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Allied Nevada is engaged in the
evaluation, acquisition, exploration and advancement of gold
exploration and development projects in Nevada. Our
Management works to identify opportunities to
improve the value of our gold projects through exploration
drilling and/or introducing technological innovations. The
goal of this work is to move properties into development
and, ultimately, into production.
The Company made the decision in
September of 2007 to re-activate the wholly owned Hycroft
Mine which was placed in care and maintenance in late 1998
due to low metal prices. The re-start of the mine heap leach
operation will involve the mining and processing of the
oxide Brimstone deposit. Gold production is expected to
commence in the fourth quarter of 2008. Approximately
375,000 ounces of gold will be produced over 5 years.
The initial 90,000 foot exploration drill
program at Hycroft has been successfully completed. The
program was designed to expand oxide ore resources thereby
extending the oxide gold production horizon and to test the
extent of the large sulfide gold and silver system that lies
immediately below the oxide deposits. Results of the first
exploration drilling program were encouraging and drilling
continues on both the oxide and sulfide targets.
In addition to Hycroft, Allied Nevada
owns 100% of the Wildcat, Mountain View,
Hasbrouck and Three Hills projects and has a joint venture
interest in Maverick Springs projects. The total measured
and indicated resource contained on these projects is over
three million ounces of gold. In addition to these advanced
stage exploration projects, Allied Nevada has interests in
over 50 exploration properties located in the major
gold producing districts in the state. Many of these
exploration properties are optioned to other companies, for
which Allied Nevada receives advanced minimum royalty
payments. The Company expects to receive $3 million in
advanced minimum royalty payments in 2008.
Management’s strategy is to use the best
available management, technical expertise and geologic
talent to expand existing discoveries and, where feasible,
to develop these properties into producing high-quality
mines or significant royalty streams.
In addition to the properties that Allied
Nevada owns or has an interest in, Management will pursue
additional opportunities in advanced stage exploration
projects or producing mines.
(1) Cautionary Note to U.S. Investors
concerning estimates of Proven and Probable Reserves:
The estimates of mineral reserves have been prepared in
accordance with Canadian National Instrument 43-101. The
definitions of proven and probable reserves used in NI
43-101 differ from the definitions in SEC Industry Guide 7
and accordingly may not be comparable to information from
U.S. companies subject to the SEC’s reporting and disclosure
requirements. The preparation of the technical information
contained on this website was supervised by Scott Wilson, a qualified person under Canada’s NI 43-101.
Cautionary Note to U.S. Investors
concerning estimates of Measured and Indicated Resources:
This press release uses the terms “measured resources” and
“indicated resources”. We advise U.S. investors that while
these terms are recognized and required by Canadian
regulations, the SEC does not recognize them. U.S. investors
are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into
reserves. |
