Corporate Update:
Allied Nevada Gold Corp.
January 2011
Cautionary Statements on Forward Looking Information
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation and certain oral statements of management related thereto contain or may contain forward-looking statements
within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934 and the United States Private Securities Litigations Reform Act of 1995 (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 Company's business
strategy, plans and goals, plans for reactivation of the Hycroft Mine including anticipated scheduling and production estimates, and direction of production, as well as estimated capital and other costs;
anticipated cash flows and returns if production is resumed at the Hycroft Mine; future gold and silver prices; reserve and resource estimates; estimated gold and sliver potential for expansion of existing
resources; timing and results of drilling programs; expected royalty revenues; hedging practices; currency exchange rate fluctuations; government regulation of mining operations; environmental risks;
unanticipated reclamation expenses; share valuation, including valuation relative to other resource companies and other statements that are not historical facts. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”
“anticipates” or “does not anticipate”, “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. Forward-looking statements are based on our current expectations and assumptions. The anticipated timing and cost of reactivation of the Hycroft Mine as well as the expected production from
the mine are based on the following assumptions: Capital and operating cost estimates are based on recent cost estimates of construction and mining costs developed by independent consultants and
Allied personnel. Production estimates are based upon the actual gold recovery achieved on Brimstone ores. Ore tonnage estimates and gold and silver grades are per the mine plans and production
schedules developed by an independent consultant. 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 the planned
reactivation of the Hycroft Mine including risks of delays in receipt of reclamation bond approval and delays in completion of construction, uncertainties relating to availability and timing of capital for
financing the planned reactivation, risks relating to availability of outside contractors, risks of shortages of equipment or supplies, uncertainties relating to obtaining approvals and permits from government
regulatory authorities, and risks of inability to achieve anticipated production volume or manage cost increases; risks that Allied Nevada’s acquisition, exploration and property advancement efforts will not
be successful; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; and uncertainties concerning reserve and recourse estimates 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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. 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 ON RESOURCES AND RESERVES U.S. Investors are cautioned that the terms “Measured”, “Indicated” and “Inferred” Resources and “Probable” or “Proven” Reserves are not recognized
by the SEC and they should not assume that any or all of the mineral resources in these categories will ever be converted into reserves. Inferred resources have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility. As set forth in this presentation, certain reserves disclosed herein have been calculated in accordance with Canadian National
Instrument 43-101 (“NI 43-101”), and these may not be comparable to reserves calculated by U.S. companies subject to the SEC requirements. U.S. investors are cautioned not to assume that all or any part
of a proven or probable reserve under NI 43-101 would constitute a reserve under U.S. standards or has been determined to be legally mineable. For the details of reserve and resource calculations
disclosed herein and the details of key assumptions, parameters and other relevant technical information associated therewith, readers should refer to the technical reports filed on www.sedar.com under
the Allied Nevada profile, for each of the material properties discussed herein.
Mr. Scott E. Wilson, AIPG Certified Professional Geologist #10965, is Allied Nevada's Independent Qualified Person as defined under National Instrument 43-101. He has prepared or supervised the
preparation of the technical information disclosed in this presentation.
For further information on the geology, mineralization, parameters, assumptions and risks underlying mineral resource and reserve estimates, the scoping study and the accelerated mine plan and other
technical information with respect to the Hycroft property, please refer to the technical report entitled “Technical Report, Allied Nevada Gold Corp., Hycroft Mine, Winnemucca, Nevada USA” dated August
27, 2010, filed on SEDAR.
Allied Nevada provided non-GAAP measures of “cost of sales per ounce of gold sold” in this document. Cost of sales per ounce of gold sold is calculated as Operating Costs as per the Statement of Earnings
less revenue from the sale of silver, divided by the number of ounces of gold sold. The Company believes that, in addition to conventional measures prepared in accordance with United States generally
accepted accounting principles (U.S. “GAAP”), stakeholders use non-GAAP measures to evaluate the Company’s performance and its ability to generate cash flow. The above non-GAAP measure does not
have any standardized meaning prescribed by GAAP and, therefore, may not be comparable to similar measures presented by other companies. Accordingly, the above measure is intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. A reconciliation from the non-GAAP measures to the
most directly comparable measure calculated in accordance with GAAP will be provided in the Company’s MD&A.
