Allied Nevada Achieves Record Production and Sales in the

Allied Nevada Achieves Record Production and Sales in the Fourth
Quarter of 2012 and Provides 2013 Guidance 
RENO, NEVADA -- (Marketwire) -- 01/18/13 -- Allied Nevada Gold Corp.
("Allied Nevada" or the "Company") (TSX:ANV)(NYSE Amex:ANV)(NYSE
MKT:ANV) provides preliminary operating results for the fourth
quarter of 2012 and guidance for 2013.  
Highlights 


 
  -  Record average quarterly mining rate of 210,000 tons per day achieved  
     in the fourth quarter of 2012                                          
                                                                            
  -  Gold production up 55% quarter over quarter to approximately 46,900    
     ounces in the fourth quarter of 2012                                   
                                                                            
  -  Gold production in 2013 expected to more than double to 225,000 to     
     250,000 ounces                                                         
                                                                            
  -  Gyratory crushing system, new 20,000 gpm Merrill-Crowe plant and north 
     leach pad expected to become operational in 2013                       

 
"Our most impressive accomplishments this year have been in advancing
our permitting ahead of expectation which has cleared the path for
construction and operation of the gyratory crusher and commencement
of construction of the mill," commented Scott Caldwell, President and
CEO of Allied Nevada. "We are confident that the challenges we have
encountered with the heap leach operation are short term in nature
and we are pleased to see the operation is moving in the right
direction." 
Q4 and Full Year 2012 Preliminary Production 
In the fourth quarter of 2012, we mined a record amount of material
totaling 19.3 million tons, including 2.7 million tons of waste, 1.8
million tons of stockpiled mill material and 14.8 million tons of ore
placed on the leach pads at average grades of 0.012 ounces per ton
("opt") gold and 0.11 opt silver. Ounces placed on the leach pads in
the fourth quarter totaled approximately 175,900 ounces of gold and
1.6 million ounces of silver. In 2012, tons mined totaled 60.7
million tons, including 27.1 million tons of waste, 3.3 millio
n tons
of stockpiled mill material and 30.3 million tons of ore placed on
the leach pads at average grades of 0.012 opt gold and 0.21 opt
silver. Total ounces placed on the leach pads in 2012 were
approximately 371,000 ounces of gold and 6.5 million ounces of
silver.  
Production at Hycroft in the fourth quarter of 2012 was approximately
46,900 ounces of gold and 238,800 ounces of silver and sales were
41,745 ounces of gold and 214,902 ounces of silver. We achieved
record production and sales in the fourth quarter, however we did not
meet stated guidance primarily due to slower than anticipated leach
kinetics from Bay pit material placed on the leach pads in the third
and fourth quarter and extremely cold and wet weather conditions in
December. We continue to expect ultimate recovery of 51% for gold and
11% for silver for Bay pit material.  
We have accomplished a number of significant milestones in advancing
the expansion project in 2012, which include: 


 
  -  receipt of a positive record of decision for the Heap Leach Expansion  
     Environmental Impact Statement and permits to construct and operate the
     gyratory crusher and to begin construction of the mill, all ahead of   
     expectations;                                                          
                                                                            
  -  completion of the 3.0 million square foot Lewis leach pad;             
                                                                            
  -  completion of excavation of the gyratory pit and construction          
     commencement of the crushing system;                                   
                                                                            
  -  increasing the retort capacity of the currently operating Merrill-Crowe
     plant;                                                                 
                                                                            
  -  construction and operation of the carbon strip plant;                  
                                                                            
  -  15 new 320-ton Komatsu haul trucks, two 350-ton Caterpillar haul       
     trucks, one EX5500 hydraulic shovel and four high capacity production  
     drills;                                                                
                                                                            
  -  commencement of construction of the north and south leach pads and the 
     new 20,000 gallon per minute capacity Merrill-Crowe plant; and         
                                                                            
  -  secured delivery of the wire rope shovels to be delivered approximately
     one year earlier than planned.                                         

