WINNEMUCCA, Nev., March 14,
2024 /PRNewswire/ -- Hycroft Mining Holding
Corporation (Nasdaq: HYMC) ("Hycroft" or "the Company")
announces operating and financial results for three and 12 months
ended December 31, 2023.
Diane R. Garrett, Hycroft
President & CEO, commented: "The year culminated in a
significant step-change for the Hycroft Mine, following two years
of steady, meticulous work by the team. We always believed there
was more to the Hycroft deposit than what was previously
understood, and by taking a fresh look at the data and target
development we have made the discovery of not one but two new
high-grade silver trends within the known resource area. This is
incredibly exciting for the future of Hycroft and we intend to
accelerate drilling in 2024 to continue expanding on these
discoveries."
Ms. Garrett continued: "We cannot wrap up the year without
emphasizing the commitment of our team to ensuring the health and
safety of everyone at site. Throughout the year Hycroft's stellar
safety record was recognized through numerous industry accolades
and we closed out the year having completed two full calendar years
with a Total Recordable Injury Frequency Rate of zero.
Additionally, we advanced the engineering studies for the next
phase of operations and delivered robust metallurgical results
demonstrating significant improvements in recoveries for both gold
and silver. Overall, a strong year that added meaningful value to
this world-class asset."
2023 YEAR-END HIGHLIGHTS
Operational Highlights
- New high-grade silver discoveries: In late 2023,
Hycroft announced the discovery of a new silver system at Brimstone
as a result of reviewing historical data with a fresh perspective
and completing necessary ground-based geologic work to identify
what controls the mineralization at Hycroft. Drilling at depth
intercepted the best hole ever drilled at Hycroft (H23R-5753
returning 85.3 meters of 534.29 g/t Ag – see news release dated
November 16, 2023, for more
details). In addition, as a result of further drilling, two new
high-grade silver trends were delineated with well-defined,
continuous high-grade veins averaging greater than 137 g/t,
including areas of very high-grade (> 2000 g/t Ag) (see news
release dated January 9, 2024, for
details). These discoveries represent a significant new value
driver for the Hycroft Mine that the Company is following up on
with additional drilling in 2024.
- Exploration: With a focus on enhancing project
economics, approximately 11,000 meters of reverse circulation
("RC") drilling and 4,000 meters of core drilling were completed on
targets within the known resource area as part of Phase 2 of the
2022-2023 exploration drill program (the "Drill Program"). An
additional 2,000 meters of core drilling focused on high-priority
exploration targets outside the known resource area, defined by the
hyperspectral work completed in 2022. Final results are
pending.
- Technical Report: The "Hycroft Property Initial
Assessment Technical Report Summary Humboldt and Pershing Counties, Nevada" was filed with an effective date of
March 27, 2023 (the "2023 Hycroft
TRS") in accordance with the U.S. Securities and Exchange
Commission's Modernization of Property Disclosures for Mining
Registrants as set forth in subpart 1300 of Regulation S-K. The
2023 Hycroft TRS is available on the Company's website at
https://hycroftmining.com/hycroft-mine/mineral-resources/ and at
www.sec.gov/edgar.
- Metallurgical and Variability Test Work: The
Company completed a substantial portion of the metallurgical and
flotation variability test work necessary for designing a sulfide
milling operation, establishing (i) a comprehensive understanding
of how each geologic domain will perform during operations and (ii)
the processing components and reagents required to optimize gold
and silver recoveries. Metallurgical and flotation tests produced
promising results, with confirmed average flotation recoveries
increasing to 89% for gold and 93% for silver, up from 80% for both
in the 2023 Hycroft TRS. These findings inform further process
development and refining of crushing and grinding studies. Combined
with data from the Drill Program, these results will guide mine
plan design, mill circuit configuration, and ore haul truck
specifications, among other engineering considerations, to enhance
the value of the Hycroft Mine.
Corporate Highlights
- Safety: During 2023, Hycroft reported no lost
time accidents and in the second quarter of 2023 the mine achieved
one million work hours without a Lost Time Incident. In addition,
on December 31, 2023, Hycroft
concluded two consecutive calendar years with a Total Reportable
Injury Frequency Rate of 0.00.
- Balance Sheet: The Company ended 2023 with
$106 million of unrestricted cash,
including $9 million received from a
reduction in cash collateral associated with the project
reclamation bond, and was in compliance with debt covenants. On
January 5, 2024, the Company
voluntarily pre-paid $38 million of
its senior secured debt with Sprott Resource Lending, leaving an
unrestricted cash balance of approximately $66 million at that time.
