Allied Nevada is a US-based gold mining and exploration company, which operates its wholly owned Hycroft gold mine located near Winnemucca, Nevada. The Company also owns more than 100 advanced and early stage exploration properties located throughout the State of Nevada. The Company's focus is on internal growth strategies, including the development of the Hycroft mine from a run-of-mine heap leach operation to a world-class, large-scale heap leach a milling operation. This will be accomplished through a logically staged growth plan involving the acceleration of the current mining rate for the heap leach operation, nearly tripling 2009 production by 2012. The ultimate goal is to construct a milling operating to process the large sulfide mineralization. The Company is following up the positive results of the 2010 scoping studies with an initial feasibility study, expected the third quarter of 2011
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The Hycroft mine is currently an open pit, heap leach mining operations, extracting and processing oxide mineralization. We have begun implementing an accelerated oxide mine plan designed to essentially triple the 2010 mining rate over the next two years utilizing larger capacity mining equipment and increasing the overall mining fleet. The resulting gold production is expected to nearly triple by 2013. In 2010, the mine placed into production the first few pieces of the larger mining fleet, including three 320-ton haul trucks and a 37-yd3 hydraulic shovel. In addition, a semi-mobile crushing unit was put into operation in the third quarter of 2010. The mine will continue to mobilize the larger haul trucks and shovels as they arrive on site and are assembled.
The Company issued a positive scoping study in April 2010 detailing a mining and milling scenario for the higher grade oxide and sulfide mineralization at Hycroft, which was subsequently followed up in August 2010 with an updated study. The results of the study are summarized in a press release dated September 8, 2010. The study indicates that mining of the large sulfide resource can be economically achieved via large-scale, open pit mining methods with average annual production of 610,000 ounces of gold and 27.0 million ounces of silver. Based on the positive results of this study, the Company is proceeding with an initial feasibility study, which it expects to issue in the third quarter of 2011