Hycroft Mining: Nevada's Sleeping Giant Awakens & Stock Roars

• Hycroft has intersected exceptional silver grades at Brimstone including 0.2 meters at 80,017 g/t Ag and 21.2 meters at 2,359.68 g/t Ag, significantly exceeding the current resource grade of 13.68 g/t Ag.
• The property hosts 10.6 million ounces of measured & indicated gold and 361 million ounces M&I silver, with the resource area comprising less than 10% of the 64,000-acre land package.
• As of December 12, 2025, Hycroft maintains approximately $175 million in unrestricted cash with zero debt following October 2025 debt repayment, providing runway for development activities.
• Variability testing across 219 samples demonstrated statistically significant improvements with 89% gold and 93% silver flotation recoveries, exceeding the 2023 technical report assumptions of 74% and 82% respectively.
• The company expects to deliver a Preliminary Economic Assessment with updated resource estimates in Q1 2026, supported by an ongoing 14,500-meter drill program targeting high-grade silver system expansion.

Nevada's Sleeping Giant Awakens

Nevada's mining legacy continues to attract capital as precious metals prices strengthen and geopolitical uncertainties drive safe-haven demand. Within this context, Hycroft Mining Corporation is systematically de-risking one of the world's largest undeveloped gold-silver deposits through exploration success that could reshape the company's economic profile. The January 14, 2025 announcement of drill results from hole H24D-6018 at Brimstone, intersecting 0.2 meters grading 80,017 grams per tonne silver, underscores the discovery potential within the existing resource footprint.

The Hycroft Mine in northwestern Nevada represents a rare combination of scale, infrastructure, and jurisdiction that typically commands premium valuations in the mining sector. With heap leach operations spanning from the 1980s through 2021, the property benefits from existing permits for both heap leach and milling operations, positioning it ahead of greenfield competitors in the permitting timeline. The company's strategic pivot toward understanding and expanding high-grade silver systems at Vortex and Brimstone introduces a new value proposition beyond the known bulk-tonnage resource.

Market dynamics favor silver exposure as industrial demand from solar panel manufacturing and electric vehicle production supplements traditional investment demand. Hycroft's dual gold-silver profile provides optionality across precious metals price movements while the company's debt-free balance sheet eliminates refinancing risk during the development phase. The 2025-2026 drill program represents a critical inflection point for demonstrating whether high-grade mineralization extends beyond initial intercepts to establish economically significant tonnage.

Scale Meets Infrastructure in a Tier One Jurisdiction

Hycroft Mining Corporation operates the Hycroft Mine located in Humboldt County, Nevada, approximately 54 miles west of Winnemucca. The property comprises over 64,000 acres of patented and unpatented mining claims, making it one of the largest land packages in Nevada's prolific mining districts. The measured and indicated resource of 10.6 million ounces gold and 361 million ounces silver at grades of 0.401 g/t Au and 13.68 g/t Ag positions Hycroft among the largest undeveloped precious metals deposits in North America.

The management team brings operational experience from successful Nevada projects, with President & CEO Diane Garrett previously serving at Romarco Minerals where the team grew market capitalization from $20 million to over $1 billion. VP Exploration Alex Davidson contributed to Nevada Gold Mines and Newmont Mining, while SVP & General Manager David Thomas brings Romarco & OceanaGold experience. This operational pedigree provides credibility to the development timeline and execution capability as the company advances technical studies.

Infrastructure advantages differentiate Hycroft from earlier-stage peers. The site contains an on-site laboratory, administration facilities, maintenance shops, crushing and conveyor systems, a Merrill-Crowe processing facility, and a new leach pad permitted for ore loading. The Union Pacific rail line passes through the property with an active rail spur, while Nevada State Route 49 provides highway access. These existing facilities reduce the capital intensity required to restart operations compared to greenfield development scenarios.

Key Development: Vortex High-Grade Silver System Expansion

The January 14, 2025 news release detailed assay results from drill hole H24D-6018, which intersected 21.2 meters grading 2,359.68 grams per tonne silver and 0.38 grams per tonne gold from 306.6 to 327.9 meters depth. Within this broader intercept, a 7.3-meter section from 317.4 to 324.7 meters returned 6,278.23 g/t Ag and 0.59 g/t Au. The highest-grade sub-interval comprised 0.2 meters at 80,017 g/t Ag and 1.62 g/t Au from 317.4 to 317.6 meters, representing approximately 2,340 ounces of silver per tonne.

VP Exploration Alex Davidson stated in the release:

"The continued discovery of high-grade silver mineralization at both Vortex and Brimstone underscores the significant exploration upside that remains at Hycroft. These results reinforce our geological model and demonstrate that the high-grade silver systems we've identified have the potential to materially enhance the project's economics."

