Hycroft Expands Vortex High-Grade Silver System & Accelerates De-Risking Path Toward Commercial Economics

• Hycroft Mining's expansion of the Vortex high-grade silver system materially alters the internal grade profile of one of the world's largest precious-metal deposits, with direct implications for future mine planning and project economics.
• High-grade intercepts at Vortex introduce optionality within Hycroft's broader large-scale sulphide milling strategy, potentially improving capital efficiency and early-stage cash flow profiles.
• Ongoing metallurgical de-risking, strong liquidity, and an aggressive exploration program position the non-producing company to convert geological success into economic visibility by early 2026.
• The discovery arrives amid tightening silver supply fundamentals and rising strategic interest in silver's dual role as a precious and industrial metal.
• The significance lies less in headline grades and more in how Vortex reshapes risk, timing, and capital intensity for a Tier-1 United States development asset.

Why High-Grade Silver Matters in the Current Investment Cycle

Silver occupies a unique position in commodity markets, functioning simultaneously as a monetary hedge and an essential industrial input. This dual character creates investment dynamics distinct from gold-only projects, particularly as structural demand drivers accelerate across solar photovoltaics, electrification infrastructure, and grid modernization. For development-stage mining assets, the presence of high-grade silver systems introduces margin advantages that become increasingly relevant in volatile commodity price environments and capital-constrained markets.

Silver's Dual Role: Monetary Hedge & Industrial Input

Industrial applications now account for more than half of annual demand, driven primarily by solar panel manufacturing, which requires approximately 20 grams of silver per panel. Global solar capacity installations continue to accelerate, with the International Energy Agency projecting sustained demand growth through 2030. This structural demand growth occurs against a backdrop of limited new primary silver mine supply, as most silver production derives from base metal mines where silver represents a by-product rather than the primary economic driver.

The investment relevance of silver-dominant systems lies in their direct leverage to industrial demand growth. Unlike gold projects, which depend primarily on monetary dynamics and central bank policy, silver assets capture both safe-haven investment flows and secular industrial consumption trends.

Grade Scarcity & Capital Discipline in Large-Scale Projects

Grade optionality matters significantly for capital markets, particularly in an environment where project financing has become more selective and cost inflation has compressed margins. Higher-grade zones within large deposits improve net present value sensitivity, accelerate payback periods, and reduce absolute capital requirements per ounce of production. Institutional investors increasingly prioritize assets that can sequence higher-margin ounces early in mine life, minimizing exposure to commodity price volatility during capital-intensive development phases.

Hycroft's Vortex Discovery: From Geological Result to Economic Signal

Hycroft Mining's asset represents one of the largest gold-silver systems globally by contained ounces. According to the company's March 2023 technical report, measured and indicated resources total 10.6 million ounces of gold and 360.7 million ounces of silver, with an additional 3.4 million ounces of gold and 96.1 million ounces of silver in inferred resources. An updated resource estimate incorporating recent drilling is targeted for early first quarter 2026.

Scale vs. Selectivity at World-Class Deposits

Large, lower-grade deposits offer long mine life and production stability but often face margin compression during unfavorable price environments. Conversely, high-grade zones within large systems provide tactical flexibility, enabling operators to adjust mining plans to prioritize margin over volume. Hycroft's historical resource base exemplifies this dynamic, while the scale ensures long-term production potential, uniform grade distribution limited options for early-stage cash flow generation. Vortex introduces selectivity within scale, creating pathways to improve early-year economics without sacrificing long-term production capacity.

Vortex High-Grade System: Key Intercepts & Geometry

The standout intercept at Vortex, 30.8 meters grading 438.58 grams per tonne silver and 0.41 grams per tonne gold, represents the highest silver grades with the longest continuous intercept encountered at Vortex to date, including an included section of 6.1 meters at 739.58 grams per tonne silver. The silver-to-gold ratio at Vortex, approximately 3000:1, significantly exceeds the deposit average, indicating a distinct mineralizing event or structural control.

