Allied Nevada Reports First Quarter 2013 Operational Progress
Hycroft NI 43-101 Technical Report Filed
RENO, NEVADA -- (Marketwire) -- 03/21/13 -- Allied Nevada Gold Corp.
("Allied Nevada", "we", "our" or the "Company") (TSX:ANV)(NYSE
Amex:ANV)(NYSE MKT:ANV) reports on first quarter operational progress
through February 2013. Through the first two months of the first
quarter of 2013 we placed 6.6 million tons of ore on the leach pads
at average grades of 0.010 ounces per ton gold and 0.091 ounces per
ton silver, containing approximately 68,100 ounces of gold and
approximately 600,300 ounces of silver, as per expectation. For the
first two months of the quarter, approximately 27,000 ounces of gold
and approximately 156,000 ounces of silver have been, or are
available to be, sold.
The first new set of 2,500 gallon per minute carbon columns were
installed and have recently commenced operating with the second set
beginning to arrive on site. With the operation of the first carbon
train, our solution processing capacity has increased approximately
30% to over 9,000 gallons per minute and we are now processing all of
our current returning pregnant solution. We expect to bring the
second 2,500 gallon per minute carbon train on-line early in the
second quarter, which, along with additional ore under leach and
solution being pumped up to the pads, will increase our solution
processing capacity to approximately 11,500 gallons per minute. With
the additional solution processing capacity and current operating
metrics, we believe we are on track to meet six month production
guidance of 90,000 to 100,000 ounces of gold.
The capital cost estimate for the expansion project remains at $1.24
billion. To date, we have purchased or have fixed contracts in place
for approximately $680.9 million, or 55% of the total capital budget
and these purchases have come in below the original estimate. As a
result, the difference has been allocated to contingency which has
increased to $97 million, from $65 million, representing 17% of the
remaining capital to be committed of $562.1 million. Management
believes that the expansion can be funded with current cash balances,
an undrawn revolving line of credit for $120 million, capital lease
financing, and operating cash flow.
We filed the National Instrument 43-101 Technical Report for Hycroft,
which is now available at www.sedar.com or on our website at
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 expected
solution processing rates, production rates, construction and
implementation of equipment and the timing thereof; 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 and
recovery rates; 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) which
may be obtained 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 reviewed and
verified by Dan Moore, Vice President, Technical Services for Allied
Nevada, who is a Qualified Person as defined by National Instrument
43-101. For additional quality assurance program and the quality
control measures applied, as well as other relevant technical
information in respect of the Hycroft mine, please refer to our
technical report entitled "Technical Report - Allied Nevada Gold
Corp. - Hycroft Mine, Winnemucca, Nevada, USA", dated March 6, 2013,
which is available on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors -The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. We use certain terms
on this website (or press release), such as "measured," "indicated,"
and "inferred" "resources," which the SEC guidelines strictly
prohibit U.S. registered companies from including in their filings
with the SEC. U.S. Investors are urged to consider closely the
disclosure in our Form 10-K which may be secured from our website or
the SEC website at http://www.sec.gov/edgar.shtml.
Allied Nevada Gold Corp.
President & CEO
Allied Nevada Gold Corp.
Vice President, Investor Relations
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