WINNEMUCCA, Nev., July 18,
2022 /PRNewswire/ -- 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, is pleased to announce its 2022-2023 exploration
program.
As the Company continues the engineering and design work for the
next phase of operations, it will be conducting the largest
exploration program at the Hycroft Mine in nearly a decade.
There has been no exploration drilling at Hycroft since 2014 and,
prior to that, drilling was focused on step-out drilling from the
known pits for heap leach operations. Today, the Company is
focusing on the higher-grade opportunities identified in the 2021
program and for the first time at Hycroft, a systematic approach to
understanding the genesis of this world class scale deposit,
including potential feeder systems. Hycroft is a low-sulfidation,
epithermal system with numerous banded quartz veins similar to
Midas-style mineralization yet there has been no prior focus on
understanding these veins and what they may mean to potential
feeder systems.
The 2022 – 2023 exploration program at the Hycroft Mine will
comprise approximately 125,000 feet of reverse circulation ("RC")
drilling and approximately 20,000 feet of core drilling. The
RC drill rig is on site and the core drill rig is expected to
arrive on site later in July. The RC drilling is being
conducted by National EWP Inc. of Elko,
NV and the core drilling will be conducted by First Drilling
LLC of Montrose, CO.
The focus of the 2022-2023 exploration activities are:
- Drilling to expand and extend the high-grade Vortex Zone
-
- including, follow up on the intercepts encountered in the 2021
drill program which returned 51.8 meters (170 feet) grading 2.47
grams per tonne ("g/t") (0.072 ounces per ton ("opt")) gold and
25.5 g/t (0.744 opt) silver (H21R-5592) in drill hole H21R-559 (see
news release dated February 22,
2022);
- Following up higher-grade intercepts from the 2021 drill
program
-
- Approximately 102 intercepts (1.5 meter intervals) averaging
4.1 grams per metric ton ("g/t") or 0.13 ounces per ton ("opt")
gold and 85.3 g/t (2.73 opt)) were encountered;
- Drilling three zones at depth that were identified in prior
geophysics work indicating high potential for feeder zones;
and
- Targeted drilling outside the known resource area to assess
district potential. More than 60,000 acres of the Company's
land position has not been explored.
The Company will also conduct targeted infill drilling within
the existing deposits where there is limited drilling.
Based on the geology and surrounding drill results, the Company is
optimistic that the additional limited drilling could convert
material currently modeled as waste to an ore classification in the
resource model. This would reduce the strip ratio, haulage
costs, equipment costs, and increase revenue in the ongoing
engineering and design work. Additionally, based upon the
results of such additional infill drilling, Inferred Mineral
Resources could be upgraded to higher resource classifications
inside and adjacent to the current pit limits.
Diane R. Garrett, President &
CEO commented "We are grateful to our shareholders and all who
contributed to our solid financial position that affords us the
ability to advance our corporate strategy of focusing on higher
grade opportunities at Hycroft as we work to complete the technical
studies for the sulfide mill operation. Hycroft is one of the
largest gold and silver deposits in the world located in the Tier 1
mining jurisdiction of Nevada,
USA. "
Alex Davidson, Vice President,
Exploration commented, "From the 2021 metallurgical drill program,
we observed that high-grade mineralization occurs at the
intersection of the steeply dipping north-south trending
faults1 and the east-west faults2. These
geologic controls of the higher-grade mineralization that are known
at Hycroft are similar to structures seen at the historic
high-grade past-producing, Rosebud gold mine, which is surrounded
by our land position. We believe that there remains untapped
potential at Hycroft and many of our findings during 2021 support
this opportunity. With the largest exploration program in nearly a
decade, we will continue to build on the work to date and
investigate the opportunities identified. Findings of higher
grade will be critical to the overall design of the processing
plant, the mill throughput rate and mine plan sequencing."
The results of this exploration program, together with the 2021
metallurgical drill program results will be used for the geologic
modelling, updated resource models and mine planning activities
associated with the technical studies underway for the sulfide mill
operation. The 2022-2023 exploration program expenditures are
anticipated to be approximately US$
15-20 million. Exploration activities, targets and
expenditures will evolve based on information and results
obtained.
1 North-south trending faults include: Range, West Splay,
Central, Albert, Break, Ice, Fire and East.
2 East-west faults include: Camel, South Brimstone, Prill and
Ramp.
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.
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. 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 development activities; uncertainties and risks
related to our reliance on contractors and consultants;
availability and cost of equipment, supplies, energy, or
reagents. 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. Further we can provide no assurance regarding
the results or findings of the drilling program or that
mineralization at the Rosebud Mine will be consistent with the
Hycroft property.
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SOURCE Hycroft Mining Holding Corporation