Allied Nevada Initiates Milling and Oxidation Pilot Plant Study

RENO, NV - Allied Nevada Gold Corp. has completed the second phase of its ongoing metallurgical test program for onsite oxidation and processing of sulfide concentrates at Hycroft. The encouraging results from the first and second phases of testing, including preliminary capital and operating cost evaluations, have led Allied to initiate a pilot plant level study at a third party laboratory.

The second phase test program focused on further evaluation and optimization of Ambient Pressure Alkaline Oxidation (AAO) on Hycroft rougher concentrate. The goals of this second phase were to: confirm first phase test work results; establish operating parameters; and provide an initial capital and operating cost model. Bench scale testing of AAO indicated that oxidation and leaching of rougher concentrate, using trona (a mixture of sodium carbonate and sodium bicarbonate) as the pH modifier, resulted in similar recoveries that had been achieved during the first phase.

Randy Buffington, President and CEO said, We have initiated the pilot plant study at this time at a third party laboratory. The study will include constructing a pilot plant to simulate the process flow sheet in a continuous circuit including grinding, flotation to create a rougher concentrate, oxidation and leaching. The goal of this stage is to firm up operating parameters, establish equipment requirements and further refine operating and capital requirements for the oxidation plant. The pilot plant is expected to be completed by the end of the first quarter of 2014. M3 Engineering & Technology (M3) will use the results of the oxidation test work, capital and operating cost review and pilot plant program to develop an updated prefeasibility study.

Ambient pressure oxidation (AAO) is a common pretreatment method for oxidizing certain refractory ores, prior to the cyanide leaching step, and has been used successfully for a number of years in the precious metals industry. There are various manifestations of the process, including the Albion process and AAO, which have been or are currently in operation globally.

AAO, as it is intended to be applied in the concentrate oxidation process for Hycroft, involves using oxygen enriched air and heat generated from the oxidation process to oxidize the concentrate in an ambient pressure environment using trona to provide the alkaline environment and to neutralize the acid that is created during the oxidation process. Other neutralizing agents were tested, all showing positive results. Trona was selected because it is a relatively inexpensive neutralizing agent and enhances sulfide oxidation. The carbonate in the trona solution keeps the sulfide surfaces clean during oxidation, improving the oxidation rate compared to other neutralizing agents referred to as the (carbonate effect). Trona has the added benefit of being the most cost-effective option due to its availability and proximity to Hycroft. The largest known trona source in the world is situated in Green River, Wyoming, with readily accessible transportation lines to Hycroft. For the Hycroft concentrate, testing has shown that AAO using trona and either oxygen or oxygen-enriched air provides the necessary sulfide oxidation to achieve the desired gold recovery. Oxygen (or oxygen-enriched air) is a less expensive oxidant than either chlorine or hydrogen peroxide that has been used elsewhere in other AAO circuits.