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.

Upton’s wife learned about the NxLeveL for Entrepreneurs course and was elated that it was coming to their small, rural town of Silver Springs. She registered her husband and Upton found himself in a class of 19 other folks from his community who wanted to learn more about growing an existing business, while others, like Upton, just wanted to know how the heck to start one of their own.

“The NxLeveL class taught me how to identify and evaluate my own talents that could maybe become a new business” said Upton. “I worked with security systems for the county and was pretty good at it.” Kathy Halbardier, Upton’s NxLeveL instructor, had been in business 20 years herself. “It didn’t matter what question or situation the class brought me” said Halbardier. “I pretty much had been through it all.” Halbardier was instrumental in helping Upton launch his business. “What we do in NxLeveL, after the initial feasibility is completed, is take a look at past employment, trainings, certifications and overall areas of interest. It was clear to me that Russell was ready to diversify his existing knowledge base of security systems.” Halbardier described the Silver Springs class as one of the most dynamic groups of people with which she’s had the pleasure of working. “We started, and ended, with 20 students. Do you realize what it means for 20 people to stick out anything for 13 weeks together, much less a business planning course?”

It was the dynamics of the entire course that allowed Upton to launch his business. “The people care for each other beyond words” said Halbardier. “As a group we all pitched our ideas and concepts weekly to each other. It was suggested that Russell combine a locksmith business with his security system idea. He now owns and operates Upton’s Locksmith & Security Systems serving all of Lyon County that includes Yerington, Silver Springs, Fernley and Dayton.

In a matter of 13 weeks, Upton obtained a business license, designed a logo and marketing materials, set up his legal structure and began to solicit business. He finished his business plan and launched his business. NxLeveL works for those truly committed to their business.

NxLeveL is a 13-week course on Entrepreneurship and is administered throughout the State by the Nevada Small Business Development Center (NSBDC), a department within the College of Business at the University of Nevada, Reno. “NxLeveL is by far the greatest training program we offer” said Kathy Carrico, statewide training director and NxLeveL administrator for the NSBDC. “We’re in our 13th year and have seen more than 2,000 Nevadans take the course from about 25 locations. Our rural classes have always been funded, and we will continue to provide the best training possible to the business communities of people who want our help. In every job one lands, there’s always someone to train you. But when you own the business, who’s there to train you? That’s what NxLeveL’s all about, training the business owners!”

NxLeveL is priced at $700 per person; four rural Nevada classes are fully funded this spring which means that attendees pay only $95 for the 13-week course, and all books are included. Anyone with a minimum of 10 weeks attendance and a written business plan submitted to the instructor gets their $95 back. Many thanks go out to the Western Nevada Development District for funding the Winnemucca, Virginia City and Carson City classes. Many thanks also go out to the Governor’s Office on Economic Development for funding the Yerington class through a Community Development Block Grant. Please log onto www.nsbdc.org and click on the NxLeveL page for the 12 course topics list, instructor bios, weekly learning objectives, course syllabus and brochure. Cities, locations and dates follow for our upcoming 4 rural classes which all meet one evening per week from 5:45 – 8:45 pm. For further information or questions regarding the NxLeveL program throughout Nevada contact Kathy Carrico at 775/784/6879 or e-mail kcarrico@unr.edu.

Yerington – beginning March 12, ending June 11
Location: Lyon County Board of County Commissioners Chambers, 27 South Main Street
Winnemucca – beginning March 13, ending June 5
Location: Humboldt General Hospital, 118 E. Haskell Street, Sarah Winnemucca Hall, Room 124
Virginia City – beginning March 15, ending June 7
Location: Virginia City High School, The Training Room – 95 South R Street (use southeast parking area)
Carson City – beginning March 20, ending June 12
Location: Business Resource Innovation Center (BRIC) – 108 East Proctor Street

The Nevada Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA.

CARSON CITY – Nevada’s mining industry is stepping up to Gov. Brian Sandoval’s challenge asking businesses and all economic partners to help create 50,000 jobs over the next three years.

The Nevada Mining Association recently conducted an informal survey of its members and has estimated the industry will add 1,200 jobs this year, both in precious metal and industrial mineral production across the state. The survey could be underestimating the number of mining jobs being created this year since not all mining operations are members of the association.

This compares to 500 jobs created in the natural resources and mining sector reported in the 12 months through December 2011 by the Nevada Department of Employment, Training and Rehabilitation on Jan. 23. There were 12,900 jobs in this sector as of December.

