Yukon-Nevada Gold Corp. Reports a Significant
Resource Increase at Jerritt Canyon, Nevada
Vancouver,
BC � May 3, 2011 � Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra
Exchange: NG6) is pleased to
announce a new and increased mineral resource estimate for its wholly-owned
Jerritt Canyon operating gold mine in Elko County, Nevada, USA.
Jerritt Canyon is operated by Queenstake Resources USA Ltd., a wholly
owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the
"Company").
Jerritt Canyon�s measured and indicated mineral resource has increased by
578,000 ounces of gold, representing a 30% increase over 2007 levels.
The updated mineral resource estimate incorporates a new 3-D geological
model which includes additional drill hole results from January 1, 2008, to
January 1, 2011.
The new mineral resource now comprises a measured resource of 1.08 million
ounces, an indicated resource of 1.46 million ounces, and an inferred
resource of 0.89 million ounces. This new model significantly
increases the potential of the property and gives the Jerritt Canyon
Geology team additional areas to explore and develop. The updated
mineral resources completed to date include the primary work areas: Smith,
SSX-Steer, Saval, West Mahala and Starvation Canyon.
Robert Baldock, CEO states, �This exciting new update using advanced
modeling techniques clearly demonstrates that strong organic resource
growth at Jerritt Canyon is achievable. This positive development confirms
that the mines at Jerritt Canyon can deliver resource growth and extended
mine life. This growth will continue with an expanded exploration and
definition drilling program. Furthermore, the potential to mine past
producing and new open pits on the property is clear. In light of the new
modeling techniques and increased gold price, re-evaluation of the open pit
potential is compelling, and these areas will be targeted in the upcoming
drilling program.�
Maps showing the area locations and the new 0.10 opt gold grade shells can
be seen on the Company�s web site here: http://www.yukon-nevadagold.com/i/pdf/JCResourceMaps2011.pdf
The tables below summarize the updated mineral resources.
Table 1. Jerritt Canyon Measured and Indicated Mineral
Resources: January 1, 2011
|
Measured
|
Indicated
|
Measured and Indicated
|
Deposit
/Mine
|
K tons
|
oz/st
|
K oz
|
K tons
|
oz/st
|
K oz
|
K tons
|
oz/st
|
K oz
|
Murray
|
155.8
|
0.310
|
48.3
|
26.6
|
0.269
|
7.1
|
182.4
|
0.304
|
55.4
|
Murray
Zone 9
|
-
|
-
|
-
|
210.9
|
0.277
|
58.5
|
210.9
|
0.277
|
58.5
|
SSX/Steer
|
2,358.5
|
0.226
|
533.4
|
1,653.9
|
0.221
|
365.8
|
4,012.4
|
0.224
|
899.2
|
Saval
|
99.6
|
0.258
|
25.7
|
556.4
|
0.221
|
123.0
|
656.0
|
0.227
|
148.7
|
Smith
|
1,982.8
|
0.237
|
470.0
|
2,203.4
|
0.233
|
513.7
|
4,186.2
|
0.235
|
983.7
|
Starvation
|
5.5
|
0.365
|
2.0
|
496.9
|
0.284
|
141.1
|
502.4
|
0.285
|
143.1
|
Wright Window
|
-
|
-
|
-
|
97.8
|
0.156
|
15.2
|
97.8
|
0.156
|
15.2
|
|
|
|
|
|
|
|
|
|
|
Pit Resources
|
BurnsBasinPit
|
-
|
-
|
-
|
29.7
|
0.134
|
4.0
|
29.7
|
0.134
|
4.0
|
CaliforniaMtn.Pit (NEXT)
|
-
|
-
|
-
|
8.0
|
0.115
|
0.9
|
8.0
|
0.115
|
0.9
|
Coyote Zone 10 Pit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Pie Creek Pit
|
-
|
-
|
-
|
190.2
|
0.157
|
29.9
|
190.2
|
0.157
|
29.9
|
RoadCanyonPit
|
-
|
-
|
-
|
148.6
|
0.143
|
21.2
|
148.6
|
0.143
|
21.2
|
Mill Creek
|
-
|
-
|
-
|
78.4
|
0.124
|
9.7
|
78.4
|
0.124
|
9.7
|
|
|
|
|
|
|
|
|
|
|
Underground Resources
|
BurnsBasin
|
-
|
-
|
-
|
30.7
|
0.194
|
6.0
|
30.7
|
0.194
|
6.0
|
CaliforniaMtn.
