Resource Estimate at Ketza River to Support Imminent YESAB Application
VANCOUVER, June 27, 2011 /CNW/ --
VANCOUVER, June 27, 2011 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) ('YNG' or the 'Company') is pleased to announce an updated resource
estimate for its wholly-owned Ketza River Property in the Yukon
Territory. The updated resource estimate has been carried out to
support the imminent Yukon Environmental and Socio-Economic Assessment
Board ('YESAB') application which contains the mining plan for the
estimated gold resource at Ketza River. This new resource includes all
of the assay and drill results from the 2008 drill program which took
until January 25, 2010 to receive.
The estimate is based on a $1,150 (US) per troy ounce gold price and
consists of a measured resource of 29,000 ounces at a grade of 5.38 g/t
and an indicated resource of 388,700 ounces at a grade of 5.46 g/t.
There is an additional inferred resource of 67,300 ounces at a grade of
4.62 g/t. These estimates are tabulated by area in the tables below;
the map showing their locations can be accessed on the Company's web
site here: www.yukon-nevadagold.com/i/pdf/KetzaResourceMap2011.pdf
Table 1. Ketza River Measured and Indicated Mineral Resources:
___________________________________________________________________
| | Measured | Indicated | Measured and |
| | | | Indicated |
|__________|________________|____________________|__________________|
| Area | K |g/t |K oz| K |g/t/Au|K oz | K |g/t |K oz |
| |tonnes| Au | |tonnes | | |tonnes | Au | |
|__________|______|____|____|_______|______|_____|_______|____|_____|
|Pit Resources (oxide ore cutoff grade is 0.78 g/t, and sulfide ore |
|cutoff is 1.00 g/t) |
|___________________________________________________________________|
|Peel | 85.2|5.76 |15.8|1,053.4|6.22 |210.6|1,138.6|6.19|226.4|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Penguin | 14.0|1.88 | 0.8| 233.6|2.89 | 21.7| 247.6|2.84| 22.6|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Lab- | 9.4|6.92 | 2.1| 243.2|5.20 | 40.6| 252.6|5.26| 42.7|
|Hoodoo | | | | | | | | | |
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Tarn | 11.4|4.73 | 1.7| 79.3|3.88 | 9.9| 90.7|3.99| 11.6|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Gully | 7.0|5.60 | 1.3| 45.1|3.57 | 5.2| 52.1|3.85| 6.4|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|QB | 23.4|4.55 | 3.4| 298.0|3.21 | 30.8| 321.4|3.31| 34.2|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Knoll | 11.1|6.66 | 2.4| 2.9|4.54 | 0.4| 14.0|6.22| 2.8|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Subtotal |161.5|5.30 |27.5|1,955.4|5.08 |319.3|2,116.9|5.09|346.8|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
| |
|___________________________________________________________________|
|Underground Resources (oxide ore cutoff grade is 3.44 g/t; sulfide |
| ore cutoff is 4.43 g/t) |
|___________________________________________________________________|
|Peel | 3.7|8.41 | 1.0| 204.6|8.83 | 58.1| 208.3|8.82| 59.1|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Penguin | 0.0|0.00 | 0.0| 0.0|0.00 | 0.00| 0.0|0.00| 0.0|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Lab- | 0.0|0.00 | 0.0| 22.1|6.90 | 4.9| 22.1|6.90| 4.9|
|Hoodoo | | | | | | | | | |
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Tarn | 0.0|0.00 | 0.0| 0.0|0.00 | 0.0| 0.0|0.00| 0.0|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Gully | 2.1|7.41 | 0.5| 14.7|8.04 | 3.8| 16.9|7.91| 4.3|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|QB | 0.4|3.81 | 0.0| 15.5|5.22 | 2.6| 15.9|5.09| 2.6|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Knoll | 0.0|0.00 | 0.0| 0.0|0.00 | 0.0| 0.0|0.00| 0.0|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Subtotal | 6.3|7.39 | 1.5| 256.9|8.40 | 69.4| 263.2|8.38| 70.9|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
| |
|___________________________________________________________________|
|Combined Open pit and Underground (Variable cutoff grades) |
|___________________________________________________________________|