- Equity Activities: Hycroft maintained compliance
with Nasdaq Capital Market's minimum share price rules by effecting
a 1-for-10 reverse stock split effective November 14, 2023, and reactivated the
"at-the-market offering" program raising gross cash proceeds of
$1.1 million before deductions of
commissions, fees, and expenses.
The Company's Annual Report on Form 10-K for the period ended
December 31, 2023, is available at
www.sec.gov/edgar. See "Cautionary Note Regarding Forward-Looking
Statements" below.
About Hycroft Mining Holding Corporation
Hycroft Mining Holding Corporation is a US-based gold and silver
company exploring and developing the Hycroft Mine, one of the
world's largest precious metals deposits located in northern
Nevada, a Tier-1 mining
jurisdiction. After a long history of oxide heap leaching
operations, the Company is focused on completing the technical
studies to transition the Hycroft Mine into a large-scale milling
operation for processing the sulfide ore. In addition, the Company
is engaged in a robust exploration drill program to unlock the full
potential of our expansive +64,000-acre land package, of which less
than 10% has been explored. In 2023, Hycroft announced the
discovery of a new high-grade silver system within the known
resource area and the delineation of two new high-grade silver
trends. These discoveries represent a significant new value driver
for the Hycroft Mine that the Company is following up on with
additional drilling in 2024.
www.hycroftmining.com
Cautionary Note Regarding Forward-Looking
Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Securities
Exchange Act of 1934, as amended, or the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included herein and public
statements by our officers or representatives, that address
activities, events or developments that our management expects or
anticipates will or may occur in the future, are forward-looking
statements, including but not limited to such things as future
business strategy, plans and goals, competitive strengths and
expansion and growth of our business. The words "estimate", "plan",
"anticipate", "expect", "intend", "believe" "target", "budget",
"may", "can", "will", "would", "could", "should", "seeks", or
"scheduled to" and similar words or expressions, or negatives of
these terms or other variations of these terms or comparable
language or any discussion of strategy or intention identify
forward-looking statements. Forward-looking statements address
activities, events, or developments that the Company expects or
anticipates will or may occur in the future and are based on
current expectations and assumptions. Forward-looking
statements include, but are not limited to (i) risks related to
changes in our operations at the Hycroft Mine, including risks
associated with the cessation of mining operations at the Hycroft
Mine; uncertainties concerning estimates of mineral resources;
risks related to a lack of a completed feasibility study; and risks
related to our ability to re-establish commercially feasible mining
operations; (ii) industry related risks including fluctuations in
the price of gold and silver; the commercial success of, and risks
related to, our exploration and development activities;
uncertainties and risks related to our reliance on contractors and
consultants; availability and cost of equipment, supplies, energy,
or reagents. The exploration target does not represent, and
should not be construed to be, an estimate of a mineral resource or
mineral reserve, as ranges of potential tonnage and grade (or
quality) of the exploration target are conceptual in nature; there
has been insufficient exploration of the relevant property or
properties to estimate a mineral resource; and it is uncertain if
further exploration will result in the estimation of a mineral
resource. These risks may include the following, and the
occurrence of one or more of the events or circumstances alone or
in combination with other events or circumstances may have a
material adverse effect on the Company's business, cash flows,
financial condition, and results of operations. Please see our
"Risk Factors" outlined in our Annual Report on Form 10-K for the
year ended December 31, 2023, our Quarterly Report on Form
10-Q for the period ended September 30,
2023, and other reports filed with the U.S. Securities and
Exchange Commission for more information about these and other
risks. You are cautioned against attributing undue certainty to
forward-looking statements. Although we have attempted to identify
important factors that could cause actual results to differ
materially from those described in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Although these forward-looking
statements were based on assumptions that the Company believes are
reasonable when made, you are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results, performance, or achievements may differ materially from
those made in or suggested by the forward-looking statements in
this news release. In addition, even if our results, performance,
or achievements are consistent with the forward-looking statements
contained in this news release, those results, performance, or
achievements may not be indicative of results, performance, or
achievements in subsequent periods. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
these forward-looking statements. Any forward-looking statements
made in this news release speak only as of the date of those
statements. We undertake no obligation to update those statements
or publicly announce the results of any revisions to any of those
statements to reflect future events or developments.
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SOURCE Hycroft Mining Holding Corporation