March 12, 2008
Vancouver, Canada -
March 12, 2008 - Yukon-Nevada Gold Corp. (Toronto Stock Exchange: YNG;
Frankfurt Xetra Exchange: NG6) reports
that it has received a Stop Order from the State of Nevada, Division of
Environmental Protection. The Stop Order applies to the west and east
roasters at Jerritt Canyon in Elko County, Nevada and is scheduled to take
effect on March 17th 2008. The roasters, along with the
rest of the milling facility are presently in the middle of a planned
shutdown. The planned shutdown is part of an ongoing program to deal with
company identified safety and environmental issues resulting from a lack of
investment in care and maintenance of the milling facility over many years.
We do not expect the planned shutdown to affect the budgeted production of
120,000 ounces of gold in year 2008 from the Company's own ores. The mine
is unaffected by this order and the milling facility has excess capacity.
The Stop Order results from a
failure of the Company to address issues involving the installation and the
maintenance of instrumentation necessary to monitor key operating
parameters in the emissions control systems. The installation and
maintenance of these instruments formed part of the planned plant shutdown.
Miscommunication between the Company and NDEP meant that the planned
shutdown and its purpose were not relayed to NDEP. The Order does not
allege that the Company has exceeded allowable emissions. The Company is,
in fact, in compliance with permitted emissions limits.
The Company did meet its
NvMACT submittal deadlines; however, the NDEP has deemed the roaster
submittal inadequate and as a requirement under the Order, has required the
Company install a calomel-based mercury emissions control systems on each
of its roasters.
The Company believes that its
mercury emission control system is as good as or better than the
calomel-based system. After the installation and maintenance of the
required monitoring instrumentation NDEP will give the Company an
opportunity to demonstrate the validity of this belief. The Company has
committed to installing the calomel-based system unless authorized by NDEP
to continue using its present system.
Graham C. Dickson, commented, "It is unfortunate that the
many repairs and alterations to the mercury emission control systems and
processing plant that have been completed and acknowledged by NDEP should
leave us short of the required standard. However we feel that we can
redouble our efforts and meet the requirements that will allow us to meet
our planned restart of the milling facility whilst at the same time meeting
the standards of data collection, reporting and planning required by NDEP."
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.