Yukon-Nevada Gold Corp. - Ketza Shamrock - Drill Results

Projects Overview Jerritt Canyon Ketza River Manto Zone

Technical Report

Ketza Shamrock Silver Valley Property Wolf Property Money Property

Yukon-Nevada Gold Corp.
490-688 West Hastings Street
Vancouver BC V6B 1P1
Canada

Tel: 604.688.9427
Fax: 604.688.9426
Email: nicole@yngc.ca

Drill Results

The diamond drilling at the Shamrock has encountered low grade gold values in mineralized quartz-sulphide vein stock work and breccia zones over significant widths in widely spaced drill holes. The drill holes have provided a stratigraphic section of the 1a map unit. The unit is composed of a sequence of clastic and carbonate bearing sedimentary rocks. The lowermost unit appears to be a carbonaceous well foliated argillite that is overlain by thick bedded light coloured quartzite/sandstone interbedded with lesser amounts of argillite and siltstone. The quartzite unit is overlain by thin well bedded grey argillite and light coloured siltstone with lesser quartzite. Calcareous siltstone and thin bedded limestone overlies the argillite/siltstone which in turn is overlain by a repeated sequence of quartzite and phyllite.

Carbonate alteration, calcite veining, calcareous beds and limestone have been intersected throughout the sequence. This suggests that carbonate has been locally remobilized possibly as a result of de-calcification of the carbonate rich units that are occasionally strongly silicified and gold bearing. Quartz - sulphide veins accompanied by silicification have been intersected in drill holes with thick feeder veins of quartz breccia (10 - 20 metres) in several drill holes.

Gold occurs with quartz veins containing oxidized or sulphide mineralization. The quartz breccias tend to form well defined steeply dipping planar veins cross cutting the stratigraphy with associated stock work veins in the thick bedded competent quartzite (breccia in filling) and argillite (anastomosing veins). The carbonate horizons are the most strongly silicified with small amorphous type quartz-sulfide veining.

Gold grades appear to be enriched in the partially oxidized near surface quartz veins and breccias. Hole # 558 intersected 9.15 metres grading 3.72 g/t between 40 and 48 metres depth. Quartz sulphide mineralization averaged 1.58 g/t over 9.5 metres 40 metres below the upper intersection. A thick quartz vein with 60 % massive arsenopyrite and pyrite in drill hole # 562 yielded an assay of 2.6 g/t over 1.1 metres near the 200 metre depth in carbonaceous argillite. Hole #566 drilled 20 metres north of the RC-3 hole intersected multiple low grade gold zones which when combined total 56.5 metres grading 1.83 g/t. Hole # 568 which is a further step out to the north intersected a broad low grade stock work zone which assayed 0.42 g/t over 39 metres. Hole #571 yielded only very low grade assays from intervals of silicified carbonate beds. Hole #572 intersected a 20.5 metre interval of mineralized quartz-arsenopyrite breccia which averaged 0.99 g/t gold and a vein stock work zone averaging 1.88 g/t gold over an interval of 16.5 metres.

Near the centre of the Shamrock, at the 3M occurrence drill holes intersected a quartz-sulphide vein stockwork zone grading 2.36 g/t gold over 12.0 metres (#575) and 3.3 g/t gold across 6.0 metres (#578). The intersections are approximately 50 metres apart on the same horizon east of a major northwestly trending quartz-scorodite vein structure. This appears to be the same feeder vein intersected in drill hole #572.

On the North Face a vertical drill hole (#576) intersected an altered and mineralized vein stockwork zone that assayed 3.3 g/t over 7.5 metres.