Hycroft Mining Holding Corp. has announced significant findings from its latest induced polarization (IP) geophysics survey. This survey represents the fifth phase of an ongoing multi-year exploration effort aimed at better understanding a high-grade silver system identified at its property in Humboldt County, located approximately 55 miles west of Winnemucca, Nevada. The results indicate the presence of a large-scale target extending beneath the previously identified silver system, suggesting a potential feeder zone.
The exploration team at the Hycroft Mine uncovered a new high-grade silver system near the Brimstone pit in late 2023. The recent survey utilized a heavy-lift drone, enabling the collection of IP data from otherwise inaccessible areas, particularly the highwalls of the pit. Hycroft’s president and chief executive officer, Diane Garrett, expressed optimism regarding the project’s trajectory. “We’re entering a pivotal chapter in the development of our project,” she stated. “Our recent technical breakthroughs in understanding the Hycroft system, combined with our two high-grade silver discoveries, not only confirm the potential of Hycroft but also accelerate our path toward unlocking long-term value.”
Garrett emphasized that Hycroft represents more than just a mining operation; it embodies a “story of scale and opportunity.” As the company moves forward, it aims to responsibly develop the asset for the benefit of all shareholders. She also highlighted the current market conditions, noting that both gold and silver prices are at historic highs. On September 12, 2023, the spot price for gold was reported at $3,649 per ounce, reflecting an increase of $15.80, while silver was priced at $42.26 per ounce, up 79 cents.
The induced polarization survey was particularly noteworthy as it employed drone technology to drape IP lines over challenging terrain, providing a comprehensive view of the silver system. Alex Davidson, vice president of exploration, remarked on the survey’s implications, stating, “I am excited to announce the results from the IP survey, which indicates that Brimstone’s mineral endowment may extend well beyond the impressive high-grade drill results from 2024.” He noted that the method proved effective in identifying the Vortex silver system and other highly prospective targets, including the Wild Rose target located one kilometer east of the resource area.
Previously, the Brimstone pit area was excluded from earlier IP studies due to accessibility issues posed by highwalls. The drone’s innovative capabilities allowed the survey to cover these challenging locations, enhancing the data collected. The survey was executed by Zonge International Geophysical Services, which facilitated the drone’s IP line flights. Davidson added, “The geophysics in this area are extremely meaningful and promising, as it clearly shows a high chargeability anomaly within the high-grade system that was identified in late 2023.”
In conjunction with the survey results, Hycroft also disclosed the successful closure of a private placement generating gross proceeds of $60 million, with Eric Sprott as the lead investor. The net proceeds will primarily support the advancement of the Hycroft Mine, alongside working capital and general corporate purposes. Following this placement, Hycroft reported an unrestricted cash total of $129 million. Sprott now controls approximately 33% of Hycroft’s outstanding shares, amounting to roughly 17.54 million common shares and 10.2 million warrants. Additionally, Tribeca Global Natural Resources Ltd. has acquired an 8% stake in the company.
Hycroft Mine has historically operated as an oxide heap leaching facility but is currently focusing on transitioning to a milling operation for sulfide ore. While the company aims to develop a mill in the future, it is also considering resuming production from heap leaching in the near term. The ongoing exploration continues on over 64,000 acres within the Hycroft land package, underscoring the company’s commitment to uncovering more potential resources.
The developments at Hycroft Mining reflect a strategic shift towards enhancing its operational capabilities and maximizing shareholder value in a robust market for precious metals.
