Allied Nevada Gold Corp. Reports Preliminary Production and Sales Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Sales Guidance for the Year 2014
Oct 15 14
Allied Nevada Gold Corp. reported preliminary production and sales results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported gold production of 49,630 ounces and 52,198 ounces a year ago. Silver was 525,942 ounces against 184,070 ounces a year ago.
For the nine months, the company reported gold production of 166,608 ounces and 129,412 ounces a year ago. Silver was 1,419,599 ounces against 504,911 ounces a year ago.
For the quarter, the company reported gold sales of 52,176 ounces and 52,713 ounces a year ago. Silver was 535,407 ounces against 184,082 ounces a year ago.
For the nine months, the company reported gold sales of 168,696 ounces and 121,481 ounces a year ago. Silver was 1,416,473 ounces against 505,151 ounces a year ago.
The company anticipates metal sales for the year 2014 to be between 220,000 - 230,000 ounces of gold and 1.9 - 2.0 million ounces of silver.
Allied Nevada Gold Corp. - Special Call
Oct 15 14
To discuss the Hycroft mill expansion feasibility study results
Allied Nevada Gold Corp. Announces Hycroft Mill Expansion Feasibility Results
Oct 15 14
Allied Nevada Gold Corp. provided a summary of the Hycroft mill expansion feasibility study results, completed by M3 Engineering and Technology in association with the Company. M3 developed the process flow sheet, capital cost estimate, operating cost estimate and financial model, while Allied Nevada developed the heap leach metrics, taxes, mineral reserves and mine plan. The feasibility study assumptions are largely the same as in the prefeasibility study issued in May, 2014, and continue to assume a two-phase construction plan for the mill expansion. A summary of the significant changes from prefeasibility to feasibility are highlighted below. Consistent with the prefeasibility study, the base case metal price assumptions of $1,300 per ounce gold and $21.67 per ounce silver have been utilized in the feasibility study. The feasibility is presented on a January 1, 2015, go-forward basis and the comparative prefeasibility results have been adjusted to reflect the same start time. Overview: The feasibility study is based on a nominal 120,000 ton per day mill for oxide, transition and sulfide ore and the associated heap leach for lower grade oxide and transition ore as presented in the prefeasibility study in May 2014. The mill is designed and scheduled to be constructed in two phases of 60,000 tpd each. Throughput varies based on ore hardness. The mill flow sheet components include crushing, grinding, flotation, concentrate regrind, concentrate oxidation and leaching, tails leaching, Merrill-Crowe extraction and refining. The feasibility study projects commissioning of Phase 2 to be at the end of the second quarter of 2018, 12 months following completion of Phase 1. Mining and processing: The company completed an optimized mine plan that resulted in an additional 52 million ore tons that will be processed during the LOM and a reduced strip ratio of 1.50 (from 1.56). Mining unit costs have decreased slightly resulting from improved haul profiles and a reduction in mining equipment fleet requirements. The process flow sheet has not changed and still considers a process plant capable of processing three streams: Mill 1 - whole ore; Mill 2 - Atmospheric Alkaline Oxidation (AAO); and Mill 3 - AAO with tails leach. A reevaluation of the economic benefit of processing an additional 440 million tons through the tails leach (Mill 3 scenario) as compared with the Mill 2 scenario resulted in additional overall ounces and improved economics. Mill process costs did not change materially on a per unit basis. Total ton weighted costs increased $0.31/ton to $9.14/ton resulting from the processing of the additional 440 million tons through the Mill 3 scenario, which are more than offset by the revenue from additional ounces recovered. The 440 million tons were assumed to be processed through Mill 2 without the benefit of the additional recovery from tails leaching in the prefeasibility study. The life-of-mine model includes 266,000 recoverable ounces of gold and 2,127,000 ounces of recoverable silver in the heap leach inventory at January 1, 2015, and also accounts for ounce reductions due to melt loss and non-payable ounces from the refinery. Economic analysis: The results of the revised prefeasibility study indicate an IRR projected to be 28.6% and a NPV projected to be $1.81 billion at a discount rate of 5%, assuming gold and silver prices of $1,300 per ounce and $21.67 per ounce, respectively. The initial capital to construct the mill and associated infrastructure is on a go-forward basis and does not include capital spent to date on the mill expansion such as the crushing system, Merrill-Crowe plant, mills, motors and excavation. The cash flow model considers the current heap leach revenue and costs as part of the project, which was developed by Allied Nevada. The Hycroft mill expansion is projected to generate a significant amount of gold and silver at relatively low adjusted cash costs per ounce. The project, however, is extremely sensitive to metal prices.