Mining has remained a bright spot in the jobs arena during Nevada’s long running economic downturn. Nevada’s unemployment rate has begun to come down, but remained the highest in the nation in December at 12.6 percent.

“The precious metals mine operations are growing, expanding, starting up new operations,” said Tim Crowley, president of the Nevada Mining Association. “In addition to that there are a lot of industrial mineral mines that are coming on line. They may not be in production in 2012 but they’re working through the permitting process and getting closer to putting people to work.”

The survey does not count all the ancillary jobs related to mine operations either, Crowley said.

“With every new job at a mine site, we get 4.25 new jobs in the supply chain,” he said. “So there’s significantly more growth than what we’re accounting for in that survey.”

Examples are Cashman Equipment, a Henderson-based equipment company that will add 50 jobs this year just to serve its mining customers and Komatsu equipment, expected to add 15 jobs for the same reason.

One industrial mine expected to open this year if the permitting process is finalized as expected is General Moly’s Mt. Hope molybdenum project near Eureka, which is expected to ultimately employ 400 people. Molybdenum, or “moly” is a metal added to stainless steel to make it stronger, lighter, more rigid and noncorrosive.

“That’s a fantastic new project,” Crowley said. “Its applications are huge.”

Another project that is expected to see construction but not actual mining is Nevada Copper’s Pumpkin Hollow project in Lyon County, the Nevada county with the highest unemployment rate. The rate was 17.2 percent in December. The construction will add much-needed jobs, he said.

Crowley said the high price of gold has created a huge demand and has spurred the growth and expansion in precious metal mining in Nevada.

“We’ve had some great finds in the last couple of years,” he said. “Newmont has a couple of really big developments in the works. Barrick has some big developments. You name a mine site and they are in development.”

The association survey found that Barrick Gold Corp.’s recent expansions will bring on an estimated 300 jobs at its Cortez site. Newmont is expected to add 250 jobs company-wide.The price of gold has also led to the reopening of some mining operations, Crowley said.

“There’s an old mine that has been reopened and is booming, a couple of them, in a big way,” he said. “The Hycroft mine out of Winnemucca, which is run by a company called Hycroft, (Allied Nevada Gold Corp.) and the Hollister mine which is run by a company called Great Basin Gold, they are both back up and running and employing people and growing.”

The Hycroft mine is expected to add 113 jobs this year. The mine is seeing major production increases in both gold and silver.

The high gold prices have allowed companies to invest in more efficient equipment to mine lower grade ores, Crowley said.

“We’re able to invest in looking for more ore bodies so we have the resources to do it right now,” he said. “Our future is really bright and we’re here for the long haul.”

Jered McDonald, an economist with the state Department of Employment, Training and Rehabilitation, said he expects to see the mining sector begin to grow at a faster rate.

“It really has to do with the length of time that it takes for these operations to get up and running,” he said. “It can take up to seven years for all the permitting processes to go through. I think going forward, yes, we’re going to start to see more and more mining jobs.”

Gold prices are expected to remain high as long as the economy continues to struggle, which is anticipated for at least the next couple of years, McDonald said.

“So we expect gold prices to stay high and employment in mining to increase,” he said.

Carson City, NV – Governor Brian Sandoval accompanied by Steve Hill, Director of the Governor’s Office of Economic Development, released Nevada’s Plan for Excellence in Economic Development at 9 a.m. on February 7, 2012 at The University of Nevada, Reno.

The Plan, aimed at creating 50,000 jobs by the end of 2014, launches initiatives as well as outlines a strategy to encourage the creation, expansion and relocation of businesses, both small and large, in this State. The plan is a collaborative effort and, according to Sandoval, “state government, across all agencies, must work hand-in-glove with local governments, regional development organizations, and the private sector to bring our economy into alignment with the current reality and the emerging global environment.”

Targeted industries, which were initially identified by The Brookings/SRI Report include clean energy, health/medical services, aerospace and defense, tourism, gaming and entertainment, mining, materials and manufacturing, business IT ecosystems as well as logistics and operations. According to the report, “it is within these opportunities, and others that may be identified by the regions, that Nevada will realize its potential for producing high-quality jobs.”

To view The Plan, please follow the attached link:

Nevada Plan for Excellence in Economic Develoment

Efforts by Gov. Brian Sandoval and state lawmakers to encourage new business creation, relocation and expansion in Nevada took a major step forward when the Legislature’s Interim Finance Committee approved nearly $3.5 million to fund a new economic development office.

The funding will enable Steve Hill, executive director of the Governor’s Office on Economic Development, to develop a state economic development plan and hire the staff needed to move forward on private sector job creation efforts.