The information contained in this document is subject to the more detailed information provided in the disclosure documents filed by the Company from time to time on SEDAR and Edgar.
All dollar amounts in this presentation are expressed in US dollar, unless otherwise noted.
2
Hycroft: Waking a Giant
›
Strong production growth potential at Hycroft
•
•
•
•
•
›
Expanding cash margins
•
›
Expect average cost per ounce of gold sold to decline to $350 by 2015
Continued exploration success could fuel improved milling study economics
•
›
More than double gold production by 2012 and triple silver production with
accelerated heap leach project (1)
Average over 600,000 ounces Au and 27 million ounces Ag by 2015 (with milling
option (2))
Milling study places Hycroft among the largest gold producers in the US and the largest
silver producers in the world
45% compound annual growth in production 2010 – 2015
Planned staged expansions allow management of capital requirements
Infill drill program designed to upgrade resources will provide additional data for initial
milling feasibility study (expected mid-2011)
Further optimization required to define ultimate milling scenario
•
•
Metallurgical optimization for the milling flow sheet could improve recoveries
Reviewing onsite oxidation circuit
(1) See amended and restated technical report dated September 23, 2010 for further information on operating plans for Hycroft.
(2) See September 8, 2010 press release for further information regarding the milling scoping study. Assumes receipt of all permits and completion of
construction and commissioning by January 1, 2014
3
Enviable Production Growth Profile: Gold
600
Milling Scoping Study
600
Cost/oz - Milling
500
Cost/oz - Accelerated Heap Leach
500
400
300
400
200
45% Production CAGR 2010 - 2015
Accelerated Heap Leach
Cost Per Ounce (US$)
Gold Production (thousands of ounces)
700
100
0
300
2009 A
2010 E
2011 E
2012 E
2013 E
2014 E 2015 E (1)
– Accelerated heap leach plan is based on the Production Plan as per the Amended & Restated Technical Report dated September 23, 2010.
– Milling scoping data is based on the annual average production and costs as described in the September 8, 2010 press release.
(1) Assumes receipt of permits, construction and commissioning of the mill by 2014.
4
Enviable Production Growth Profile: Silver
30
Silver Production (millions of ounces)
Milling Scoping Study
25
Accelerated Heap Leach
20
Silver significantly improves project
economics with the milling scenario
15
10
5
2009 A
2010 E
2011 E
2012 E
2013 E
2014 E
2015 E (1)
– Accelerated heap leach plan is based on the Production Plan as per the Amended & Restated Technical Report dated September 23, 2010.
– Milling scoping data is based on the annual average production and costs as described in the September 8, 2010 press release.
(1) Assumes receipt of permits, construction and commissioning of the mill by 2014.
5
Hycroft: Accelerated Heap Leach Expansion
›
Increasing mining rate for oxide 2P
Reserves
› Gold production expected to average over 250,000
oz/yr and silver production expected to average
over 1 million oz/yr over 5 years
› Average cost of sales expected to be $425-$450/oz
of gold sold
› Capital cost of $212 million
• Includes 4 mobile crushing units
• Larger capacity mining fleet (300-ton haul trucks,
hydraulic shovels)
• Upgrade to Merrill-Crowe plant, refinery and
other support facilities
› Addition of crushing circuit
• Approx. 30% of ore mined is expected to be
crushed
• Improves overall recovery of gold and silver to
60% and 18%, respectively
Potential to more than double production by 2012
Crushing and an increased mining rate will provide a staged production
growth profile at Hycroft
6
Ramping Up Heap Leach Operations
The first three 320-ton haul trucks began operation
in late 2010. Additional 320-ton trucks will be
added to the fleet in 2011.
Operation of the new larger capacity hydraulic
shovel began in August 2010. An additional
hydraulic shovel will be added in 2011.
