WINNEMUCCA, Nev., March 28,
2023 /PRNewswire/ -- Hycroft Mining Holding
Corporation (Nasdaq: HYMC) ("Hycroft" or "the Company"), a gold and
silver development company that owns the Hycroft Mine in the
prolific mining region of Northern
Nevada, announces operating and financial results for the
year ended December 31, 2022.
Today, the Company filed its Annual Report on Form 10-K for the
year ended December 31, 2022, and the
Hycroft Property Initial Assessment Technical Report Summary,
Humboldt and Pershing Counties, Nevada, effective March
27, 2023 ("2023 Hycroft TRS"). Both are available at
www.sec.gov/edgar. A new corporate presentation is available
on our website at www.hycroftmining.com. See "Cautionary Note
Regarding Forward Looking Statements" below.
2022 Corporate Highlights:
- Safety: Hycroft's safety performance continued to
improve significantly reaching a ZERO Total Recordable Injury
Frequency Rate (TRIFR) per 200,000 man-hours worked (including
contractors) at year-end 2022, representing a 100% reduction from
0.64 at the end of 2021. The mining industry TRIFR average for 2022
was 2.017. Currently, the Company's TRIFR remains at ZERO incidents
or accidents.
- Production: Gold and silver sales for the year
ended December 31, 2022, were 17,728
ounces and 44,084 ounces, respectively. Processing of ore on the
leach pads from prior mining operations ceased in December 2022.
- Revenue: Revenue from gold and silver sales
totaled $32.2 million and
$1.0 million, respectively, for the
year ended December 31, 2022.
- Cash Position: The Company ended 2022 with
$142 million of unrestricted cash,
$34 million of restricted cash, and
in compliance with debt covenants.
2022 Exploration Highlights:
- The Company launched its 2022-2023 Exploration Drill Program in
July 2022 constituting the largest
exploration program at the Hycroft Mine in nearly a decade. As of
December 2022, approximately 25,000
meters of reverse circulation ("RC") drilling and 4,000 meters of
core drilling were completed in Phase 1 of the drill program.
Details and highlights are available on the Company's website.
- The Company successfully accomplished all Phase 1 program
objectives which were:
-
- Establishing continuity between higher-grade intercepts;
- Converting material previously classified as waste in the Camel
and Central zones into ore-grade mineralization thereby improving
project economics;
- Upgrading material previously classified as inferred into
measured and indicated in the Camel and Central zones;
- Expanding mineralization to the east at least 150 meters beyond
the known resource boundary opening a new target area for near-mine
exploration; and
- Expanding the high-grade silver deposit, Vortex which continues
to deliver high-grade silver mineralization over significant
intercepts.
Diane R. Garrett, President and
CEO commented: "I am very pleased with the progress we are making
at Hycroft. Our safety-focused culture has contributed to a
rare ZERO TRIFR – an outstanding achievement by the team. Our
exploration drilling program is delivering positive results and
demonstrating the upside opportunities at Hycroft, which include
identifying a new mineralized exploration target area 150 meters
east of the known resource boundary, confirming continuity between
higher-grade intercepts, and adding the very high-grade silver
results at Vortex highlighting additional opportunities within that
system. The majority of our drill results returned grades exceeding
the average resource grade at Hycroft. In addition, we added
over 425,000 ounces of gold to the measured and indicated resource
which confirms our belief that the breadth and extent of the
Hycroft system remains unknown and there is significant untapped
potential at Hycroft to enhance our future mine plan and
operations. We look forward to unlocking this potential
during 2023. We have also made significant progress with our
technical work to design and develop a cost competitive milling and
pressure oxidation process for the gold and silver resource
contained in sulfide mineralization. In 2022, we improved our
balance sheet through the March 2022
capital raises that allowed us to reduce debt and fund Hycroft's
development activities. On behalf of the Board and the
management team we want to thank our employees, local community,
and shareholders for their support. Our experienced team is
enthusiastically committed to advancing the Hycroft project - a
unique, world-class scale asset in a Tier 1 mining
jurisdiction."
Mineral Resources:
At December 31, 2022, measured and
indicated mineral resources totaled 10.6 million ounces of gold and
360.7 million ounces of silver. Inferred mineral resources
totaled 3.4 million ounces of gold and 96.1 million ounces of
silver. Gold equivalent measured and indicated mineral resources
totaled 15.2 million ounces and inferred mineral resources totaled
4.6 million ounces. This resource estimate included drill assay
results received through December 9,
2022. The Company has additional drill assay results that are
pending. See Table 1 below for additional information on
mineral resources.
