VANCOUVER — The ongoing shutdown of its Jerritt Canyon mill in Nevada gouged into Yukon-Nevada Gold’s (YNG-T, YNGFF-O) bottom line during the second quarter.
Yukon-Nevada reported a net loss of US$7.7 million for the period ending June 30, up from a loss of US$5.2 million in the first quarter of 2009. The loss extended to six the number of consecutive quarters Yukon-Nevada has posted losses, the largest of which was US$77.2 million in last year’s third quarter.
The latest shortfall bled Yukon- Nevada’s cash and equivalents to the precipitously low level of US$1.5 million.
Gold sales were down 40% from the first quarter due to the May 30 shutdown of its Jerritt Canyon mill, about 80 km north of Elko.
Yukon-Nevada had to flip the switch at the mill as the Nevada Department of Environmental Protection had required it to complete an upgrade of its mercury emissions control system at the Jerritt Canyon roaster by May 30. An unfortunate delay in the manufacture of equipment needed to complete the operation, however, meant Yukon- Nevada could not comply on time.
While Yukon-Nevada has since finished the upgrade, which will significantly reduce air emissions of mercury, the company is now working through the process of getting a restart order.
Stop-and-go’s have plagued the Jerritt Canyon operation over the years. In 2008, Yukon-Nevada shuttered Jerritt as mining and milling costs were escalating.
On the quarterly results, Yukon- Nevada’s share price held steady at 12¢. The shares have traded between 2¢ and 25¢ during the past 12 months.
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