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Last updated on April 20, 2014 at 8:28 EDT

Yukon-Nevada Gold Corp. Reports a Significant Resource Increase at Jerritt Canyon, Nevada

May 3, 2011

VANCOUVER, May 3 /PRNewswire/ - Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) is pleased to announce a new and increased mineral resource estimate
for its wholly-owned Jerritt Canyon operating gold mine in Elko County,
Nevada, USA.  Jerritt Canyon is operated by Queenstake Resources USA
Ltd., a wholly owned subsidiary of Yukon-Nevada Gold Corp. (“YNG” or
the “Company”).

Jerritt Canyon’s measured and indicated mineral resource has increased
by 578,000 ounces of gold, representing a 30% increase over 2007
levels.  The updated mineral resource estimate incorporates a new 3-D
geological model which includes additional drill hole results from
January 1, 2008, to January 1, 2011.

The new mineral resource now comprises a measured resource of 1.08
million ounces, an indicated resource of 1.46 million ounces, and an
inferred resource of 0.89 million ounces.  This new model significantly
increases the potential of the property and gives the Jerritt Canyon
Geology team additional areas to explore and develop.  The updated
mineral resources completed to date include the primary work areas: 
Smith, SSX-Steer, Saval, West Mahala and Starvation Canyon.

Robert Baldock, CEO states, “This exciting new update using advanced
modeling techniques clearly demonstrates that strong organic resource
growth at Jerritt Canyon is achievable. This positive development
confirms that the mines at Jerritt Canyon can deliver resource growth
and extended mine life. This growth will continue with an expanded
exploration and definition drilling program. Furthermore, the potential
to mine past producing and new open pits on the property is clear. In
light of the new modeling techniques and increased gold price,
re-evaluation of the open pit potential is compelling, and these areas
will be targeted in the upcoming drilling program.”

Maps showing the area locations and the new 0.10 opt gold grade shells
can be seen on the Company’s web site here: http://www.yukon-nevadagold.com/i/pdf/JCResourceMaps2011.pdf

The tables below summarize the updated mineral resources.

Table 1.  Jerritt Canyon Measured and Indicated Mineral Resources: 
January 1, 2011

     _____________________________________________________________________________
    |          |         Measured    |         Indicated   |Measured and Indicated|
    |__________|_____________________|_____________________|______________________|
    |Deposit   | K tons|oz/st|   K oz| K tons|oz/st|   K oz|  K tons|oz/st|   K oz|
    |/Mine     |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Murray    |  155.8|0.310|   48.3|   26.6|0.269|    7.1|   182.4|0.304|   55.4|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Murray    |      -|    -|      -|  210.9|0.277|   58.5|   210.9|0.277|   58.5|
    |Zone 9    |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |SSX/Steer |2,358.5|0.226|  533.4|1,653.9|0.221|  365.8| 4,012.4|0.224|  899.2|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Saval     |   99.6|0.258|   25.7|  556.4|0.221|  123.0|   656.0|0.227|  148.7|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Smith     |1,982.8|0.237|  470.0|2,203.4|0.233|  513.7| 4,186.2|0.235|  983.7|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Starvation|    5.5|0.365|    2.0|  496.9|0.284|  141.1|   502.4|0.285|  143.1|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Wright    |      -|    -|      -|   97.8|0.156|   15.2|    97.8|0.156|   15.2|
    |Window    |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |          |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Pit Resources                                                                |
    |_____________________________________________________________________________|
    |Burns     |      -|    -|      -|   29.7|0.134|    4.0|    29.7|0.134|    4.0|
    |Basin Pit |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |California|      -|    -|      -|    8.0|0.115|    0.9|     8.0|0.115|    0.9|
    |Mtn. Pit  |       |     |       |       |     |       |        |     |       |
    |(NEXT)    |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Coyote    |      -|    -|      -|      -|    -|      -|       -|    -|      -|
    |Zone 10   |       |     |       |       |     |       |        |     |       |
    |Pit       |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Pie Creek |      -|    -|      -|  190.2|0.157|   29.9|   190.2|0.157|   29.9|
    |Pit       |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Road      |      -|    -|      -|  148.6|0.143|   21.2|   148.6|0.143|   21.2|
    |Canyon Pit|       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Mill Creek|      -|    -|      -|   78.4|0.124|    9.7|    78.4|0.124|    9.7|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |          |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Underground Resources                                                        |
    |_____________________________________________________________________________|
    |Burns     |      -|    -|      -|   30.7|0.194|    6.0|    30.7|0.194|    6.0|
    |Basin     |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |California|      -|    -|      -|   32.1|0.377|   12.1|    32.1|0.377|   12.1|
    |Mtn.      |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Coyote    |      -|    -|      -|   45.2|0.212|    9.6|    45.2|0.212|    9.6|
    |Zone 10   |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |MCE       |      -|    -|      -|    4.4|0.201|    0.9|     4.4|0.201|    0.9|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Waterpipe |      -|    -|      -|      -|    -|      -|       -|    -|      -|
    |II        |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |West      |    0.4|0.199|    0.1|  225.4|0.189|   42.6|   225.8|0.189|   42.7|
    |Mahala    |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Winters   |      -|    -|      -|  148.9|0.218|   32.5|   148.9|0.218|   32.5|
    |Creek     |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |          |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Sub Total |4,602.6|0.235|1,079.5|6,187.5|0.225|1,393.8|10,790.1|0.229|2,473.3|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |          |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Stockpiles|      -|    -|      -|  902.2|0.073|   65.8|   902.2|0.073|   65.8|
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |          |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|
    |Total All |4,602.6|0.235|1,079.5|7,089.7|0.206|1,459.6|11,692.3|0.217|2,539.1|
    |Sources   |       |     |       |       |     |       |        |     |       |
    |__________|_______|_____|_______|_______|_____|_______|________|_____|_______|