Operations Update:
Processing of gold and silver ore from the leach pads from prior
mining operations ceased in December 2022. The Company is
developing a commercial scale milling operation for processing
sulfide material, which accounts for the vast majority of the
current mineral resource, along with existing and planned heap
leach facilities for processing oxide and leachable transition
material. An in-depth study was undertaken to establish the
optimal processing method for the sulfide ore. The process
yielding the highest recoveries and hence, best economics for the
project, is pressure oxidation (POX) – a proven, conventional
technology that has been utilized at mining operations around the
world for decades.
During 2022, the Company continued metallurgical and variability
test work necessary for designing a sulfide milling
operation. This work will establish: (i) a comprehensive and
current understanding of how each geologic domain will perform
during operations and (ii) the processing components and reagents
required to optimize gold and silver recoveries. The Company is
working with industry leading independent third-party engineering
firms to complete this work and expects to receive all test results
in April 2023. The Company will also
complete autoclave test work during 2023. These results, and
results from the 2022-2023 exploration drill program, will be used
for designing the mine plan, developing the type and size of the
mill circuit configuration, and POX equipment, establishing the
hauling truck and loading mine fleet, and determining other
engineering and facilities requirements.
Table 1: Hycroft Mineral Resources as of March 27, 2023, Metric Units
|
|
Approximate
|
|
|
|
|
Contained
Ounces
|
|
|
Classification
|
Cutoff,
Equiv
|
|
Gold
|
Silver
|
Sulfide
|
Gold
|
Silver
|
|
|
|
Gold gm/t
|
Ktonnes
|
gm/tonne
|
gm/tonne
|
Sulfur%
|
Ozs x 1000
|
Ozs x 1000
|
|
Heap Leach
Resource
|
|
|
|
Measured
|
0.07
|
85,424
|
0.274
|
5.72
|
2.14
|
753
|
15,725
|
|
|
Indicated
|
0.07
|
54,206
|
0.250
|
4.32
|
1.78
|
436
|
7,529
|
|
|
Meas + Ind
|
0.07
|
139,630
|
0.265
|
5.17
|
2.00
|
1,189
|
23,254
|
|
|
Inferred
|
0.07
|
41,838
|
0.250
|
4.86
|
1.62
|
337
|
6,549
|
|
|
|
|
|
|
|
|
|
|
|
Flotation Mill +
Concentrate Treatment by POX and Cyanide Leach
|
|
|
|
|
Measured
|
0.34
|
365,361
|
0.445
|
17.09
|
1.78
|
5,236
|
200,965
|
|
|
Indicated
|
0.34
|
314,171
|
0.411
|
13.49
|
1.58
|
4,156
|
136,445
|
|
|
Meas + Ind
|
0.34
|
679,532
|
0.429
|
15.43
|
1.69
|
9,391
|
337,410
|
|
|
Inferred
|
0.34
|
226,341
|
0.414
|
12.29
|
1.52
|
3,019
|
89,568
|
|
|
|
|
|
|
|
|
|
|
|
Combined Mineral
Resources, Leach Plus Mill
|
|
|
|
|
Total
Measured
|
0.07-0.34
|
450,785
|
0.413
|
14.93
|
1.85
|
5,989
|
216,690
|
|
|
Total
Indicated
|
0.07-0.34
|
368,377
|
0.387
|
12.14
|
1.61
|
4,592
|
143,974
|
|
|
Total Meas +
Ind
|
0.07-0.34
|
819,162
|
0.401
|
13.68
|
1.74
|
10,581
|
360,664
|
|
|
Total
Inferred
|
0.07-0.34
|
268,179
|
0.389
|
11.14
|
1.54
|
3,356
|
96,117
|
|
Notes:
- Source: Technical Report Summary dated March 27, 2023
- Mineral Resources are based on metals prices of $1,900 per ounce of gold and $24.50 per ounce of silver.
- Cutoffs are income – process costs = NPR = NSR-Process
OPEX.
- Numbers may not match exactly due to rounding.
- Mineral resources are contained within a computer-generated
optimized pit.
- All units are metric. Gold and silver grades are in grams /
metric ton.
