Hycroft Mine Has Increased Gold Measured/Indicated Resources
RENO, NV - Allied Nevada Gold Corp. reported that the infill drill program has successfully increased gold measured and indicated resources by 13% to 8.0 million ounces at the Company's wholly owned Hycroft Mine located near Winnemucca, Nevada. Silver measured and indicated resources increased 41% to 259.2 million ounces, compared with 153.1 million ounces as announced in April 2010.
After replacement of production deletion, proven and probable oxide gold reserves remain at 2.4 million ounces while silver oxide reserves increased 21% to 38.9 million ounces (174.0 million tons grading 0.014 opt Au and 0.22 opt Ag) from 32.2 million silver ounces as released in April 2010. Gold grades were consistent with the resource estimate across all categories while total silver measured and indicated grades improved 25% to average 0.45 opt compared with the previous resource estimate average of 0.36 opt. The strip ratio for the oxide proven and probable reserve decreased to 1.04:1 from 1.14:1. Allied Nevada has now completed the second phase of its infill program completing 250 holes totaling 43,300 meters in the five months ending May 31, 2010, the results of which are included in this resource estimate. A significant portion of the drilling in 2010 targeted the Vortex Zone. The primary goal of this infill program was achieved by continuing to convert resources through increased density of drill data. A focus of the remainder of the 2010 exploration program, in addition to continued resource conversion, is to further expand the overall resource base and attain further samples for ongoing metallurgical testing. Inferred gold and silver resources increased 16% to 4.5 million ounces and 33% to 286.7 million ounces, respectively from 3.9 million gold ounces and 216.3 million silver ounces announced in April 2010. The Company is working on completing a scoping study which will present an option for mining and milling oxide and sulfide mineralization concurrently based on the measured and indicated resources noted above. The previous scoping study presented a 30,000 ton per day mill. Management is now considering that a milling capacity as large as 80,000 tons per day may be a more appropriate option. It is anticipated that this work will be completed shortly. The company's address is 9790 Gateway Drive, Suite 200, Reno, NV 89521, (775) 358-4455, fax: (775) 358 4458, email: [email protected].