Hycroft Combined Mineral Reserves and Resources Double
RENO, NV - Allied Nevada Gold Corp. reported that the Hycroft Mine located near Winnemucca, Nevada has doubled combined minerals reserves and resources. Measured and Indicated Mineral Resources, when combined with Mineral Reserves, increased 101% to 16.1 million ounces of gold and 131% to 598.1 million ounces of silver, totaling 26.6 million ounces of gold equivalent (1.5 billion tons grading 0.011 opt gold, 0.39 opt silver, or 0.017 opt gold equivalent). Proven and Probable gold and silver Reserves increased 7% to 2.6 million ounces of gold and 27% to 49.3 million ounces of silver (196 million tons grading 0.013 opt gold, 0.25 opt silver and 0.017 opt gold equivalent).
Updated Mill Scoping Study indicates average annual production of 556,200 ounces of gold and 27.0 million ounces of silver at a cost of sales of $304 per gold ounce throughout the initial 10 year concurrent operation of the heap leach and mill, with: An improved milling process flowsheet; An initial capital cost of $894 million, which includes mill construction, mobile equipment purchases and general infrastructure. "This Resource update provides strong support for the Hycroft Mill Scoping Study and upcoming initial feasibility study and sustains the Company's confidence in Hycroft as having significant potential for a long-term mine life," said Scott Caldwell, President & CEO. "We believe that the completion of the initial feasibility study will result in the conversion of a majority of these Measured and Indicated Mineral Resources to the Proven and Probable categories." The current Mineral Resource, when combined with the Proven and Probable Mineral Reserves, increased 101% for gold and 131% for silver, when compared with the Measured and Indicated Mineral Resource update (inclusive of Reserves) in 2010. The cutoff grade ("COG") strategy applied to the current Resource calculation reflects the long-term operating assumptions for the oxide, transitional and sulfide mineralization. The company's address is 9790 Gateway Drive, Suite 200, Reno, NV 89521, (775) 358-4455, fax: (775) 358 4458, email: [email protected].