7
Hycroft Sulfide Pit
• Management envisions oxide and sulfide
mineralization could be mined
concurrently
– Lower grade oxide ore would be
processed as run of mine heap leach
– Large capacity mill would process
sulfide and higher grade oxide ore
– Dore and concentrate would be
produced on site
– In the current plan, the concentrate
shipped off site for final processing
•
Management is reviewing the potential to build
on onsite oxidation facility
8
Milling Scoping Study
›
Updated scoping study completed September 2010
•
•
•
•
•
•
•
•
Estimated capital cost of $1.1 billion
Average annual production of approx. 610,000 oz Au, 27.0 mm oz Ag for 13 years (1.1
million oz AuEq) at average annual cost of sales of approx. $350/oz of gold sold (with silver
byproduct credit)
174,000 tpd operation (100,000 tpd mill and 74,000 tpd heap leach)
Strip ratio of 1.56:1
Ongoing exploration and metallurgical testing should further upgrade inferred resources,
extending mine life
A feasibility study is expected to be completed in mid-2011
Reviewing onsite oxidation facility option
– Anticipate the capital cost for an oxidation plant would be more than offset by the
reduction in transportation and processing costs
Scoping study sensitivity analysis:
Metal Prices
NPV @ 0%
NPV @ 6%
IRR
$800 Au/$14 Ag
$1,782 million
$961 million
24%
$1000 Au/$16 Ag
$3,756 million
$2,238 million
42%
$1200 Au/$18 Ag
$5,723 million
$3,513 million
57%
$1400 Au/$20 Ag
$7,690 million
$4,788 million
71%
Source: All production and cost estimates for the Hycroft scoping study are based on the data presented in the September 8, 2010 press release.
9
Scoping Study Parameters
Key operating and financial statistics for
the milling scoping study
Capital Cost (millions)
Mill, Tailings Facility and Leach Pads
Additional Mine Equipment
Other
Total Capital
Operating Costs
Mining Cost per Ton
Milling Cost per Ton
Transportation of Concentrate
Oxidation of the Concentrate
Concentrate Ratio
Heap Leach Cost per Ton of Ore
G&A per Ton of Ore
Mill Au Grade (opt)
Mill Ag Grade (opt)
Mill Au Recovery
Mill Ag Recovery
Heap leach Au Grade (opt)
Heap leach Ag Grade (opt)
Heap leach Au Recovery
Heap leach Ag Recovery
$883.6
$214.0
$20.0
$1,117.6
$1.29
$7.65
$20.00
$21.93
20:1
$1.40
$0.20
0.016
0.952
87.2%
81.7%
0.008
0.160
56.6%
12.0%
LOM production
Oxide Ore Tons Mined – Heap Leach
Oxide Ore Tons Mined – Mill
Sulfide Ore Tons Mined – Mill
Pre-strip Overburden
Total Waste Tons Mined
Total Tons
Strip Ratio
Cont Ounces Au, Oxide
Cont Ounces Au, Sulfide
Cont Ounces Ag, Oxide
Cont Ounces Ag, Sulfide
Ounces AuEq
Stockpile Sulfide Feed from Oxide Plan
Average Annual Production (including Stockpile)
Mine Life
Plant Life
Ore Tons Mined, Heap Leach
Ore Tons Mined, Mill
Waste Tons Mined
Total Tons Mined (not including pre-strip)
Mining Rate, tpd
Ore Tons Processed, Heap Leach
Ore Tons Processed, Mill (including stockpile)
Recovered Heap Leach Ounces Au
Recovered Mill Ounces Au
Recovered Heap Leach Ounces Ag
Recovered Mill Ounces Ag
Total Recovered Ounces Au
Total Recovered Ounces Ag
Recovered Ounces AuEq
Cost of sales per ounce of gold sold (after silver byproduct
credit) ($/Oz)
303,246,082
64,983,870
319,666,100
85,000,000
1,070,000,000
1,757,896,052
1.56
3,635,000
4,911,000
163,266,000
266,504,000
16,066,975
27,000,000
13
12
25,786,231
32,708,331
77,194,357
135,688,920
371,750
25,786,231
35,004,249
123,211
486,925
496,388
26,530,282
610,136
27,026,670
1,083,103
$348.79
10
Metallurgical Characteristics: Milling Project
–
–
–
–
Amenable to simple, conventional flotation technology
Coarse grind to 100 microns
