocking of the
parts warehouse. As stated in our October 31(st) news release,
plant winterization has been delayed by fabrication difficulties,
but is now on track for completion before the end of January. In
parallel, the Company re-started the Smith underground mine and
engaged Small Mine Development, LLC ("SMD") to operate the mine in
February 2010. SMD have been achieving a steady 1,000 tons
per day delivery to the run of mine stockpile. In October 2011 the
Company re-started the SSX underground mine which is scheduled to
ramp up to 1,200 tons per day from the current level of 300 tons
per day, as more equipment becomes available and additional
resources are put in place. The Company has also obtained
permitting to develop the Starvation Canyon underground mine which
is scheduled to be ready in H2 2012 as infrastructure is put in
place and equipment delivered. Starvation Canyon will be
capable of delivering up to 600 tons of ore per day. This
will complete the underground mine development program producing a
targeted 2,800 tons per day of ore to the mill. The Company is also
focused on the recommencement of open pit mining at the property
which was shut down in the late 1990's period due to the prevailing
price of gold. Permit approvals to re-open previously operated pits
as well as new pits are being sought. This would address the
ability of the milling facility to operate at tonnages greater than
those able to be supplied by the underground mines. Upon completion
of the shutdown in mid-January, the plant is scheduled to re-start
at a through put rate of 150,000 ounces per year and ramp up from
there. Jerritt Canyon has averaged 300,000 ounces of gold a year
historically from 1987 until early 2003 when it went into decline
due to insufficient working capital for investing in sustaining
operations, preventative maintenance and necessary environmental
compliance. President and CEO, Robert Baldock states, "There is
every reason for the facility to operate at similar production
levels in the future and that is certainly management's goal.
As an indication of the confidence the senior management team (CEO,
CFO, COO and Senior Executive VP) has in the future of the Company
they have recently commenced buying stock." Underground exploration
was initiated soon after the Smith Mine was reopened, exploration
on the surface was reinitiated in the summer of 2011 and is planned
to continue for the foreseeable future. Extension of the present
underground mines, re-opening of previously operated open pits and
targeting of new open pits are part of the extensive exploration
program. The Company is currently reviewing the results of
drilling activity in 2011 and will provide additional updates on
these results when the review is complete. Yukon-Nevada is
committed to the safety of its workforce and will take all measures
to ensure the continued safe and productive operations at Jerritt
Canyon. To that end a recent meeting between management and Mine
Safety and Health Administration has made it clear recent changes
combined with a good inspection in February will make a significant
difference to the way the Company is viewed by the regulators as
referenced in our most recent press release dated December 2(nd),
2011. 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 properties. If you would
like to receive press releases via email please contact
nicole@yngc.ca and specify "Yukon-Nevada Gold Corp. releases" in
the subject line. The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
WARNING: The Company relies upon litigation protection for
"forward-looking" statements. 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. Yukon-Nevada Gold Corp.
CONTACT: Yukon-Nevada Gold Corp.Richard Moritz Senior Director,
Institutional Investor RelationsTel: (604) 688-9427Email:
rmoritz@yngc.caNicole SanchesInvestor Relations ManagerTel: (604)
688-9427 ext. 224Email: nicole@yngc.cawww.yukon-nevadagold.comCHF
Investor RelationsJeanny SoDirector of OperationsTel: (416)
868-1079 ext. 225Email: jeanny@chfir.comwww.chfir.comAxino
AGWolfgang SeyboldPresident and CEOTel: +49 711 25 35 92 40Email:
wolfgang.seybold@axino.dewww.axino.de/
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