Table 2: Economic Parameters for Mineral Resources
Assumptions:
|
|
Unit of
measure
|
Value
|
Gold
price
|
$/oz
|
$1,900
|
Silver
price
|
$/oz
|
$24.50
|
Mining cost,
base*
|
Per ton material
moved
|
$1.45
|
|
|
|
Mill Process
Recoveries:
|
Flotation recovery -
gold
|
% of
AuFA
|
80.0 %
|
Flotation recovery -
silver
|
% of
AgFA
|
80.0 %
|
Flotation recovery -
sulfide
|
% of sulfide
sulfur
|
85.0 %
|
Mass
pull
|
%
|
14.0 %
|
Concentrate leach
recovery
|
%
|
95.0 %
|
Overall recovery,
mill
|
%
|
76.0 %
|
|
|
|
ROM Leach
Recoveries:
|
Gold (oxide,
transition & sulfide)
|
% of
AuCN
|
75.0 %
|
Silver (oxide,
transition & sulfide)
|
% of
AgFA
|
12.2 %
|
|
|
|
Process
costs:
|
Comminution
|
Per ton of feed to
float plant
|
$3.99
|
Flotation
|
Per ton of feed to
float plant
|
$3.68
|
Process (fixed
costs)
|
Per ton of feed to
float plant
|
$0.51
|
Leach, CCD, Detox
(fixed costs)
|
Per ton of feed to
float plant
|
$0.43
|
Total Mill
Cost
|
Per ton of feed to
float plant
|
$8.61
|
ROM Leach
(Oxide)
|
Per ton of feed to
ROM Leach
|
$2.75
|
ROM Leach
(Transitional & Sulfide)
|
Per ton of feed to
ROM Leach
|
$3.15
|
Mine Site
G&A
|
Per ton of
feed
|
$0.44
|
|
|
|
Flotation
Concentrate Treatment Costs:
|
Assumed sulfide
grade in feed
|
%
|
1.80 %
|
Ton sulfide sulfur /
ton concentrate
|
Ton /
ton
|
0.1093
|
Consumable unit cost
/ ton sulfur
|
$ / ton
sulfide sulfur in concentrate
|
$339.07
|
POX consumable cost
per ton
|
$ / ton
concentrate
|
$27.74
|
Total POX treatment
cost
|
$ / ton
concentrate
|
$14.11
|
Total POX treatment
cost
|
$ / ton of
ore
|
$4.24
|
|
|
|
Total Process Costs
(at avg sul sulfur):
|
Mill + Concentrate
POX + G&A
|
$ / ton ore
flotation
|
$14.83
|
ROM leach + G&A
(oxide)
|
$ / ton of ore to
ROM leach
|
$3.19
|
ROM leach + G&A
(transition & sulfide)
|
$ / ton of ore to
ROM leach
|
$3.59
|
|
**Source:
Technical Report Summary, dated March 27, 2023
|
Mineral resources were developed using block model and pit
optimization software to determine the mineralization within
reasonable expectation of economic extraction. Table 2 above
summarizes the economic parameters used to define the optimized pit
that defined the mineral resource. Metal prices for mineral
resources were $1,900/oz gold and
$24.50/oz silver. Each block is
evaluated to determine which process provides the best net return
after operating cost. The two processes are:
- Run of mine heap leaching, or
- Flotation milling followed by POX.
Both process material types are included on the statement of
mineral resources (above). Project costs and project recoveries as
well as metal prices can have a substantial impact on the mineral
resource both positively and negatively. Mineral resources are not
mineral reserves and detailed economic considerations have not been
applied. Modifying factors for mine and process design have not
been applied. Inferred mineral resources have a high degree
of uncertainty as to their existence and whether they can be
economically or legally mined. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a
higher category.
The scientific and technical information concerning the Hycroft
Mine has been reviewed and approved by independent, third-party
"Qualified Persons" under the Modernization Rules, including
Ausenco Engineering South USA, Inc. ("Ausenco"), Independent Mining
Consultants, Inc., ("IMC"), and WestLand Engineering &
Environmental Services, Inc. ("WestLand").
About the Hycroft 2022-2023 Exploration Drill Program
The 2022 – 2023 Exploration Drill Program at the Hycroft Mine is
a two-phase project comprising approximately 30,000 meters of RC
drilling and approximately 7,500 meters of core drilling.
Phase 2 drilling is anticipated to begin in the second quarter of
2023 and includes:
- drilling outside the current plan of operations for which
permits are pending; and
- drilling prospective high-grade targets within the plan of
operation that were refined based on assay results from Phase 1
drilling.
_____________________________________________
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
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" set forth in our Annual Report on Form 10-K for the
year ended December 31, 2022, our 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. 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