Vancouver,
Canada -May 16 2008 - Yukon-Nevada Gold Corp. (Toronto Stock Exchange: YNG;
Frankfurt Xetra Exchange: NG6) (the "Company") announced results for its first quarter
of 2008. All amounts in this news release are in
US dollars, unless otherwise stated.
"The first
quarter of 2008 was a significant quarter for the Company as we temporarily
closed our producing assets for eight weeks in order to allow us to invest
in the refurbishment and modernization of these assets." said Graham
Dickson, the Company's President and Chief Executive Officer. "These
changes to the mines and plant more closely align the operation of the
Company's producing assets with the Corporate culture that emphasizes
safety and sound environmental stewardship as the route to increased
profitability." continued Mr. Dickson.
The Company's
Gross Margin from mining operations was reported as a loss of $619,000 for
the quarter and this was clearly one effect of the temporary shutdown.
Another effect was the reduction in the amounts of gold produced from the
Company's own ore and that produced from purchased ore. Those amounts fell
to 8,055 ounces and 6,266 ounces respectively for a total production of
14,291 ounces of gold. The Company experienced a net loss of $8,884,000
after taxes.
The gold ounces
produced from Jerritt Canyon ore were sold at an average executed price of
$906 per ounce and were produced at a cash cost of $881 per ounce.
Yukon-Nevada
Gold's President and Chief Executive Officer, Graham C. Dickson, commented,
"The decision to curtail production for the greater part of the first
quarter and for part of the second quarter was made in order to provide the
Company with a more reliable and safer production facility as it proceeds
to further its plans for far greater production from its own ores at
Jerritt Canyon. The Company will continue to improve both our safety and
environmental performance with a resultant overall improvement in
operations throughout the next two years".
The Company
engages in the forward sales of gold produced from ore purchased from third
parties. This practice ensures that the Company achieves an acceptable
profit margin on this activity. The Company is not hedged on any gold
produced from its own Jerritt Canyon ore.