Yukon Nevada Gold Corp T.YNG

Just returned from the trade show...

[lecoste]

... in Munich and talked to Richard Moritz (Institutional Investor Relations) and Nicole Sanches. Very nice people by the way.

We talked about the perspectives of YNG over the next 12 to 36 months. They confirmed that Roberts target is, to produce about 1 million ounces per year with YNG ore within 3 years. Also their focus is completely on Jerrit Canyon.

Some of the guys at YNG would prefer to spin out Ketza, once it has reached a certain value, and use the proceeds to accelerate the development of Jerrit.

At the moment they are producing ~8000 - 9000 ounces a month out of YNG ore from Smith and the stockpiles. With the additional ore from Newmont and the upcoming ore from SSX/Steer, they are very confident to reach and exceed the production target easily. Starvation will be up at around mid 2012 and contribute another 500 tpd with grades around a quarter ounce per ton.

They are in the process of acquiring other gold projects around Jerrit to secure the feed for many years to come. There are roundabout 15 potential acqusition targets and they talk to all of them. So they seem to be in a fairly good bargaining position.

They see between 2 and 3 Can$ as fair value for the share price in the mid term, considering the peer group.

Thats it for now. I have to walk the dog, it's getting dark over here ;)

[MrGRP]

Thanks Lecoste great report ... you mentioned "they are in the process of acquiring other gold projects" do you mean purchacing other gold properties ? or just more gold to process as they are from Newport ? Also any word as to when Ketza will be in production ? guess we will have to see what it actually produces but it seems to me that they can produce gold at Ketza and make a lot more

[MrGRP]

A couple of things and maybe I am reading this wrong ? you say they are producing 8 - 9000 ounces a month, seems to me they produced 8500 ounces last July and expected steady state of production after that which would be 12500 per month ? Re starvation canyon ... are you sure it is only 1/4 ounce of gold per ton ? I am not expert but isn't that extremely low ? One last thing .. you said they

[lecoste]

Yes definitely. I meant, they want to purchase other gold properties. Buying ore is nice to exploit the mill capacitiy in the short term. But it is far more economic to produce the ore yourself.So the short term is to seal ore purchase deals.The mid term is to buy property and develop more mines from the surrounding explorers.And in the long term they think about opening the wet mill to

[MrGRP]

Thanks for the clarification ... I agree with buying more .. I think I actually wrote that in one of my posts a while ago that they can do good with what they have but can never be really big unless the buy more exciting mining properties !But at least Ketza would add that 60 to 100000 ounces per year that would boost the production of the company. I understood they were going to put it into

[lecoste]

Ketza was ever since scheduled for mid 2012 if I remember correctly, as is Starvation. SSX/Steer are scheduled for early 2011.Regarding Starvation canyon. A quarter ounce per ton is 7.77 grams per ton. On the contrary it is a fairly good average grade for a underground mine. Do the math: a quarter ounce times 500 tons equals 125 ounces a day. Times 30 days is 3750 ounces a month. Thats quite an

[romara]

lecoste....thanks for the update....It must be really nice to talk one on one to the YNG people there....Richard

[lecoste]

One other thing. Please do not confuse yourself: 150.000 oz per year does NOT mean 12500 oz per month, not in the first months anyway. It means an AVERAGE 12.500 oz per month. And by what I was told today, they will make easily.

[MrGRP]

true ... but my understanding they should have been making that without Newport ...and  now more to come ! that to me is why it would be nice to see them add Ketza to the equasion ... could turn that 150.000 oz into 200.000 to 250.000 oz in the near future which would be a nice hike on production and the share price ! And from there ... up up and away !

[lecoste]

Yes, Richard indeed. On a personal note: I would like to encourage everyone with questions to talk to the ir people. They are a very friendly bunch of people. Talked about 20 minutes to them and they never made me feel, I was bothering them. Even when I asked the more uncomfortable questions.

[MrGRP]

I think they have a spring investors or shareholders meeting or conference in Vancouver, I will make sure that I make it to this one !!! Sounds like a very rewarding experience !

[stainless101]

LecosteThanks for sharing all this insightful and useful information.  I am looking forward to continues success for YNG.

[goldpet]

Very rewarding to be able to talk to the Company employees I would expect. Thanks for sharing your experience.What were those uncomfortable questions?

[lecoste]

Actually, I asked some questions regarding the past. Basically I wanted to share my concerns about the inducement warrants from one year ago, which I did not like one bit. I asked them, why they did not capitalize in the open market, instead of inducing warrants to a special group of investors. They explained thoroughly and plausibly that it would have been impossible (and you can be

[goldpet]

Thanks Lecoste.  YNG looks like a big turnaround story. I'm looking for significant share appreciation going forward.The best news is ahead of us.

[arthur7440]

     Nice   people that knew about the theft,   and did not tell at that time, in Munich,   i have chatted many times over the years with these nice people, face to face. Now I just walk by them at the shows,           Did you mention Richards Name??  They start laughing,And