Allied Nevada Files Technical Report for Hasbrouck Property

Allied Nevada Files Technical Report for Hasbrouck Property 
Conference Call to be Held on Thursday, April 12, 2012 at 1:00 pm ET
(10:00 am PT) 
RENO, NEVADA -- (Marketwire) -- 04/11/12 -- Allied Nevada Gold Corp.
("Allied Nevada" or the "Company") (TSX:ANV)(NYSE Amex:ANV) today
announced that it has filed a technical report (the "Report"),
entitled "Technical Report, Allied Nevada Gold Corp., Hasbrouck
Property, Tonopah, Nevada, USA" and dated April 11, 2012. The
technical report has been prepared pursuant to Canadian Securities
Administrators' National Instrument 43-101, and may be found at
www.alliednevada.com (Properties / Hasbrouck Property / Technical
Reports) or under the Company's profile at www.sedar.com. 
The Report supports the disclosure contained in the Company's news
release issued on February 27, 2012, announcing the results of a
preliminary economic assessment ("PEA") for the Hasbrouck Project. As
previously announced, the PEA indicates that the proposed development
of a heap leach operation to process both Hasbrouck and the nearby
Three Hills mineral resources is expected to be economically robust
with low execution risk. 
The PEA was developed by Allied Nevada technical staff with
contributions from a number of specialist consultants. All dollar
amounts are in U.S. currency. Economics are estimated using metal
selling prices of $1,000 per ounce for gold and $18 per ounce for
silver. The inferred resource was estimated using a gold price of
$800 per ounce and a silver price of $14 per ounce. 
HIGHLIGHTS OF THE PRELIMINARY ECONOMIC ASSESSMENT 


 
--  Inferred mineral resources of 1.2 million ounces of contained gold and
    29.3 million ounces of contained silver (128.6 million tons grading
    0.009 opt Au and 0.228 opt Ag) 
 
--  Net Present Value ("NPV") of $98.7 million, after tax and royalties, at
    a 6% discount rate 
 
--  Internal rate of return ("IRR") of 60%, after taxes and royalties, and
    18 month payback 
 
--  Average annual production of 135,000 ounces of gold and 540,000 ounces
    of silver at an average annual adjusted capital cost(1) of $555 per
    ounce for a five year mine life 
 
--  Initial capital cost of $78.1 million (life-of-mine cash cost of $90
    million) for a conventional run-of-mine and crushed heap leach facility 
 
--  Production plan assumes mining and processing the nearby Three Hills
    mineralization ahead of Hasbrouck mineralization 
 
--  Potential to extend mine life as the Hasbrouck deposit remains open and
    the Company intends to explore other regional opportunities

 
Hasbrouck would be mined and processed as a conventional open pit,
heap leach operation. Mining equipment that is currently being
replaced at Hycroft by a larger fleet is planned to be overhauled and
transitioned to Hasbrouck including the semi-mobile crushers. 
The capital cost estimate assumes refurbishing costs for the smaller
mobile equipment that will be transitioned from Hycroft to Hasbrouck,
as well as engineered estimates, direct quotations, when available,
and industry guidelines. Operating costs were developed using
industry standard estimates and current labor and commodity pricing
in effect at Hycroft at the time of the PEA. The PEA is preliminary
in nature and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the PEA will be realized. 
The financial model was sensitized to various metals prices and the
results are shown below: 


 
---------------------------------------------------------------------------
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                                                After Tax  Average Adjusted
    Metal Prices       NPV @ 0%      NPV @ 6%         IRR   Cash Cost/oz(1)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Au        Ag          $ Million     $Millions           %           $/ounce
---------------------------------------------------------------------------
$800      $14         $    49.9     $    29.1          28%    $         550
---------------------------------------------------------------------------
$1,000    $18         $   147.1     $    98.7          60%    $         555
---------------------------------------------------------------------------
$1,200    $21         $   238.1     $   164.8         104%    $         560
---------------------------------------------------------------------------
$1,400    $25         $   330.2     $   230.3         138%    $         565
---------------------------------------------------------------------------
1. Adjusted cash costs assume revenue from silver sales as a byproduct      
credit.                                                                     

 
Base line environmental studies have begun at Hasbrouck to initialize
the permitting program. It is anticipated that the mine could receive
permits to begin construction in the second half of 2014. For the
purposes of the PEA, it is assumed that permits to begin construction
could be received in the second half of 2013 and, subject to
completing a positive feasibility and a decision by the Board to
begin production, operations could begin in 2015. 
Conference Call Details 
As previously announced, management will hold a conference call on
Thursday, April 12, 2012 at 1:00 pm ET (10:00 am PT) to discuss the
results presented in the Hycroft and Hasbrouck Technical Reports. 


