Name and Location
Hycroft mill expansion project, US.

Client
Allied Nevada.

Project Description
The feasibility study completed on the Hycroft mill expansion is similar to the prefeasibility study (PFS) issued in May, and continues to assume a two-phase construction plan for the mill expansion.

The feasibility study is based on a nominal 120 000 t/d mill for oxide, transition and sulphide ore and the associated heap leach for lower-grade oxide and transition ore as presented in the PFS issued in May.

The mill is designed and scheduled to be constructed in two phases that will each deliver 60 000 t/d. The throughput varies, based on ore hardness.

The mill flowsheet components include crushing, grinding, flotation, concentrate regrind, concentrate oxidation and leaching, tails leaching, Merrill-Crowe extraction and refining.

The process flowsheet 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 re-evaluation of the economic benefit of processing an additional 440-million tons through the tails leach (Mill 3 scenario), compared with the Mill 2 scenario, resulted in additional overall ounces and improved economics.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value of $1.81-billion at 5% discount and an after-tax internal rate of return of 28.6%, with a payback of 5.5 years.

Value
The capital has increased by $66-million to $1.39-billion primarily as a result of:
• the change in construction of two 120 kV power lines to one 345 kV line to ensure reliable power availability;
• additional conveyors and crushed-ore storage for the crushing/precrush and pebble-crushing circuits;
• increased site general costs and confirmation of geotechnical analysis on required earthworks; and
• increased sizing for the thickener tanks.

These increases were partially offset by a decrease in contingency, reflecting the improved confidence level of the capital estimate, with 88% of the estimated equipment capital costs currently associated with vendor quotes.

Duration
Detailed engineering is expected to begin in early 2015 and construction of Phase 1 is expected to start in the second quarter of 2015, subject to Allied Nevada securing the necessary financing.

Phase 1 is scheduled to be completed within 24 months, which will result in commissioning in the second quarter of 2017.The feasibility study projects the commissioning of Phase 2 to be at the end of the second quarter of 2018, 12 months after the completion of Phase 1.

Latest Developments
Allied Nevada continues to work with interested parties towards establishing a financing plan for the first phase of construction.

Key Contracts and Suppliers
M3 Engineering & Technology (feasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Allied Nevada, VP investor relations and corporate communication Tracey Thom, tel +1 775 789 0119 or
email tracey.thom@alliednevada.com.
M3 Engineering & Technology, tel +1 520 293 1488, fax +1 520 293 8349 or email m3@m3eng.com.