WINNEMUCCA, Nev., April 26,
2022 /CNW/ -- Hycroft Mining Holding Corporation
(Nasdaq: HYMC) ("Hycroft" or the "Company"), a gold and silver
development company which owns the Hycroft Mine in the prolific
mining region of Northern Nevada,
provides preliminary operating results for the first quarter of
2022 and general corporate update.
2021 Highlights
- Safety: Hycroft's safety performance continues to
improve with a 0.29 Total Recordable Injury Frequency Rate (TRIFR)
at March 31, 2022, well below
industry average of 1.75. Year-to-date 2022, the TRIFR is
0.00.
- Production: Gold production for the quarter ended
March 31, 2022, was 5,358 ounces and
silver production was 16,861 ounces, both in line with forecast.
Processing of ore on leach pads is currently planned to proceed
through the second quarter of 2022.
- Cash Position: The Company ended the first
quarter 2022 with $172.8 million of
cash on hand.
Project Update
- Drill Results: As we initially reported in our
February 22, 2022 news release,
results from the Company's 2021 drill program continue to be
delayed due to backlogs in the independent labs associated with
reduced staffing levels from the Covid-19 pandemic and high demand
for these services. To date, the Company has received results for
approximately 30% of the drill samples. Additional results on the
remaining samples are anticipated to be received over the course of
the next two quarters, assuming no further delays.
- Potential under-estimation of silver in the resource
model: Following our review of the resource in 2021, we
announced on February 22, 2022 that
silver may be under-estimated in the resource model noting that a
significant portion of historical drilling in the database does not
include assay information for silver. With silver currently
estimated to contribute 40-50% of the potential value at the
Hycroft mine under the milling process, the Company believes this
information is an important factor to the overall understanding of
the resource. This represents a significant potential opportunity
at Hycroft. The Company has located a portion of the historical
pulps and has sent them to an independent lab to re-analyze for the
missing silver values. It may become necessary to conduct
additional drilling to gather samples for the other areas of
missing silver values as it could yield a significant opportunity
for additional economic benefit.
- Exploration: The Company has initiated work to
conduct a robust exploration program during 2022 as it follows up
on the significant intercepts previously disclosed in our press
releases of September 8, 2021 and
February 22, 2022. There has been no
exploration drilling at Hycroft since 2014 and no prior focus on
understanding the potential feeder to the resource.
Diane Garrett, President and CEO, commented:
Hycroft continues to be one of the largest gold and silver
resources in the world located in the Tier 1 mining jurisdiction of
Nevada, USA. We are working
diligently to conclude our technical studies for the milling
operation and fully understanding the potential to increase
estimated silver in the resource model. In addition, we
are very excited to be implementing an exploration and drill
program for 2022. In addition to the drill targets identified
within the known resource area, we have also identified multiple
targets outside the known resource area which have high-grade
intercepts drilled by predecessor companies and promising
geophysics. There remains untapped potential at Hycroft and some of
our findings during 2021 support this opportunity.
We are also continuing to work on a number of fronts, including
our capital structure, to ensure that Hycroft is well positioned
for the future. When we announced the private placement of
Hycroft shares to each of AMC Entertainment and Eric Sprott, we also disclosed we would be
authorizing an additional 1.0 billion shares of common stock under
our charter. The Company's authorized share capital did not provide
us with the necessary flexibility to improve our capital structure
and it was prudent to increase the authorized share capital for a
variety of corporate purposes. These purposes may include financing
transactions as well as adopting additional stock plans or
reserving additional shares for issuance under existing
plans.
While the Company has sufficient cash on hand to conduct our
planned activities at the Hycroft Mine thanks to our successful
recent financings, we need to have the flexibility to move promptly
should opportunities arise as we develop Hycroft for the long
term".
About Hycroft Mining Holding Corporation
Hycroft is a US-based, gold and silver company developing the
Hycroft Mine located in the world-class mining region of
Northern Nevada.
FOR FURTHER INFORMATION contact info@hycroftmining.com or visit
our website at www.hycroftmining.com.
Diane R. Garrett,
President & CEO
(210) 621-4200
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 Unites States Securities
Exchange Act of 1934, as amended, or the Unites 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. 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" set forth our Annual
Report on Form 10-K for the year ended December 31, 2021, 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 contained 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, and we undertake no obligation to
update those statements or to 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