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Post by jimvicki3on Aug 17, 2010 8:49am

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See more news releases in: Mining & Metals, Earnings

Yukon-Nevada Gold Corp. shows continued improvement in second quarter results

VANCOUVER, Aug. 17/PRNewswire-FirstCall/ - Yukon-Nevada Gold Corp. (the "Company")(Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) todayannounced the financial and operating results for the second quarterended June 30, 2010. This informationshould be read in conjunction with the Company's annual financialstatements, notes to the financial statements and Management'sDiscussion and Analysis. All dollar amounts are expressed in United States Dollars unless otherwise specified.

Highlights for the three-month period ended June 30, 2010 include:

 - The Jerritt Canyon Mine produced 18,441 ounces from stockpiles and  

mining operations in the three months ended June 30, 2010, the  

highest production amount achieved in a quarter since the third  

quarter of 2008. The Company achieved these results despite having  

one tertiary cone crusher out of commission as well as having the  

facility shutdown for a two week period as noted below.  

  

- The Company had a loss of $4.9 million in the second quarter of 2010  

compared to $7.7 million in the second quarter of 2009. This is the  

lowest quarterly loss since operations closed in the third quarter of  

2008, despite the lengthy maintenance shutdown in the month of May.  

  

- In May the Company shutdown the mill at Jerritt Canyon in order to  

carry out a significant overhaul of key mill components both for  

compliance with the Consent Decree and for critical maintenance that  

had been identified subsequent to restart in 2009. During the  

shutdown, major projects included the replacement of one quench tank  

completely, upgrade work on the roaster control system, and thickener  

tank refurbishment. Due to the high overtime and contractor costs  

incurred to complete the work and the downtime related to the  

shutdown and ramp-up periods, the results for the period continue to  

reflect a loss from operations.  

  

- Small Mine Developers ("SMD") delivered 11,121 ounces to the mill  

from the Smith mine during that same period, as the mining operations  

steadily improved into the second quarter. With additional pending  

permitting, this production amount is expected to increase in the  

third and fourth quarters of 2010.  

  

- Stack tests conducted at Jerritt Canyon continued to improve with the  

June results showing mercury emissions at 6% of the levels permitted  

under the consent decree. The Company expects these results to  

continue to improve as the ultimate discharge limits have not yet  

been realized.  

  

- In May of 2010, the Company raised $9.2 million to further  

exploration at the Ketza River and Silver Valley properties. A total  

of 53 drill holes totaling 7,675 metres were completed by the Company  

and management is reviewing the related assays to determine the  

results of these drills and develop follow up drill programs.  

  

- On July 13, 2010 Sprott Asset Management LP, for and on behalf of  

certain managed accounts, funds and other purchasers, agreed to  

purchase $25.0 million principal amount in senior secured notes (the  

"Notes"). The proceeds from the sale of the Notes will be used to  

assist with the development of the Jerritt Canyon Gold Project and  

for working capital purposes.

Duringthe first half of 2010 the Company has focused on improving the millingfacilities and securing additional ore for the mill, while continuing tomeet the commitments that were made under the Consent Decree. For theremainder of 2010, the Company will continue to find new sources of orefor Jerritt Canyon, recommence exploration activity, and prepare for thereopening of the SSX mine. The Company recently recommenced surface andunderground exploration at Jerritt Canyon, emphasizing near mine areas,and expects to advance additional drill programs late the thirdquarter. With the proceeds of the loan facility, capital necessary tocommence mining the SSX will be acquired that should enable that mine tobe reopened.

In the Yukon,the Company has begun geophysical and soil survey work in July andAugust along with a small 12 drill hole program near the proposedPenguin pit, along with geotechnical drilling needed to develop the mineplan and for the Yukon Environmental and Socio-economic Assessment("YESA") application. Further work will be completed and planned oncethe results of the 2010 assays are obtained and compiled.

Detailsof the Company's financial results are described in the unauditedconsolidated financial statements, and management's discussion andanalysis, which will be available on the Company's website, www.yukon-nevadagold.com/s/FinancialStatements.asp and SEDAR, www.sedar.com.

Yukon-NevadaGold Corp. is a North American gold producer in the business ofdiscovering, developing and operating gold deposits. The Company holds adiverse 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 latestage development and operating properties with gold as the primarytarget. Continued growth will occur by increasing or initiatingproduction from the Company's existing properties in addition to theplanned acquisitions mentioned above.

If you would like to receive press releases via email please contact nicole@yngc.ca and specify "Yukon-Nevada Gold Corp. releases" in the subject line.

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 theUnited States Securities Act of 1933, as amended (the "U.S. SecuritiesAct") or any state securities laws and may not be offered or sold withinthe United States or to U.S. Personsunless registered under the U.S. Securities Act and applicable statesecurities laws or an exemption from such registration is available.

SOURCE Yukon-Nevada Gold Corp.

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