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Jerritt Canyon

History

In 1972, the first gold was discovered at the Jerritt Canyon District, with the first gold poured on July 4, 1981. Open pit mining occurred between 1981 and 1999. Portal-accessed, underground mining commenced in 1993 with the SSX-Steer Complex and the Smith mine. Since mining began, Jerritt Canyon has produced over 7 million ounces of gold.

Operations

None of the Jerritt Canyon mines exceed 1,000 feet in depth measured from the elevations at their portals. Underground mining uses low-profile 6-cubic-yard load/haul/dump tractors (LHD) loading 35- and 40-ton trucks for ore removal. Ground support typically uses rock bolts and shotcrete, with cemented back-fill in mined-out areas.

All underground ore is stacked near the mine portals for grade sampling. It is then transported in 150-ton haul trucks to the mill. Due to the sulfide refractory nature of Jerritt Canyon's ore, the mill feed is dried and roasted and gold is recovered using conventional carbon-in-leach processing. High quality gold doré bars are then shipped for commercial refining and sale.

The information provided about Jerritt Canyon on this portion of the Company's website has been reviewed and approved by the Company's Senior Geologist and Qualified Person, Todd Johnson (M.Sc.).



SSX - Steer Complex


Mining Method
The drift connecting the SSX and Steer mines was completed in late 2005, and the two mines are now referred to as the SSX-Steer Complex. By providing a secondary escape way and ventilation, this connection allowed commercial production from Steer to begin in 2005. The drift also allows the SSX-Steer deposits to share infrastructure in order to optimize production. The SSX- Steer connection also enables drill platforms to explore this prospective corridor.

The SSX deposit was discovered in the early 1990s following the structural trends between the Burns Basin and California Mountain deposits. Mining commenced in 1997. The deposit occurs 450 to 1,000 feet below the surface. It has been in the last few years the main gold producer at Jerritt Canyon. The SSX deposit is primarily structurally controlled by a network of northwest (e.g. South Boundary Fault, South Saval Trend), and northeast (e.g. Purple Fault, Saval Fault) structures. The intersection of the northeast and west-northwest structural trends remain a primary target for resource expansion. The westward extension of the South Boundary Dike and the Mahala resource to the east represent exploration opportunities.

Gold mineralization in the Steer portion of the SSX- Steer Complex has been identified in an area stretching approximately 3,000 feet east from the old Steer pit to halfway along the connection drift to SSX Zone 5. In the eastern portion of the Steer area, high-grade mineralization is associated with the Husky fault. The intersection of these dikes with the Hansen III unit and the Husky fault and its related structures offer excellent exploration potential.

The following tables show 2008 underground exploration drill hole results from the SSX-Steer Complex and the Smith Mine at the Jerritt Canyon property.

Jerritt Canyon Underground Drill Hole Assay Data for Assays received before June 30th 2008
Don Colli (P.Geo.) former Manager of Mine Geology for Queenstake Resources, compiled and reviewed the aforementioned drill results table that were received before June 30, 2008. Todd Johnson, M.S., Senior Geologist with Yukon-Nevada Gold Corp. and a qualified person as defined by NI 43-101, has reviewed and verified the technical information contained in this table as applicable.

Jerritt Canyon Underground Drill Hole Assay Data for Assays Received from June 30th 2008 to April 17th 2009
The qualified person for the aforementioned data is Todd Johnson (M.S. Geology; M.S. Geological Engineering) who is the current Senior Geologist with Yukon-Nevada Gold Corp.



Smith


Mining Method

The Smith Mine, accessed via a portal from the Dash open pit, was started in 1999 as the pit was being mined out. The Smith Mine complex consists of several mineralized areas that are accessed from the Smith portal, as well as East Dash to the east that will be accessed from a separate portal in the Dash pit.

Gold mineralization in the main Smith, Mahala and West Dash deposits is associated with the northeast trending Coulee Fault and west-northwest trending faults and dikes. In Zone 1, high-grade gold mineralization is hosted in the upper and middle portions of the Hansen Creek III unit within a northwest trending horst block between the South Graben fault and the 170 fault. Mineralization in Zones 2 and 3 is directly associated with west-northwest trending dikes. High-grade mineralization occurs within the Hansen Creek II and III units along the steeply dipping dikes.

Gold mineralization in the Mahala area is spatially associated with the west-northwest trending Mahala fault and associated dikes and favorable ore-host stratigraphy, including the Hansen Creek Formation and lower beds of the Roberts Mountains Formation. Mineralization at East Mahala occurs primarily in broad, Southeast-dipping lenses in the hanging wall of the Coulee Fault.

The West and East Dash deposits occur at the ends of the west-northwest trending Dash Fault system which formed the mineralization mined in the Dash pit. The West Dash deposit occurs at the intersection of the Coulee fault and the west-northwest trending Dash fault. West Dash is accessed through the Smith Portal. The East Dash deposit lies to the east of the Dash pit and will be accessed by a separate portal in the pit. At East Dash, most gold occurs in two lenses parallel to the Dash Fault and dipping to the northeast.



Recovery Process


The mineral processing operation at Jerritt Canyon is one of only three processing plants in Nevada that uses roasting in its treatment of refractory ores. Initially, Jerritt Canyon was designed to process oxide and mildly refractory gold ores. In 1989, the roasting circuit was added to the process for the treatment of highly refractory ores which are now being mined and processed at Jerritt Canyon.

