Allied Nevada Gold Corp


	HYCROFT MILL EXPANSION PROJECT Allied Nevada completed an updated scoping study in March 2011 which envisions a large-scale heap leach and milling scenario, processing on average 32 million tons of heap leach ore and 42 million tons of mill ore per year for ten years (2015-2024). With the heap leach and mill operations running concurrently beginning in 2015, the mine could be capable of producing an average of 556,200 ounces of gold and 27.0 million ounces of silver per year for a total of 10 years at a cost of sales of $304 per ounces of gold sold (assuming silver as a byproduct credit). The initial capital cost for this project is estimated to be $894 million. This capital cost estimate is based on a 120,000 tpd process plant, paste tails disposal facility, mobile mine equipment, and other ancillary infrastructure. Construction of a 2,500 tpd autoclave vessel is expected to begin in 2016, and should be fully integrated into the sulfide circuit and operational by January 1, 2018, at an additional capital cost of $200 million. The POX addition is expected to improve gold and silver recoveries. The 120,000-tpd plant will consist of two identical processing lines, each processing 60,000 tpd, with one processing oxide/transitional material and the second line processing sulfide material. The lines will consist of milling and flotation circuits, fine grinding, intensive cyanidation of the concentrates, and a refinery. One line will process the oxide/transitional material and the second line will process the sulfide material. The mill will operate as a simple grind-float-leach facility for the first three years of operation (2015-2018), in which the sulfide concentrate from the flotation process will be leached directly. Construction of a 2,500 tpd autoclave vessel is expected to begin in 2016, and should be fully integrated into the sulfide circuit and operational by January 1, 2018, at an additional capital cost of $200 million. Upon operation of the POX plant in 2018, the sulfide concentrate will be oxidized onsite prior to leaching, which is expected to improve recoveries to 76.1% for gold and 79.5% for silver.