Hycroft Mine

The Hycroft gold and silver mine is located in the Sulfur Mining district, 54 miles west of Winnemucca and straddles Humboldt and Pershing Counties, in Nevada. The mine is accessible year round via Nevada State Route 49 (Jungo Road). The mine encompasses approximately 72,000 acres, including both patented and unpatented claims. Hycroft is in the process of analysing and developing a sulfide process for the mine.

Technical Report Summary

In 2022, Hycroft completed an Initial Assessment on the Hycroft Mine. Gold Mineral Resources at Hycroft are estimated to be 9.65 million ounces of Measured & Indicated (“M&I”) and 5.0 million ounces of Inferred.  Silver Mineral Resources are estimated to be 446.0 million ounces of Measured & Indicated and 150.4 million ounces of Inferred.  Highlights of the Initial Assessment are as follows:

Hycroft, together with its consultants and Ausenco Engineering USA South, Inc., has continued to advance work on the mill and pressure oxidation (“POX”) process. The mill and POX process remains the focus of ongoing study work, as it generates higher gold and silver recoveries than the sulfide heap oxidation and leach process, which will be foundational in optimizing the economics of the deposit. Recoveries become a critical factor when mining begins in the higher-grade silver Vortex deposit. POX recoveries will be further verified with ore-specific variability testing. As the work progressed, Hycroft also identified several opportunities that may yield significant additional economic benefits to the project.  These opportunities, combined with the delays in receiving critical information important to the overall flowsheet, has led to the decision to release an Initial Assessment at this time.

The Mineral Resource and mine planning work by IMC has been continuing over the past several months and that work has identified a number of opportunities that could be meaningful to the overall understanding and value of the project, as discussed below.

  1. Identified that silver may be underestimated in the model: The detailed review also noted that a significant portion of historical drilling in the database does not include assay information for silver, which could result in an underestimation of silver in the model. With silver currently representing a substantial component of the potential revenue at the Hycroft mine, the Company believes this information to be an important factor to the overall understanding of the resource. The Company determined that assay information for silver was only included for drilling performed during the 2009 to 2014-time frame, with the majority of those assays containing notable quantities of silver. This represents a significant valuation opportunity at Hycroft that is critical to finalizing a project flowsheet and design. The Company is reviewing pre-2010 drilling information and is in the process of locating and cataloging historical pulps with the objective of re-analyzing for the missing silver values. Depending on the success of these efforts, it may become necessary to conduct additional drilling to supplement the database with updated silver values as it could yield a significant opportunity for enhanced economics.
  2. Identified higher-grades in 2021 metallurgical drill program: 102 intercepts (1.5-meter intervals) averaging 4.1 g/t (0.13 opt) gold and 85.3 g/t (2.73 opt) silver as discussed above, along with continued anticipated results to be received from the 2021 drill program, have not been included in the model currently being used for Mineral Resource estimation and mine planning. These intercepts were not anticipated in the drill program designed to collect representative samples across all domains of the orebody for variability test work but warrants additional follow-up and understanding of these areas of higher-grade mineralization.
  3. Potential opportunities to increase resources in block model: Some areas within the designed pits have limited drilling and, based on the geology and surrounding drill results, the Company expects that additional limited drilling could convert material currently considered as waste in the model to an ore classification, which would reduce the strip ratio, haulage costs and equipment, and increase revenue. Additionally, based upon the results of such additional drilling, Inferred Mineral Resources could be upgraded to higher resource classifications inside and adjacent to the current pit limits.