Hycroft Mining Holding Corp. has announced significant findings from its latest induced polarization geophysics survey, marking the fifth phase of a comprehensive multi-year exploration initiative. This survey aimed to enhance the understanding of a high-grade silver system identified on its property in Humboldt County, approximately 55 miles west of Winnemucca. The results suggest the presence of a large-scale target beneath the existing silver system, indicating a potential feeder zone.
This survey follows the discovery of a new high-grade silver system near the Brimstone pit in late 2023. Utilizing a heavy-lift drone, the exploration team successfully mapped areas that were previously inaccessible, allowing for a deeper examination of the silver system. The company’s president and chief executive officer, Diane Garrett, expressed enthusiasm about the new findings, stating, “We’re entering a pivotal chapter in the development of our project.” She emphasized that the technical advancements and recent discoveries not only confirm the potential of Hycroft but also expedite efforts to unlock long-term value.
On September 12, 2023, the spot prices for gold and silver reached notable heights, with gold priced at $3,649 per ounce and silver at $42.26 per ounce. These developments come at a time when the U.S. government has designated silver as a critical mineral, further heightening interest in the Hycroft project.
Alex Davidson, the vice president of exploration, highlighted the significance of the survey results, 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 pointed out that the induced polarization technique has proven effective in previous surveys, including the identification of the Vortex silver system.
Previously, the Brimstone pit area had not been included in earlier surveys due to its challenging highwall locations. The deployment of the drone by Zonge International Geophysical Services has now overcome these accessibility issues, providing valuable data about the geophysical characteristics of the area. Davidson mentioned that the results revealed a high chargeability anomaly within the identified high-grade system, suggesting promising down-dip extensions.
In addition to the survey updates, Hycroft Mining also announced the closure of a private placement that garnered gross proceeds of $60 million, with investor Eric Sprott leading the initiative. Following the placement, Hycroft’s unrestricted cash total stands at $129 million. With this investment, Sprott now controls approximately 33% of the outstanding shares of Hycroft Mining Holding Corp.
Hycroft Mine has historically operated as an oxide heap leaching operation, having produced silver and gold from the 1980s until 2021. The company is now focused on transitioning to a milling operation for sulfide ore, while also evaluating the possibility of resuming heap leaching activities in the near term. Hycroft is currently engaged in exploration drilling across more than 64,000 acres within its land package, seeking to further enhance its resource base.
As Hycroft Mining progresses with its ambitious plans, the company remains committed to responsible development that benefits all stakeholders. The unfolding story of the Hycroft project continues to attract attention as it seeks to become a cornerstone in the future supply of precious metals.
