Allied Nevada Gold Corp.
NYSE Alternext US : ANV

Allied Nevada Gold Corp.

April 13, 2009 07:15 ET

Allied Nevada Announces Encouraging Preliminary Metallurgical Results on Sulfide Mineralization

RENO, NEVADA--(Marketwire - April 13, 2009) - Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV)(NYSE Alternext US:ANV)(NYSE Amex:ANV.A) is pleased to provide a summary of the preliminary results from metallurgical testing on sulfide-bearing gold and silver mineralization at its 100% owned Hycroft gold mine located near Winnemucca, Nevada. Two phases of testing have been completed aimed at determining the viability of and establishing potential process scenarios for sulfide mineralization. The Hycroft property hosts a measured and indicated resource, inclusive of reserves, of 5.9 million ounces of gold (440.9 million tonnes grading 0.40 grams per tonne ("g/t") gold) and a measured and indicated resource of 117.5 million ounces of silver (104.6 million tonnes grading 34.39 g/t silver). Hycroft also hosts an inferred resource of 6.0 million ounces of gold (357.9 million tonnes grading 0.52 g/t gold) and 177.9 million ounces of silver (114.9 million tonnes grading 48.17 g/t silver), (see the press release dated March 31, 2009 at for more information regarding Hycroft reserves and resources).

Metallurgical Highlights

- Sulfide mineralization is amenable to concentration using simple, conventional flotation technology

- Rougher flotation results are encouraging with +80% recovery of gold and silver using a coarse grind

- Cleaner flotation results show an overall flotation concentration in excess of 20:1

- Mineralogy tests reveal a direct relationship between the recovery of sulfides and metals, the key sulfides being pyrite, marcasite and the silver mineral being pyrargerite

- Aqua regia test results indicate flotation concentration is very amenable to pre-treatment options typically practiced within the industry, such as pressure oxidation

- Standard Bond ball mill work index (BWi) testing established a BWi of 15.6 kWh/t, which can be considered to be of moderate hardness

"We are encouraged by these positive preliminary results on the sulfide material at Hycroft. Our objective of confirming the positive recovery of gold and silver from sulfide material has been achieved through this initial test work. These results, along with continued metallurgical testing, will factor in our review of optimization and growth opportunities for Hycroft's oxide and sulfide ore as we work to develop Hycroft into a major producer in Nevada," said Scott Caldwell, President & CEO.

The next phase of metallurgical testing of sulfide material will focus on increasing the efficiency of rougher and cleaner flotation processes. Optimization and variability testing will determine optimal flow sheet parameters including the potential for acid leach or CIL processing of material from certain zones.

Sulfide mineralization represents approximately 33% of the total mineral inventory at Hycroft, with the remainder being mostly oxide and to a lesser extent oxide/sulfide mixed material. Metallurgical testing to optimize the recovery of gold and silver from the oxide material is ongoing and further test results are expected in the third quarter of 2009.

The source of the results from this test work were based on samples from 8 zones within the Hycroft property with an average grade of 0.52 grams per tonne ("g/t") gold and 16.0 g/t silver. A master composite was generated using 8.75 kg riffled out from each of the 8 zone composites.

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 ("NI 43-101"). Scott Wilson is an independent consultant for Allied Nevada and has reviewed the technical information contained in this news release.

An NI 43-101 compliant updated resource estimate with a significant increase to gold measured and indicated mineral resources and to silver measured, indicated and inferred mineral resources for the Hycroft gold mine was released on March 31, 2009. Upon completion, the technical report on the Hycroft gold mine will be filed on SEDAR.

About Allied Nevada

Allied Nevada is a gold mining company that operates the Hycroft mine, located near Winnemucca, Nevada, and also has a large number of prospective exploration claims in the State of Nevada. Based on current life of mine plans, the Hycroft mine is expected to reach normal production rates of approximately 7,500 ounces of gold per month by the middle of 2009. These plans indicate that the Hycroft mine should be able to produce gold from the proven and probable ore reserves at these rates for approximately seven years. At the Hycroft mine, we will focus our exploration efforts on identifying additional oxide ore reserves that can extend the mine life and to continue to assess the economic potential of the sulfide mineralization that has been identified. In addition to the Hycroft mine, we have six properties which have reported other mineralized material and more than 100 other early stage exploration properties. On an ongoing basis, we evaluate our exploration portfolio to determine ways to increase the value of these properties.

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 results of exploration drilling and assay programs currently underway at Hycroft; potential for confirming, upgrading and expanding oxide gold and silver mineralized material at Hycroft; results of evaluation of underlying sulfide mineralization at Hycroft; reserve and resource estimates; expectations regarding the life of the Hycroft mine; expectations regarding the amount of future gold and silver production from 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). 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 concerning estimates of Measured and Indicated Resources.

This press release uses the terms "measured resources", "indicated resources" and "inferred resources". We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize them. "Inferred 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 reference to contained gold ounces 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 mineral deposits in these categories will ever be converted into reserves.

Contact Information

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