Yukon-Nevada Gold Corp. Reports on Reserves at Jerritt Canyon, Nevada
VANCOUVER, June 28, 2011 /CNW/ --
VANCOUVER, June 28, 2011 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) (the 'Company') announces that proven and probable reserves at its 100%
owned Jerritt Canyon operating gold mine in Elko County, Nevada,
estimated as of January 1, 2011, is 717,000 ounces of gold at an
average grade of 0.164 ounces of gold per ton (opt) or 5.62 grams of
gold per tonne (gpt).
These reserves are within a newly estimated measured and indicated
resource, of 2.54 million ounces (1.08 million ounces measured at a
grade of 0.235 opt Au, and 1.46 million ounces indicated at a grade of
0.206 opt Au), which was previously announced in a press release on May
3, 2011. The attached table summarizes the reserves by area; the map
showing the reserve and resource area locations can be seen on the
Company's website here: http://www.yukon-nevadagold.com/i/pdf/JCResourceMap2011.pdf
Table 1. Jerritt Canyon Reserves: January 1, 2011
______________________________________________________________________________________________________________________________________________________________________
| | Proven | Probable | Proven and Probable |
|__________|___________________________________________________|___________________________________________________|___________________________________________________|
|Deposit | | | | | | | | | |
|/Mine |K tons |oz/st |K oz |K tons |oz/st |K oz |K tons |oz/st |K oz |
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Smith | 713.1| 0.183| 130.6| 918.6| 0.163| 149.4| 1,631.7| 0.172| 279.9|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|SSX/Steer | 548.3| 0.188| 103.1| 667.1| 0.189| 126.1| 1,215.4| 0.189| 229.2|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Saval | 19.7| 0.229| 4.5| 149.3| 0.207| 31.0| 169.1| 0.210| 35.4|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Starvation| 125.0| 0.262| 32.8| 237.9| 0.265| 63.0| 363.0| 0.264| 95.8|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Wright | -| -| -| 84.5| 0.127| 10.7| 84.5| 0.127| 10.7|
|Window | | | | | | | | | |
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Sub Total | 1,406.1| 0.193| 270.9| 2,057.4| 0.185| 380.2| 3,463.7| 0.188| 651.0|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
| | | | | | | | | | |
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Stockpiles| -| -| -| 902.2| 0.073| 65.9| 902.2| 0.073| 65.9|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
| | | | | | | | | | |
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
|Total | 1,406.1| 0.193| 270.9| 2,959.7| 0.151| 446.0| 4,365.8| 0.164| 717.0|
|__________|_____________________|______________|______________|_____________________|______________|______________|_____________________|______________|______________|
Notes:
1. The January 1, 2011 resources were all calculated using various Au
cut off grades depending on the mine area using a Au price of
US$1,100 per troy oz.; and the following mining parameters:
$32.00 processing cost, $81.00/ton mining cost; 89.0% Au recovery;
10% underground mining dilution at 0 opt Au grade; $6.00/ton G&A;
and $4.62/ton ore haulage;
2. Stockpile resources include remote and mill and were measured on
January 1, 2011;
3. All reserves are underground except for Wright Window which is
open pit;
4. Resources calculated using: additional drill holes completed in
2008-2010, and applicable mining depletions (underground asbuilts
completed as of year-end 2010).
Table 1 indicates that proven reserves total 1,406.1ktons tons averaging
0.193 opt totaling 270.9koz of Au whereas probable reserves stand at
2,959.7ktons averaging 0.151 opt Au totaling 446.0koz. These new
proven and probable reserves, along with the recently published
resources, will be included in the final NI 43-101 technical report
update which is expected to be published in late June 2011.
The individual January 1, 2011 reserves have generally increased in
tonnage and recovered ounces and decreased in Au grade in comparison to
the previous Year-End 2007 NI 43-101 report by SRK (2008) with the
exception of Starvation Canyon. The reclassification of the majority
of the measured and indicated resources at Starvation Canyon, to an
inferred resource in the current work, is the primary reason for the
reserve decrease at Starvation Canyon.
The January 1, 2011 reserve was calculated by Mark Odell (P.E.), a
consulting Mine Engineer, 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.
The mineral reserves 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.
Mining at the Jerritt Canyon property is currently active at the Smith
Underground mine which is producing approximately 1,000 ore tons per
day using Small Mine Development, LLC as the mining contractor.
Queenstake Resources USA, Inc., a 100% subsidiary of YNG, is planning
to recommence mining at the SSX-Steer underground mine in the third
quarter of 2011. New mining equipment including surface and
underground haul trucks have already been purchased to help support
this new mine plan.
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 'NI
43-101 Technical Report Update, Yukon-Nevada Gold Corp., Jerritt Canyon
Property, Elko County, Nevada, USA,' dated late June 2011, encompassing
the mineral reserves discussed herein, which will include further
details with respect to the reserves and resources.
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.
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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/