TORONTO, June 29, 2005 (PRIMEZONE) -- Yukon Gold Corporation, Inc. ("Yukon Gold") (OTCBB:YGDC) today announced that it is in receipt of an independent National Instrument 43-101 (NI 43-101) compliant report that describes historical mineralization assessment, drill indicated and inferred resources and exploration geology of the Marg Property, Yukon Gold's Volcanogenic Massive Sulphide Deposit, located in the Mayo Mining District of the Yukon Territory.
The Marg Deposit Technical Report is authored by Peter Holbek, M.Sc., P.Geo. of Viking GeoScience, a qualified person. The report is available in its entirety on Yukon Gold's website. A summary of this report follows:
Mineralization
The Marg deposit consists of a series of continuous to discontinuous sheets of massive and semi-massive sulphide mineralization. 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%
Thickness(m)
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A Indicated 4.8m 57,605 1.93
Inferred 75,413 0.68
B Indicated 3.7m 785,497 1.70
Inferred 80,548 1.46
C Indicated 8.6m 1,459,564 1.60
Inferred 289,330 1.90
D Indicated 5.1m 2,343,521 1.95
Inferred 435,488 1.48
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Total Indicated 6.0m 4,646,200 1.80
Total Inferred 6.0m 880,800 1.55
Continued:
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Zone Lead% Zinc% Silver Gold
g/t g/t
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A 3.56 6.33 105.14 1.93
0.96 2.10 35.22 0.45
B 2.21 4.08 61.90 0.90
2.22 4.34 53.29 0.87
C 2.45 4.31 73.41 1.21
2.10 3.95 60.04 1.26
D 2.75 5.26 59.97 0.85
1.88 3.80 46.12 0.85
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Total 2.57 4.77 65.08 0.99
Total 1.90 3.75 50.42 0.95
It is estimated that an additional 15-18 drill holes would be required to upgrade the inferred resources to the indicated category. It is highly probable that these holes would also increase the overall size of the deposit.
Results
The four massive sulphide zones have been termed 'A' through 'D' with 'A' being the footwall or lowermost zone and 'D' being the hangingwall or uppermost zone. Tonnage and grades for selected polygons have been compiled by zone.
Zone 'A' is a discontinuous band of mineralization that has been trace over a 1,200 metre strike length by 17 drill intercepts. Length weighted average grades for these intercepts are 0.90% Cu, 1.43% Pb, 2.81% Zn, 40.6 g/t Ag and 0.50 g/t Au over 2.8m. Only 6 polygons meet the requirements to be included in the resource estimate and when a CNSR $40 cut-off grade is applied, only two polygons are included.
Zone 'B' is 800 m long and is defined by 32 drill intercepts averaging 1.41% Cu, 1.92% Pb, 3.70% Zn, 53.9 g/t Ag, and 0.69 g/t Au over a 2.5 m thickness. The eastern lobe of this crescent shaped horizon displays good continuity, at least relative to the underlying 'A' zone, for some 600 metres. Application of the thickness, grade and continuity constraints results in only 12 of the intersection polygons contributing to the resource estimate.
Zone 'C' extends for 1,100 m along strike and up to 500 m in the down-dip direction with 34 drill intercepts averaging 1.40% Cu, 2.33% Pb, 3.85% Zn, 53.0 g/t Ag and 1.08 g/t Au over 4.5 metres. Some anomalous thicknesses, up to 22.9 m, and elevated precious metal contents distinguish this zone from the others. Drill-hole 88-02 contains 319 g/t Ag and 1.71 g/t Au which are highly anomalous. Because this hole is very close to surface the high precious metal contents could be due to supergene enrichment or to oxidation of the sulphide minerals and loss of Fe and S and corresponding mass loss as suggested by very low copper and zinc values (0.26 and 0.02, respectively). Seventeen of the 34 polygons exceed the grade, thickness and continuity criteria and comprise 4 separate zones, although 3 zones are semi-continuous. One polygon in this zone accounts for nearly 25% of the contained tonnes and therefore tends to skew the average thickness upwards.
Zone 'D' is the most continuous of the zones and extends for 1,200 m along strike and up to 650 m in the down-dip direction. There are 52 drill intercepts with an average grade of 1.87% Cu, 2.55% Pb, 4.67% Zn, 45.8 g/t Ag, and 0.87 g/t Au. Of the 52 intercepts, 32 polygons met the selection criteria and form a nearly continuous zone 600 m long and 300 m down-dip with only a few outliers. This zone contains 50.3% of the total estimated resource and remains open to expansion.
Author Interpretation & Conclusion:
Exploration potential within the Marg property is high. Recognition of the structural style of the sheath folds allows the prediction of the location of prospective stratigraphy in the sub-surface. Mapping and prospecting have discovered structural repetitions of the VMS host stratigraphy that contain sulphide occurrences, such as the Leyla zone, which highlight the potential for discovery of new zones of massive sulphide mineralization. The previously discovered Jane zone, (on the Marg Property) is hosted by the strike extension of the Marg deposit host rocks, and thickness of the volcanic package and the intensity of alteration appears to be significantly greater than that present in the Marg area, presenting a very attractive exploration target. The Marg deposit is open to expansion in most directions, however, geological and lithogeochemical data do suggest that the centre of the deposit is up-dip, to the east and has been eroded. The tendency for VMS deposits to cluster, as well as potential for structural repetitions, suggests that the rock sequence hosting the Marg deposit remains highly prospective down-dip and to the west. Deep penetration geophysics or bore-hole geophysics could play a significant role in exploring this favourable stratigraphy.
Indicated & Inferred Resource Value:
Copper 214,452,973 lbs $349,558,346
Lead 299,746,769 lbs $134,886,046
Zinc 560,502,088 lbs $313,881,169
Silver 11,066,715 oz $ 80,233,684
Gold 195,871 oz $ 86,183,324
U.S. (see note)$ 964,742,569
CDN $1,157,691,082
At current metal prices, this mineralized zone at Marg has an in-situ value of in excess of US $900 Million without any further exploration.
The Marg Property has excellent potential for increased tonnage as the existing resource is open to depth and long strike in both directions. The separate Jane zone also offers potential for discovery of a second resource.
Note: Total in-ground resources and current values based on US$ Copper $1.63 lb, Lead $0.45 lb, Zinc $0.56 lb, Silver $7.25 oz., Gold $440.00 oz. as of June 24, 2005. These amounts are before metallurgical loss and costs of recovery.
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.