Because of this there is a tremendous amount of exploration activity across northern Nevada. The best of the junior producers will be the initial winners. For that reason, I think a company like Allied Nevada (ANV) will do very well over the medium term. Production costs in 2012 were higher than forecast, but the company has two mines with high grades, its production targets are intact and it has enough cash flow at current prices to hold product back from the market in anticipation of higher prices later. Moreover, it has royalty properties leased out for exploration in the prolific Battle Mountain-Eureka trend.
Nice find! The article makes an excellent point about the long term value of companies well positioned in Nevada. This is a real premium location, especially when many countries are considering new taxes on mining production.