Allied Nevada Gold Corp., in association with M3 Engineering and Technology, has developed an optimized approach to the planned construction sequence for the Hycroft mill expansion. Operation of the first line of the mill will require a capital outlay of approximately $768 million, a reduction of 18% from phase one costs of approximately $934.5 million. With the completion of the Hycroft mill expansion feasibility study in October, Allied Nevada directed its focus to the first phase of the mill expansion with the goal of maintaining the throughput rate of the initial phase of the mill construction while minimizing upfront capital requirements.
The first phase of mill construction continues to anticipate a nominal processing capacity of 60,000 tons per day (t/d), with a potential to process up to 70,000 t/d depending on ore hardness. Annual average sales for the combined heap leach and single line mill during the initial five years are anticipated to be between $575 and $600, according to Allied Nevada.
“We reviewed the construction sequence as presented in the feasibility study and determined that, in this gold price environment, we needed to identify which components delivered the maximum cash flow, while spending the minimum upfront capital,” said Randy Buffington, president and CEO of Allied Nevada. “We believe this is a more intelligent approach to the construction sequence, which will reduce the financing and execution risks associated with a large expansion in this market.”