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Hycroft Gold Mine
The Hycroft gold mine is located in the Sulfur Mining district, 54 miles
west of Winnemucca in Humboldt County, Nevada. The mine encompasses
approximately 25,320 acres, including both patented and unpatented
claims. While in production (1987-1998), Hycroft produced over one
million ounces of gold using a surface heap leaching process.
The Hycroft mine is expected to reach steady-state production of 8,300
ounces of gold per month by the end of 2009 at cost of sales per gold
ounce sold of $390-$410. The mine is currently evaluating various
opportunities to increase the mining rate for oxide mineralization and
possible processing options for sulphide mineralization. The mine
celebrated it's official grand opening on June 17, 2009, with an
inaugural gold pour at the newly built refinery.

Mining
Hycroft operates twenty four hours a day, seven days a week.
Mining of the Brimstone oxide mineralization is by simple open pit
drill, blast and haulage of ore to processing. Gold and silver is
produced utilizing a run-of-mine heap leach process and a Merrill Crowe
gold recovery plant. Based upon historic gold recovery of
Brimstone ores, gold recovery is estimated to average 56.6%.
Historically, gold mineralization at Brimstone was thought to be limited
to the oxide cap of a large sulfide gold and silver system. Allied
Nevada has completed exploration drilling that has shown a portion of
the oxide cap has extensive sulfide gold and silver mineralization lying
beneath. The thickness of the sulfide averages approximately 400
feet; the strike length of the gold and silver sulfide mineralization is
approximately 6,000 feet.
Geology and Mineralization
The Hycroft deposit is located in the Nevada Basin and Range geologic
province on the western flank of the Kamma Mountains, along the county
line between Humboldt and Pershing Counties, Nevada. Tertiary to recent,
fault‐controlled, low‐sulfidation gold deposits occur over an area
measuring 3 miles in a north‐south direction by 1.5 miles in an
east‐west direction.
Based on drilling results, mineralization extends to depths of at least
than 330 ft in the outcropping to near‐outcropping portion of the Bay
deposit on the northwest side and to over
1000 ft in the Brimstone deposit in the eastern portion of the Hycroft
property.
Five major north‐northeast trending, west‐dipping, normal fault zones
broadly bound gold mineralization. The fault zones are referred to as
the Central, Boneyard, Albert, Fire and East Faults. The Lewis, Bay,
Central and South Central, Cut 3, and Cut 4 deposits are hosted by the
Sulfur Group in the hanging wall of the Central Fault.
The Brimstone Deposit is hosted within the hanging wall of the East
Fault. This portion of the deposit has been highly structurally prepared
by at least four phases of alteration. Gold mineralization is thought to
have occurred during periods of fracture controlled, chalcedony/pyrite/marcasite
mineralization. Oxidation appears to be related to a deep acid leaching
event.
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