TORONTO, Oct. 11, 2005 (PRIMEZONE) -- Yukon Gold Corporation, Inc. ("Yukon Gold") (OTCBB:YGDC) is pleased to announce the commencement of a 1,500 metre diamond drill program on its 100% owned VMS Deposit, designed to increase tonnage and upgrade a significant portion of the Inferred Resource to the Indicated Resource category. To date, 135 massive sulphide intercepts in 85 diamond drill holes totaling 23,000 metres have outlined four (4) polymetallic massive sulphide horizons in a 100 metre thick quartz-sericite structure.
Based on an updated revision to the resource model for the Marg Deposit and studying grade-thickness intervals within the Inferred Resource, there is an opportunity to greatly expand the Indicated Resources at Marg. Currently, the drill indicated resource at the Marg Deposit is 5,527,000 tonnes, grading 1.76% Copper, 2.46% Lead, 4.6% Zinc, 63g/t silver and 1 g/t gold. Given the size of the mineralized zones and grade-thickness, there is further potential that this drilling could intersect grades above the average for the Indicated Resource.
Archer Cathro & Associates, a consulting engineering firm offering contract mineral development and exploration services for mining companies will oversee the drilling program on the Marg Deposit. Results from the drilling will be published as they are made available and reviewed by Yukon Gold's management team.
Yukon Gold CEO, Warren Holmes, commented on the fall drill program stating: "We have identified areas within the resource model where potential exists to increase the Indicated Resource at Marg. We are targeting an area where a significant increase in resources may be present and if successful, this program should enhance the economics of the Marg Deposit and the overall value of Yukon Gold."
The Marg Deposit (Cu-Pb-Zn-Ag-Au)
The Marg deposit consists of a series of continuous to discontinuous sheets of massive and semi-massive sulphide mineralization. The massive sulphide horizons are up to 23 metres thick and have been traced along a strike length of 1200 metres and up to 700 metres down dip. The horizons remain open to extension at depth and along strike. Up to eight sulphide sheets can occur on a single section although most of the mineralization occurs within four sheets (Zones A-D). The resource classified in accordance with NI 43-101 is stated in the table below:
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Zone Classification Average Tonnes Copper% Lead%
Thickness
(m)
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A Indicated 4.8m 57,605 1.93 3.56
Inferred 75,413 0.68 0.96
B Indicated 3.7m 785,497 1.70 2.21
Inferred 80,548 1.46 2.22
C Indicated 8.6m 1,459,564 1.60 2.45
Inferred 289,330 1.90 2.10
D Indicated 5.1m 2,343,521 1.95 2.75
Inferred 435,488 1.48 1.88
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Total Indicated 6.0m 4,646,200 1.80 2.57
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Total Inferred 6.0m 880,800 1.55 1.90
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Zone Classification Average Zinc% Silver g/t Gold g/t
Thickness
(m)
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A Indicated 4.8m 6.33 105.14 1.93
Inferred 2.10 35.22 0.45
B Indicated 3.7m 4.08 61.90 0.90
Inferred 4.34 53.29 0.87
C Indicated 8.6m 4.31 73.41 1.21
Inferred 3.95 60.04 1.26
D Indicated 5.1m 5.26 59.97 0.85
Inferred 3.80 46.12 0.85
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Total Indicated 6.0m 4.77 65.08 0.99
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Total Inferred 6.0m 3.75 50.42 0.95
About Yukon Gold
Yukon Gold Corporation, Inc. is an active and progressive public exploration and development company trading on the Nasdaq OTCBB under the symbol "YGDC". The Company's main focus is its newly acquired VMS deposit (Marg Property) and its Mount Hinton gold and silver exploration project in the Central Yukon Territory of Canada. These properties lie within the Tombstone Gold Belt, world renowned for the discovery of major gold and base metal deposits. Within immediate proximity to the Company's Projects are a number of idle, former producing mines and drill indicated resources which Yukon Gold plans to target for acquisition. Currently, there are approximately 10.25 million of the Company's common shares outstanding.
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.