The state plan, relying in part on research performed by the Brookings Institution and SRI International, is expected to be released in early February. The report identified seven economic sectors, some already in existence such as gaming and tourism, and some emerging, such as clean energy, where Nevada should focus its efforts.

Lawmakers peppered Hill with questions ranging from the measures that will be used to determine the success of his agency’s efforts at job creation to the proposed salaries of the eight positions that will be filled with a portion of the funding.

Positions approved for his office include three industry specialists at a maximum salary of $110,000 each, an industry analyst with a maximum salary of $90,000, a communications manager with a maximum salary of $80,000, and a technology commercialization director with a maximum salary of $110,000. There are also two support positions with maximum salaries of $40,000.

The new approach to economic development is the result of Assembly Bill 449, a measure sponsored by Assembly Speaker John Oceguera, D-Las Vegas, and supported by Gov. Brian Sandoval and a bipartisan group of state lawmakers. The bill also established a $10 million Catalyst Fund to help firms relocated or expand in Nevada. The money will be used to provide grants to local governments for economic development projects.

“I am in the process of finishing my 10th week on the job,” Hill told lawmakers. “And I think I can provide very solid reasons for the request that we’re making today. But we’re also learning as we’re going along. We understand that resources are tight, not only throughout Nevada but through the country, and we want to spend this money in the most effective and efficient way possible.”

In response to lawmaker questions, Hill said the state plan will include ways to measure the success of the new effort.

“There will be a detailed description of how we will measure progress in economic development and in the development of our economy in the state,” he said.

Assemblywoman Debbie Smith, D-Sparks, chairwoman of the IFC, asked Hill if the funding request is premature since the state plan has not yet been published.

“So I think the question is, without the state plan, where is the confidence level in moving forward with all of these positions and this work without the state plan being done, kind of relying solely on the Brookings report?” she asked.

Hill said the budget request will be in alignment with the state plan.

“And finally I think we all sense, the governor and the Legislature, everybody involved in economic development throughout the state, and the citizens of Nevada, an urgency to get started on this,” he said.

Nevada’s unemployment rate is the highest in the nation.

WINNEMUCCA – Local planning officials and bicycling enthusiasts met with representatives of the Nevada Statewide Bicycle Plan on Wednesday the (Nov. 16) to discuss potential improvements and additions that could be made for cyclists in Winnemucca.

The topics of discussion included how to increase local enthusiasm for bicycling among all age groups, the challenges faced by bicyclists travelling through or around Winnemucca, and road signage that could improve and encourage bicycle traffic around town or along the highways.

The statewide Bicycle Plan is an initiative of the Nevada Department of Transportation to improve safety and access for bicyclists touring across Nevada’s highways.  Currently, the project is in its planning phase, focusing on policies, legislation and infrastructure that increase safe bicycling throughout rural communities.

To assist the Statewide Bicycle Plan in its current stage, project organizers request that you take a quick survey about bicycling and your community, found at:  http://www.surveymonkey.com/s/NevadaStateWideBicyclePlan

An electric vehicle is easy to fuel — just plug it into an outlet and leave it — but creating an infrastructure to support the cars takes much more work.

With high gas prices and a tighter wallets, experts across the country hope electric cars can be an answer to many people’s transportation needs, while at the same time reducing that nation’s dependence on foreign oil.

“Two-thousand twelve is the year of the electric vehicle in Nevada,” said Travis Johnson, NV Energy electric transportation program manager.

NV Energy and a statewide task force are working to make Nevada EV-ready. Despite its environmental and economic benefits, barriers exist that could prevent mainstream adoption.

“Electric vehicles don’t solve all of our problems,” Johnson said. “They just help solve most of them. If energy security and low-cost energy are your concerns, EVs are for you. If urban air quality and greenhouse emissions are your concerns, EVs are for you. If you are simply ready for another option, EVs are for you.”

The Specs

By 2015, major car makers will have the ability to produce more than 1 million electric vehicles per year.

The price of electric cars now ranges from $29,125 for the Mitsubishi i to $109,000 for the Tesla Roadster. Those who buy an electric car can receive up to an $7,500 tax credit.

Electric cars could account for 64 percent of light-vehicle sales and make up 24 percent of the market in the U.S. by 2030, according to a 2009 forecast by the University of California, Berkeley.

The battery-charged electric vehicles work for short commutes, because they can go 73 to 100 miles per full charge. About 80 percent of Americans drive fewer than 40 miles per day.

