|
Advanced Exploration Properties
| Measured and Indicated Resource
|
Tons (000's)
|
Fire Assay Gold Grade
(opt) |
Contained Gold Ounces
|
| Hycroft |
141,334 |
0.014 |
1,985,000 |
| Wildcat |
38,108 |
0.018 |
686,000 |
| Maverick |
69,630 |
0.010 |
696,000 |
| Mountain View |
23,219 |
0.013 |
303,000 |
| Hasbrouck/Three Hills |
26,036 |
0.023 |
599,000 |
Hycroft Mine
Management believes there is significant
potential to extend the oxide mineralization at both the
Central Fault and Brimstone deposits to the south, along
strike. However, the highest priority target,
according to Management, lies in the sulfide mineralization
below the existing Brimstone oxide deposit, and below the
previously mined Crowfoot-Lewis and Boneyard deposits, and
along the extensions of the known mineralized structures.
Geology
The Hycroft Mine is located on the
western flank of the Kamma Mountains. The style of
mineralization is of Tertiary to Recent-age along major
structural zones in a volcanic host rock. The volcanics are
mainly acidic to intermediate tuffs, flows and coarse
volcaniclastic rocks. The volcanic rocks have been
block-faulted by dominant north-trending structures, which
have affected the distribution of alteration and
mineralization. The Central Fault and East Fault control the
distribution of mineralization and subsequent oxidation. A
post-mineral range-front fault separates the ore deposit
from the adjacent Pleistocene Lahontan Lake sediments in the
Black Rock Desert. The geological events have created a
physical setting ideally suited to an open-pit, heap leach
and possibly sulfide mining operation at the Hycroft Mine.
(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 in this press release
was supervised by James M. Doyle, a qualified person under
Canada’s NI 43-101.
Cautionary Note to U.S. Investors
concerning estimates of Measured and Indicated Resources:
The Allied Nevada website 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.
Royalties
Allied Nevada has royalty and other
interests in approximately 100 mining properties in Nevada.
Some of these properties have been optioned and leased to
other exploration companies in return for production
royalties averaging about 2.6%. There are advance minimum
royalties and, on some of the properties, work commitments.
Twenty of the properties have been explored to the extent
that technical studies could be prepared. The royalties and
other property receipts are expected to provide an income
stream to Allied Nevada of approximately $3.0 million per
year. The four properties that Allied Nevada believes
currently show the most potential are:
Battle Mountain Property
The Battle Mountain property is located in the Battle
Mountain, Nevada mining district adjacent to and on-trend
with Newmont’s Phoenix-Fortitude property. Battle
Mountain is subject to pre-existing agreements with Madison
Minerals Inc. (formerly Madison Enterprises Corp.) and Great
American Minerals Exploration (Nevada) LLC. Madison
Minerals Inc. is the operator.
Pony Creek/Elliot Dome
The Pony Creek property is located in the Larrabee mining
district of Elko County, Nevada in the southern half of the
Carlin Trend, 28 miles southeast of Carlin and 19 miles
south of Newmont Gold Company’s Rain Mine. The Pony
Creek/Elliot Dome claim group consists of 903 unpatented
lode mining claims located across the crest of the southern
part of the Pinyon Range.
All significant gold mineralization
outlined to date on the property appears to be directly
related to felsite breccias formed within a rhyolite
intrusive, and over 90% of the mineralization discovered to
date on the property lies within 500 feet of the surface.
There is considerable potential for the definition of
additional resources at depth.
The claims on Pony Creek/Elliot Dome are
held by Mill City Gold Corp. which owns a 100% interest in
the property and pays Allied Nevada an NSR of 3%.
Escalating annual property payments must be paid by Mill
City, which may also purchase 1.0% of the 3.0% NSR for a
total of $1 million. Grandview Gold has an option to
earn a 60% interest on the Pony Creek/Elliot Dome property
by an expenditure of $3.5 million by July 31, 2007. In
2007, Grandview Gold plans to further define the gold
resource in the rhyolite intrusive and drill-test the Red
Rock sediment-hosted Rain-type target southeast of the
resource area in the intrusive.
Rock Creek and the South Silver
Cloud Target Area
The Rock Creek Gold-Silver property and its northern
extension, South Silver Cloud, were acquired by Duncan Park
Holdings Corp. They are 30 miles east-northeast of Battle
Mountain, Nevada along the Northern Nevada Rift.
Rock Creek has had several near-surface
drilling programs in the past. A total of 122 holes h
drilled along the 11-mile length of the Rock Creek/South
Silver Cloud Property. However, no holes have been drilled
on the main Rock Creek structures to depths of more than 500
feet.
Eden
The Eden property is located 14 miles south of
Winnemucca, Nevada adjacent to US Interstate Highway 80 in
Humboldt County. The property is located on the
northwestern side of the East Range in the Western Nevada
Rift. The Sleeper deposit and the Florida Canyon mine are
within this trend. The Eden property consists of a total of
68 unpatented lode mining claims and 648 acres of fee
property.
Cobb Creek
Staccato Gold Resources acquired its interest in the Cobb
Creek gold property in November, 2004. The property is
located in Independence Trend, Nevada north of Elko.
Staccato holds the property on a 50/50 basis with Bell
Coast Capital Corp (now Uranium Power Corp). The Cobb Creek
property consists of 51 claims and now comprises an area of
1,000 acres covering a sediment-hosted deposit and
exploration target.
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