Veris Gold Corp. (VG)

[basserdan]

Yukon-Nevada Gold Corp. Drills 26.23 m Grading 11.45 g/t Au at Jerritt Canyon, Nevada

VANCOUVER, Aug. 2, 2012 /CNW/ - Yukon-Nevada Gold Corp. (TSX: YNG; OTC: YNGFF) (Frankfurt Xetra Exchange: NG6) is pleased to announce assay results from its ongoing 2012 underground drilling program at the Jerritt Canyon gold operation in Nevada, USA. Jerritt Canyon is operated by Queenstake Resources USA, Inc., ("Queenstake") a wholly-owned subsidiary of Yukon-Nevada Gold Corp. ("YNG" or the "Company").

HIGHLIGHTS

•SMI-LX-787 intersected 3.66 meters at 26.13 g/t

•SMI-LX-796 intersected 9.45 meters at 5.28 g/t

•SMI-LX-813 intersected 10.67 meters at 6.31 g/t

•SMI-LX-814 intersected 26.23 meters at 11.45 g/t

•SMI-LX-815 intersected 16.77 meters at 5.62 g/t

Thirty seven diamond core drill holes (SMI-LX-783 thru LX-819) totaling 31,668 ft. (9,659 m) have been completed at the Smith Mine during the period November 1, 2011 to July 31, 2012. Twenty-nine drill holes totaling 23,081 ft. (7,040 m) are categorized as exploration drilling while the remaining eight drill holes constitute resource conversion drilling.

Todd Johnson, VP Exploration for YNG, states that, "Resource conversion and exploration drilling is integral to support mine planning and development. The excellent assay results reported here continue to demonstrate the opportunities to discover and delineate additional mineralization both proximal to and within existing mine(s) infrastructure in support of short and long term mine production goals."

William Hofer, Chief Geologist for Jerritt Canyon, states, "The Zone 5 resource conversion drilling presented an excellent opportunity to quickly convert approximately 20,000 ounces of gold to a reserve classification. The initial excellent assay results give confidence that this drilling could result in reserve development exceeding that of the resource estimate. These ounces are proximal to existing underground development and are relatively near to the Smith Mine portal which will contribute to efficient production to be scheduled for the second half of 2013."

Resource Conversion

Zone 3:

SMI-LX-783 was the final resource conversion hole drilled in 2011. This drill hole intended to test for mineralization along the southeasterly strike of the Zone 3 mineralized trend. SMI-LX-783 was designed to further off-set mineralization intersected in earlier drill holes SMI-LX-750 through SMI-LX-752 whose results were reported in previous YNG news releases dated January 24, 2011 and September 7, 2010.

Significant assay results from SMI-LX-783 are highlighted by 18.0 ft. (5.49 m) assaying 0.151 opt (5.18 g/t). All significant assay results, for SMI-LX-783, are listed in Table 1.

(Click on link at bottom to view Table 1)

Zone 5:

A hiatus in resource conversion drilling occurred during the period December 2011 through April 2012 as a result of logistics related to mine production. In May a drill platform became available in Zone 5 and resource conversion drilling recommenced. A planned fourteen drill hole program was initiated targeting the conversion of inferred and indicated resources (as documented in the April 27, 2012 NI 43-101 located on the YNG website here: http://www.yukon-nevadagold.com/s/TechnicalReports.asp totaling approximately 20,000 ounces of gold

To date seven drill holes have been completed (SMI-LX-813 through SMI-LX-819) and assay results have been received from the first three drill holes. Significant assay results are listed in Table 2 and highlighted by drill hole number SMI-LX-814 that encountered 86.0 ft. (26.23 m) assaying 0.334 opt (11.45 g/t) and drill hole number SMI-LX-815 that encountered 55.0 ft. (16.77 m) assaying 0.164 opt (5.62 g/t).

(Click on link at bottom to view Table 2)

Exploration

Zone 4:

During the period December 2011 through April 2012 an exploration drill program was conducted targeting a 1,200 ft. (366 m) X 1,000 ft. (305 m) area lying between mining zones 3 & 4. This area is essentially void of historic drill holes. The program was designed to test for mineralization occurring along potential sympathetic structures parallel to those structures controlling the mineralization in Zones 3 and 4.

Twenty-nine drill holes (SMI-LX-784 through SMI-LX- 812) totaling 23,081 ft. (7,040 m) have been completed. Fourteen drill holes (SMI-LX-784 through SMI-LX-797) have been sampled and assayed. Sampling is pending for the remaining drill holes as priority has been placed upon sampling Zone 5 resource conversion drill core.

Significant assay results received to date from Zone 4 are listed in Table 3 and highlighted by drill hole numbers SMI-LX-787 that encountered 12.0 ft. (3.66 m) assaying 0.762 opt (26.13 g/t), and SMI-LX-796 31.0 ft. (9.45 m) assaying 0.154 opt (5.28 g/t).

(Click on link at bottom to view Table 3)

Cross sectional and plan view maps illustrating the drilling and significant assay results for Zones 3, 4, & 5, reported upon in this news release, can be found on the Company website here at http://www.yukon-nevadagold.com/i/pdf/Smith_Mine_2012_UG_maps.pdf

A table summarizing all of the assay results received to date, and reported upon in this news release, can be found on the Company website here at http://www.yukon-nevadagold.com/i/pdf/Smith_Mine_2012_UG_drill_assay_results.pdf

Assaying of all samples from the 2011 surface drill program reported in this news release were conducted by ALS Laboratory Group in Reno, Nevada using standard fire assay techniques. Assay intercepts are reported as drilled. True widths have not yet been calculated; given the geometry of the mineralization at Jerritt Canyon, the concept of true width is not always meaningful before delineation drilling has been completed. 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 information in this news release was compiled and reviewed by William Hofer B.Sc., Chief Geologist, Jerritt Canyon Mine. The information contained in this news release has been reviewed and approved by the Company's Vice President of Exploration, Todd Johnson, M.Sc. (Qualified Person per the requirements of NI 43-101).

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.
Website: http://www.yukon-nevadagold.com

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Yukon-Nevada Gold Corp.

For further information:

Yukon-Nevada Gold Corp.
Richard Moritz
Senior Director, Institutional Investor Relations
Tel: [phone]
Email: [e-mail]

Nicole Sanches
Investor Relations Manager
Tel: [phone] ext 224
Email: [e-mail]
www.yukon-nevadagold.com

http://www.newswire.ca/en/story/1015673/yukon-nevada-gold-corp-drills-26-23-m-grading-11-45-g-t-au-at-jerritt-canyon-nevada