Allied Nevada Significantly Increases Hycroft Mineral Reserves to 10.2 Million Ounces of Gold and 388.6 Million Ounces of Silver (17.0 Million Ounces AuEq(1))
(firmenpresse) - RENO, NEVADA -- (Marketwire) -- 08/23/11 -- Allied Nevada Gold Corp. ("Allied Nevada", "ANV" or the "Company") (TSX: ANV)(NYSE Amex: ANV) is pleased to announce a summary of the updated mineral reserve and resource estimates for its wholly owned Hycroft Mine located near Winnemucca, Nevada.
The significant reserve increase is due to the conversion of resources reflecting the Heap Leach and Mill Feasibility Study, the results of which are expected to be released in the next few weeks. Overall, Measured and Indicated Mineral Resources, inclusive of mineral reserves, increased to 16.9 million ounces of gold (from 16.1 million ounces) and silver decreased slightly to 593.7 million ounces (from 598.1 million ounces). Total Measured and Indicated Mineral Resources, including reserves, increased to 1.6 billion tons (from 1.5 billion tons), while grades remained essentially the same.
"We believe this reserve estimate better reflects the potential magnitude of the Hycroft project," comments Scott Caldwell, President & CEO. "We will continue drilling at a reduced rate as management is confident that the current reserve will support a long mine life, allowing us to focus on regional step out targets and conversion of the known resources. The Mill Feasibility Study will be released shortly and we believe shareholders will be pleased with what will be presented."
Inferred mineral resources total 307.1 million tons grading 0.012 opt gold and 0.33 opt silver (0.017 opt AuEq). Approximately 55.8 million tons grading 0.012 opt gold and 0.42 opt (0.019 opt AuEq) silver lies within the current reserve pit, but lacks the drill density to convert to higher confidence levels.
The cutoff grade ("COG") strategy applied to the current mineral reserve and resource estimates reflects the long-term operating assumptions for the oxide and transitional heap leach (COG - 0.005 opt AuEq), transitional mill (COG - 0.011 opt AuEq) and sulfide mill (COG - 0.014 opt AuEq) mineralization at Hycroft.
The June 30, 2011, mineral reserve was estimated using gold and silver selling prices of $800 per ounce and $14 per ounce, respectively, and is highlighted below. The Company completed a metal price sensitivity analysis estimating ounces mined using Whittle cones, hypothetical mining pits created using the block model and applying metallurgical recoveries and basic economics such as metal prices and costs. The results of this analysis are as follows:
This sensitivity analysis assumes a constant silver to gold price ratio of 57.14:1. The $800 per ounce of gold and $14 per ounce of silver line (bold and highlighted) reflects our current reserve estimate. The $1,100 per ounce gold price line (highlighted) hypothetically represents an in-pit reserve, assuming a trailing 3-year average gold price of $1,112 per ounce.
(1) Gold Equivalent ("AuEq") values are calculated using a silver ounce to gold ounce ratio of 57.14:1 ($800 Au/$14 Ag).
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and the U.S. Securities Exchange Act of 1934 (and the equivalent under Canadian securities laws), that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, statements regarding the Company's expectation of the projected timing and outcome of engineering studies; the potential for confirming, upgrading and expanding gold and silver mineralized material at Hycroft; mineral reserve and resource estimates; estimates of gold and silver grades; 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 relating to risks that Allied Nevada's acquisition, 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; availability of outside contractors in connection with Hycroft and other activities; 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 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. 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.
Cautionary Note to U.S. Investors Regarding Estimates of Measured, Indicated and Inferred Mineral Resources
This press release uses the terms "measured", "indicated" and "inferred" "mineral resources." We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. The term "contained gold ounces" used in this press release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
Mr. Scott E. Wilson, AIPG Certified Professional Geologist #10965, is Allied Nevada's Independent Qualified Person as defined under National Instrument 43-101. He has supervised the preparation of the technical information and has reviewed and approved the contents of this news release. Allied Nevada will file on a National Instrument 43-101 compliant technical report within the time required by 43-101 guidelines encompassing the mineral reserve and resource discussed herein, which will include further details with respect to the feasibility study, including risks and uncertainties associated therewith.
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
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Datum: 23.08.2011 - 05:00 Uhr
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News-ID 1032744
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