Vancouver – Around 240 miners are out of work at Yukon-Nevada Gold‘s (YNG-T) Smith and SSX mines at its Jerritt Canyon project in northeastern Nevada.
Yukon-Nevada announced the same day it had contracted Small Mine Developers to continue work at the Smith mine.
In a statement Yukon-Nevada president and CEO Graham Dickson says that “with our present mining plan our underground operations were not showing the profitability needed to continue or to expand our mining operations.”
Company spokesperson Nicole Sanchez says that since Yukon-Nevada isn’t releasing Q2 results until Thursday, she can’t say whether the company was taking a loss.
At Jerritt Canyon Yukon-Nevada has 3.2 million proven and probable tonnes grading 6.4 grams gold per tonne. The SSX and Smith deposits each hold about a third of the reserve.
The news pummeled Yukon-Nevada’s share price, dropping it 24% to close at 41.
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