Mineralisation has been extended even further by the subsequent Hole H25D-6072, which returned higher grades of 565.31 grams per ton silver and 0.46 grams per ton gold over 26.4 meters. This latest hole includes a higher-grade interval of 6.9 meters at 802.96 grams pt silver and multiple intercepts ranging from 960 to 1,545 grams per ton silver, marking the highest grades identified in the Vortex system to date. Positioned as a 65-meter northwest offset to Hole 6070, Hole H25D-6072 extends the Vortex mineralisation an additional 35 meters to the west. Together, these results confirm increasing continuity within the system, expanding Vortex approximately 70 meters to the northwest and 90 meters down-dip to the west, with the system remaining open in all directions and at depth.

Current drilling as of December 2025 has defined Vortex geometry extending approximately one kilometer east – west and 500 meters downdip, with the system remaining open along strike, to the north, south and at depth. The combination of thickness, grade, and geometric predictability positions Vortex as a potential priority zone in future mine planning scenarios.

Integrating High-Grade Systems Into a Large-Scale Sulphide Strategy

Historical oxide heap leach operations at Hycroft ceased in 2021, and the company is now focused on advancing technical studies to transition toward sulphide milling operations. Sulphide milling involves crushing, grinding, and either flotation or pressure oxidation to liberate precious metals from their host minerals. This complexity demands higher technical confidence and more rigorous metallurgical characterization before committing development capital.

Metallurgical De-Risking as the Enabler

Hycroft has completed initial pressure oxidation and flotation test work, demonstrating recovery improvements and reduced variability across different ore domains. Flotation development work has achieved recoveries of 89 percent for gold and 93 percent for silver. Roasting test work remains ongoing and is expected to be completed in 2026. This metallurgical de-risking directly addresses the primary technical uncertainty associated with sulphide processing, providing confidence for cost curve positioning, all-in sustaining cost (AISC) forecasts, and throughput assumptions in future economic studies.

The presence of high-grade zones creates sequencing optionality that was absent with a uniform grade distribution. Mine planners can evaluate scenarios that prioritize Vortex material during early production years, generating higher margins and accelerated payback.

Exploration Upside Beyond Vortex: Brimstone & the Feeder System Thesis

The broader exploration program at Hycroft continues to deliver results that expand the high-grade silver footprint. The Brimstone target exhibits extremely high silver-to-gold ratios approaching 3,000:1, suggesting a distinct mineralizing event that concentrated silver preferentially. From an economic perspective, silver-dominant zones offer direct leverage to silver price movements without dilution from gold by-product credits.

Recent geophysical work has identified a potential feeder system with a strike length greater than 600 meters, representing the structural plumbing that may have delivered mineralizing fluids to Vortex and Brimstone. If confirmed through ongoing assay work, the feeder system could anchor long-life, high-grade mining fronts that support sustained production from prioritized zones.

From Discovery to Development: Timeline, Catalysts, & Visibility

Hycroft has outlined a clear pathway to provide investors with economic visibility by early 2026, concentrating multiple catalysts within a defined timeframe.

Near-Term Technical Milestones

The company is targeting delivery of an updated mineral resource estimate in early first quarter 2026, incorporating all drill results from the discovery in late 2023 through 2024 from Vortex and Brimstone. Following the resource update, Hycroft plans to release a technical report with preliminary economic assessment or pre-feasibility study level analysis late in first quarter 2026.

These milestones represent critical inflection points for investor perception and valuation. The resource update converts drilling results into measured and indicated categories that support engineering studies, while the technical report will provide net present value, internal rate of return, and capital cost estimates that enable comparative analysis against peer assets.

Separately, Hycroft is evaluating the potential to restart heap leach operations, with analysis expected to be completed in the first half of 2026. Higher gold and silver prices improve the economics of processing remaining leach material, potentially generating near-term EBITDA and providing internal funding for continued exploration and study work.

