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VANCOUVER, Dec. 2, 2011 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) On Wednesday, November 30, 2011 Yukon-Nevada Gold Corp.'s
("Yukon-Nevada" or the "Company") wholly owned gold production property
Jerritt Canyon Mill ("Jerritt Canyon") in Nevada was notified by letter
from the Federal Mine Safety and Health Administration ("MSHA") that
MSHA had conducted a "pattern" of violation screening pursuant to
Section 104(e) of the Federal Mine Safety and Health Act of 1977 (the
Act). The letter stated that MSHA has initially concluded that a
potential pattern of violations exists at Jerritt Canyon and set out a
process by which Jerritt Canyon may work with MSHA to avoid any further
sanctions pursuant to that program. Jerritt Canyon is located 50 miles
north of Elko, Nevada and is operated by Queenstake Resources USA Ltd.,
("Queenstake") a wholly owned subsidiary of Yukon-Nevada.
MSHA's pattern of violations program provides that mine operators may be
subject to closure orders for certain areas of the mine affected by
certain specific types of violations until the mine receives a clean
MSHA inspection. In most cases, such closures would affect areas of
the mine that are not critical to production or would be corrected
within a very short time.
MSHA's initial finding is based mostly on alleged violations that have
been contested by Jerritt Canyon as invalid. Most of the alleged
violations have not yet been reviewed and adjudicated and therefore are
not final. Yukon-Nevada is confident that it will prevail in the great
majority of those challenges and, for that and other reasons, it should
be removed from the watch-list without the penalties of Section 104(e)
being invoked.
President and CEO, Mr. Robert Baldock commented: "Yukon-Nevada received
a letter from MSHA notifying that Jerritt Canyon is subject to a
potential pattern of violations. Although we disagree with MSHA's
assessment, we intend to work with MSHA to reach a full and efficient
resolution of this matter. Yukon-Nevada is committed to the safety of
its workforce and will take all measures to ensure the continued safe
and productive operations at Jerritt Canyon."
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
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.
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 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 available.
For further information:
Yukon-Nevada Gold Corp. Richard Moritz Senior Director, Institutional Investor Relations Tel: (604) 688-9427 Email: rmoritz@yngc.ca Nicole Sanches Investor Relations Manager Tel: (604) 688-9427 ext 224 Email: nicole@yngc.ca >www.chfir.com AXINO AG Wolfgang Seybold Chairman Tel: +49 711 25 35 92 40 Email: wolfgang.seybold@axino.de http://www.axino.de/">www.axino.de/
