Category: Uncategorized
- Published: 29 November -0001
Allied Nevada Drills 1,103.5 Feet of Gold and Silver Mineralization in North Brimstone at Hycroft
Allied Nevada Gold Corp. (\"Allied Nevada\" or the \"Company\") (TSX: ANV)(AMEX: ANV) is pleased to announce complete gold and silver assay results for thirty-three exploration holes and four condemnation holes drilled at the Company\'s Hycroft Heap Leach Mine (\"Hycroft\") located near Winnemucca, Nevada. Of the twenty-seven drill holes listed in the table below, twenty-one were drilled in the Fire and Brimstone Zones(1), two in the Silver Camel area, three in the Bay area and one hole was drilled north of the Brimstone pit in the north Foothills area. Core hole H08D-3188, located in the north end of the Brimstone pit and angled to the north out of the pit, intersected 1,103.5 feet of gold and silver mineralization, including 368.5 feet of 0.022 oz/ton gold. This hole was drilled as part of an ongoing program to expand the Hycroft gold and silver sulfide resource in the Brimstone and Silver Camel areas as well as to define areas for potential gold and silver oxide reserves in other areas. The Company currently targets the fourth quarter of 2008 to commence gold production at Hycroft. Twenty-one mineralized holes were drilled in the greater Brimstone Area which includes North, Central and South Brimstone/Vortex and the Fire Zone (West Brimstone). Drilling is demonstrating that these four mineralized areas are contiguous and combined cover an area of over 1 mile (6,300 feet) in strike length by 0.6 mile (3,200 feet) in width. The Brimstone Area remains completely open to the south and partially open to the west and is not closed off to the north. Three drills are currently operating in the Brimstone Area to continue to expand the gold and silver sulfide and oxide resource. The one-mile strike length of the Brimstone Area is demonstrated by two new core holes, one drilled from the floor of the north end of the Brimstone pit and a core hole in the Vortex area of South Brimstone. The two holes are collared approximately 4,700 feet apart with drill hole H08D-3188 drilled at a -45 degree angle to the north out of the north end of the pit, and drill hole H08D-3384 drilled at a -65 degree angle to the west. Hole H08D-3188 intersected 1,103.5 feet of gold and silver mineralization, including 368.5 feet of 0.022 oz/ton gold and 474 feet of 0.014 oz/ton gold and 1.3 oz/ton silver (0.038 oz/ton gold equivalent). Core hole H08D-3384 intersected 413 feet of 0.029 oz/ton gold and 0.40 oz/ton silver (0.036 oz/ton gold equivalent) within 560 feet of gold and silver mineralization.
The first two reverse circulation drill holes of an extensive drill program to define gold and silver sulfide resources for the southwestern portion of the Hycroft mine property are reported for the Silver Camel area. The holes were drilled on the northwest edge of the Silver Camel area to establish geologic criteria for this portion of the property. Three completed drill holes are reported in the north end of the Central Fault in the Bay area. This drilling demonstrates that a potentially significant oxide gold resource with silver may be identified in this area of historic mining. Assay results for several additional holes are pending.
Significant results were returned for one core hole drilled into the north Foothills, located approximately 4,000 feet northeast of the north edge of the Brimstone pit. The hole tested zones of silicifed volcanic rocks on the east side of the northern trace of the East Fault. A total of 474 feet of gold and silver mineralization was intersected, including 125 feet of 0.021 oz/ton gold and 0.3 oz/ton silver (0.027 oz/ton gold equivalent) and a second zone slightly deeper of 205 feet of 0.020 oz/ton gold and 0.2 oz/ton silver (0.023 oz/ton equivalent). This is the first hole drilled into the Foothills silicified zone and additional drilling is planned at a future date.
