YUKON-NEVADA GOLD CORP.'S JERRITT
CANYON TO FOCUS ON PROFITABILITY
BC - August 8, 2008 -- Yukon-Nevada Gold Corp. (Toronto
Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) announces its termination of Investec's mandate
to arrange and underwrite financing for mine expansion at the Jerritt
Canyon Project, Nevada.
In the face of
continuing operating cost pressure in the mining industry worldwide
Yukon-Nevada Gold Corp. has decided to suspend its underground operations
at its Jerritt Canyon
mines and focus solely on operating the profitable 4,000 plus tons per day
mill that has been refurbished over the past six months. The Company will
make all efforts to minimize the impact of this decision on its employees,
suppliers and the local community.
President and CEO Graham Dickson stated that
"with our present mining plan the underground operations were not
showing the profitability needed to continue or to expand the mining
operations. The great exploration results reported this year in the Mahala
basin combined with our known reserves at the SSX, Smith and Starvation
Canyon mines will be modeled by
our mining group with the goal of detailing a mining plan capable of
producing grade and tons that can be mined profitably."
In the meantime Yukon-Nevada Gold will continue to
process its own stockpiled ore and the stockpiled ore of Newmont under its
existing agreement with which extends to the end of the year. Yukon-Nevada
Gold is currently in negotiations with Newmont with regard to a further
milling agreement on a cost plus basis at a rate of 3,000 tons per day.
Yukon-Nevada Gold is additionally pursuing further
milling contracts for ore generated in the Jerritt Canyon area which can be
processed through either its roasting facility or its separate wet milling
At Ketza River
the Company has completed its successful exploration drilling for the
season. The expansion of deposits within the open pits and surrounding
areas will add value to the expected Pre-Feasibility Study. The
completion of the Pre-Feasibility and permitting will now be the focus of
the project group's efforts.
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 existing properties.
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Company relies upon litigation protection for "forward-looking"
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