Mercury Issue Closes Yukon-Nevada Roaster Again

Yukon-Nevada Gold (YNG-T, YNGFF-O) has shut down a portion of its Jerritt Canyon mine operation in Nevada yet again.

After reopening in late April, the company missed the state deadline for installing equipment that would cut the amount of mercury emissions from its roaster at the site.

The mine — which sits roughly 80 km north of Elko– had to shut down the roaster as of midnight on May 30.

Mining of gold and the processing of ore already roasted at the site, however, are continuing.

The Environmental Protection Division of Nevada ordered Yukon- Nevada to install new emission control systems by the end of 2008.

That order came after a year-long investigation into mercury emissions. The order, however, seemed to be a moot point when the company stopped operations voluntarily in August 2008 for a mixture of economic and environmental reasons.

In March of this year, the state allowed it to restart processing by complying with the state’s environmental requirements. Part of the deal was a pledge to install the mercury-control system by May 30.

Yukon-Nevada couldn’t have the equipment installed because of a delay in the fabrication of certain fiberglass ductwork necessary for the upgrade.

The ductwork should be delivered and installed before the end of June, the company says.

The new system is expected to reduce mercury air emissions to 175 lbs. per year from the 1,700 lbs. reported in 2007.

Before closing last year, the mine employed roughly 400 workers and was slated to produce roughly 2,000 oz. gold a week for the rest of this year.

Yukon-Nevada shares recently traded at 14¢ in a 52-week range of 2¢-$1.24.