Hycroft Mining: Why This Nevada Gold-Silver Giant Deserves Your Attention Now

• Hycroft holds 10.6 million ounces of measured and indicated (M&I) gold and 361 million ounces M&I silver in Nevada, with significant exploration upside across 64,000 acres.
• New drilling at Vortex and Brimstone zones has intersected visible silver mineralization exceeding 80,000 g/t Ag, transforming the project's economics.
• The company maintains approximately $175 million in unrestricted cash with zero debt as of December 12, 2025, following recent equity raises.
• Updated flotation test work demonstrates 89% gold recovery and 93% silver recovery, materially exceeding the 2023 technical report assumptions.
• Management expects to deliver a Preliminary Economic Assessment with updated resource estimates in Q1 2026, while assessing a potential heap-leach restart ahead of full milling operations.

Why Precious Metals Investors Are Watching Hycroft Now

As gold trades near $2,876 per ounce and silver approaches $33, investors are seeking leveraged exposure to precious metals through development-stage mining companies. Hycroft Mining has emerged as a compelling opportunity, combining a world-class asset in Nevada's premier mining jurisdiction with recent technical breakthroughs that could significantly enhance project economics. The December 2025 corporate presentation reveals a strategic inflection point: high-grade silver discoveries, improved metallurgical recoveries, and a fully-funded path toward production decisions.

China's central bank purchased gold for the 15th consecutive month through February 2026, with reserves reaching 74.19 million fine troy ounces valued at $369.58 billion, up from $319.45 billion the prior month. This sustained institutional accumulation supports a constructive outlook for precious metals. The company's 2024 drill program returned spectacular intercepts, including 18.2 meters grading 1,987 g/t silver with sub-intervals exceeding 20,000 g/t, suggesting potential underground mining opportunities that could materially enhance project returns.

What Makes This Nevada Asset World-Class

Hycroft Mining operates the Hycroft Mine in northern Nevada, approximately 54 miles west of Winnemucca. The property encompasses over 64,000 acres of mining claims, with the current resource area representing less than 10%. Historical operations from the 1980s through 2021 left extensive infrastructure including crushing facilities, laboratory, maintenance shops, and a permitted leach pad, reducing future capital requirements.

The March 2023 resource estimate outlines 10.6 million ounces M&I gold and 361 million ounces M&I silver at respective grades of 0.401 g/t and 13.68 g/t. Inferred resources add another 3.4 million ounces gold and 96 million ounces silver. Total M&I resources reach 15.2 million ounces gold-equivalent, ranking among North America's largest undeveloped precious metals deposits.

Diane Garrett, President & CEO, Hycroft Mining mentioned:

"By applying the same principles, we are aiming to do the same at Hycroft."

President and CEO Diane Garrett leads a management team with proven track records from Romarco Minerals, Newmont, and other major producers. Several executives were part of the Romarco team that grew that company from $20 million to over $1 billion market capitalization before its acquisition.

The Game-Changing High-Grade Silver Discovery

The 2024 exploration program has fundamentally changed the Hycroft narrative. While historically viewed as a large, low-grade bulk tonnage target, recent drilling identified two distinct high-grade silver systems at Brimstone and Vortex. Drill hole HD24-6010 at Brimstone intersected 18.2 meters averaging 1,987.35 g/t silver, including intervals of 0.9 meters at 10,289 g/t and 0.3 meters at 20,280 g/t.

More spectacularly, hole HD24-6018 returned 21.2 meters grading 2,359.68 g/t silver with a 0.2-meter section assaying 80,017 g/t silver, over 2,300 ounces per ton. These intercepts feature visible silver mineralization in drill core, typically indicating robust grade continuity. At Vortex, drilling intersected 100.9 meters averaging 100.6 g/t silver, including 4.6 meters at 1,066.5 g/t silver. Geophysical surveys indicate high-grade zones may extend over strike lengths exceeding 950 meters at Vortex and 365 meters at Brimstone. Management has initiated a 14,500-meter drill program targeting expansion of these systems.

Nevada Advantage: Why Location Matters for Returns

Nevada represents the premier mining jurisdiction in North America. The state hosts over 30 operating gold and silver mines, maintains over 195 approved mining plans, and supports over 280 active exploration permits. Mining ranks as Nevada's second-largest industry after gaming, ensuring access to skilled labor, contractors, and specialized services.

Hycroft's existing infrastructure provides significant competitive advantages. The property includes operational crushing and conveying systems, a Merrill-Crowe precipitation plant, and a recently constructed leach pad permitted for ore loading. This infrastructure could reduce initial capital expenditures by tens of millions of dollars compared to greenfield developments. Management is evaluating multiple development pathways: resumption of oxide heap leaching to generate near-term cash flow, construction of a flotation mill and pressure oxidation plant, or a phased approach combining both.

How Better Metallurgy Boosts Project Economics

Recent metallurgical test work delivered results that could substantially enhance project economics. The company completed 219 variability samples representing different ore types, depths, and grade ranges. Results demonstrated 89% gold recovery and 93% silver recovery under optimized conditions, representing statistically significant improvements over the March 2023 technical report assumptions of 74% gold and 82.1% silver recoveries.

