WINNEMUCCA, Nev., Nov. 1, 2022
/PRNewswire/ -- Hycroft Mining Holding Corporation (Nasdaq: HYMC)
("Hycroft" or the "Company"), a gold and silver exploration and
development company which owns the Hycroft Mine in the prolific
mining region of Northern Nevada,
announces that it has filed its 10-Q for the third quarter of
2022.
Diane Garrett, President and CEO,
commented, "We continued to make excellent progress in the third
quarter of 2022 as we have had zero reportable injuries this year,
and as of October 28, 2022, our
twelve-month trailing total recordable injury frequency rate is
ZERO! We are extremely pleased with this outstanding safety
performance and I want to personally acknowledge the great team we
have at Hycroft who make safety our number one priority each and
every day and work diligently to deliver value to our shareholders.
The initial assay results reported this quarter from our
exploration drilling program delivered significantly higher grades
as compared to our current modeled resource grade and, in addition,
we are demonstrating improved continuity in the targeted
higher-grade areas. As we complete residual leaching, we
recovered more gold and silver ounces than projected to be
recovered from the leach pads and ended the quarter with a very
healthy $153 million of unrestricted
cash and cash equivalents. During the quarter we also added
talent in the organization to focus on Hycroft's largest
exploration program in nearly a decade as we focus on higher-grade
opportunities that are important for Hycroft's next phase of
operations."
Third Quarter 2022 Highlights
- Safety - Hycroft's safety performance continued
to improve with a 0.26 trailing 12-month total reportable incident
frequency rate ("TRIFR") at the end of the third quarter of 2022.
This represents an approximate 59% reduction in TRIFR compared with
0.64 at the end of 2021. The twelve-month trailing TRIFR at
October 28, 2022 is ZERO.
- Leach Pad Operations - Gold recoveries for the
three and nine months ended September 30,
2022, were 3,480 and 14,404 ounces, respectively, and silver
recoveries were 3,473 and 34,258 ounces, respectively. Processing
of ore on leach pads continued through August 2022 when the Company determined it was no
longer economic to continue to apply cyanide to the leach pads. As
a result, the Company expects to continue to recover gold and
silver ounces from the drain down solutions through the end of 2022
with immaterial residual recovery of ounces through the first
quarter of 2023.
- Cash Position - The Company ended the third
quarter of 2022 with $153.4 million
of unrestricted cash and cash equivalents on hand and was in
compliance with debt covenants. The Company had approximately 6,700
ounces of gold inventory at the end of the third quarter of 2022
which it expects to sell before the end of the first quarter
2023.
- Exploration - In July
2022, the Company initiated the 2022 -2023 exploration
program which is the largest exploration program at the Hycroft
Mine in nearly a decade. Hycroft's focus during the quarter was to
follow up on higher-grade opportunities identified during the 2021
drill program to help the Company better understand the controls to
mineralization. Since initiation, and through September 30, 2022, the Company has completed
approximately 41,000 feet of reverse circulation ("RC") drilling
and approximately 2,300 feet of core drilling. Management's
observations as well as the assay results received to-date have
helped establish continuity in the higher-grade zones within the
Vortex and Brimstone areas. These results will be used to further
identify targets in upcoming drilling.
Additionally, the Company initiated 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. Furthermore, based upon the results of the additional infill
drilling, inferred mineral resources could be upgraded to higher
resources classifications inside and adjacent to the current pit
limits.
- Variability Test Program - During the third
quarter, the Company received the remaining results from samples
previously submitted for the variability test program. These
results finalized the grinding characteristics of the various ore
types at the Hycroft Mine which are consistent with the processing
assumptions used in the February 22,
2022 Technical Report. The Company continues to provide
additional flotation samples for the remaining variability test
work that is designed to determine key process characteristics
including flotation and pressure oxidation ("POX") reagent
consumption, mass pull, and sulfide sulfur levels. This test work
is expected to be completed in the first quarter of 2023, and the
results will be incorporated into the overall design of the milling
process flow sheet.
About Hycroft Mining Holding
Corporation
Hycroft is a US-based gold and silver company exploring and
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
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
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" set forth in our Annual Report on Form 10-K for the
year ended December 31, 2021, the
Quarterly Report on Form 10-Q for the periods ended September 30, 2022 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 Holding Corporation