Name and Location
Hycroft mill expansion project, Nevada, US.

Client
Allied Nevada Gold.

Project Description
A prefeasibility study (PFS) completed on the Hycroft mill expansion project proposes a two-phase construction plan.

Phase 1 of the mill construction is expected to include:
• one grinding line, comprising one semiautogenous (SAG) mill and two ball mills and a regrind mill, capable of processing up to 60 000 t/d;
• sulphide flotation cells;
• tails leach tanks;
• oxidation tanks;
• an oxygen plant;
• starter tails capacity; and
• the associated infrastructure for these facilities.

In Phase 1, the rail spur and power requirements will be built. Current estimates assume that the oxygen plant will be constructed by a third-party vendor. The flowsheet will be designed with three streams to process – whole ore, sulphide with the ambient alkaline oxidation (AAO) plant, or transitional material with the AAO circuit and a tails leach plant.

Phase 2 is designed to increase the mill capacity to 120 000 t/d by adding a second grinding line, comprising an additional SAG mill and two additional ball mills, additional flotation cells and additional tanks for the AAO circuit commensurate with the increased capacity of the grinding circuit.

The operation is expected to have a mining and processing life of 20 years.

Value
Phase 1 will cost $900-million and Phase 2 an estimated $422-million.

Duration
Construction of Phase 1 is expected to start in the last quarter of 2014, which is dependent on Allied Nevada’s ability to secure the necessary financing, and is scheduled to be completed within 24 months, which would result in commissioning in the last quarter of 2016.

According to the PFS, construction of Phase 2 is projected to begin commissioning in the last quarter of 2017.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Allied Nevada Gold investor relations, Tracey Thom, tel +1 775 789 0119 or
email tracey.thom@alliednevada.com.