Recoveries averaging 87% Au and 82% Ag through grinding-flotation-cyanidation of tails
Clean concentrate with high sulphur content (25%)
•
•
–
–
20:1 flotation concentration ratio
Direct relationship between recovery of sulfides and metals
•
–
Key sulfides are pyrite, marcasite and pyrargerite (Ag)
Flotation concentration is amenable to pressure oxidation, roasting or smelting
–
–
–
Sulfide minerals in concentrate are mainly comprised of pyrite/marcasite
When heated the concentrate creates an exothermic reaction
Aqua regia testing indicates recovery of 99% of the gold and silver from oxidation of the concentrate
Bond work index of 15.6 kWh/t, moderate hardness
Size and geometry of the deposit allow flexibility to blend mill feed for optimum metallurgical
characteristics
Flotation testing
In progress:
– Five 1,000 kg bulk samples
for flotation pilot plant
testing simulating the
proposed milling flow sheet
– Additional composite
samples for grindingflotation -cyanidation of
tailings testing
11
Hycroft Mine: Key Highlights
›
Wholly owned, open pit, heap leach gold and silver mine
− 2011 gold sales expected to be approximately 125,000-135,000 ounces
− Cost of sales expected to be $450-$4901 per ounce of gold sold
›
Solid resource base; exploration upside (announced Aug. 10, 2010)
−
−
−
−
›
Au: 2P reserves of 2.4 mm ozs, M&I resources of 5.6 mm ozs, Inferred resources of 4.5 mm ozs2
Ag: 2P reserves of 38.9 mm ozs; M&I Resources of 220.3 mm ozs, Inferred ounces of 286.7 mm ozs2
Ongoing infill exploration program continues to provide encouraging results
Resource update expected in Q1/2011
Increasing production profile
− Oxide mining rate expected to increase to 80 mm tpa by 2013
− 2.4 million ozs of 2P reserves = 6 year mine life
− Cost per ounce remains steady, strip ratio of 1.04:1
Overliner being placed on Phase I of the 2010 pad expansion
YTD 2010 Operating Stats (at Sept. 30, 2010)
Q1
Q2
Tons mined (000s) Ore
2,398
3,299
Waste
2,921
3,781
Total tons
5,319
7,080
YTD
6,813
10,455
17,268
Ounces sold
Gold
Silver
20,439
50,937
29,560
63,859
30,585
67,662
80,584
184,161
Ounces produced
Gold
Silver
22,700
53,500
31,400
62,000
29,600
75,600
83,700
191,100
$ 387
$ 408
$ 416
$ 406
Cash cost/oz
1.
2.
Q3
1,645
4,375
6,020
The term “cost of sales per ounce of gold sold” is a non-GAAP financial measure. Please see the cautionary statements at the beginning of this presentation for more information.
See the reserve and resource tables in the appendix to this presentation for more detail regarding Hycroft reserves and resources. Gold equivalent ounces are based on metals prices of $800 for gold and $14.00 for silver.
CAUTIONARY NOTE ON RESOURCES AND RESERVES U.S. Investors are cautioned that the terms “Measured”, “Indicated” and “Inferred” Resources are not recognized by the SEC and they should not assume that any or all of the mineral
resources in these categories will ever be converted into reserves. Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.
12
Hycroft: Gold Resource Growth
14,000
Resource Ounces (000s)
12,000
10,000
Sulfide Inferred
Sulfide Measured & Indicated
Oxide Inferred
Oxide Measured & Indicated
Oxide Proven & Probable
2,601
4,371
2,548
3,104
8,000
798
6,000
3,959
2,495
1,946
1,352
1,385
4,000
4,586
2,078
3,995
2,139
2,504
2,444
2,400
April 2010
August 2010
2,000
0
658
379
96
1,001
1,012
May 2007
May 2008
1,985
Sept. 2008
1,100
March 2009
Cut off grades for resource estimation: August 2010 (oxide - 0.31 g/t AuEq, 0.62 g/t AuEq – sulfide); April 2010 (oxide – 0.27 g/t AuEq, 0.62 g/t AuEq – sulfide);
March 2009 (oxide - 0.17 g/t Au, sulfide - 0.45 g/t).
