Vancouver, BC - June 1, 2009 - Yukon-Nevada Gold Corp. (Toronto
Stock Exchange: YNG; Frankfurt Xetra Exchange:
NG6) announces that a delay in the fabrication of
certain fiberglass ductwork has resulted in the
Company being unable to meet a deadline to complete the installation of new
mercury - emission - control equipment at the Jerritt
Canyon Mine. Therefore, in compliance with NDEP Order 2009-4,
Queenstake Resources Inc. USA (Queenstake), a wholly owned subsidiary of
Yukon-Nevada Gold Corp. (YNG), has discontinued operation of its roaster
circuits at the Jerritt Canyon Mine.
The ductwork will be used in the installation of a calomel-based
mercury control system required by the NDEP to ensure the company complies
with state-mandated mercury emission limits, and to minimize the proportion
of oxidized (reactive) mercury released to the air.
Queenstake notified the NDEP that both roaster circuits at the Jerritt Canyon Mine ceased operation at 11 p.m. May 30.
Queenstake has successfully complied with other requirements of
operation per NDEP Order 2009-4. While the roasters are off-line to
complete the required work, the processing of ore already roasted and the
recovery of gold will continue.
The Company expects to take delivery of the fiberglass
duct work and have the new mercury emission control equipment installed
before the end of June.
Following a year-long investigation into mercury emissions, in March
2008 the NDEP ordered Queenstake Resources to install new state-of-the-art
emission control equipment at the Jerritt Canyon
Mine by the end of that year. Before the NDEP's
order was satisfied, Queenstake Resources, by its own action, stopped
mining and processing ore at Jerritt Canyon Mine
in August 2008. The facility remained shut down while the new emission
control systems were designed. Staff from Queenstake Resources and the NDEP
worked together to resolve several air emission issues related to the
NDEP issued an Order March 25, allowing Queenstake to restart ore
processing operations after the mine's initial environmental compliance was
satisfied. The requirement to shut down the roaster does not affect the
operation of the milling and gold recovery portion of the plant. This
ensures that the Company cash flow and other operations can continue.
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
The TSX has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
WARNING: The Company relies upon litigation protection for
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.