TORONTO, April 21, 2005 (PRIMEZONE) -- Yukon Gold Corporation, Inc. ("Yukon Gold"), (OTCBB: YGDC) today announced that it has tendered a formal bid proposal to acquire the assets of United Keno Hill Mines Ltd. and UKH Minerals Ltd. ("UKHM"), formerly one of North America's largest silver producers, located in the Mayo Mining District, Yukon Territory.
The bid proposal has been submitted by Yukon Gold to PricewaterhouseCoopers Inc. ("PWC") who are acting as the court appointed receiver to oversee the sale of the UKHM assets. These assets include 34 former producing silver mines and full infrastructure covering an area of 57 square miles.
Historically, the UKHM property has produced 213 million ounces of silver, 716 million pounds of lead and 436 million pounds of zinc during its operation from 1913 to 1989. More than 65 mineral deposits and prospects have been identified within the UKHM property. The Central Quartzite Horizon, the major mineral bearing stratagraphic unit, has a 10-mile strike length and an average thickness of 2,300 feet. Exploration to date has been concentrated near surface, with less that 20% of the Central Quartzite having been systematically explored. Based on a feasibility study by Rescan Engineering in 1996, the calculation of geological reserves total 956,792 tons, grading 29.87 o.p.t. silver, 5.26% lead and 4.75% Zinc. If the Company is successful in acquiring the UKHM assets, it plans to immediately proceed with permitting to return the property to production at the earliest possible date
Conditions of the sale provide for the purchaser to be indemnified from all historical, environmental and reclamation liabilities.
Terms of the sale will not be announced until a successful bidder is selected which is anticipated to be on or about June 14.
About Yukon Gold
Yukon Gold Corporation, Inc. is an active and progressive public junior 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 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.