Alex Davidson, VP Exploration, Hycroft Mining stated:

"Results proved consistent and repeatable across formation, depth, domain, geochemistry, silicification, and grade."

Higher recoveries translate directly to increased metal production from the same feed tonnage, improving project net present value and internal rate of return. Management expects to announce final metallurgical recoveries on pressure oxidation circuits in Q1 2026, providing the final technical input for economic modeling.

Balance Sheet Strength: $175M Cash, Zero Debt

As of December 12, 2025, the company held approximately $175 million in unrestricted cash plus $22.4 million in restricted cash, with zero debt following full repayment of obligations on October 15, 2025. The market capitalization reached $1.09 billion as of December 15, 2025, with shares trading at $13.07 on NASDAQ.

The shareholder register includes notable natural resource investors. Eric Sprott and associated entities hold approximately 24.9% of outstanding shares. Other significant holders include Tribeca Investment Partners, Franklin Equity Group, BlackRock Investment Management, and Schroder Investment Management. Institutional and insider ownership totals approximately 56.8%, indicating strong alignment between management and shareholders. With current cash, Hycroft can fund planned drilling, metallurgical programs, and technical studies through 2026 without additional dilution.

Gold and Silver Markets: The Macro Tailwinds

Gold prices have appreciated from approximately $1,824 per ounce in January 2023 to the $2,850 to $2,880 range in February 2026, representing a 56% gain driven by central bank purchases, geopolitical tensions, and inflation hedging demand. Silver functions as a critical industrial commodity with approximately 51% of annual consumption from industrial applications. The renewable energy transition creates structural demand growth: solar panels require 12 to 18 milligrams of silver per panel, battery electric vehicles contain 25 to 50 grams per vehicle.

Primary silver mine production has declined 7.2% from 885.8 million ounces in 2016 to 822.4 million ounces in 2024 despite rising prices. The gold-to-silver ratio, currently around 87:1, remains well above the 50-year historical average of 65:1, suggesting silver may have room for outperformance. For Hycroft, elevated silver prices could prove transformative given the project's substantial silver endowment.

Understanding the Risks Before You Invest

Investors must acknowledge material risks. Hycroft currently generates no revenue and will continue incurring operating losses until production commences, likely not before 2028 to 2029. The $175 million cash position may prove insufficient to fund full project construction without an interim heap-leach phase. Additional financing would likely prove necessary, creating dilution risk.

Technical risks persist despite metallurgical progress. The pressure oxidation circuit remains under development, with final recoveries pending testing. POX technology operates at high temperatures and pressures, requiring specialized equipment. Permitting risks exist even in mining-friendly Nevada. Environmental opposition to large-scale open-pit mining has intensified, and water availability represents another potential constraint in Nevada's desert environment.

Six Reasons to Consider Hycroft for Your Portfolio

• The 64,000-acre Nevada land package with existing infrastructure provides multiple pathways to production that few peers can match.
• Brimstone and Vortex zones with 1,000 to 80,000 g/t intercepts could support profitable underground mining distinct from bulk open-pit scenarios.
• The 89% gold and 93% silver flotation recoveries exceed technical report assumptions by 15+ percentage points.
• Management can advance technical studies and drilling through 2026 without capital markets dependence.
• The Romarco Minerals alumni track record of advancing Haile Gold Mine provides operational credibility often lacking at junior developers.
• Updated PEA/PFS incorporating improved recoveries and high-grade zones should drive meaningful valuation reassessment if economics prove robust.

Bottom Line: What This Means for Your Investment Strategy

Hycroft Mining represents a leveraged bet on precious metals prices through a world-class Nevada asset entering a critical inflection point. For investors seeking gold-silver exposure beyond producing miners, Hycroft offers development-stage leverage with multiple catalysts over the next 12 to 18 months: Q1 2026 technical report with updated economics, ongoing drill results from high-grade silver systems, and potential heap-leach restart assessment.

The company's positioning within the SILV and Solactive Global Silver Indices ensures institutional ownership as passive funds track these benchmarks. With silver prices approaching multi-year highs and gold maintaining strength above $2,850, the macro environment supports precious metals developers with quality assets. For those with 2 to 3 year investment horizons, current valuations may prove attractive relative to the potential production profile if project economics support development. The upcoming Q1 2026 technical report will provide the quantitative framework for assessing whether Hycroft merits inclusion in diversified precious metals portfolios.

TL;DR

Hycroft Mining controls one of North America's largest undeveloped gold-silver deposits in Nevada with 10.6M oz M&I gold and 361M oz M&I silver. Recent drilling discovered high-grade silver zones exceeding 80,000 g/t, while improved flotation recoveries of 89% Au and 93% Ag significantly enhance project economics. With $175M cash, zero debt, and Q1 2026 technical report pending, HYMC offers development-stage leverage to precious metals prices.

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