|
-
|
-
|
-
|
32.1
|
0.377
|
12.1
|
32.1
|
0.377
|
12.1
|
Coyote Zone 10
|
-
|
-
|
-
|
45.2
|
0.212
|
9.6
|
45.2
|
0.212
|
9.6
|
MCE
|
-
|
-
|
-
|
4.4
|
0.201
|
0.9
|
4.4
|
0.201
|
0.9
|
Waterpipe II
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
West Mahala
|
0.4
|
0.199
|
0.1
|
225.4
|
0.189
|
42.6
|
225.8
|
0.189
|
42.7
|
Winters Creek
|
-
|
-
|
-
|
148.9
|
0.218
|
32.5
|
148.9
|
0.218
|
32.5
|
|
|
|
|
|
|
|
|
|
|
Sub Total
|
4,602.6
|
0.235
|
1,079.5
|
6,187.5
|
0.225
|
1,393.8
|
10,790.1
|
0.229
|
2,473.3
|
|
|
|
|
|
|
|
|
|
|
Stockpiles
|
-
|
-
|
-
|
902.2
|
0.073
|
65.8
|
902.2
|
0.073
|
65.8
|
|
|
|
|
|
|
|
|
|
|
Total All Sources
|
4,602.6
|
0.235
|
1,079.5
|
7,089.7
|
0.206
|
1,459.6
|
11,692.3
|
0.217
|
2,539.1
|
Notes:
- The January 1, 2011 mineral
resources were all calculated using a 0.125 opt gold cutoff grade
whereas the December 31, 2007 mineral resources used a 0.15 opt gold
cutoff grade for undeveloped underground resources and a 0.125 opt
gold cutoff grade for more mature underground resources as calculated
by SRK Consulting (2008);
- Bolded values have been
updated using the new 2011 models;
- Stockpile resources include
remote and mill and were measured on January 1, 2011;
- Resources calculated
using: additional drill holes completed in 2008-2010, and noted
mining depletions (underground asbuilts completed as of year-end
2010).
Table 2. Jerritt Canyon Inferred Mineral Resources: January 1,
2011
|
Inferred
|
Deposit
/Mine
|
K tons
|
oz/st
|
K oz
|
Murray
|
90.4
|
0.228
|
20.6
|
Murray
Zone 9
|
61.6
|
0.209
|
12.9
|
SSX/Steer
|
479.1
|
0.194
|
93.2
|
Saval
|
201.7
|
0.209
|
42.2
|
Smith
|
1,157.3
|
0.195
|
226.0
|
Starvation
|
256.3
|
0.276
|
70.7
|
Wright Window
|
19.0
|
0.229
|
4.3
|
|
|
|
|
Pit Resources
|
BurnsBasinPit
|
-
|
-
|
-
|
CaliforniaMtn.Pit
|
-
|
-
|
-
|
Coyote Zone 10 Pit
|
20.1
|
0.104
|
2.1
|
Pie Creek Pit
|
28.3
|
0.142
|
4.0
|
RoadCanyonPit
|
74.3
|
0.131
|
9.7
|
Mill Creek
|
-
|
-
|
-
|
Underground Resources
|
BurnsBasin
|
50.6
|
0.228
|
11.5
|
CaliforniaMtn.
|
9.4
|
0.330
|
3.1
|
Coyote Zone 10
|
2.7
|
0.184
|
0.5
|
MCE
|
7.8
|
0.189
|
1.5
|
Waterpipe II
|
37.4
|
0.206
|
7.7
|
West Mahala
|
1,956.9
|
0.191
|
373.8
|
Winters Creek
|
37.2
|
0.199
|
7.4
|
|
|
|
|
Sub Total
|
4,490.1
|
0.198
|
891.2
|
|
|
|
|
Stockpiles
|
-
|
-
|
-
|
|
|
|
|
Total All Sources
|
4,490.1
|
0.198
|
891.2
|
Notes:
- The January 1, 2011 mineral
resources were all calculated using a 0.125 opt gold cutoff grade
whereas the December 31, 2007 mineral resources used a 0.15 opt gold
cutoff grade for undeveloped underground resources and a 0.125 opt
gold cutoff grade for more mature underground resources as calculated
by SRK Consulting (2008);
- Bolded values have been
updated using the new 2011 models.
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.
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.
Other
current activities at the mine include:
�
finalizing the reclamation permit and bonding with
the State of Nevada for the new Tailings Storage Facility with construction
targeted to start in early July 2011;
�
planning for weather independence around the
existing mill facilities;
�
planning the opening of the SSX-Steer underground
mine complex in the third quarter of 2011;
�
underground exploration and resource conversion
drilling from the Smith Mine; and
�
investing $12M in further exploration.
Exploration and
resource conversion drill hole samples collected from the Jerritt Canyon
property are delivered to and analyzed by ALS Laboratory Group in Reno,
Nevada using standard fire assay techniques whereas production drill holes
are delivered to and analyzed by the Jerritt Canyon Mine assay lab.
The Company�s 2010 and 2011 Quality Assurance and Quality Control protocols
are available at the Company�s website: http://www.yukon-nevadagold.com/i/pdf/JC_Assay_Protocols.pdf
The 2011 Jerritt Canyon mineral resources (in bolded text in Tables 1 and
2) were calculated by Karl Swanson, Mining Engineer Consultant, under the
supervision of Todd Johnson, 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 along with updated reserves; it is anticipated that
this full report will be available and released in June 2011. Mr.
Johnson supervised the preparation of the technical information, and has
reviewed and approved the contents of this new release.
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.
For
more information please contact:
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.