Yukon-Nevada Gold's Closed Nevada Mine Posts $20M Losses

Vancouver, British Columbia (AHN) - Yukon-Nevada Gold Corp. announced Friday that it has closed Jerritt Canyon Mine in Elko County, Nevada after posting losses amounting to $20 million in the first half of the year.

The Vancouver, British Columbia-based mining company reported that it lost $5.7 million in the first quarter and $14.6 million in the second quarter.

The losses, which led to the mine's closure early in the month, were a result of a two-month shutdown of the mill at the mine. The mill was decommissioned due to a malfunction in the drying circuit.

Also, Yukon-Nevada stopped mining operations over environmental concerns and low production.

The company received a stop order from the Nevada environmental protection agency early this year over concerns on mercury pollution.

Production was also low at 14,291 ounces in the first quarter and 9,094 the following quarter.

A total of 400 workers were laid off with the closure of the Jerritt Canyon property.

Yukon-Nevada has mining operations in Yukon Territory and British Columbia in Canada and in Arizona and Nevada in the United States. It produces gold, silver, zinc and copper.