Yukon Gold Announces New Resource Estimate for Marg Property
Wed Jul 9, 4:31 PM- Increases Size of Indicated Mineral Resource -
TORONTO, July 9 /CNW/ - Yukon Gold Corporation, Inc. ("Yukon Gold" or the "Company")(TSX: YK.TO) (OTCBB: YGDC.OB) (Frankfurt: W8Y) is pleased to announce an updated Resource Estimate dated June 30, 2008 on the 100% owned Marg Property in the Yukon.
The Resource Estimate has been provided by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") in conjunction with the preparation of the Scoping Study Preliminary Economic Assessment commenced February 2008.
At a C$70 Net Smelter Return (NSR) cut-off the Resource Estimate is:
Indicated Mineral Resource: 4.71 million tonnes at 1.61% Copper, 3.92%
Zinc, 2.05% Lead, 51 g/t Silver, and 0.85 g/t Gold with an NSR C$/tonne
value of $103.
Inferred Mineral Resource: 1.38 million tonnes at 1.28% Copper, 3.78%
Zinc, 1.79 % Lead, 42 g/t Silver, and 0.77 g/t Gold with an NSR C$/tonne
value of $91.
In the opinion of Yukon Gold the June 30th Resource Estimate is not a material change from the previous resource estimate, (see Press Release dated August 8, 2007, and NI 43-101 Report titled "Technical Report describing Geology, Geochemistry, Geophysics, Diamond Drilling and Resource Estimation" by R.C. Carne and G. Giroux dated July 9 , 2007 and filed on www.sedar.com), and will not require a supporting NI 43-101 Report published within 45 days. Details of the updated Resource Estimate will be included as part of the upcoming Scoping Study Preliminary Economic Assessment.
The June 30th Resource Estimate incorporates the results of 7 drill holes of which 4 intersected mineralization (see Press Release dated December 5, 2007). The confidence from this extra work has contributed to an increase in the size of the Indicated Mineral Resource and reduction in the size of the Inferred Mineral Resource since the previous Resource Estimate, noted above.
The Resource Estimate June 30th used an NSR cut-off. The NSR value was estimated by Scott Wilson RPA based on assumptions for long term metal prices, metallurgical recoveries, US exchange rate, trucking costs, port costs, shipping costs, and smelter charges. The NSR does not include assumptions for mine operating costs and capitalized expense recovery. These NSR estimates should be considered very preliminary at this stage.
As announced on July 3, 2008, drilling to collect samples for metallurgical test work has started. Three of five planned holes have been completed to date. The metallurgical test work will permit the inclusion of much better estimates of recovery for each metal which may result in a revision in the fourth quarter of 2008 of the NSR values in the June 30th Resource Estimate.
As announced July 3, 2008, in addition the 2000 metres of current exploratory drilling will target the extension of higher grade zones in the Marg Deposit with the potential for resource expansion.
As a result of the potential for revision of the NSR values in the June 30th Resource Estimate in the fourth quarter of 2008, and the ongoing drilling targeting the higher grade zones in the deposit with the potential for resource expansion, Yukon Gold has asked Scott Wilson RPA to postpone completion of the Scoping Study Preliminary Economic Assessment until the Company has had the opportunity to assess the results of these initiatives.
A summary of the June 30, 2008 Resource Estimate at various NSR cut offs is tabulated below.
Scott Wilson RPA Mineral Resource Estimate June 30, 2008
Category NSR Tonnes % Cu % Zn % Pb g/t Ag g/t Au NSR
Cut-off Millions C$/
tonne
Indicated $60 5.59 1.52 3.70 1.94 48 0.80 97
Indicated $70 4.71 1.61 3.92 2.05 51 0.85 103
Indicated $80 3.75 1.71 4.19 2.20 54 0.92 110
Indicated $90 2.89 1.83 4.45 2.35 58 0.99 117
Inferred $60 2.20 1.14 3.39 1.89 38 0.65 81
Inferred $70 1.38 1.28 3.78 1.79 42 0.77 91
Inferred $80 0.85 1.35 4.14 1.99 46 0.92 100
Inferred $90 0.54 1.45 4.46 2.14 50 1.05 109
Notes: 1. The classification of mineral resources follows CIM
Definition Standards.
2. Mineral resources have been estimated by kriging into blocks
constrained by wireframed mineralized lenses.
4. NSR values are based on assumed metallurgical recoveries of
60% for Cu, 80% for Zn, and 60% for Pb; and on metal prices of
US$2.50 for Cu, US$0.90 for Zn, US$0.70 for Pb, US$13.50 for Ag
and US$800 for Au; and foreign exchange of C$1.00=US
$0.90.
About Yukon Gold
Yukon Gold Corporation, Inc. (Yukon Gold) explores and develops mining properties with a commitment to moving projects towards production. Yukon Gold's 100% owned Marg Deposit is an advanced stage copper/lead/zinc/silver/gold deposit in the Tombstone Belt in Yukon, Canada. Currently there are 28.9M of the Company's common shares outstanding.
The technical information in this Press Release has been reviewed by Dr. William Roscoe, P.Eng., President of Scott Wilson RPA and a Qualified Person and by Gary Cohoon, P.Geo., Vice President, Exploration, of Yukon Gold and the Company's Qualified Person for the ongoing drilling program.
Company Website: www.yukongoldcorp.com
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Cautionary Note to US Investors - The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The reader is cautioned that the terms "resource," "indicated" and "inferred" are not terms recognized by SEC guidelines for disclosure of mineral properties. Generally, "indicated" and "inferred" estimates do not rise to the level of certainty required by SEC guidelines. The mineralized material described above is not considered a "reserve" as that term is used in the mining industry and in SEC disclosure guidelines. The Company must undertake a feasibility study before it can estimate the value of the Marg Deposit. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 000-51068. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.
ContactsYukon Gold Corporation
Inc.
Cletus Ryan
VP Corporate Development
(416) 865-9869 or 1-800-295-0671 x12
Email: cryan@yukongoldcorp.com
Website: www.yukongoldcorp.com
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