 
We expect to issue full 2012 financial and operating results later in
February 2013. 
2013 Guidance  
Gold and silver sales at Hycroft are expected to increase in 2013 to
approximately 225,000 to 250,000 ounces of gold and 1.5 million to
1.8 million ounces of silver. Sales in the first half of the year are
expected to be approximately 90,000 to 100,000 ounces of gold,
increasing in the second half of the year. We expect to move 94.1
million tons of material, including 46.5 million tons of ore at
average grades of 0.012 opt gold and 0.25 opt silver. With the
operation of the two wire rope shovels in the latter half of the
year, the mining rate for the first half is expected to average
200,000 tons per day and will increase to average 290,000 tons per
day in the second half. The overall strip ratio for 2013 is expected
to be 0.6:1. A number of critical projects must be completed to
achieve the higher end of the stated guidance range of metal sales.
The stated guidance assumes that there will be no material delays in
the start-up of the North Leach Pad, new Merrill-Crowe facility or
operation of additional mobile equipment. Adjusted cash cost(1) for
2013 is expected to be in the range of $565 to $585 per ounce (with
silver as a byproduct credit).   
Capital expenditures in 2013 are expected to total approximately
$374.0 million, of which $130.8 million is expected to be financed
with capital leases. Of the $374.0 million in capital expenditures
expected in 2013, $21.7 million is for sustaining capital and the
remainder is to advance the Hycroft expansion project and includes
equipment, infrastructure, engineering, permitting, and support
programs. Major additions to mobile equipment in 2013 include nine
haul trucks, seven production drills and the first two wire rope
shovels, which are expected to become operational in the third
quarter and fourth quarter, respectively.  
We expect to begin stacking ore on the new leach pad expansion, the
north leach pad, by the end of the second quarter of 2013. In
addition, the gyratory crushing system and 20,000 gallon per minute
Merrill-Crowe facility are expected to come online in the third
quarter of 2013.  
Company-wide exploration expense is projected to be $7.5 million in
2013 and does not include capitalized drilling. In addition to
corporate office expense and annual land holding costs of
approximately $3.2 million, we expect exploration dollars in 2013 to
be dir
ected towards follow-up drilling of the encouraging results
encountered in the Three Hills area of the Hasbrouck project and to
test Hycroft regional targets identified in the southern region of
the Hycroft property claim block.  
Conference Call Information 
Allied Nevada will host a conference call to discuss Q4 2012
operating results and 2013 guidance on January 18, 2013, at 8:00 am
PT (11:00 am ET), followed by a question and answer session.  


 
To access the call, please dial:                                            
                                                                            
Canada & US toll-free - 1-877-974-0446                                      
Outside of Canada & US - 1-416-644-3418                                     
                                                                            
Replay (available until February 1, 2013):                                  
                                                                            
Access code: 4592415#                                                       
                                                                            
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, the U.S. Securities
Exchange Act of 1934 (and the equivalent under Canadian securities
laws) and the Private Securities Litigation Reform Act, that are
intended to be covered by the safe harbor created by such sections.
Statements that are not historical fact are forward-looking
statements. Forward-looking statements can be identified by, among
other things, the use of forward-looking language, such as the words
"plan," "believe," "expect," "anticipate," "intend," "estimate,"
"project," "may," "will," "would," "could," "should," "seeks," or
"scheduled to," or other similar words, or the negative of these
terms or other variations of these terms or comparable language, or
by discussion of strategy or intentions. Such forward-looking
statements include, without limitation, statements regarding the
results and indications of exploration drilling currently underway at
Hycroft; delays in processing gold and silver, the potential for
confirming, upgrading and expanding gold and silver mineralized
material at Hycroft; reserve and resource estimates and the timing of
the release of updated estimates; estimates of gold and silver
grades; anticipated costs, project economics, the realization of
expansion and construction activities and the timing thereof 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)
including, without limitation, its latest Quarterly Report on Form
10-Q (which may be secured from us, either directly or from our
website at www.alliednevada.com or at the SEC website www.sec.gov).
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. 
The technical contents of this news release have been prepared under
the supervision of David C. Flint, a Certified Professional Geologist
with American Institute of Professional Geologists (A.I.P.G.),
#10360, who is Vice President, Exploration for Allied Nevada Gold
Corp. and is a Qualified Person as defined by National Instrument
43-101. For further information regarding the quality assurance
program and the quality control measures applied, as well as other
relevant technical information, please see the Hycroft Technical
Report dated April 9, 2012, filed with SEDAR at www.sedar.com. 
Non-GAAP Financial Measures 
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.  
(1) Allied Nevada uses a non-GAAP financial measure "adjusted cash
costs" in this document. Please see the section at the end of this
press release and in the 2012 third quarter Form 10-Q titled
"Non-GAAP Financial Measures" for further information.
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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