Vision and Values
Committees of the Board
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 more than 100
advanced and early stage exploration properties located throughout the State of Nevada. The
Company's focus is on internal growth strategies, including the development of the Hycroft mine
from a run-of-mine heap leach operation to a world-class, large-scale heap leach a 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. The company intends to update its milling feasibility
study in the third quarter of 2014, including an onsite oxidation circuit, that would allow for
processing of its large sulfide deposit.
In 2014, gold sales is expected to increase from 230,000-250,000 ounces and silver production is
expected to be 1.7 million to 2.0 million ounces. Notable goals in 2014 include: completion of a
revised prefeasibility study in Q1 incorporating the onsite oxidation process into the previous mill
flowsheet which will be revised to accommodate the change in operating scenario; and the
subsequent completion of a revised feasibility study in Q3 for the mill project. The plant is expected
to consist of a milling and flotation circuit to create a concentrate and a concentrate oxidation
Beyond Hycroft, the Company has developed exploration programs at a number of its advanced
exploration properties. The Company has completed several drill programs at the Hasbrouck
Project, located near Tonopah, Nevada. Drilling in 2012 provided encouraging results at the nearby
Three Hills, located five miles north of the main Hasbrouck deposit. A PEA developed in 2012 has
determined that a heap leach operation could be built with robust economic returns.
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 March 6, 2013 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
* 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.
Allied Nevada Gold Corp.