WINNEMUCCA, Nev., Oct. 31,
2023 /PRNewswire/ -- Hycroft Mining Holding
Corporation (Nasdaq: HYMC) ("Hycroft" or "the Company")
announces quarterly results for the three and nine months ended
September 30, 2023.
"The Hycroft team has so much to be proud of this quarter,"
stated Diane Garrett, President and
CEO of Hycroft. "First and foremost is the team's achievements in
health and safety, having been recognized with not one, but four
awards for Hycroft's health and safety record by the Nevada Mining
Association, MSHA (Mine Safety and Health Administration) and SME
(Society for Mining Metallurgy and Exploration) (see below for
specific awards). The Hycroft team has maintained a zero total
recordable injury frequency rate for the last 12 months. Our people
are truly our greatest asset, and we commend them for their
dedication to ensuring that everyone goes home safe every day."
"The team continued to advance our objectives with regard to
metallurgical test work and exploration, from which we are seeing
excellent results," continued Dr. Garrett. "The positive flotation
recovery results we announced earlier this quarter are an important
step in de-risking Hycroft and provide critical information
for understanding the economics of the asset as we progress the
pre-feasibility study. In addition, the higher silver grades and
mineralization we are seeing in drilling from Vortex and Camel
present promising opportunities to enhance the value of Hycroft's
resource amidst increasing industrial demand for silver. While the
capital markets are currently challenging for the mining industry,
having a healthy treasury of over $100
million we believe we have a solid foundation to
navigate market conditions while advancing the Hycroft Mine."
THIRD QUARTER HIGHLIGHTS
Corporate Highlights
- Safety: The Company reported no Lost Time
Incidents ("LTI") during the first nine months of 2023. The Company
has not had an LTI since October
2020. The Hycroft Mine's Total Recordable Injury Frequency
Rate ("TRIFR") for the trailing 12 months was ZERO at September 30, 2023. The Company's last
reportable incident was November
2021. The mining industry TRIFR average for the same period
was 2.173 recordable injuries per 200,000 workhours.
- Safety awards: We are very pleased to report
that Hycroft received a number of recognitions for its stellar
safety record and practices, including:
- Nevada Mining Association's 2023 Mine Operator Safety Award,
First Place for Surface – Small
- Two Safety Performance "Certificates of Achievement" by the
Mine Safety & Health Administration (MSHA) – one for Open Pit
Group and one for Metal Non-Metal Group.
- The Society for Mining, Metallurgy & Exploration's (SME)
2023 Health & Safety Individual Excellence Award, awarded to
Hycroft's Health & Safety Manager, Robert Spears.
- Cash position: The Company ended the third
quarter of 2023 with $106.9 million
of unrestricted cash, $35.0 million
of restricted cash, and is in compliance with debt covenants.
- Technical: The Company completed a substantial
portion of the metallurgical and flotation variability test work
necessary for designing a sulfide milling operation. This work
established (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
March 2023 Technical Report. These
findings inform further process development, pressure oxidation
testing, and refining of crushing and grinding studies. Combined
with data from the 2022-2023 exploration drill program (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.
Exploration Highlights
- In July 2022, the Company
launched its 2022-2023 exploration drill program, the largest
exploration program at the Hycroft Mine in nearly a decade.
Phase 2 drilling began in April 2023
and comprises 5,400 meters of core and 11,100 meters of reverse
circulation drilling, of which 75% and 100% have been completed,
respectively. Phase 2 of the Drill Program is focusing on in-fill
drilling in areas that will comprise the first 10 years of mining
activities and on targets outside the known resource area.
- Interim drill results from Phase 2 of the Drill Program
demonstrate that the Hycroft system continues to expand with
mineralization extending the Camel and Vortex zones. Vortex
continues to deliver very high-grade silver at depth 15-times
higher than the average silver resource grade1 and
extending mineralization to the west.
- Drilling in the Camel zone intercepted mineralization well
outside the known resource cone as well as visible silver. Silver
mineralization was encountered in areas with limited silver assay
data. These results are expected to have a positive impact on the
resource model.
- During the third quarter of 2023, the Company obtained drill
permits for step-out exploration targets that currently lie outside
of the current resource footprint, targeting potential high-grade
deposits. The Company continues to identify additional
high-potential exploration targets outside the current plan of
operations through exploration groundwork, geophysics, and
continued review of the data with the goal of enhancing our
resource portfolio and identifying additional avenues for
sustainable growth.
- Results from the Drill Program are of critical importance to
inform the design and mine planning for the Hycroft Mine,
providing invaluable insights into the Hycroft system, its
operational design and future potential.
The Company's Quarterly Report on Form 10-Q for the period ended
September 30, 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 developing the Hycroft Mine, one of the world's largest
precious metals deposits located in northern Nevada, a Tier-One 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.
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, 2022, 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.
1 Hycroft Property Initial Assessment Technical
Report, effective date March 27,
2023
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SOURCE Hycroft Mining Holding Corporation
