Hycroft Mining: World-Class Gold Play Hits Record Grades

• Hycroft controls one of North America's largest precious metals deposits with 14.0 million ounces of gold and 457 million ounces of silver in measured and indicated resources.
• Recent drilling at Brimstone and Vortex zones revealed exceptional silver grades, including 18.2 meters of 1,987 g/t silver and visible silver mineralization.
• Company maintains approximately $175 million in unrestricted cash with zero debt, providing substantial runway for development activities.
• Leadership team with track record of growing Romarco Minerals from $20 million to over $1 billion market capitalization.
• World-class asset situated in premier mining jurisdiction with existing infrastructure and permits in place.

Hycroft Mining Corporation operates one of the world's largest undeveloped gold and silver deposits in Nevada's prolific mining district. The company's 64,000-acre land package hosts substantial precious metals resources in a tier-one jurisdiction known for mining-friendly regulations and established infrastructure. With less than 10% of the property explored, Hycroft represents significant untapped potential in North America's premier mining region.

The company's flagship Hycroft Mine previously operated as a heap leach operation from the 1980s through 2021, producing over 1.5 million ounces of gold during its operational history. Current management, led by President and CEO Diane Garrett, has shifted focus toward developing a large-scale milling operation capable of processing the deposit's sulfide ores more efficiently. This strategic pivot aims to unlock substantially higher recoveries from the complex ore body.

Recent exploration success has identified two high-grade silver systems at Brimstone and Vortex that could significantly enhance the project's economics. These discoveries, featuring visible silver mineralization and grades exceeding 1,000 g/t silver in multiple drill holes, represent a potential game-changer for the company's development timeline and financial outlook.

Key Development: High-Grade Silver Discovery

Hycroft's 2024 drilling program delivered exceptional results that exceeded management expectations across both the Brimstone and Vortex zones. The standout intersection from hole HD24_6010 at Brimstone returned 18.2 meters of 1,987 g/t silver, including spectacular high-grade intervals of 0.9 meters at 10,289 g/t silver and 0.3 meters at 20,280 g/t silver. These results demonstrate the presence of world-class silver mineralization that could significantly accelerate project development.

At the Vortex zone, drilling intersected 124.4 meters of 102.6 g/t silver and 0.95 g/t gold, with high-grade intervals including 0.3 meters of 4,170 g/t silver. The consistency of high-grade mineralization across multiple drill holes validates the geological model and suggests substantial continuity of the silver-rich zones. Geophysical surveys have identified additional targets extending the mineralized trends both along strike and at depth.

The metallurgical test work has shown improved recoveries with flotation processing achieving 89% gold recovery and 93% silver recovery, representing significant improvements over historical performance. These enhanced recoveries, combined with the high-grade silver discovery, position Hycroft to potentially advance development of these zones ahead of the broader deposit through either open-pit or underground mining methods.

Strategic Significance

Nevada's position as America's leading gold-producing state provides Hycroft with significant operational advantages including established supply chains, experienced workforce, and supportive regulatory environment. The state hosts over 30 operating gold and silver mines with more than 195 approved mining plans, creating an ecosystem that reduces development risks and operational costs. Hycroft's proximity to major mining operations and transportation infrastructure further enhances its strategic value.

The company's existing permits for both heap leach and milling operations provide a significant competitive advantage over greenfield projects that face increasingly lengthy permitting processes. With crushing, conveying, and processing infrastructure already in place, Hycroft can potentially restart operations more rapidly than competitors developing new projects. The company's Merrill-Crowe processing facility and new leach pad remain available for near-term production scenarios.

According to VP of Exploration Alex Davidson, formerly with Nevada Gold Mines and Newmont Mining:

"The high-grade mineralization remains open along trends and at depth, providing both open-pit and underground optionality."

This flexibility allows management to optimize development strategies based on market conditions and technical studies, potentially sequencing higher-grade zones for early cash flow generation.

Current Activities

Hycroft's 2025-2026 exploration program targets 14,500 meters of core drilling focused on expanding the high-grade silver systems at Brimstone and Vortex. Two core drill rigs are systematically testing the continuity and extent of mineralization along identified structural trends. The program aims to define sufficient high-grade resources to support standalone development scenarios that could generate early cash flow to fund broader deposit development.

Technical studies are advancing toward completion of a Preliminary Economic Assessment (PEA) expected in first quarter 2026, incorporating improved metallurgical recoveries and updated resource estimates. The company is evaluating both pressure oxidation (POX) and roasting technologies for sulfide concentrate treatment, with benchtop testing ongoing to finalize processing flowsheets. Management expects to assess potential restart of heap leach operations prior to milling operations during the first half of 2026.

President and CEO Diane Garrett noted, "By applying the same principles, we are aiming to do the same at Hycroft" referring to the management team's success growing Romarco Minerals from a $20 million to over $1 billion market capitalization. The systematic approach includes comprehensive metallurgical testing, geotechnical assessments, and mine planning studies that should support financing and development decisions by 2027.

The Investment Thesis for Hycroft Mining

• Invest in Hycroft for exposure to one of North America's largest undeveloped gold-silver deposits with 457 million silver ounces.
• Target entry before PEA release in Q1 2026 as high-grade silver zones could unlock significant value creation.
• Back proven leadership team that previously delivered 50x returns at Romarco Minerals through disciplined development.
• Prioritize tier-one jurisdiction exposure as permitting and operational risks continue rising in other regions.
• Position for silver outperformance given dual precious-industrial metal demand drivers and supply constraints.
• Recognize existing processing facilities and permits provide $100+ million head start versus greenfield competitors.

Hycroft Mining represents a compelling investment opportunity for investors seeking exposure to large-scale precious metals development with near-term catalysts. The combination of massive resource base, high-grade silver discoveries, proven management team, and strong balance sheet creates multiple pathways for value creation. Recent drilling success at Brimstone and Vortex zones could accelerate development timelines and improve project economics significantly.

The company's strategic advantages including Nevada jurisdiction, existing permits, and processing infrastructure provide competitive moats that reduce execution risks compared to greenfield projects. With gold trading near record highs and silver showing industrial demand growth, Hycroft's dual-metal exposure offers investors diversified precious metals upside. The 2026 catalyst timeline provides clear milestones for tracking progress toward production decisions and potential strategic partnerships or acquisitions.

TL;DR

Hycroft Mining offers investors exposure to a massive Nevada gold-silver deposit with recent high-grade silver discoveries potentially accelerating development. Strong management team, $175 million cash position, and existing infrastructure provide multiple pathways to value creation.

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