Davidson's career includes roles at Nevada Gold Mines and Newmont, providing geological expertise specific to Nevada's carbonate-hosted systems.

The Vortex zone demonstrates mineralization continuity across a 600-meter strike length and 210-meter vertical extent based on current drilling. Grade shells generated from block models indicate the high-grade silver system remains open along strike and at depth, suggesting additional drilling could expand the known envelope. The geological model identifies structural controls associated with silicification and alteration mineral assemblages that guide targeting for future drill holes in the 2025-2026 program.

Strategic Significance: Underground Optionality Enhances Project Economics

The high-grade silver intercepts at Vortex and Brimstone introduce potential underground mining scenarios that could complement or precede the planned open-pit milling operation. Conceptual underground access via decline from the existing Vortex pit floor would require approximately 425 meters of development to reach the mineralized horizon, while access to Brimstone would require approximately 275 meters from the pit floor. The proximity of high-grade zones to existing pit infrastructure reduces the capital intensity of underground access compared to standalone underground projects.

Diane Garrett, President and CEO, Hycroft Mining Corporation stated:

"We are very pleased with these exceptional results from Brimstone, which continue to validate the high-grade nature of the silver systems we are targeting. The visual silver observed in the core, combined with these outstanding assays, demonstrates the potential for a significant high-grade silver component within our resource. This discovery enhances the strategic value of Hycroft and positions us well for our upcoming technical studies."

Garrett's experience advancing Romarco's Haile Gold Mine in South Carolina provides relevant development expertise for navigating the pre-feasibility and feasibility study phases. The underground optionality potentially accelerates cash flow generation if permitting for mill construction extends beyond current timelines. A smaller-scale underground operation could utilize the existing Merrill-Crowe circuit for processing flotation concentrates, generating revenue during the mill construction period.

Operational Activities: Systematic Drilling Tests High-Grade Continuity

Hycroft initiated a 14,500-meter core drilling program in late 2024 utilizing two drill rigs to target expansion of the Vortex and Brimstone high-grade silver systems. The program aims to better define the geometry, grade distribution, and tonnage potential of these zones to support updated resource estimates for the Q1 2026 technical report. Drilling focuses on step-out holes testing strike and down-dip extensions of known mineralization, as well as in-fill holes to improve geological confidence in higher-grade domains.

Metallurgical test work continues in parallel with the drill program to refine flotation parameters and concentrate treatment options. The 219-sample variability program completed in 2024 demonstrated 89% gold recovery and 93% silver recovery from flotation using standardized parameters of pH 4.7, grind size below 85 microns, 24-minute conditioning time, and greater than 20% mass pull. These results exceeded the March 2023 technical report assumptions of 74% gold and 82% silver flotation recovery, suggesting potential for improved project economics in the updated study.

The company is advancing trade-off studies comparing roaster technology versus pressure oxidation for treating flotation concentrates. Bench-top pressure oxidation testing is underway to determine gold and silver extractions, reagent consumption, and capital equipment specifications. Final metallurgical recoveries on pressure oxidation are expected in Q1 2026, coinciding with the technical report release. The engineering team is also progressing site layout designs, tailings storage facility engineering, and reagent selection to support the preliminary economic assessment.

Cash Runway Supports Development Without Dilution Pressure

As of December 12, 2025, Hycroft held approximately $175 million in unrestricted cash and $22.4 million in restricted cash, providing substantial liquidity for planned activities. The company retired all outstanding debt on October 15, 2025, eliminating interest expense and covenant restrictions that previously constrained operational flexibility. With 81.3 million shares outstanding and 100.1 million fully diluted shares, the December 15, 2025 closing price of $13.07 implies a market capitalization of $1.09 billion.

The absence of debt obligations removes near-term refinancing risk and provides management with maximum flexibility in capital allocation decisions. The current cash position appears sufficient to complete the 2025-2026 drill program, metallurgical testing, and preliminary economic assessment without requiring additional equity financing. This eliminates near-term dilution pressure and allows management to negotiate from a position of strength if strategic partnerships or project financing becomes desirable as the project advances toward feasibility study and construction decision.

Institutional ownership includes Eric Sprott entities at 24.9% and diversified holdings across Tribeca Investment Partners, Franklin Equity Group, Libra Advisors, BlackRock, Schroder Investment Management, Regal Funds Management, and Helikon Investments. The company's inclusion in the Solactive Global Silver Miners Index and related ETFs provides passive index buying support that can stabilize the share price during broader market volatility.

Resource Expansion Potential Drives Upside Valuation Scenarios

The current mineral resource estimate from the March 27, 2023 technical report encompasses only the areas with sufficient drill density to support measured, indicated, and inferred classifications. The resource area comprises less than 10% of the total 64,000-acre land package, indicating substantial exploration upside beyond the known deposit. The resource remains open in all directions and at depth, with limited drilling beyond the immediate mine area despite decades of historical production.