The extended range EV, such as the Chevrolet Volt, is ideal for longer commutes since the gas generator increases the normal 40-mile battery driving range by an additional 300 miles.

Local Push

The 116-member task force includes city, county and state officials from both the north and south, as well as from the University of Nevada, Reno, MGM Resorts and others from the private sector.

The group, which was formed in February, hopes to establish a charging infrastructure plan, promote fleet vehicle adoption, ensure that city codes and standards on EV charging systems are handled promptly and without excess delays and to secure federal grants for further EV adoption in Nevada.

Johnson has been an advocate for electric vehicles, and he promotes their advantages with NV Energy’s fleet of eight electric cars, which will increase to 13 by mid-November.

He has been test-driving the battery-only Nissan Leaf and Chevy Volt, promoting the company’s mission of increased awareness of the alternative-fuel vehicles.

The electric car doesn’t rely solely on gas. It gets power from the electric grid, which relies on other sources such a nuclear, natural gas, coals, geothermal and other renewables.

“So, as the grid gets greener, so do EV cars,” Johnson said.

The national agenda to use energy more efficiently includes six goals: increase vehicle efficiency, electrify the vehicle fleet, deploy alternative hydrocarbon fuels, increase building and industry efficiency, modernize the energy grid and deploy clean electricity.

A major part the strategy is to decrease the nation’s reliance on foreign oil. The U.S. spends $1 billion each day for oil, which is responsible for 70 percent of the national trade deficit, according the U.S. Department of Energy.

Task Force

The Electric Vehicle Infrastructure Readiness Task Force said its biggest task is the charging systems needed to fuel the cars. Public charging stations are necessary, but questions such as who will own them and how much to charge remain unanswered.

In addition, more stations are needed for drivers. With little more than a dozen charging stations in Reno and Las Vegas, the state — and its population — is underserved.

“Our goal is to get enough charging stations to give drivers confidence to buy an EV,” Johnson said. “And later, they will learn that they won’t need them as much as they thought.”

Permitting for home-charging stations is another area of concern. Most people could use 120-volt outlets to charge their vehicles, which is standard in U.S. homes, but a 240-volt outlet significantly cuts charging time.

“Level-two charging, a 240-volt, will put between 12 and 25 miles of (driving) range back in the car per hour,” Johnson said. “At level one, the120 level, around five miles of range per hour will be regained when plugged in.”

The problem is residents need to get a permit to install a 240-volt outlet. The task force is working on ensuring all permitting agencies known the latest codes and standards when issuing permits and to efficiently process such applications.

Stressing the System

NV Energy will have to perform minor improvements to its infrastructure to support electric cars and the increased demand.

If users charge their cars in off-peak hours, such as between 10 p.m. and 6 a.m., Johnson said the electrical grid can handle more than 1 million vehicles without massive infrastructure improvements, which would trigger rates increases.

NV Energy offers an electric vehicle time-of-use rate. It incentivizes people to charge at night because it gives a 10 percent discount on off-peak rates, which would be a more efficient use of the utility’s electric grid.

The EV rate applies to the whole household energy consumption. It charges more for energy use during peak times such as during the day and less during the middle of the night when demand drops off. The standard rate, which most customers use, costs the same not matter what time energy is used. Both plans have a basic service charge of about $9.

As a point of comparison, an owner of a 25 mpg car that used $3 per gallon gas would spend $120 to drive 1,000 miles.

For electric vehicle owners who drive 1,000 miles, it would cost an average of $24 a month to power the car on the EV rate or $36 on the standard rate plan.

Johnson said that most of the charging should be done at home or at a workplace or retail unit. Few public charging stations would be required.

NV Energy has 13 charging stations across the state. All except two in Las Vegas are open to the public. Once the system is more established, the utility will begin charging for use.

Einstein Bros Bagels on Kietzke Lane also has a new charging station.

Reno’s Champion Chevrolet will have a charging station after its remodel is completed, and it, too, will be available to the public. Nissan of Reno plans to have four charging stations for Nissan lease owners only.

In September, California-based 350Green agreed to build more than 400 charging stations across the nation, mostly in California, New York, Pennsylvania, Illinois and Indiana. And more retailers are adding charging units across the country, Best Buy and Walgreens among them.

There is additional savings in maintenance. Electric vehicles don’t have as many moving parts as a car with a gas-burning engine, so maintenance costs will decrease. The Nissan Leaf, for example, only needs to be brought in once a year to have the battery checked. The Volt requires a little more maintenance because it still has a gasoline component.

There is about 50 percent less carbon dioxide emitted by an electric vehicle than a gas-powered car.

