Hycroft identifies potential feeder zone in Brimstone geophysics survey

Published 09/09/2025, 14:26
Hycroft identifies potential feeder zone in Brimstone geophysics survey

WINNEMUCCA, Nev. - Hycroft Mining Holding Corporation (NASDAQ:HYMC), a $225 million market cap mining company currently trading near its 52-week high after delivering a remarkable 160% return year-to-date according to InvestingPro data, announced Tuesday that its 2025 Induced Polarization (IP) geophysics survey has revealed a large-scale target beneath its high-grade silver system at the Hycroft Mine in Nevada.

The fifth phase of the company’s multi-year IP survey campaign completed three lines covering 11.7 line kilometers using a heavy lift drone to access otherwise inaccessible pit highwalls, providing visibility to depths greater than one kilometer. The exploration program comes at a crucial time for Hycroft, which InvestingPro analysis shows is rapidly burning through cash with negative free cash flow of $35.5 million in the last twelve months.

The survey identified highly anomalous chargeability and resistivity features at depth in the Brimstone high-grade target zone, showing a significant vertical geometry interpreted as an altered, intrusive body. The anomaly has a strike length exceeding 650 meters north to south by approximately 425 meters west to east at about 500 meters depth.

"The geophysics in this area are extremely meaningful and promising as it clearly shows a high chargeability anomaly within the high-grade system that was identified in late 2023," said Alex Davidson, Vice President of Exploration, in the press release.

This feature, which has not been previously drilled, will be included in the company’s 2025-2026 Exploration Drilling Program announced on July 30.

The survey was conducted by Zonge International Geophysical Services with modeling and interpretation completed by James L. Wright, an industry geophysicist with over 50 years of experience.

The Brimstone area had not been included in previous IP work due to inaccessibility. The company utilized a heavy lift drone to overcome this challenge, allowing them to place IP wire in previously unreachable areas.

Hycroft Mining is focused on completing technical studies to transition the Hycroft Mine from oxide heap leaching operations to a milling operation for processing sulfide ore. The company is also conducting exploration across its 64,000-acre land package, of which less than 10% has been explored.

In other recent news, Hycroft Mining Holding Corporation announced a $60 million private placement, with notable investor Eric Sprott subscribing to approximately 66% of the offering. This private placement consists of 14,017,056 units priced at $4.2805 per unit, each including one share of common stock and half of a common stock purchase warrant. Additionally, Hycroft Mining raised $40.7 million through a public offering of units, with total proceeds reaching approximately $45 million after an over-allotment option was exercised. This offering increased Eric Sprott’s ownership stake from 7% to 22%, while also attracting approximately 15 new institutional investors. Furthermore, the company announced plans to initiate a 14,500-meter drill program at its Hycroft Mine in Nevada, focusing on expanding high-grade opportunities. Hycroft also priced a $43.75 million public offering of 12.5 million units at $3.50 per unit, with each unit including one share of common stock and half of a common stock purchase warrant. The warrants are exercisable at $4.20 per share over a 36-month period.

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