About Allied Nevada
Allied Nevada is a US-based gold mining and exploration company, which operates its wholly owned Hycroft gold mine located near Winnemucca, Nevada. The Company also owns a number of early stage and advanced exploration properties located throughout the State of Nevada. The Company’s focus is on internal growth strategies, primarily focused on the development of the Hycroft mine from a run-of-mine heap leach operation to a world class, large-scale heap leach and milling operation. The first stage of the expansion has been accomplished, which included:
- the acceleration of the current mining rate for the heap leach operation;
- construction of a 21,500 gallon per minute Merrill-Crowe plant allowing us to processing the increased solution flow from the pads (completed in 2013); and
- construction of a gyratory crushing system to improve recovery of gold and silver from the leaching process.
The company has completed a feasibility study for a mill expansion, which would allow us to process the large sulfide resource. We are now working towards a financing plan to construct the mill facilities.
In 2014, gold sales are expected to increase to between 230,000 and 250,000 ounces and silver sales are expected to be between 1.7 million and 2.0 million ounces. Our long-term plan for Hycroft is to build a milling and processing complex that will allow us to treat the significant sulfide mineralization. The mill flow sheet is comprised of two grinding lines with the capacity to grind, on average, 120,000 tons of ore per day, flotation cells to create a concentrate, a concentrate regrind mill, oxide and transitional tails leach, concentrate oxidation and concentrate leach tanks. Notable goals in 2014 include:
Operations at Hycroft currently involve open pit mining and run-of-mine heap leaching of ore. The Company has been increasing the mining rate over the last three years with the addition of larger scale mining equipment including Komatsu 320-ton haul trucks and CAT 7495 electric wire rope shovels. Gold and silver is extracted from pregnant leach solution captured from the leach pads using the Merrill-Crowe process. In 2014, we will begin crushing the higher grade fractions of the ore to improve recoveries from that ore.
The May 21, 2014 NI 43-101 compliant technical report contains further information regarding the oxide expansion and can be accessed in the Hycroft operations section on this website or at www.SEDAR.com.
* Adjusted cash costs is a non-GAAP financial measure, calculated on a per ounce of gold sold basis, and includes all direct and indirect operating cash costs related to the physical activities of producing gold, including mining, processing, third party refining expenses, on-site administrative and support costs, royalties, and mining production taxes, net of by-product revenue earned from silver sales. Adjusted cash costs provides management and investors with a further measure, in addition to conventional measures prepared in accordance with GAAP, to assess the Company’s performance of the mining operations and ability to generate cash flows over multiple periods. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other companies. Accordingly, the above measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.