|Peel | 88.9|5.87 |16.8|1,258.0|6.64 |268.7|1,346.9|6.59|285.5|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Penguin | 14.0|1.88 | 0.8| 233.6|2.89 | 21.7| 247.6|2.84| 22.6|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Lab- | 9.4|6.92 | 2.1| 265.3|5.34 | 45.5| 274.7|5.39| 47.6|
|Hoodoo | | | | | | | | | |
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Tarn | 11.4|4.73 | 1.7| 79.3|3.88 | 9.9| 90.7|3.99| 11.6|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Gully | 9.1|6.01 | 1.8| 59.8|4.67 | 9.0| 69.0|4.84| 10.7|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|QB | 23.8|4.47 | 3.4| 313.5|3.31 | 33.4| 337.3|3.39| 36.8|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Knoll | 11.1|6.66 | 2.4| 2.9|4.54 | 0.4| 14.0|6.22| 2.8|
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
|Total All |167.8|5.38 |29.0|2,212.3|5.46 |388.7|2,380.1|5.46|417.7|
|Sources | | | | | | | | | |
|__________|_____|_____|____|_______|______|_____|_______|____|_____|
Notes:
1. The measured and indicated resources include all REDOX types
including oxide, sulfide, and mixed oxide sulfide;
2. The cutoff grade for oxide and sulfide ore material inside the
optimized open pit is 0.78 g/t and 1.00 g/t, respectively; and for
material that is potentially mineable by underground methods
outside of the optimized open pits are 3.44 g/t and 4.43 g/t,
respectively.
3. Au price used for this resource is US$1,150/troy oz; Assumed 1,500
ore tonnes ore/day mill feed;
4. A Lerchs-Grossman pit optimization has been used to differentiate
potential open pit resources from potential underground resources
using mining costs, Au cutoff grades, and other parameters listed
below;
5. Mining cost/tonne = $3.00 open pit and $80.00 underground;
processing cost/tone ore = $26.00; specific gravity is variable as
modeled per block; 18.4:1 (waste:ore) average strip ratio for all
resources;
6. All areas have been updated using new models;
7. Resources calculated using: additional drill holes completed in
2008, and historic mining depletions (underground as builts from
Canamax mining data).
Table 2. Ketza River Inferred Resources:
___________________________
| | Inferred |
|__________|________________|
| Area | K |g/t |K oz|
| |tonnes| Au | |
|__________|______|____|____|
| | | | |
|__________|______|____|____|
|Open Pit Resources |
|___________________________|
|Peel | 195.2|5.30|33.2|
|__________|______|____|____|
|Penguin | 44.0|2.49| 3.5|
|__________|______|____|____|
|Lab- | 37.5|4.38| 5.3|
|Hoodoo | | | |
|__________|______|____|____|
|Tarn | 3.2|3.50| 0.4|
|__________|______|____|____|
|Gully | 15.9|3.46| 1.8|
|__________|______|____|____|
|QB | 113.5|3.80|13.9|
|__________|______|____|____|
|Knoll | 0.0|0.00| 0.0|
|__________|______|____|____|
|Subtotal | 409.4|4.41|58.0|
|__________|______|____|____|
| |
|___________________________|
|Underground Resources |
|___________________________|
|Peel | 24.2|6.55| 5.1|
|__________|______|____|____|
|Penguin | 0.0|0.00| 0.0|
|__________|______|____|____|
|Lab- | 10.1|5.54| 1.8|
|Hoodoo | | | |
|__________|______|____|____|
|Tarn | 0.0|0.00| 0.0|
|__________|______|____|____|
|Gully | 5.6|8.89| 1.6|
|__________|______|____|____|
|QB | 4.4|5.66| 0.8|
|__________|______|____|____|
|Knoll | 0.0|0.00| 0.0|
|__________|______|____|____|
|Subtotal | 44.3|6.56| 9.3|
|__________|______|____|____|
| |
|___________________________|
|Total All | 453.7|4.62|67.3|
|Sources | | | |
|__________|______|____|____|
Notes:
1. All notes included in Table 1, including the same cutoff gold
grades for oxide and sulfide ores, are also applicable to Table 2.
The new resource estimate includes the primary work areas (Peel,
Lab-Hoodoo, Penguin, Tarn, QB, Gully, and Knoll), and a new 3-D
geological model that includes assay results from an additional 225
drill holes that were drilled from January 1, 2008 to December 31,
2008. Relative to the last NI 43-101 report by SRK (2008), the new
resource has been done using a higher gold price of $1,150(US). The new
resource reflects, more realistic construction of the 0.5 g/t Au grade
shells used to constrain the estimation process, a higher quality drill
hole database, more and better specific gravity assignments to the
various ore types, and as a consequence more realistic mining and
milling parameters and costs.
