Yukon Nevada says resource estimate for Jerritt Canyon has been revised down from May 2011

VANCOUVER - Yukon-Nevada Gold Corp. (TSX:YNG) has reduced the resource estimates for its Jerritt Canyon gold mining operation in Nevada from what the company announced last spring, saying it used a different method to analyse the data.

The revised numbers suggest there may be less economically extractable gold than previously thought at the operation in Elko County, Nevada, although the impact would be cushioned if the precious metal's value continues to be strong.

The new measured and indicated mineral resource is 21 per cent higher than one done in 2007 but lower than a resource estimate announced last May, which was 30 per cent above the 2007 estimate.

Yukon-Nevada's latest estimate includes a measured resource of 1.07 million ounces, an indicated resource of 1.32 million ounces and an inferred resource of 0.75 million ounces.

Last May, the company announced Jerritt Canyon had 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.

Measured resources are considered more reliable than indicated or inferred resources. However, additional work is usually required to classify the resources as proven or probable reserves, which have a demonstrated economic viability.

The company said that a reserve estimate issued in June 2011 remains essentially intact at about 717,000 proven and probable ounces of gold.

It said the revised resource estimate will be included in a technical report being prepared in compliance with Canadian mining standards known as NI 43-101.

Yukon-Nevada said the resource estimates announced on Friday were lower because they used a more consistent methodology and a more critical review of other resources in the previous technical report.

It said some underground resources were excluded from the latest estimate "since the present authors did not verify the old models."

The new estimates were issued after markets closed Friday. Yukon-Nevada stock closed at 26.5 cents on the Toronto Stock Exchange.