Notes:

      1. The January 1, 2011 mineral resources were all calculated using a
         0.125 opt gold cutoff grade whereas the December 31, 2007 mineral
         resources used a 0.15 opt gold cutoff grade for undeveloped
         underground resources and a 0.125 opt gold cutoff grade for more
         mature underground resources as calculated by SRK Consulting
         (2008);
      2. Bolded values have been updated using the new 2011 models;
      3. Stockpile resources include remote and mill and were measured on
         January 1, 2011;
      4. Resources calculated using:  additional drill holes completed in
         2008-2010, and noted mining depletions (underground asbuilts
         completed as of year-end 2010).

Table 2.  Jerritt Canyon Inferred Mineral Resources:  January 1, 2011

     _______________________________________
    |                   |        Inferred   |
    |___________________|___________________|
    |Deposit            | K tons|oz/st| K oz|
    |/Mine              |       |     |     |
    |___________________|_______|_____|_____|
    |Murray             |   90.4|0.228| 20.6|
    |___________________|_______|_____|_____|
    |Murray             |   61.6|0.209| 12.9|
    |Zone 9             |       |     |     |
    |___________________|_______|_____|_____|
    |SSX/Steer          |  479.1|0.194| 93.2|
    |___________________|_______|_____|_____|
    |Saval              |  201.7|0.209| 42.2|
    |___________________|_______|_____|_____|
    |Smith              |1,157.3|0.195|226.0|
    |___________________|_______|_____|_____|
    |Starvation         |  256.3|0.276| 70.7|
    |___________________|_______|_____|_____|
    |Wright Window      |   19.0|0.229|  4.3|
    |___________________|_______|_____|_____|
    |                   |       |     |     |
    |___________________|_______|_____|_____|
    |Pit Resources                          |
    |_______________________________________|
    |Burns Basin Pit    |      -|    -|    -|
    |___________________|_______|_____|_____|
    |California Mtn. Pit|      -|    -|    -|
    |___________________|_______|_____|_____|
    |Coyote Zone 10 Pit |   20.1|0.104|  2.1|
    |___________________|_______|_____|_____|
    |Pie Creek Pit      |   28.3|0.142|  4.0|
    |___________________|_______|_____|_____|
    |Road Canyon Pit    |   74.3|0.131|  9.7|
    |___________________|_______|_____|_____|
    |Mill Creek         |      -|    -|    -|
    |___________________|_______|_____|_____|
    |Underground Resources                  |
    |_______________________________________|
    |Burns Basin        |   50.6|0.228| 11.5|
    |___________________|_______|_____|_____|
    |California Mtn.    |    9.4|0.330|  3.1|
    |___________________|_______|_____|_____|
    |Coyote Zone 10     |    2.7|0.184|  0.5|
    |___________________|_______|_____|_____|
    |MCE                |    7.8|0.189|  1.5|
    |___________________|_______|_____|_____|
    |Waterpipe II       |   37.4|0.206|  7.7|
    |___________________|_______|_____|_____|
    |West Mahala        |1,956.9|0.191|373.8|
    |___________________|_______|_____|_____|
    |Winters Creek      |   37.2|0.199|  7.4|
    |___________________|_______|_____|_____|
    |                   |       |     |     |
    |___________________|_______|_____|_____|
    |Sub Total          |4,490.1|0.198|891.2|
    |___________________|_______|_____|_____|
    |                   |       |     |     |
    |___________________|_______|_____|_____|
    |Stockpiles         |      -|    -|    -|
    |___________________|_______|_____|_____|
    |                   |       |     |     |
    |___________________|_______|_____|_____|
    |Total All Sources  |4,490.1|0.198|891.2|
    |___________________|_______|_____|_____|

