Boston, MA 04/24/2014 (wallstreetpr) – Allied Nevada Gold Corp. (NYSEMKT:ANV) mines and sells gold and silver at various facilities in Nevada. The company recently undertook a prefeasibility study for the expansion of its Hycroft mill. The results from the study were encouraging but further action is required to make things happen. Therefore, the board of the company this week approved further study on the project.
The company announced the feasibility study on the expansion of Hycroft mill will conclude in the third quarter after which work can start.
Expansion of the facility will help the company to improve production and operate at lower cost in the facility, therefore, improving profits.
Allied Nevada Gold Corp. (NYSEMKT:ANV) is keen on investing money on facilities that promise stability, high-margins and low costs. These investments mirror the company’s efforts to improve profits and provide greater value to shareholders.
The impact on metal prices and the soft demand for precious metals around the world have pushed miners of precious metals to retool their operations by exiting unstable locations while increasing presence in rewarding locations.
The prefeasibility study of Hycroft project was undertaken by M3 Engineering and Technology. The expansion of the mill is recommended to unfold in two phases.
Project cost
According to the prefeasibility results, Allied Nevada Gold Corp. (NYSEMKT:ANV) will require about $900 million investment to complete the first phase of the Hycroft project. Completion of the first phase should bring annul production at the facility to 0.55 million ounces of gold equivalent by 2017.
The second phase of the project will require investment of $422 million and will increase annual production to 0.8 million ounces of gold equivalent by early 2018.
One of the best projects
According to Allied Nevada Gold Corp. (NYSEMKT:ANV)’s CEO Rand Buffington, there can be few projects like Hyroft. The project is not only located in a politically stable region but also enjoys great infrastructure. On that note, the CEO believes, the project needs to be pushed to successful completion.