13
Hycroft: Silver Resource Growth
600,000
Sulfide Inferred
Resource Ounces (000s)
500,000
Sulfide Measured & Indicated
Oxide Inferred
163,644
Oxide Measured & Indicated
400,000
Oxide Proven & Probable
144,343
131,422
300,000
158,965
200,000
47,050
100,000
0
102,981
71,944
88,886
18,962
NO SILVER
May 2007
74,930
May 2008
63,465
4,173
22,008
Sept. 2008
112,781
48,933
70,452
March 2009
32,270
38,900
April 2010
August 2010
Cut off grades for resource estimation: August 2010 (oxide - 0.31 g/t AuEq, 0.62 g/t AuEq – sulfide); April 2010 (oxide – 0.27 g/t AuEq, 0.62 g/t AuEq – sulfide);
March 2009 (12.41 g/t Ag (or 0.22 g/t AuEq) for oxide and sulfide material)
14
Hycroft Resources
Gold/Silver Resource
Gold Resource Only
- Missing Silver Data
N
1km
›
Approximately 30% of the oxide and
15% of the sulfide measured &
indicated resource tonnage does not
have silver assay data, where gold data
exists
– Historically not assayed for silver
›
2010 exploration program is designed
to align the silver resource with the
gold resource
›
Expect silver grade to increase
dramatically
Bay
Area
Brimstone
Cut 5
A
Vortex
Section 1
A1
15
Cross Section Through Central/Vortex Zones
SECTION 1:
LOOKING NORTH
Grade Distribution
(g/t AuEq)
0.14 – 0.27 g/t
0.27 – 0.62 g/t
0.62 – 1.2 g/t
+ 1.2 g/t
Vortex Resource
Grade
Tons
Contained Ounces
Au g/t
Ag g/t
AuEq g/t
(000s)
Gold
Silver
Gold
Equivalent
Oxide Resource
0.37
25
0.80
109,037
1,304,995
89,237,319
2,865,726
Sulfide Resource
0.51
48
1.35
113,498
1,903,274
177,248,215
5,005,273
222,535
3,207,269
266,485,534
7,870,999
Total
500 feet
16
Hycroft: 2011 Exploration Program
2011 Hycroft Exploration Program:
•
Plan to spend approx. $10 million in 2011
•
60,000 meter drill program
•
4-6 core rigs and 3 reverse circulation rigs will be
used through the first quarter and will be reduced
to 1 core rig and 1 r/c rig for the remainder of the
year
Key goals of the 2011 exploration program:
•
Continue to acquire data to upgrade oxide and sulfide resources
in preparation for the initial milling feasibility study
•
Expansion drilling to further increase the resource base
•
Follow-up on targets identified in 2010 on the greater Hycroft
claim block
•
Identify extent of silver mineralization
•
Acquire additional samples for metallurgical testing
•
Test selective geophysical anomalies on the Hycroft property
17
ANV Regional Exploration
Contact
Illipah
Pony Creek
Hasbrouck
Mountain View
Wildcat
Maverick Springs
18
Exploration Properties Overview
›
Allied Nevada controls 63
exploration properties throughout
Nevada
•
•
›
›
›
12,375 Claims, 254,925 acres,
approximately 400 square miles
(third largest in Nevada)
Most properties located on, or
near world class trends and mines
Allied Nevada also owns or has
interest in 338 patents totaling
7,062.5 acres (approximately 11
square miles)
Well developed pipeline of
projects from an operating mine,
through advanced stage, midstage and grass roots
Tonnes
Grade
000s
Au g/t
Measured &
Indicated Gold
Inferred
Ounces
Gold Ounces
000s
000s
Hasbrouck/Three Hills
Measured and indicated
Inferred
23,619
7,439
0.79
0.72
599
Maverick Springs
Measured and indicated
Inferred
63,167
77,610
0.34
0.27
696
Mountain View
Measured and indicated
Inferred
21,064
4,051
0.45
1.34
303
Pony Creek
Measured and indicated
Inferred
1,035
29,401
1.95
1.51
65
Wildcat
Measured and indicated
Inferred
34,571
25,723
0.62
0.51
686
172
684
175
1,426
425
Several properties with royalty
streams
19
Project Pipeline
Development Path
Grass-Roots
Exploration
