Drilling activities at Hycroft in 2012 totaled 255,600 feet in 265 holes and were directed towards: infill drilling to upgrade inferred resources within the reserve pit; material collection in support of engineering and ongoing metallurgical work; condemnation drilling related to new facility placement; and limited step-out drilling.
Drilling at our advanced exploration properties in 2012 was directed towards the Hasbrouck Project (primarily the nearby Three Hills deposit) and at Wildcat. At the Hasbrouck project, drilling of approximately 21,010 feet in 37 holes was directed towards growing the mineralized material at Hasbrouck and an initial program on the Three Hills deposit. A total of 26,000 feet in 36 holes was drilled at Wildcat in 2012 with the first pass initial program being completed. We have completed resource block models for each property and expect to provide an updated resource for each of Hasbrouck/Three Hills and Wildcat in the second quarter of 2013.
On January 18th, we announced production and cash cost guidance for the 2013 year. We are forecasting more than a 60% increase in sales at Hycroft to approximately 225,000 to 250,000 ounces of gold and 1.5 million to 1.8 million ounces of silver. Sales in the first half of the year are expected to be approximately 90,000 to 100,000 ounces of gold. We expect to move approximately 94.1 million tons of material, including 46.5 million tons of ore at average grades of 0.012 opt gold and 0.25 opt silver. With the addition of two wire rope shovels in the latter half of the year, our mining rate is expected to increase in the second half to an average of 290,000 tons per day from 200,000 tons per day. The overall strip ratio for 2013 is expected to be 0.6:1. A number of critical projects must be completed to achieve the higher end of the stated guidance range of metal sales. The stated guidance assumes that there will be no material delays in the start-up of the North Leach Pad, the new 21,500 gallon per minute Merrill-Crowe facility (both expected to be operational in the third quarter of 2013) or operation of additional mobile equipment. Adjusted cash costs(3) for 2013 is expected to be in the range of $565 to $585 per ounce (with silver as a byproduct credit and utilizing a silver price of $28 per ounce).
Capital expenditures in 2013 are expected to total approximately $399.2 million of which $130.8 million is expected to be financed with capital leases. Of the budgeted $399.2 million, $27.5 million is for sustaining capital and the remainder is to advance the Hycroft expansion project including equipment, infrastructure, engineering, permitting, and support programs. Major additions to mobile equipment in 2013 include nine haul trucks, seven production drills and the first two wire rope shovels, which are expected to become operational in the third quarter and fourth quarter, respectively.
Company-wide exploration expense is projected to be $7.5 million in 2013 and does not include capitalized drilling. In addition to corporate office expense and annual land holding costs of approximately $3.2 million, we expect exploration dollars in 2013 to be directed towards follow-up drilling in the Three Hills area of the Hasbrouck project, where we have had previous success, and also to test Hycroft regional targets identified in the southern region of the Hycroft property claim block.
The results presented in this press release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2012, filed on SEDAR and EDGAR and posted on Allied Nevada's website at www.alliednevada.com. The financial results are based on United States GAAP (with the exception of the non-GAAP financial measure adjusted cash costs(1)) and are expressed in U.S. dollars.
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