Yukon Nevada Gold Corp said its quarterly profit rose five-fold due to higher production and a gain on warrants, and it expects to achieve production run rate of 150,000 ounces by end of 2011.
The company recorded a $36.6 million gain in warrants recorded as derivative liabilities.
April-June net income rose to $22.9 million from $4.5 million a year ago.
The Vancouver-based company -- which owns silver, gold, zinc and copper assets in Canada's Yukon territory and British Columbia and in Nevada, U.S. -- produced 22,168 ounces of gold, compared with 18,441 ounces, a year ago.
During the year ended Dec. 31, 2010, a total of 86 exploration diamond drill holes were completed at the the company's Ketza River Project.