Early Stage
Exploration
Late Stage
Exploration
Advanced
Exploration
Operating
Mine
41 Properties
Toy
Sno
Santa Renia
Mountain
Springs
Marr
Golden Cloud
Elephant
Elder Creek
Eden
Cobb Creek
Beowawe
Goldstorm
Silver Cloud
Rock Creek
Pony Creek
Illipah
Contact
Ocelot (49%)
Hasbrouck
Wildcat
Mountain View
Three Hills
Maverick Springs
HYCROFT
(JV with Silver Standard)
20
Hasbrouck: 2010 Drill Program
›
Successfully completed the 2010 exploration program
−
−
−
14 holes totaling approximately 2,200 meters
Encouraging results achieved with several higher grade
intercepts than average resource grades 1
Significant intercepts include:
•
120 meters grading 2.22 g/t AuEq (1.57 g/t Au and 36.71 g/t Ag)
• 123 meters grading 1.15 g/t AuEq (0.81 g/t Au and 19.25 g/t Ag)
• 108 meters grading 1.2 g/t AuEq (0.85 g/t Au and 20.14 g/t Ag)
›
›
2011 drill program includes a planned
10,000 meter drill program aimed at
resource conversion and expansion
HSB10-001 – Drill hole location
Resource update and preliminary economic
assessment expected in Q1/2011
› Historical column leach testing indicated
recoveries of 54.1% gold and 19.2% silver
−
−
Crush size of 80% passing ¾ inch
Achieved after 51 days of leaching
1. Average resource grades of 0.79 g/t Au and 10.97 g/t Ag. Please see the NI 43-101 Technical Report dated August 14/06 for more information
21
EV/Ounce: Potential Value Creation
Possible value creation
through:
• Ongoing drilling to upgrade
and expand large resource
base
• Execute on accelerated
heap leach project
• Continuing to
advance/optimize Hycroft
milling project
• Advance pipeline of
exploration properties
Source: CIBC Initiating Report – October 23, 2010
22
Looking Ahead – 2011
• Ongoing metallurgical results
−
−
Bulk sample pilot plant testing
Milling flow sheet optimization
• Continued exploration results
−
−
Resource conversion and expansion drilling at
Hycroft
Resource conversion and expansion drilling at
Hasbrouck
• Year end Financial and Operating results (Feb/2011)
• Resource updates for Hycroft and Hasbrouck
(Q1/2011)
• Preliminary economic assessment for Hasbrouck
(Q1/2011)
• Hycroft initial milling feasibility study by mid-2011
• Other organic growth opportunities
–
–
Sulfide resource development
Regional exploration at Wildcat
23
Corporate Information
ANALYST COVERAGE
CanaccordGenuity: Steve Butler
CIBC:
Brian Quast
Cormark:
Mike Kozak
Dahlman Rose:
Adam Graf
Desjardins Sec.:
Brian Christie
Dundee:
GMP Securities:
Average daily volumes (3 months)
TSX
421,818
NYSE Amex
940,992
Total
1,362,810
Ron Stewart
Craig West
NYSE-Amex: 52-week trading range
High – US$29.05
Low – US$11.57
At January 7, 2010
Macquarie:
TSX:
52-week trading range
High – $29.17
Low – $12.40
At January 7, 2010
Michael Gray
National Bank:
Tara Hassan
RBC Dominion:
Stephen Walker
Equity instruments outstanding at Sept. 30, 2010
Common shares
Stock options (US$4.71 wtd avg exercise price)
Special stock options (US$ 4.60 wtd avg exercise price)
Restricted share units
# of units at
30/09/10
88,884,656
860,929
26,728
985,401
24
www.alliednevada.com
Resource Update
NOTES TO THE 2010 MINERAL RESERVE AND
RESOURCE ESTIMATE
MEASURED & INDICATED RESOURCES (inclusive of reserves)
Gold Equivalent Cut-off Grades: 0.009 opt - oxide; 0.018 opt - sulfide
Tons
Measured
Indicated
Total Oxide Measured & Indicated
170,000
226,000
396,000
Gold
Ounces
opt
(000's)
0.013
2,275
0.012
2,629
0.013
4,904
Measured
Indicated
Total Sulfide Measured & Indicated
80,000
101,000
181,000
0.018
0.017
0.017
1,402
