Data demonstrates potential for underground
mine scenario
WINNEMUCCA, Nev., April 3,
2024 /PRNewswire/ -- Hycroft Mining Holding
Corporation (Nasdaq: HYMC) ("Hycroft" or "the Company") is
pleased to provide an update for the ongoing 2024 exploration drill
program.
The 2024 Brimstone and Vortex drilling is well underway with
assays pending on the initial drill holes. This 10-hole program,
launched in February 2024, is
targeting the two high-grade underground silver trends discovered
in November 2023 (see news release
dated November 16, 2023 "Hycroft
Drills Best Hole Ever - Discovers New High-Grade Silver System").
Due to the exciting results achieved, this drill program was
launched in February 2024 and will
continue through May 2024 with
flexibility to expand the program. The drilling is targeting
confirmation of the continuity of the high-grade silver
mineralization between the Vortex-Brimstone trend and the
Vortex-Camel trend, expanding both trends along strike and at
depth, and enhancing our understanding of structural
controls.
Alex Davidson, Vice President,
Exploration, commented "The paradigm is shifting with our
understanding of what is controlling the high-grade mineralization
within the expansive Hycroft system. This new understanding of
low-angle structural controls has far-reaching implications for the
broader district-scale targets, as well as the high-grade silver
discoveries. This has been confirmed through drill data and recent
geophysics. This work supports the idea of a potential underground
starter mine at Hycroft, which would contribute to more robust
economics and lower initial capital costs generating better value
for our shareholders."
Mr. Davidson also commented: "The Vortex-Brimstone trend is a
series of well-defined high-grade veins that remains open in both
directions and at depth. The Vortex-Camel trend is a structurally
controlled system that has become more apparent as we continue our
work that also remains open in both directions and at depth."
Diane R. Garrett, President and
CEO stated: "The exploration and on-going technical work at Hycroft
is solidifying our belief that the potential of this asset has yet
to be fully understood. Through our work and on-going
communications and marketing to the investing public, our story is
resonating positively and we are pleased to see that reflected in
the recent performance of our share price.
"Not only does our team continue to deliver incredibly strong
exploration results, fueling this project forward, but they also
continue to demonstrate a commitment to health and safety at site
continuing to maintain a 0.00 TRIFR."
Corporate Update
During the first quarter of 2024, the Company continued to
operate safely and execute its plans to further drill the newly
identified high-grade silver trends, advance the technical work for
a sulfide milling operation, and enhance the balance sheet. In
addition to ongoing exploration and other operational expenditures,
on January 5, 2024, the Company
voluntarily pre-paid $38 million of
its senior secured debt with Sprott Resource Lending. At
March 31, 2024, unrestricted cash was
$57.4 million, restricted cash was
$26.6 million, and the Company was in
compliance with its debt covenants.
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.
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 SEC 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