 
To access the call, please dial:                                            
  Canada & US toll-free - 1-866-250-4877                                    
  Outside of Canada & US - 1-416-644-3417                                   
 
Replay (available until April 26, 2012):                                    
  Access code: 4531673#                                                     
  Canada & US toll-free - 1-877-289-8525                                    
  Outside of Canada & US - 1-416-640-1917                                   

 
An audio recording of the call will be archived on our website at
www.alliednevada.com. 
Cautionary Statement Regarding Forward Looking Information 
This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933 as amended, the U.S.
Securities Exchange Act of 1934, as amended, (and the equivalent
under Canadian securities laws and the Private Securities Litigation
Reform Act of 1995), that are intended to be covered by the safe
harbor created by such sections. Such forward-looking statements
include, without limitation, statements regarding estimates of gold
and silver production at Hycroft; timing of delivery of mining
equipment; and other statements that are not historical facts.
Forward-looking statements address activities, events or developments
that Allied Nevada expects or anticipates will or may occur in the
future, and are based on current expectations and assumptions.
Although Allied Nevada management believes that its expectations are
based on reasonable assumptions, it can give no assurance that these
expectations will prove correct. Important factors that could cause
actual results to differ materially from those in the forward-looking
statements include, among others, risks that Allied Nevada's
exploration and property advancement efforts will not be successful;
risks relating to fluctuations in the price of gold and silver; the
inherently hazardous nature of mining-related activities;
uncertainties concerning reserve and resource estimates;
uncertainties relating to obtaining approvals and permits from
governmental regulatory authorities; and availability and timing of
capital for financing the Company's exploration and development
activities, including the uncertainty of being able to raise capital
on favorable terms or at all; as well as those factors discussed in
Allied Nevada's filings with the U.S. Securities and Exchange
Commission (the "SEC") including Allied Nevada's latest Annual Report
on Form 10-K and its other SEC filings (and Canadian filings). The
Company does not intend to publicly update any forward-looking
statements, whether as a result of new information, future events, or
otherwise, except as may be required under applicable securities
laws. 
Cautionary Note to U.S. Investors Regarding Estimates of Inferred
Mineral Resources 
This press release uses the terms "inferred" "mineral resources." We
advise U.S. investors that while these terms are recognized and
required by Canadian regulations, the SEC does not recognize them.
"Inferred mineral resources" have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimates of "inferred mineral
resources" may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. The SEC normally only
permits issuers to report mineralization that does not constitute
"reserves" as in-place tonnage and grade without reference to unit
measures. The terms "contained gold ounces" and "contained silver
ounces" used in this press release are not permitted under the rules
of the SEC. U.S. investors are cautioned not to assume that any part
or all of a measured, indicated or inferred resource exists or is
economically or legally mineable. 
Mr. Scott E. Wilson, AIPG Certified Professional Geologist #10965, is
Allied Nevada's Independent Qualified Person as defined under
National Instrument 43-101. He has supervised the preparation of the
technical information that forms the basis for the technical
information contained in this news release, and has reviewed and
approved the contents of this news release. Allied Nevada will file
on www.sedar.com a National Instrument 43-101 compliant technical
report within the time required by National Instrument 43-101
guidelines encompassing the mineral resource discussed herein, which
will include further details with respect to the preliminary economic
assessment, including risks and uncertainties associated therewith. 
Non-GAAP Measures 
Adjusted cash cost is a non-GAAP measure, calculated on a per ounce
of gold sold basis, and includes all normal direct and indirect
operating cash costs related directly 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 cost provides management and investors with a
measure to assess the Company's performance against other precious
metals companies and performance of the mining operations over
multiple periods. 
Non-GAAP 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. For further
information, see our audited financial statements filed with our
annual report on Form 10-K. 
(1) Allied Nevada uses the non-GAAP financial measures "adjusted cash
cost" and "average annual adjusted cash cost" in this document.
Please see the section titled "Non-GAAP Measures" for further
information regarding these measures.
Contacts:
Allied Nevada Gold Corp.
Scott Caldwell
President & CEO
(775) 358-4455 
Allied Nevada Gold Corp.
Tracey Thom
Vice President, Investor Relations
(775) 789-0119
www.alliednevada.com
 
 
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