Allied Nevada beating its budget

Allied Nevada Gold Corp. of Reno said last week it's beating its estimates as it buys equipment to expand its Hycroft Mine near Winnemucca.

The company said it's spent or committed $354.9 million on the project, about 2 percent less than it had estimated during feasibility studies.

The money it's spent so far represents about 30 percent of the total budget of $1.2 billion for expansion of the heap leach and mill at the Hycroft Mine.

Scott Caldwell, president and chief executive officer of Allied Nevada, said recent major contracts include the purchase of crushing and milling equipment from FL Smidth of Salt Lake City.

The mill and crushing equipment will be delivered to the site by the end of 2013, Caldwell said. Trucks, hydraulic shovels and other mobile equipment are expected to arrive during the next three years.

The company's studies have found that the expansion project will boost the production of the mine to 616,800 ounces of gold and 25.9 million ounces of silver from 2015-2014. It estimates the cost of producing an ounce of gold to be $190.

The mine is about 54 miles west of Winnemucca.