Allied Nevada Achieved Record Gold Production and Sales in the Third Quarter of
Commissioning New 21,500 Gallons per Minute Capacity Merrill-Crowe
RENO, NEVADA -- (Marketwired) -- 10/07/13 -- Allied Nevada Gold Corp.
("Allied Nevada", "we", "us", "our" or the "Company") (TSX:ANV) (NYSE
MKT:ANV) is pleased to announce that it has achieved its metal
production and sales expectations in the third quarter of 2013. The
Hycroft mine ("Hycroft") produced a record 52,198 ounces of gold and
184,070 ounces of silver in the third quarter of 2013 and we sold a
record 52,713 ounces of gold and 184,082 ounces of silver. We believe
that we are on track to achieve full year production and sales
guidance of 175,000 - 200,000 ounces of gold and 0.9 million - 1.1
million ounces of silver in 2013.
"I am very pleased with the progress being made at site by the new
operating team. While I fully expected them to turn the operation
around, I am impressed with the speed and efficiency with which they
have been able to improve production," commented Randy Buffington,
President and CEO of Allied Nevada. "This is a first-rate team with
the systems, discipline and determination that give us the confidence
that we can continue to move forward with building a world-class
Processing operations at Hycroft have improved significantly in the
third quarter. Pumping capacity and fresh water availability have
increased to meet processing requirements and total solution flows to
the leach pads are now averaging 22,000 gallons per minute ("gpm"),
an increase of 36% from the beginning of the third quarter. The new
21,500 gpm Merrill-Crowe plant began commissioning at the end of the
third quarter. Initially, about 7,000 gpm will be processed through
the plant with staged increases planned each week until the plant is
fully commissioned and capable of processing 21,500 gpm, which is
expected by the end of October. Once fully commissioned, we will
discontinue use of the old Merrill-Crowe plant and carbon columns.
The silver sales ratio is expected to increase with the exclusive use
of the new Merrill-Crowe plant from current levels of approximately
3.5 ounces of silver for each ounce of gold produced to in excess of
Lewis leach pad remediation is ongoing with all permits in place to
begin introducing solution into wells drilled into dry areas of the
pad. Testing has begun which will determine the rate and speed of
recovery and solution penetration to better predict the timing of
metal production from the pad. No production from these areas is
factored into our 2013 or 2014 projections.
Loading of the North leach pad began on May 7, 2013, with the first
solution being introduced to the pad ahead of schedule on May 15,
2013. In the five months of operation, the North leach pad has
performed as predicted based on our recovery curves. Construction of
the gyratory crusher has progressed well and we expect the crusher to
be commissioned in the fourth quarter, as planned.
Positive initial results from the ongoing oxidation test program of
Hycroft sulfide concentrate were announced in August 2013. These
results indicate that viable solutions exist for oxidizing and
processing concentrate onsite. We have begun the second phase of
testing, led by M3 Engineering and Technology ("M3"), based in
Tucson, Arizona, who were selected based on their past successes and
familiarity with our milling flow sheet and the oxidation techniques
being assessed. We believe that M3 will complete a prefeasibility
study for the oxidation circuit by the end of 2013. The plan is for
M3 to then immediately move into completing a feasibility study
incorporating the oxidation work with all engineering completed to
date on the milling circuit. The feasibility is expected to be
completed by the end of the third quarter of 2014.
We expect to provide third quarter financial results during the week
of November 4, 2013. A conference call and Q&A session will follow
the release, details and timing of which will be announced shortly.
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
expectations regarding gold and silver recovery; delays in processing
gold and silver; anticipated sales, costs and project economics; the
results and timing of metallurgical test work, prefeasibility and
feasibility studies; the realization, scope, size and capital
requirements of expansion and construction activities and the timing
thereof; reserve estimates; future business strategy, plans and goals
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 and uncertainties inherent to its Hycroft project expansion,
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 at the SEC
website at 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.
Allied Nevada Gold Corp.
President & CEO
Allied Nevada Gold Corp.
Vice President, Investor Relations
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