BRIMSTONE AREA
North Brimstone
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08-D3188 1103.5 Feet of mineralization
-----------------------------------------
49 523 474 0.014 1.3 0.038
& 670 1038.5 368.5 0.022 0.1 0.025
& 1090 1351 261 0.014 0.1 0.017
H08R-3373 185 Feet of mineralization
-----------------------------------------
370 485 115 0.015 0.4 0.022
& 510 535 25 0.016 0.2 0.019
& 595 640 45 0.017 0.3 0.022
South Brimstone
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08R-3211 95 Feet of mineralization
-----------------------------------------
305 400 95 0.016 0.5 0.026
H08R-3383 110 Feet of mineralization
-----------------------------------------
225 230 5 0.092 0.0 0.092
& 555 580 25 0.016 0.6 0.027
& 780 830 50 0.010 0.6 0.021
& 1005 1035 30 0.016 0.2 0.019
H08D-3384 560 Feet of mineralization
-----------------------------------------
634 650 16 0.015 0.2 0.018
& 733 759.5 26.5 0.019 1.0 0.037
& 787 798 11 0.009 0.9 0.027
& 943 988 45 0.013 0.4 0.021
& 1063.5 1078 14.5 0.024 0.2 0.027
& 1249 1662 413 0.029 0.4 0.036
& 1758 1792 34 0.018 3.6 0.084
H08R-3388 370 Feet of mineralization
-----------------------------------------
455 505 50 0.019 0.1 0.021
& 945 1030 85 0.011 1.2 0.034
& 1140 1375 235 0.014 0.8 0.029
H08R-3417 80 Feet of mineralization
-----------------------------------------
260 290 30 0.013 0.4 0.020
& 395 445 50 0.003 1.2 0.025
H08R-3419 95 Feet of mineralization
-----------------------------------------
205 260 55 0.012 0.8 0.028
& 495 520 25 0.012 0.3 0.018
& 585 600 15 0.008 1.4 0.034
H08R-3464 235 Feet of mineralization
-----------------------------------------
245 310 65 0.019 0.2 0.022
& 495 665 170 0.010 1.4 0.035
Central Brimstone
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08R-3204 160 Feet of mineralization
-----------------------------------------
415 480 65 0.011 0.5 0.021
& 545 640 95 0.011 0.2 0.015
H08R-3234 60 Feet of mineralization
-----------------------------------------
220 240 20 0.021 0.2 0.025
& 445 465 20 0.004 1.0 0.023
& 530 550 20 0.023 0.7 0.036
Fire Zone (West Brimstone)
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08D-3194 648.5 Feet of mineralization
-----------------------------------------
626 1274.5 648.5 0.011 0.7 0.024
H08R-3239 40 Feet of mineralization
-----------------------------------------
585 600 15 0.016 0.3 0.021
& 620 645 25 0.011 0.7 0.023
H08R-3247 235 Feet of mineralization
-----------------------------------------
410 435 25 0.022 0.0 0.022
& 510 720 210 0.018 1.3 0.042
H08R-3282 255 Feet of mineralization
-----------------------------------------
205 280 75 0.023 0.1 0.024
& 335 395 60 0.020 0.6 0.031
& 425 480 55 0.011 0.5 0.020
& 535 600 65 0.023 0.4 0.031
H08R-3289 145 Feet of mineralization
-----------------------------------------
& 235 285 50 0.022 0.0 0.022
& 325 420 95 0.009 0.6 0.020
H08R-3297 135 Feet of mineralization
-----------------------------------------
595 640 45 0.014 0.3 0.019
& 650 665 15 0.014 0.4 0.023
& 715 750 35 0.008 0.6 0.019
& 885 900 15 0.014 0.3 0.021
& 965 990 25 0.021 0.4 0.028
H08R-3366 55 Feet of mineralization
-----------------------------------------
500 520 20 0.011 0.2 0.015
& 695 730 35 0.014 1.6 0.043
H08R-3368 35 Feet of mineralization
-----------------------------------------
200 220 20 0.018 0.2 0.022
& 600 615 15 0.014 0.3 0.020
H08R-3370 260 Feet of mineralization
-----------------------------------------
310 325 15 0.015 0.1 0.016
& 370 440 70 0.017 0.2 0.021
& 465 500 35 0.006 1.1 0.027
& 535 600 65 0.011 0.7 0.024
& 660 735 75 0.013 0.4 0.020
H08R-3520 125 Feet of mineralization
-----------------------------------------
275 300 25 0.018 0.0 0.018
& 555 605 50 0.021 0.3 0.026
& 765 775 10 0.014 0.5 0.023
& 880 920 40 0.021 0.0 0.022
SILVER CAMEL AREA
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08R-3492 895 Feet of mineralization
-----------------------------------------
25 420 395 0.016 0.1 0.019
& 440 920 480 0.014 0.1 0.015
& 970 990 20 0.023 0.2 0.027
H08R-3493 150 Feet of mineralization
-----------------------------------------
315 375 60 0.018 0.0 0.019
& 810 900 90 0.015 0.2 0.018
CENTRAL FAULT AREA
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08R-3442 85 Feet of mineralization
-----------------------------------------
40 55 15 0.021 0.0 0.021
& 85 125 40 0.018 0.0 0.018
