Wolverine Review and Optimization Study Under Way
Yukon Zinc Corporation (TSX.V – YZC) is pleased to provide an update on the Company’s plans for review and optimization of the May 2006 Feasibility Study completed by Hatch Ltd. (see May 9, 2006 news release). The review and optimization study is being undertaken to evaluate opportunities for reduction of operating and capital costs and identifying operating improvements to increase cashflow for the proposed operations. The review and study is intended to provide clarity for investors as to development and operating costs, production output and project economics. The new plan for advancing these studies has been developed by Yukon Zinc’s development team that is led by the recently appointed Chief Operating Officer, Mr. Raymond Mah.
The plan has been assembled by Yukon Zinc Corporation with the input of external consultants and discussions with Macquarie Bank Ltd., our project debt lead arranger (see December 19, 2005 news release). The plan is to complete the review by late fall of 2006 and revise the feasibility with the findings of the work underway. Yukon Zinc has engaged Wardrop Engineering to undertake the review and revision of the feasibility study and provide overall technical due diligence and preparation of the new feasibility report. A peer review of previous metallurgical work as well as a program of confirmatory metallurgical test work are in progress to confirm the relevant recovery and concentrate quality information. Yukon Zinc has also issued requests for definitive contracts for the purchase of zinc, copper and lead concentrates from Wolverine that will provide near term certainty on treatment and smelting terms, penalties and other deductions for inclusion in economic evaluation of the project. The resource and reserve model is also under review to determine the feasibility of expanding the mining and milling rate to provide increased concentrate production. Regulatory review of the Wolverine Environmental Assessment Report is nearing completion and the Company remains optimistic that it will receive the first of its key development permits shortly. The revised and optimized feasibility will form the basis for consideration of project economics and project financing opportunities.
The study will also provide a new development plan and schedule for mine construction and commissioning. President and CEO, Harlan Meade states: ”We are pleased with the plan developed for the review and optimization study being pursued by the development team and are confident that the optimized feasibility study will provide a stronger base and increased confidence for making decisions with respect to project financing and a production decision for the Wolverine Project.” Yukon Zinc is a base-precious metal exploration and development company that is focused on the development of the precious metal rich Wolverine zinc-silver-copper-lead-gold deposit as the first mine development project in the emerging Finlayson Massive Sulphide District in south central Yukon. -30- Cautionary Note Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains ”forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as ”plans”, ”expects”, ”budget”, ”scheduled”, ”estimates”, ”forecasts”, ”intends”, ”anticipates”, ”believes”, or variation of such words and phrases that refer to certain actions, events or results to be taken, occur or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Yukon Zinc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, as well as those other factors common to the mining industry as discussed under ”Risk Factors” in Yukon Zinc’s Annual Information Form for the year ended December 31, 2005.
In particular, there is no certainty that capital will be available sufficient to meet the amounts required to place the Wolverine property into production or that the economic evaluations and/or findings of the revised feasibility study will be acceptable to the lending institutions and other investors. Similarly there can be no assurance that future prices of commodities will be attractive or that satisfactory concentrate sales agreements can be secured. Although Yukon Zinc has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in Yukon Zinc’s other filings incorporated by reference.
For more information contact:
Dr. Harlan Meade, President and CEO Shae Dalphond, Manager Investor Communications Telephone: (604) 682-5474 Toll-free: 1-877-682-5474 Facsimile (604) 682-5404 International Toll-free 800-8682-5474 info@yukonzinc.com
www.yukonzinc.com