Notes:

      1. The January 1, 2011 mineral resources were all calculated using a
         0.125 opt gold cutoff grade whereas the December 31, 2007 mineral
         resources used a 0.15 opt gold cutoff grade for undeveloped
         underground resources and a 0.125 opt gold cutoff grade for more
         mature underground resources as calculated by SRK Consulting
         (2008);
      2. Bolded values have been updated using the new 2011 models.

The mineral resources have been estimated in accordance with the
standards adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Council in August 2000, as amended, and prescribed by
the Canadian Securities Administrators’ National Instrument 43-101
Standards of Disclosure for Mineral Projects.  The resources were
classified according to: geological confidence, number of drill holes,
number of drill hole samples and a specific search distance.

Mining at the Jerritt Canyon property is currently active at the Smith
Underground mine which is producing approximately 1,000 ore tons per
day using Small Mine Development, LLC as the mining contractor.

Other current activities at the mine include:

        --  finalizing the reclamation permit and bonding with the State of
            Nevada for the new Tailings Storage Facility with construction
            targeted to start in early July 2011;
        --  planning for weather independence around the existing mill
            facilities;
        --  planning the opening of the SSX-Steer underground mine complex
            in the third quarter of 2011;
        --  underground exploration and resource conversion drilling from
            the Smith Mine; and
        --  investing $12M in further exploration.

Exploration and resource conversion drill hole samples collected from
the Jerritt Canyon property are delivered to and analyzed by ALS
Laboratory Group in Reno, Nevada using standard fire assay techniques
whereas production drill holes are delivered to and analyzed by the
Jerritt Canyon Mine assay lab.  The Company’s 2010 and 2011 Quality
Assurance and Quality Control protocols are available at the Company’s
website:  http://www.yukon-nevadagold.com/i/pdf/JC_Assay_Protocols.pdf

The 2011 Jerritt Canyon mineral resources (in bolded text in Tables 1
and 2) were calculated by Karl Swanson, Mining Engineer Consultant,
under the supervision of Todd Johnson, Vice President of Exploration
for YNG.  These individuals are Qualified Persons as defined by NI
43-101.  YNG is currently preparing an updated NI 43-101 Technical
Report which will include these results along with updated reserves; it
is anticipated that this full report will be available and released in
June 2011.  Mr. Johnson supervised the preparation of the technical
information, and has reviewed and approved the contents of this new
release.

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.

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 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.

Cautionary Note to U.S. Investors Regarding Estimates of Measured,
Indicated and Inferred Resources

This press release uses the terms “measured,” “indicated and “inferred”
“resources.”  We advise U.S. investors that while these terms are
recognized and required by Canadian regulations, the U.S. SEC does not
recognize them.  “Inferred resources” have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility.  It cannot be assumed that all or any
part of an “inferred mineral resource” will ever be upgraded to a
higher category.  Under Canadian rules, estimates of “inferred mineral
resources” may not form the basis of a feasibility study or
prefeasibility studies, or economic studies except for Preliminary
Assessment as defined under NI 43-101.  The SEC normally only permits
issuers to report mineralization that does not constitute “reserves” as
in-place tonnage and grade without reference to unit measures.  U.S.
investors are cautioned not to assume that any part or all of a
measured, indicated or inferred mineral inventory resource exists or is
economically or legally mineable.

SOURCE Yukon-Nevada Gold Corp.


Source: newswire