Allied Nevada Gold Corp.

Allied Nevada Gold Corp.

November 19, 2010 08:00 ET

Allied Nevada Drills 40 Meters Grading 2.17 g/t Gold Equivalent in the North Brimstone Area at the Hycroft Mine

RENO, NEVADA--(Marketwire - Nov. 19, 2010) - Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV)(NYSE Amex:ANV) is pleased to provide an update for North Brimstone drilling at its wholly owned Hycroft mine, located west of Winnemucca, Nevada. Highlights from this drilling include 40 meters grading 2.17 g/t AuEq (0.73 g/t Au and 74.8 g/t Ag) and 37 meters grading 1.32 g/t AuEq (0.92 g/t Au and 20.5 g/t Ag).

"We continue to see intervals of higher gold and silver grades in recent drilling in the North Brimstone area, compared with the average reserve grades currently being mined in the area. We expect these results will have a positive impact on the overall year-end oxide resource, which we expect to issue in February of 2011," commented Dave Flint, Vice President, Exploration for Allied Nevada.

The following table includes significant intercepts encountered in the North Brimstone drilling. Assays indicate that the material is potentially oxide leachable material.

H10R-3996 124 148 24 0.54 60.6 1.71
H10R-3997 137 174 37 0.92 20.5 1.32
H10R-3999 166 183 17 0.49 49.8 1.45
H10D-4000 178 218 40 0.73 74.8 2.17
H10D-4003 177 200 23 0.36 65.3 1.62

This area of drilling is north of the producing Brimstone Mine, and is not currently included in Hycroft's Proven and Probable reserve pit. These drill results extend mineralization to the north of previously reported mineralization (see press release dated September 9, 2010) and will be included in the 2010 year-end update to resource and reserves.

The North Brimstone material is contiguous with the Brimstone deposit to the south. At present, this zone is approximately 300 by 185 meters, and extends to a depth of 240 meters. Additional drilling plans in this area will be determined based on results from the year-end update to resource and reserves. 

Year to date 321 infill and exploration holes totaling 80,539 meters have been drilled at Hycroft. The exploration program for the fourth quarter of 2010 consists of the planned drilling of an additional 30 holes. Allied Nevada continues to explore with a drill fleet of nine rigs, with a focus on infill and expansion of the oxide and sulfide mineralization, as well as providing material for engineering, slope stability analysis, and ongoing metallurgical testing.

Allied Nevada maintains a strict quality control program at all of its projects. Drill samples are collected on site and validated by Allied Nevada and Scott E. Wilson Consulting, Inc. geologists to be shipped to ALS Chemex's assaying laboratories in Reno, Nevada. Gold and silver analyses are conducted on 1‐assay ton prepped samples with gold and silver determined using industry standard fire assay methods with gravimetric finish.

Mr. Scott E. Wilson, AIPG Certified Professional Geologist #10965, is Allied Nevada's Independent Qualified Person as defined under National Instrument 43-101. The technical information contained in this press release have been prepared under his supervision.

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 results and indications of exploration drilling currently underway at Hycroft; the potential for confirming, upgrading and expanding gold and silver mineralized material at Hycroft; resource estimates and the timing of the release of updated estimates; estimates of gold and silver grades; our planned exploration program for the second half of 2010 and the expected benefits therefrom; 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 that Allied Nevada's 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; 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 the 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 prepared under the supervision of Scott Wilson of Scott E. Wilson Mining, an independent consultant for Allied Nevada, who is a Qualified Person as defined by National Instrument 43-101. For further information regarding the quality assurance program and the quality control measures applied, as well as other relevant technical information, please see the Hycroft Amended and Restated Technical Report dated September 23, 2010 and filed with SEDAR at

Visit the Allied Nevada website at to view a full list of assays received to date for holes drilled in the 2010 program.

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