Yukon-Nevada Gold Corp. Finalizes Consent Decree WVancouver, BC - October 14, 2009 -- Yukon-Nevada Gold Corp. (Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) ispleased to announce that it has come to an agreement with the NevadaDivision of Environmental Protection ("NDEP") in the form of a ConsentDecree to resume production at the Jerritt Canyon milling facilitylocated approximately 50 miles from Elko, Nevada. Jerritt Canyon isowned and operated by Queenstake Resources U.S.A. Ltd. ("Queenstake") awholly owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the"Company"). Queenstake has been working in cooperation with the NDEPthroughout this process. The Company wishes to express sincere thanksto the Attorney General's office of Nevada and the NDEP for all theirhard work in making this happen and producing a positive outcome.
Bymilling a combination of available stock piles and recommencing miningactivity, the Company is targeting a total production of 150,000 ouncesof gold in the first full year of production at a cash cost of US$465per ounce after re-start of operations and after the mill establishessteady state operation. Commencement of operations and generation ofpositive cash flow will allow the company to commence repayment of allcreditors and former employees. It is estimated this process will becompleted in full by the end of June 2010.
TheConsent Decree was finalized and signed by both parties on FridayOctober 9th, 2009 and submitted in the District Court of Elko County onMonday October 12th, 2009. Following the official court approval of thedecree, the Jerritt Canyon Mine may resume operations. The court issuedate is the effective date for commencement of the agreement. Thecompany will begin operations, including warming the mill roasters onthe effective date with a view to commence processing ore within 3-5days of the effective date. The time to load the circuit with gold isestimated to be approximately two weeks. Thereafter the company isexpecting to see increasing production amounts of gold resulting inhigher positive cash flows shortly thereafter.
TheConsent Decree records and agrees to the terms of an environmental workprogram worked out and agreed between the NDEP and the Company.Queenstake completed the installation of a calomel emission system tocontrol mercury emissions and the calibration of the systeminstrumentation as of July 20, 2009. Queenstake has also been carryingout a significant overhaul and upgrade of many key components of theroaster, leach circuit, thickener and other sections of the mill. TheConsent Decree resolves all of the compliance concerns of the NDEP inrelation to the mill and surrounding land holdings of the Company, aswell as related environmental concerns and gives Queenstake the rightto operate the milling facility from the effective date.
Themill will require certain start-up activities before going into fullproduction and the Company has been preparing for this event.
Queenstakehas agreed to undertake this program of work, much of which has alreadybeen completed, to address all of the concerns of the NDEP within setand agreed time frames as well as to ensure that the company remainspro-active and in continuing compliance into the future.
Oneof several outstanding issues is the stack testing program whichrequires the plant to be operational in order to test emissions fromthe calomel system and confirm its performance in controllingemissions. This process and performance criteria are set forth in theConsent Decree. The calomel technology is state of the art technologythat, once audited by independent air quality stack emission engineers,is expected to substantially reduce emissions and thereby set thecompany apart from its previous discharge emissions. These audits arerequired under the Consent Decree to confirm to the NDEP that the newtechnology adheres to the projections made by Queenstake and auditsampling will continue monthly until such time as NDEP is fullysatisfied with the results. The Consent Decree is expected to be inplace for a period of two years. The Company plans to release a summaryof these results onc e they are available to demonstrate publicly theeffectiveness of its mercury control emission system.
ThePresident and CEO Mr. Robert Baldock stated "As well as thanking theNDEP and the Attorney General's Office, the Company wishes to extendgenuine thanks to several other groups. The patience of thecreditors, many of whom have been very supportive of the company andits extended efforts to re-start operations, is greatly appreciated. Inaddition Queenstake must recognize the loyalty and ongoing support ofits workforce and members of the wider Elko community who have had anunderstandably anxious time over this period, but nevertheless,remained loyal to the company. Finally, the Company must thank its verysupportive shareholders and other stakeholders who have waitedpatiently for better times for the company, many of whom have alsocontinued to invest and assist during this time to allow the Company tocontinue in business while the issues were addressed."
Goingforward the Company has a number of additional development initiativesincomplete and still in progress at this time and expects to releasefurther positive news in the coming weeks.
ThisNews release was reviewed and approved by the Company's SeniorGeologist, Todd Johnson, M.Sc., the Qualified Person for purposes ofthis release.
Yukon-NevadaGold Corp. is a North American gold producer in the business ofdiscovering, developing and operating gold deposits. The Company holdsa diverse portfolio of gold, silver, zinc and copper properties in theYukon Territory and British Columbia in Canada and in Arizona andNevada in the United States. The Company's focus has been on theacquisition and development of late stage development and operatingproperties with gold as the primary target. Continued growth will occurby increasing or initiating production from the Company's existingproperties.
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.
Thisnews release does not constitute an offer to sell or a solicitation ofan offer to buy any of the securities in the United States. Thesecurities have not been and will not be registered under the UnitedStates Securities Act of 1933, as amended (the "U.S. Securities Act")or any state securities laws and may not be offered or sold within theUnited States or to U.S. Persons unless registered under the U.S.Securities Act and applicable state securities laws or an exemptionfrom such registration is available.