1,702
3,104
0.72
0.73
0.73
57,882
73,540
131,422
250,000
327,000
0.015
0.013
3,677
4,331
0.44
0.46
108,807
150,401
577,000
0.014
8,008
0.45
259,208
(000s)
Oxide
Sulfide
•
Combined Measured
Indicated
Total Combined Measured &
Indicated
opt
0.30
0.34
0.32
Silver
Ounces
(000's)
50,925
76,861
127,786
•
•
INFERRED RESOURCES
Gold Equivalent Cut-off Grades: 0.009 opt - oxide; 0.018 opt - sulfide
Tons
Oxide
Ag Inferred Associated with Au M & I
Au and Ag Inferred
Inferred Total
(000s)
opt
183,000
183,000
0.011
0.011
Gold
Ounces
(000's)
1,946
1,946
opt
0.55
Silver
Ounces
(000's)
31,344
81,437
112,781
•
•
•
Sulfide
Ag Inferred Associated with Au M & I
Au and Ag Inferred
Inferred Total
Combined Ag Inferred Associated with Au M & I
Au and Ag Inferred
Inferred Total
153,000
153,000
336,000
336,000
0.017
0.017
0.014
0.014
2,601
2,601
4,547
4,547
1.07
10,267
163,644
173,911
0.81
41,611
245,081
286,692
Scott Wilson of Scott E. Wilson Consulting, Inc. is a
Certified Professional Geologist and member of the
American Institute of Professional Geologists in
Denver, Colorado, and is a Qualified Person as
defined by NI 43-101. Scott is the independent
resource estimate consultant for Allied Nevada
Gold Corp. and has reviewed the technical
information contained in this press release..
Scott E. Wilson Consulting, Inc. has recommended
an ordinary kriging estimate as the preferred
method of determining the resource estimate.
Inferred resource calculations are based on 25 foot
drill hole composites of 5 foot sample intervals. All
estimates are based on a block dimension of 50
feet long x 50 feet wide x 25 feet tall with the
estimation parameters determined by variography.
Mineral resources that are not mineral reserves do
not have demonstrated economic viability. The
estimate of mineral resources may be materially
affected by the inability to obtain required
environmental and other regulatory approval,
environmental or operating permits. The estimate
may also be materially affected by global economic
conditions such as the price of gold and silver, the
price of oil and other commodities utilized in the
production of gold and silver. Unknown geologic or
hydrologic conditions or other unknown factors
may materially affect the resource estimates.
A different processing method and plant, and all
associated regulatory approvals, are required to
recover gold and silver from sulfide mineralization.
Gold equivalent cutoff grades were calculated
using a gold price of $800 per ounce and $14.00 per
ounce for a gold to silver ratio of 57.14:1.
Estimates of mineral reserves and resources may
be materially affected by environmental
permitting, legal and other relevant issues.
26
Hycroft Concentrate Mineralogy
Composite Cleaner Flotation Concentrate Mineralogy
Mineral Constituent
Pyrite/Marcasite
Chalcopyrite
Arsenopyrite
Other Sulfides
Quartz
Feldspar
Clays
Micas
Other Silicates
Ti Oxides
Other Oxides
Native Sulfur
Sulfates
Carbonates
Ag Minerals
Other
Total
Mineral Mass
%
72.00 %
0.13 %
0.26 %
0.07 %
16.60 %
3.15 %
2.01 %
4.15 %
0.04 %
0.19 %
0.04 %
0.25 %
1.04 %
0.01 %
0.01 %
0.05 %
100.00 %
27
Hycroft Property Claims
28
Hycroft Geology
29
2010 Vortex Drilling: Plan View
30
Section 1: Vortex Drilling
31
Section 1: Vortex High-Grade Intercepts
32
Oxide Grade/Tonnage Chart – August 2010
Oxide Measured, Indicated & Inferred Resources
33
Sulfide Grade/Tonnage Chart – August 2010
Sulfide Measured, Indicated & Inferred Resources
34
Leach Kinetics
35
Typical Vortex Core
36
Typical Vortex Core
37