Hycroft Mining Holding Corporation (Nasdaq: HYMC) ("Hycroft" or "the Company") is pleased to provide an update for the ongoing 2024 exploration drill program.
The 2024 Brimstone and Vortex drilling is well underway with assays pending on the initial drill holes. This 10-hole program, launched in February 2024, is targeting the two high-grade underground silver trends discovered in November 2023 (see news release dated November 16, 2023 "Hycroft Drills Best Hole Ever - Discovers New High-Grade Silver System"). Due to the exciting results achieved, this drill program was launched in February 2024 and will continue through May 2024 with flexibility to expand the program. The drilling is targeting confirmation of the continuity of the high-grade silver mineralization between the Vortex-Brimstone trend and the Vortex-Camel trend, expanding both trends along strike and at depth, and enhancing our understanding of structural controls.
Alex Davidson, Vice President, Exploration, commented "The paradigm is shifting with our understanding of what is controlling the high-grade mineralization within the expansive Hycroft system. This new understanding of low-angle structural controls has far-reaching implications for the broader district-scale targets, as well as the high-grade silver discoveries. This has been confirmed through drill data and recent geophysics. This work supports the idea of a potential underground starter mine at Hycroft, which would contribute to more robust economics and lower initial capital costs generating better value for our shareholders."
Mr. Davidson also commented: "The Vortex-Brimstone trend is a series of well-defined high-grade veins that remains open in both directions and at depth. The Vortex-Camel trend is a structurally controlled system that has become more apparent as we continue our work that also remains open in both directions and at depth."
Diane R. Garrett, President and CEO stated: "The exploration and on-going technical work at Hycroft is solidifying our belief that the potential of this asset has yet to be fully understood. Through our work and on-going communications and marketing to the investing public, our story is resonating positively and we are pleased to see that reflected in the recent performance of our share price.
"Not only does our team continue to deliver incredibly strong exploration results, fueling this project forward, but they also continue to demonstrate a commitment to health and safety at site continuing to maintain a 0.00 TRIFR."
Corporate Update
During the first quarter of 2024, the Company continued to operate safely and execute its plans to further drill the newly identified high-grade silver trends, advance the technical work for a sulfide milling operation, and enhance the balance sheet. In addition to ongoing exploration and other operational expenditures, on January 5, 2024, the Company voluntarily pre-paid $38 million of its senior secured debt with Sprott Resource Lending. At March 31, 2024, unrestricted cash was $57.4 million, restricted cash was $26.6 million, and the Company was in compliance with its debt covenants.