Hycroft Mining Corporation is a US-based, gold and silver producer operating its wholly owned Hycroft open pit, gold and silver mine located in the world-class mining region of Northern Nevada. The Hycroft Mine features one of the largest gold/silver deposits in the world with a low-capital, low-cost process and a 34-year mine life.
Hycroft Mine Commences Production from Sulfide Ores as Ramp Up Begins on Life of Mine Plan with a Projected $2.1 Billion NPV and 30+ Year Mine Life; Operations Restart Focused on Proving Sulfide Oxidation and Heap Leach Process on a Commercial Scale Already Showing Positive Results
- Life of Mine Plan based on a robust third-party Feasibility Study completed by M3 Engineering and the Company, incorporating resources modeled by SRK Consulting (Reno, NV) (the “Feasibility Study”), for the Company’s proprietary sulfide oxidation and heap leach process resulting in a projected life-of-mine (“LOM”) net present value (“NPV”) of $2.1 billion (at a 5% discount rate), a LOM after-tax internal rate of return (“IRR”) of 147.5%, and a payback period of 2.6 years;
- Active mining operations commenced at the Hycroft Mine in the second quarter of 2019 with a focus on preparing the mine for the sulfide oxidation and heap leach process;
- Existing crushing facility, Merrill-Crowe plant, refinery, and mobile mine fleet rebuilt, commissioned, and operating;
- Hycroft’s current workforce totals 120 people and continues to grow, supported by contractors and temporary labor;
- Company is in discussions with respect to a complete financial recapitalization plan to better position the Company for the successful ramp-up of the Hycroft mine and future growth, including the recent execution of a $110 million senior secured credit facility and an agreement for the purchase of a 1.5% net smelter royalty for $30 million arranged by Sprott Resource Lending Corp., conditioned upon agreement and completion of the full recapitalization plan; and
- Company has all permits required for restart of the Hycroft Mine and recently received the Federal Record of Decision for the Phase II Environmental Impact Statement supporting the LOM pit development, and allowing for continued ramp-up and commencement of key growth projects necessary to achieve Feasibility Study production levels.
HYCROFT’S RESPONSE TO COVID-19
Hycroft Mining Corporation takes the health and well-being of its employees, contractors and the community in which we operate very seriously. Recent COVID-19 developments have led to a State mandated closure of non-essential businesses that could pose a high-risk of transmission of the virus. The Hycroft Mine will continue to operate, however we will modify certain of our business practices to reduce possible exposure of any illness to our workforce. We will continue to actively monitor State and National response and adjust our business practices accordingly to continue a rigorous attention to the safety of our work force and business partners.