Yukon-Nevada Enters into Mining Pact with SMD

8 December 2009 (Last Updated December 8th, 2009 18:30)

Yukon-Nevada Gold has entered into a mining pact with Small Mine Developers (SMD) to restart underground mining at Jerritt Canyon in Nevada, US. SMD's scope of work as a contract miner for the project involves resuming gold mining at the Smith mine, which has 28,100oz of proven reserves

Yukon-Nevada Gold has entered into a mining pact with Small Mine Developers (SMD) to restart underground mining at Jerritt Canyon in Nevada, US.

SMD's scope of work as a contract miner for the project involves resuming gold mining at the Smith mine, which has 28,100oz of proven reserves and 241,400oz of probable gold reserves.

SMD will be responsible for exploration activity requested by Yukon-Nevada to execute further delineation of the adjacent ore bodies.

The gold mining activity should have considerable cash flows for Yukon-Nevada and will be used to supplement the processing of its own ores and finance other mining work.

The results of the mining work will be shared by SMD depending on the grade and tonnage attained.

Yukon-Nevada's 100% subsidiary Queenstake Resources owns and operates the Jerritt Canyon.