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Sunday, September 25, 2022

Allied Nevada Gold Corp. (OTCMKTS:ANVGQ) Falls Back Down

Allied Nevada Gold Corp. (OTCMKTS:ANVGQ) is falling fast in recent days since the reversal off $0.081 lows. Speculators flock to the Q stocks for their ability to make big moves once on the bb’s.

ANV was delisted by the NYSE on March 10 after the Company filed for voluntary petitions for relief under the Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware.

Allied Nevada owner of the Hycroft open pit gold and silver mine in Nevada finally collapsed under a heavy debt load as metal prices have continued to fall. The Company said in a statement it was filing to restructure its debt, which stood at $543 million at the end of September.

Under the proposed restructuring, the company’s creditors and vendors are expected to be paid in full, the company said. They also said secured lenders and note holders owning or controlling more than 67 percent of its notes have committed to supporting the restructuring. On top of this Allied Nevada agreed to a $78 million secured credit facility that will be used to keep their Hycroft mine operating during the restructuring.

Allied Nevada Gold Corp. (OTCMKTS:ANVGQ) is a US-based gold mining and exploration company that owns a number of early stage and advanced exploration properties located throughout the State of Nevada. ANV flagship, the wholly owned Hycroft gold mine is one of the largest gold and silver deposits in the state of Nevada.

The Hycroft gold and silver mine is located in the Sulfur Mining district, 54 miles west of Winnemucca and straddles Humboldt and Pershing Counties, in Nevada. The mine is accessible year round via Nevada State Route 49 (Jungo Road).

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The mine encompasses approximately 72,000 acres, including both patented and unpatented claims. While in production under previous owners (1987-1998), Hycroft produced over one million ounces of gold using an open pit heap leaching process. Since Allied Nevada restarted the mine in 2008, we have sold approximately 700,000 ounces of gold and 3.6 million ounces of silver.

The Hycroft mine operates twenty-four hours a day, seven days a week. Currently, open pit mining of heap leach mineralization is conducted by simple drill, blast and truck haulage of ore to the north heap leach pad complex. Lower grade ore is placed on the heap leach pads as run-of-mine and higher grade ore is crushed using a large three-stage crushing system. Current performance of the heap leach pad shows run-of-mine recoveries of approximately 50% for gold and 12% for silver.

Metallurgical testing suggests crushing higher grade ore could improve recovery by approximately 6-10% for gold and 10-15% for silver, though this may vary slightly depending on the type of material crushed. Solution from the heap leach pad is processed through the 21,500 gpm capacity Merrill-Crowe plant. The metals are further processed in the refinery to create gold and silver doré bars, which are sold.

The Hycroft mine is current producing in access of 200,000 oz. of gold per year just a fraction of the estimated massive 18 million gold equivalent ounces in the ground.

Since 2011, ANV has been increasing its heap leaching capacity by adding larger capacity shovels and hauling equipment, adding a 21,500 gallon per minute capacity Merrill-Crowe plant and upgrading existing infrastructure. In early 2014, the mine commissioned a three-stage crushing system to be used in the heap leach operation until the mill is brought online, at which time it will be re-tasked as the primary crusher for the mill.

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Currently trading at an $11 million market valuation ANVGQ is falling fast in recent days. Investors love Q stocks for the ability to make spectacular gains out of nowhere once on the bb’s and ANVGQ has not disappointed so far. Reorganization takes time and shareholders will have to vote in favor of Chapter 11 first, in the meantime we will be updating on ANVGQ on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with ANVGQ.

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Disclosure: we hold no position in ANVGQ either long or short and we have not been compensated for this article.

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