In addition, 41% of the contained measured and indicated (M&I) resource
ounces listed in Table 1 are hosted in oxide ores whereas the other 59%
of the contained M&I ounces are hosted in sulfide and/or mixed
oxide sulfide ores. This is important as recent metallurgical testwork
indicates that gold recovery from oxide ores at 90% is higher than that
for sulfide ores at 70%. The details of the oxide and sulfide resources
will be described further in the NI 43-101 report that will be
available and released in late June 2011.
Importantly the new resource estimate does not include any of the 130
drill holes completed in 2009 and 2010. The 2010 drilling identified
additional Au mineralization near the existing planned pits including
the Peel (Break), Gully, and Lab-Hoodoo Zones and in other areas such
as the Bluff Zone. In addition, numerous exploration targets and
resource extensions remain to be drill tested throughout the project.
The updated resource estimate has been used to delineate the mining plan
for use in the Project Description Report being organized by EBA, A
Tetratech Company, which is expected to be submitted to YESAB in August
2011.
The year-end 2008 Ketza River resources were calculated by Mark Odell, a
consulting Professional Engineer (P.E.), and Karl Swanson (MAusIMM,
SME), Mining Engineer Consultant, under the supervision of Todd Johnson
(P.E.), Vice President of Exploration for YNG. These individuals are
qualified persons as defined by NI 43-101. YNG is currently preparing
an updated NI 43-101 Technical Report which will include these results.
The mineral resources have been estimated in accordance with the
standards adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum ('CIM') Council in August 2000, as amended, and prescribed by
the Canadian Securities Administrators' National Instrument 43-101
Standards of Disclosure for Mineral Projects. The resources were
classified according to: geological confidence, number of drill holes,
number of drill hole samples and a specific search distance. A $1,300
(US) per troy ounce gold price, used as an upside sensitivity case, can
be accessed at the Company's website: http://www.yukon-nevadagold.com
Mr. Todd W. Johnson, Vice President of Exploration for YNG, is YNG's
Qualified Person as defined under National Instrument 43-101. He has
supervised the preparation of the technical information and has
reviewed and approved the contents of this news release. Yukon-Nevada
Gold Corp. will file on www.sedar.com a National Instrument 43-101 a compliant technical report entitled
'Ketza River Project, Yukon-Nevada Gold Corp., NI 43-101 Technical
Report, Yukon Territory, Canada,' dated June 2011, encompassing the
mineral resource discussed herein.
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.
Cautionary Note to U.S. Investors Regarding Estimates of Measured,
Indicated and Inferred Resources
This press release uses the terms 'measured,' 'indicated and 'inferred'
'resources.' We advise U.S. investors that while these terms are
recognized and required by Canadian regulations, the U.S. SEC does not
recognize them. 'Inferred resources' have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
'inferred mineral resource' will ever be upgraded to a higher category.
Under Canadian rules, estimates of 'inferred mineral resources' may not
form the basis of a feasibility study or prefeasibility studies, or
economic studies except for Preliminary Assessment as defined under NI
43-101. The SEC normally only permits issuers to report mineralization
that does not constitute 'reserves' as in-place tonnage and grade
without reference to unit measures. U.S. investors are cautioned not to
assume that any part or all of a measured, indicated or inferred
mineral inventory resource exists or is economically or legally
mineable.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/27/c9278.html
Yukon-Nevada Gold Corp.
Richard Moritz
Senior Director, Institutional Investor Relations
Tel: (604) 688-9427
Email: rmoritz@yngc.ca
Nicole Sanches
Investor Relations Manager
Tel: (604) 688-9427 ext 224
Email: nicole@yngc.ca
www.yukon-nevadagold.com
CHF Investor Relations
Jeanny So
Director of Operations
Tel: (416) 868-1079 ext. 225
Email: jeanny@chfir.com
www.chfir.com
AXINO AG
Wolfgang Seybold
Chairman
Tel: 49 711 25 35 92 40
Email: wolfgang.seybold@axino.de
www.axino.de/