& 140 170 30 0.016 0.2 0.020
H08R-3443 190 Feet of mineralization
-----------------------------------------
0 190 190 0.020 0.1 0.022
H08R-3444 135 Feet of mineralization
-----------------------------------------
20 155 135 0.022 0.1 0.023
NORTH FOOTHILLS
Gold
Drill Hole From To Interval Gold Silver Equivalent
(feet) (feet) (feet) (oz/ton) (oz/ton) (oz/ton)
------ ------ ------ -------- -------- ----------
H08D-3193 474 Feet of mineralization
-----------------------------------------
292 338 46 0.015 0.1 0.017
& 456 554 98 0.015 0.2 0.018
& 588 713 125 0.021 0.3 0.027
& 758 963 205 0.020 0.3 0.023
\"Drilling is significantly expanding the known sulfide mineralization in the Brimstone Area,\" said Rick Russell, Allied Nevada\'s Vice President of Exploration. \"The strike length of the Brimstone Area as now defined is over a mile long and recent drill holes indicate that gold and silver sulfide mineralization continues to the north and south.\"
As of August 20, 2008, 335 drill holes have been completed at Hycroft by Allied Nevada since the Company began exploration drilling in August of 2007, including 270 reverse circulation drill holes and 65 core holes for a total of 243,939 feet drilled. The drill holes were drilled to an average depth of approximately 730 feet, including 49 shallow holes in the Crofoot leach pad. Five drill rigs (four reverse circulation rotary and a core rig) are currently operating at the Hycroft property. The Hycroft drilling program is currently averaging approximately 21,000 feet per month based on one 12-hour shift per day for the four reverse circulation rotary drills and two shifts per day for the core drill. The five rigs are currently drilling sulfide targets in the Brimstone Area and at Silver Camel. The condemnation drilling program relating to the Brimstone leach pad expansion has been completed. The six exploration drill holes not listed here contain no significant gold and silver mineralization. For complete drill hole assay information for the thirty-three exploration holes drilled since the last news release, please see assay data posted on the Company\'s website at www.alliednevada.com. Gold equivalent grades were calculated utilizing a $650 per ounce gold price and a $12 per ounce silver price.
(1) The drill program is being conducted under the supervision of Mr. Rick Russell, Vice President of Exploration for Allied Nevada Gold Corp., who is a Qualified Person as defined by Canadian National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Hycroft Mine. A combination of vertical and angle holes have been drilled to intersect mineralization; however, due to physical constraints and the complex nature of the deposit, true thickness of the drilled intervals cannot be assumed from the measured intercepts. Sampling and assaying methods of this program are being conducted in accordance with the CIM Mineral Exploration Best Practices Guidelines.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and U.S. Securities Exchange Act of 1934 (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 timing and results of exploration drilling and assay programs currently underway at Hycroft, timing of commencement of gold production at the Hycroft Mine, potential for confirming, upgrading and expanding oxide gold and silver mineralized material at Hycroft, results of evaluation of underlying sulfide mineralization at Hycroft, and other statements that are not historical facts. Forward-looking statements address activities, events or developments that Allied Nevada expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. 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 Allied Nevada\'s status as a newly formed independent company and its lack of operating history; risks that Allied Nevada\'s acquisition, exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of gold and silver; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; availability of outside contractors in connection with Hycroft and other activities; 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. 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.
Contacts: Allied Nevada Gold Corp. Scott Caldwell (775) 358-4455 Allied Nevada Gold Corp. Hal Kirby (775) 358-4455 Website: www.alliednevada.com
SOURCE: Allied Nevada Gold Corp.
http://www.alliednevada.com