Balance Sheet Strength as a Strategic Asset

Hycroft enters this value-definition phase with approximately $175 million in unrestricted cash as of December 12, 2025, and maintains a debt-free balance sheet. The company issued a required exercise notice to remaining warrant holders, with approximately $41.3 million in proceeds expected to be received in January 2026. This financial position is exceptional among development-stage precious metals companies, most of which face recurring dilution pressure to fund exploration and study work.

Capital markets for junior and mid-tier mining companies have become increasingly selective, with investors demanding proof of concept before committing additional capital. Hycroft's cash position substantially reduces near-term financing constraints, providing runway to complete planned studies and exploration work. Institutional investors increasingly prioritize self-funded development pathways, as external financing risk represents a material valuation discount.

Jurisdictional Advantage & Permitting Certainty in Nevada

Nevada offers Tier-1 jurisdiction status through established infrastructure, skilled workforce availability, and regulatory frameworks familiar to operators and investors. Hycroft benefits from permits covering heap leach and milling operations, though some permit modifications may be required for the planned sulphide milling operation. Existing site infrastructure includes an onsite laboratory, administrative facilities, maintenance buildings, truck shop, warehouse, crushing and conveyor systems, and a Merrill-Crowe processing facility, positioning the project as well-advanced compared to peers requiring extensive infrastructure construction.

Nevada's established mining sector supports project advancement through available infrastructure and skilled workforce. The site benefits from proximity to Jungo Road (Nevada State Route 49) and an active Union Pacific rail line. For investors evaluating development-stage assets, jurisdictional risk often justifies significant valuation discounts, while Nevada's track record supports premium valuations for quality projects.

Hycroft has maintained a total recordable injury frequency rate (TRIFR) and lost time injury rate of 0.00 for more than two and a half consecutive years as of December 2025, demonstrating operational discipline and safety culture. Environmental, social, and governance (ESG) performance increasingly influences institutional capital allocation decisions, particularly for funds with ESG mandates or screening criteria.

The Investment Thesis for Hycroft Mining Holding Corporation

• Grade optionality at scale positions the high-grade silver discoveries at both Vortex and Brimstone as introducing margin flexibility within a world-class resource base, enabling mine planning scenarios that were not economically viable with uniform grade distribution.
• Systematic de-risking pathway through completed flotation and pressure oxidation test work, with roasting studies ongoing, improves confidence in future net present value and internal rate of return outcomes when incorporated into the planned technical report.
• Capital resilience through strong liquidity and debt-free positioning reduces dilution risk during the critical value-definition phase, protecting existing shareholders while maintaining project advancement momentum.
• Jurisdictional safety in Nevada supports permitting confidence and commands valuation premiums relative to projects in regions with regulatory uncertainty or infrastructure constraints.
• Catalyst density creates multiple exploration, resource, and economic milestones concentrated in early 2026, providing near-term visibility for valuation re-rating opportunities.

Why Vortex Matters for Investors Now

The expansion of the Vortex high-grade silver system represents more than a strong drill result. It reshapes how investors should evaluate Hycroft's risk profile, capital efficiency, and development optionality within a Tier-1 jurisdiction. As silver's strategic importance continues to rise, projects capable of combining scale, grade, and balance-sheet strength are increasingly scarce. With multiple technical and economic catalysts approaching in early 2026, Hycroft's evolving asset profile positions it at the intersection of geological upside and disciplined project de-risking, an inflection point that warrants close investor attention.

TL;DR

Hycroft Mining's expansion of the Vortex high-grade silver system introduces meaningful grade optionality within one of the world's largest precious metal deposits in Nevada. Recent drilling returned exceptional intercepts including 26.4 meters at 565.31 g/t silver, with the system remaining open in all directions. The company maintains approximately $175 million in cash with zero debt, providing runway through critical value-definition phases. An updated resource estimate is targeted for early Q1 2026, followed by a technical report with preliminary economic assessment later in Q1 2026. Metallurgical test work has demonstrated 89% gold and 93% silver recoveries via flotation, de-risking the sulphide milling strategy.

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