Volt hits Nevada

The next generation of electric vehicles will hit Nevada streets in November.

The Chevrolet Volt will be made available to the rest of the country — including Nevada — after a limited release last year.

But it might be hard to get one from Champion Chevrolet. Four of the five 2012 Volts the dealership will receive already are spoken for at their release. And the fifth must be kept as a demonstration vehicle for the next six months.

The Volt’s retail asking price is about $40,000, Champion owner Jack Stanko said.

Prices could fall as technology improves. The most important component, the battery, is getting more advanced.

“The batteries are much better now than they were (a decade ago),” Johnson said. “And that is what the game-changer is.”

Nissan and GM offer an eight-year, 100,000 mile warranty for their batteries. GM has tested the Volt battery for about 150,000 miles.

The Volt is not 100 percent electric. It uses an gasoline-powered generator to power the vehicle when it gets low.

“The setup with the Volt is the perfect combination,” Stanko said. “With all-electric cars, the problem is how long it can run on the battery, and it’s mostly for short commutes. The Volt can go 300 miles on a trip.”

Champion expects another shipment in the first quarter of 2012, Stanko said. Those who are interested in buying can be put on a waiting list.

Nissan of Reno has almost 60 people on its waiting list for the Leaf, said Peter Fletcher, sales and electric car specialist at Nissan.

All major car makers will offer electric vehicles soon, Johnson said. By 2013, more than 15 models will be available.

The Company has placed orders for three CAT 7495, 72-yard wire rope shovels from Caterpillar, thirty three 930E 320-ton haul trucks from Komatsu and other mobile equipment with a total value of approximately $300 million. Delivery for this equipment is expected to coincide with the continued implementation of the heap leach expansion and the future implementation of the milling expansion.

The Company has also ordered the primary gyratory crusher for the initial crushing system to be installed at Hycroft. Allied Nevada is purchasing the primary gyratory crusher, which is the first stage of the three-stage crushing system, from FL Smidth of Salt Lake City, Utah. The primary crusher, a 60 inch x 113 inch, 1,000 hp Fuller-Traylor gyratory crusher, is the longest lead item for the system. Total committed price for this component of the crushing system is $8.6 million, including critical spares. The Company is in the process of securing the secondary and tertiary crushing units screens and a conveyance system.

“Securing this critical equipment and associated financing are essential to meeting our expansion objectives,” commented Scott Caldwell, President & CEO. “The financial support of our equipment partners further validates our belief that this project is a low-risk growth opportunity with significant potential.”

The addition of the larger mining equipment will continue to lower operating costs. The crusher is expected to be delivered by the end of 2012, and the plant is expected to be in operation by mid-2013. Installing the crusher will allow the mine to crush 100% of the heap leach ore for one year, improving average recovery of gold and silver to 65% and 23%, respectively. Once the mill is constructed, the crusher will be transitioned to feed material to the mill.

The total capital cost for the gyratory crushing project, including engineering, is $73.3 million and is expected to support an internal rate of return of over 30%. The rate of return was calculated based on recovery improvements alone, operating cost savings were not accounted for. Detailed engineering and permitting are well underway. Modifications to the existing air quality permit and reclamation bonding are required to construct and operate the crusher. The Company expects to secure these in a timely fashion.

The Nevada Development Authority announced today it has launched a new testimonial advertising campaign that will be hitting the Southern California airwaves in August. The spots show many local, high-profile Nevadans who explain why Nevada is a prime place to reside. Among those featured in the spots are: Tony Hsieh of Zappos.com, Rick Moonen of RM Seafood, Jeremy Aguero of Applied Analysis, Las Vegas entertainers Wayne Newton and Terry Fator, UNLV President Neal Smatresk, and others.

“We have always promoted our outstanding business climate in our advertising campaigns, but this time we have shifted our approach to let California business people hear first-hand from Nevada business executives about other assets our state has to offer,” said Somer Hollingsworth, president and chief executive officer of the Nevada Development Authority. “The testimonial ads focus on the positive lifestyles, schools, community activities and business support they have all experienced living in Nevada. It will build third-person credibility among California residents faced with any uncertainty about relocating here.”

The 30-second spots will be aired on targeted cable systems throughout Southern California and run from August through November. Among some of the advertising content includes Tony Hsieh discussing why Zappos.com chose Las Vegas for its headquarters; Terry Fator explaining how Las Vegas wraps its arms around charities, such as Opportunity Village; and Wayne Newton showing support at the Las Vegas USO facility.