Allied Nevada Gold Corp.
("Allied Nevada", "we", "our" or the "Company") ANV reports preliminary first quarter 2013
operational results. Hycroft continues to demonstrate an exemplary
track record in the health and safety departments with no lost time
accidents or reportable environmental incidents in the first quarter
of 2013. In the first quarter of 2013, we placed 9.6 million tons of
ore on the leach pads at average grades of 0.011 ounces per ton gold
and 0.142 ounces per ton silver, containing approximately 106,473
ounces of gold and approximately 1,359,467 ounces of silver, as per
expectation. Mined grades are planned to increase into the second
half of the year. Metal produced in the first quarter of 2013 was
38,019 ounces of gold and 188,000 ounces of silver and we sold 27,256
ounces of gold and 174,766 ounces of silver. In addition to planned
sales in the second quarter of 2013, we currently expect to sell
approximately 7,200 ounces of gold and 43,200 ounces of silver in the
second quarter which remained in precipitate at the end of the first
quarter of 2013 due to retort capacity limitations. With the
successful commissioning of a second retort during the first quarter,
we are now able to process all of the precipitate generated from our
Merrill-Crowe plant.
Flow rates to the leach pads have increased through the first quarter
of 2013 from 9,800 gallons per minute to 13,000 gallons per minute,
and we currently expect to increase that flow rate further in the
next month as planned ore deliveries increase and in preparation for
the start-up of the North Leach Pad. Currently 10,600 gallons per
minute of pregnant solution at average grades of 0.01 ounces per ton
of gold are being processed through the plants. This increase is due
to the commissioning of the new carbon columns. We believe we are on
track to meet previously disclosed six month production guidance of
90,000 to 100,000 ounces of gold.
"Clearly Allied Nevada has underperformed and this unacceptable
performance is the result of unsatisfactory execution of the mine
plan under previous leadership. This lack of acceptable execution
does not imply that the orebody has deficiencies nor does it suggest
that our overall business plan is flawed. As we indicate in this
press release, guidance remains unchanged. The mine is starting to
perform as it should and we currently believe that it will continue
to do so," commented Bob Buchan, Chairman, President and CEO of
Allied Nevada. "We also remain committed to completing our expansion
on time and on budget. So far (58% financially completed) we are
doing that. Allied currently has an excellent team in place to meet
production expectations and is positioned to build one of the largest
mining operations in the state of Nevada. I am committed to ensuring
that they have the resources they need to do their jobs. While I
believe that it will take some time for these improvements to rebuild
investor confidence, I am optimistic that they will."
Hycroft expansion update
The capital cost estimate for the expansion project remains at $1.24
billion. To date, we have purchased or have fixed contracts in place
for approximately $720 million, or 58% of the total capital budget.
Management continues to believe that the remaining capital to be
committed of $523 million is sufficient to complete our expansion
project within our estimate of $1.2 billion, with start-up in the
first quarter of 2015.
Foundation construction for the primary, secondary and tertiary
crushers is progressing as planned and we expect to begin installing
major crusher components by the end of the second quarter of 2013.
Plastic liner installation on the lower cells of the north leach pad
is progressing well and over-liner material has begun to be placed on
certain of those cells. The first of three 73 cubic-yard wire rope
shovels is being erected and is expected to be operational in May
2013, ahead of schedule. Major components of the second wire rope
shovel have begun arriving on-site and it is expected to be
operational in the third quarter of 2013. We plan to issue bid
packages for the mill construction in the second quarter of 2013 and
to begin mobilization for prime construction in July 2013. Bids to
install the mill sub-foundation are currently being evaluated and
neat line excavation for the foundations has commenced. We are on
track to meet commissioning deadlines for the north leach pad (late
second quarter 2013), Merrill-Crowe plant (third quarter of 2013) and
gyratory crusher (mid-third quarter 2013). The additional capacity of
the new Merrill-Crowe plant is currently expected to bring total
solution processing capacity to 33,000 gallons per minute.
We recently announced that Bob Buchan, who has been Chairman of the
Board since inception of the Company, has also assumed the roles of
President and CEO. In addition, we are also strengthening the
operating team at Hycroft with the appointments of Carl Waggoner, who
has joined as Operations Manager and Darren Tinney who will assume
the Process Manager position. Along with Randy Buffington (EVP &
COO), these highly qualified individuals will lead the operating team
as we continue to expand current operations and construct and operate
the milling complex. Carl has more than thirty years of experience in
mining and joins us most recently from his position of General
Manager at Coeur d'Alene Mining's Rochester mine in Nevada. Prior to
that, he served as Manager of Construction and Engineering at
Barrick's Turquoise Ridge Joint Venture operation in Nevada and
earlier worked at BHP Copper, Komatsu, Asarco and Fluor. Darren has
over twenty years of practical mineral processing experience in:
health, safety and environmental risk management; facility design,
startup and operations; strategic planning and execution; and
operations team building. Darren has extensive experience in every
aspect of the Hycroft Process Division expansion, including crushing,
SAG mill/ball mill grinding, cyanide leaching and carbon adsorption,
flotation and regrinding, heap leach and tailings facility
management. Relevant startup experience includes Barrick's Bald
Mountain mine expansion, BHP Escondida's Phase IV Concentrator, and
Brunswick Mine's AG/SAG mill expansion. Darren joins us from Barrick
Gold Corporation, where he served as Process Superintendent at their
Hemlo, Goldstrike and Bald Mountain mines.
We expect to issue full first quarter 2013 financial results during
the week of May 6, 2013 and will hold our Annual Meeting at the
Design Exchange in Toronto on May 2, 2013.
On Tuesday, April 9, 2013 at 9:00 am PT (noon ET), Bob Buchan, Steve
Jones - EVP & CFO and Randy Buffington will hold an open conference
call in which they will discuss recent announcement by the Company,
which will be followed by a question and answer session.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in