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Allied Nevada’s Hycroft gold-silver mine to continue through 2024

12 April 2012

A revised mine plan for Reno-based Allied Nevada’s Hycroft mine near Winnemucca, Nevada, calls for annual production of 1.1 million gold equivalent ounces during a 19-year operating life.

Author: Dorothy Kosich Posted: Wednesday , 11 Apr 2012

RENO (MINEWEB) – Allied Nevada’s revised mine plan for Hycroft Mine–which has yielded 1.5 million ounces of gold and 3 million ounces of silver since 1983 now calls for mining operations to continue to 2024 with an annual average production of 1.1 million gold equivalent ounces.
Located in the Sulfur Mining District, west of Winnemucca, Nevada, Hycroft encompasses 61,389 acres of land including both patented and unpatented claims.
A revised mine plan announced Tuesday now calls for an average annual production of 582,260 gold ounces and 29.1 million silver ounces or 1.1 million GEO. The plan exploits a current mineral reserve of 12,650,301 ounces of gold and 481.9 million ounces of silver (1.1 billion tons grading 0.011 opt Au and 0.42 opt Ag).
Measured and indicated resources are estimated at 8.17 million contained ounces of gold, 236.85 million contained ounces of silver, and 12.315 million GEO. Hycroft reserve and resource estimates are based on drilling and engineering studies completed in 2011.
The revised mine plan and economic model call for an average adjusted cash cost of $166 per ounce annually with silver as a by-product credit. The metrics cover a 10-year horizon that spans the start of milling operations in 2015 to the last full year of mining in 2024. Hycroft is currently a heap leach operation.
Scott Caldwell, Allied Nevada CEO, said, “Hycroft continues to demonstrate positive economics and we are pleased with the revised mine plan as presented in the technical report.” Information for the technical report was prepared by various Allied Nevada managers and independent Scott E. Wilson Consulting.
Allied Nevada is now implementing staged expansions at Hycroft that increase the mining and heap leaching rates, and ultimately adding a milling and flotation plant and associated infrastructure. Through 2013, the company will expand its oxide mining and processing capabilities including expanding leach pads and associated processing facilities, installing a gyratory crusher to increased gold output and lower costs than currently experience with mobile crushing units.
The next phase of expansion will include a process plant capable of processing oxide and sulfide ores, resulting in production of doré or concentrate. These expansions are expected to increase annual gold production to over 300,000 ounces in 2014 and 600,000 ounces in 2015.
A conference call to discuss the revised technical plan is scheduled Thursday at 10 a.m. Pacific Time.