The unit operations at the Jerritt Canyon processing plant are comprised of the following circuits:

Jerritt Canyon Mill Flow Chart



Reserves & Resources

Summary


Table 1. JERRITT CANYON RESERVES
DECEMBER 2007 (April 16, 2008 43-101 Report)

Deposit/Mine

PROVEN

PROBABLE

TOTAL

K tons

oz/st

K oz

K tons

oz/st

K oz

K tons

oz/st

K oz

Smith

92.5

0.304

28.1

861.6

0.280

241.4

954.1

0.282

269.5

SSX

513.7

0.221

113.4

386.3

0.232

89.7

900.0

0.226

203.0

Saval

11.4

0.200

2.3

108.8

0.250

27.2

120.2

0.246

29.5

Starvation

-

-

-

571.6

0.282

161.3

571.6

0.282

161.3

Wright Window

-

-

-

32.6

0.226

7.4

32.6

0.226

7.4

Sub Total

617.6

0.233

143.7

1,961.0

0.269

527.0

2,578.6

0.260

670.7

 

 

 

 

 

 

 

 

 

 

Stockpiles

35.9

0.173

6.2

540.8

0.075

40.4

576.7

0.081

46.6

 

 

 

 

 

 

 

 

 

 

TOTAL

653.4

0.229

149.9

2,501.8

0.227

567.4

3,155.2

0.227

717.3


Table 2. JERRITT CANYON MEASURED, INDICATED & INFERRED RESOURCES
DECEMBER 2007 (April 16, 2008 43-101 Report)

Deposit/Mine

MEASURED

INDICATED

MEASURED & INDICATED

INFERRED

K tons

oz/st

K oz

K tons

oz/st

K oz

K tons

oz/st

K oz

K tons

oz/st

K oz

Murray

155.8

0.310

48.3

26.6

0.269

7.1

182.4

0.304

55.4

90.4

0.228

20.6

Murray Zone 9

-

 

-

211

0.277

58.5

210.9

0.277

58.5

61.6

0.209

12.9

SSX/Steer

1,815.3

0.255

462.5

746.1

0.269

200.7

2,561.4

0.259

663.2

959.2

0.236

226.6

Smith

587.7

0.303

178.0

649.1

0.256

166.1

1,236.9

0.278

344.1

534.0

0.221

118.2

Smith East

19.0

0.441

8.4

1,044.5

0.284

296.7

1,062.5

0.287

305.0

125.2

0.280

35.1

Saval

12.3

0.227

2.8

367.5

0.253

93.0

379.8

0.252

95.8

107.4

0.206

22.1

Starvation

-

 

-

697.3

0.287

1999.9

697.3

0.287

199.9

25.5

0.252

6.4

Wright Window

-

 

-

97.8

0.156

15.2

97.8

0.156

15.2

19.0

0.229

4.3

 

Other Resources:

 

Pit Resources

 

Burns Basin Pit

-

 

-

30

0.134

4

30

0.134

4

-

 

-

California Mtn. Pit

-

 

-

8

0.115

1

8

0.115

1

-

 

-

Coyote Zone 10 Pit

-

 

-

-

 

-

-

   -

20

0.104

2

Pie Creek Pit

-

 

-

190

0.157

30

190

0.157

30

28

0.142

4

Road Canyon Pit

-

 

-

149

0.143

21

149

0.143

21

74

0.131

10

Mill Creek

-

 

-

78

0.124

10

78

0.124

10

-

 

-

U/G Resources

 

 

 

 

 

 

 

          

Burns Basin

-

 

-

31

0.194

6

31

0.194

6

51

0.228

12

California Mtn.

-

 

-

32

0.377

12

32

0.377

12

9

0.330

3

Coyote Zone 10

-

 

-

45

0.212

10

45

0.212

10

3

0.184

0

MCE

-

 

-

4

0.201

1

4

0.201

1

8

0.189

1

Waterpipe II

-

 

-

-

 

-

-

  
-

37

0.206

8

West Mahala

-

 

-

197

0.218

43

197

0.218

43

130

0.206

27

Winters Creek

-

 

-

149

0.218

32

149

0.218

32

37

0.199

7

 

 

 

 

 

 

 

 

          

Sub Total

2,590

0.270

700

4,753

0.254

1,207

7,343

0.260

1,907

2,320

0.224

520

 

Stockpiles

36

0.173

6

818

0.059

48

854

0.064

54

-

 

-

 

Total All Sources

2,626

0.269

706

5,571

0.225

1,255

8,197

0.239

1,961

2,320

0.224

520

The December 2007 year-end reserve estimate was calculated using a gold price of $580 per ounce, reflecting a three-year average gold price.

The December 2007 Jerritt Canyon resources and reserves were calculated by Messrs. Donald Colli and Robert (Chip) Todd, who at the time were Manager of Mine Geology and Manager of Technical Services, respectively, under the supervision at that time by Yukon-Nevada Gold's Executive Vice President - Exploration, Dorian L. (Dusty) Nicol. These individuals are qualified persons as defined by N.I. 43-101. The work was reviewed and approved by Leah Mach and Landy Stinnett of SRK Consulting (US), Inc.. Landy Stinnett is listed as the qualified person for the December 2007 reserves listed above. SRK Consulting (US), Inc. prepared a 43-101 Technical Report, which includes these results, on April 16, 2008 which may be found at the end of this document.

Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources


This document uses the terms "measured and indicated resources". The Company advises U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves.

This document also uses the term "inferred resources". The Company advises U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "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 or other economic study. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Mineral Reserve Terminology: Canadian and U.S. Differences


The Company is organized under the laws of British Columbia, Canada. The mineral reserves and resources described here are estimates and have been prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators. The definitions of proven and probable reserves used in National Instrument 43-101 differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7.
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This page was created on Thu Sep 9, 2010 at 8:13:45 AM Pacific Time.