The measured and indicated resource of 819 million tonnes grading 0.401 g/t Au and 13.68 g/t Ag translates to 10.6 million ounces gold and 361 million ounces silver at a gold-equivalent grade of 0.578 g/t Au using a 77.55:1 gold-to-silver ratio. Inferred resources add 268 million tonnes grading 0.389 g/t Au and 11.14 g/t Ag, containing 3.4 million ounces gold and 96 million ounces silver. The resource estimate utilized metal prices of $1,900 per ounce gold and $24.50 per ounce silver, which approximate current spot prices.

The identification of high-grade silver systems at Vortex and Brimstone introduces the potential for bi-modal grade distribution that could support higher-margin mining scenarios. If drilling demonstrates sufficient high-grade tonnage, the project economics could improve through selective mining and processing strategies that prioritize higher-grade zones. The 2025-2026 drill program specifically targets expansion of these zones, with results expected to support updated resource estimates in the Q1 2026 technical report.

Technical & Market Uncertainties Merit Consideration

Metallurgical complexity represents the primary technical risk for Hycroft's development. The ore body contains refractory sulfide mineralization that requires flotation concentration followed by pressure oxidation or roasting before cyanide leaching can effectively extract gold and silver. This three-stage processing approach increases both capital and operating costs compared to conventional heap leach or mill-cyanide operations. The ongoing trade-off studies between roaster and pressure oxidation technology will determine the optimal processing route, with implications for project economics and construction timeline.

Capital intensity for the full-scale milling operation remains undefined pending completion of the preliminary economic assessment. Historical estimates for similar-scale Nevada milling operations range from $500 million to $1.5 billion depending on throughput capacity, metallurgical complexity, and tailings management requirements. Construction financing for projects of this scale typically requires a combination of debt and equity, potentially resulting in dilution for existing shareholders or interest expense that impacts project returns.

Permitting timeline uncertainty affects all Nevada mining projects despite the jurisdiction's mining-friendly regulatory framework. While Hycroft benefits from existing permits for heap leach and milling operations, modifications to the current plan of operations may require supplemental environmental review. The existing permits provide a substantial advantage over greenfield projects, but the timeline from feasibility study to construction decision typically spans 12 to 24 months for established operations seeking permit modifications.

Investment Thesis for High-Grade Silver Discovery in Nevada

• The 361 million ounce M&I silver resource provides substantial exposure to industrial demand growth from solar and EV sectors while high-grade intercepts at Vortex offer potential underground mining economics at current $30+ silver prices.
• Nevada's Tier 1 mining jurisdiction, established permitting, and substantial embedded infrastructure value reduce development risk and timeline compared to greenfield projects in emerging jurisdictions.
• The $175 million cash position with zero debt provides runway through preliminary economic assessment without dilution, allowing management to negotiate strategic partnerships from strength.
• Demonstrated 89% gold and 93% silver flotation recoveries represent material improvements over 2023 technical report assumptions, directly improving project economics.
• Less than 10% of the 64,000-acre land package has been systematically explored, while the current resource remains open in all directions, suggesting substantial resource growth potential.
• Q1 2026 PEA with economics, ongoing drill results, and heap leach restart assessment provide multiple near-term events that could drive institutional accumulation and price appreciation.

Hycroft Mining's systematic exploration approach has identified high-grade silver systems that could materially enhance the economics of this large-tonnage Nevada deposit. The exceptional intercepts at Brimstone and Vortex, including visible silver mineralization grading up to 80,017 grams per tonne, demonstrate the potential for economically significant underground mining scenarios that could complement the planned open-pit operation. With metallurgical test work confirming improved flotation recoveries of 89% gold and 93% silver, the company has addressed a key technical risk while maintaining the optionality to pursue either roaster or pressure oxidation technology for concentrate treatment. The Q1 2026 technical report represents a critical milestone that will allow investors to evaluate the project's competitiveness and assess the capital requirements for advancing toward construction decision.

TL;DR

Hycroft Mining Corporation (NASDAQ: HYMC) is advancing one of North America's largest precious metals deposits through systematic exploration that has identified significant high-grade silver systems at Vortex and Brimstone. With approximately $175 million in unrestricted cash, zero debt, 89% gold and 93% silver flotation recoveries, and a 14,500-meter drill program underway, the company is positioning for a technical report with economics in Q1 2026. The recent discovery of visible silver mineralization grading up to 80,017 grams per tonne represents a substantial value catalyst for this development-stage Nevada miner trading at a $1.09 billion market capitalization.

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