Allied Nevada Gold Corp.
TSX : ANV
NYSE Amex : ANV

Allied Nevada Gold Corp.

September 03, 2009 08:16 ET

Allied Nevada Board Approves Expanded Exploration Program for Hycroft

RENO, NEVADA--(Marketwire - Sept. 3, 2009) - Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV)(NYSE Amex:ANV) is pleased to announce that its Board of Directors has approved a $6.4 million enhanced exploration program for 2009, which is an expansion to the previously announced program (see press release dated June 17, 2009 at www.alliednevada.com). The Company will increase the number of drills at Hycroft from one reverse circulation ("R/C") and one diamond drill ("Core") to two R/C drills which will be double-shifted (or work the equivalent of four drills) and two Core drills for total drilling of approximately 40,000 meters in 2009.

The exploration program has been designed to upgrade oxide and sulphide resources to the reserve category, further increase the reserve and resource base, provide data and material to aid in advancing optimization programs and completing a feasibility study for sulphide mineralization at Hycroft. For the remainder of 2009, drilling will focus on Vortex zone in-fill drilling, Vortex step-out drilling and testing selective geophysical anomalies. The program will also focus on collecting representative samples from various areas of the mine to complete further metallurgical testwork on oxide, sulphide and mixed mineralization.

Additional targets to be assessed in 2009-10 include Cut-5 exploration, Bay Area & Boneyard delineation, silver delineation and Albert zone exploration. It is believed that mineralization is open to the north, south, west and at depth. The next 16 months of this program, involves drilling of approximately 122,000 meters. The ultimate goal is to upgrade oxide and sulphide resources to the reserve category with a view to completing a feasibility study by year end 2010.

"Completion of the recent C$100.4 million public offering has allowed us to initiate a more aggressive drill program. We now have the basic elements in place to advance various projects at Hycroft which require a significant amount of drilling. We believe that this drill program will continue to advance our vision for Hycroft," remarked Scott Caldwell, President & CEO.

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, the Company's expanded exploration program for 2009, including the nature and extent and the results and benefits of such program; the Company's expectations regarding the potential to upgrade the sulfide and oxide resources and increase the resource base at Hycroft; expectations regarding the life of the Hycroft mine; 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 Allied Nevada's lack of operating history; 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.

The technical contents of this news release have been reviewed and verified by Scott Wilson of Scott E. Wilson Mining, who is a Qualified Person as defined by National Instrument 43-101. Scott Wilson is an independent consultant for Allied Nevada and has reviewed the technical information contained in this news release.

For further information on Allied Nevada, please visit the Allied Nevada website at www.alliednevada.com.

Contact Information

  • Allied Nevada Gold Corp.
    Scott Caldwell
    President & CEO
    (775) 358-4455
    or
    Allied Nevada Gold Corp.
    Tracey Thom
    Vice President, Investor Relations
    (416) 409-6007
    www.alliednevada.com