Eureka! Why AMC-Backed Hycroft Mining Is Soaring Tuesday
Gold and silver exploration company Hycroft Mining Holding Corporation (NASDAQ: HYMC) announced drill results from its 2022-2023 exploration program Tuesday. Here is what the company said and comments from a leading investor in the company.
Gold and silver exploration company Hycroft Mining Holding Corporation (NASDAQ:HYMC) announced drill results from its 2022-2023 exploration program Tuesday. Here is what the company said and comments from a leading investor in the company.
What Happened: The company reported it had higher gold and silver grades than resource average grade and had more continuous higher grade zones than it originally anticipated.
“These initial drill results confirm the higher-grade opportunities identified in the 2021 drill program,” Vice President of Exploration Alex Davidson said. “While we have only just begun investigating the planned targets of our 2022-23 drill program, these results are very encouraging and further confirm the importance of additional drilling to explore the untapped potential of the Hycroft deposit.”
Hycroft is drilling in additional areas to determine more preliminary results of its deposits at the Hycroft Mine.
“We are currently following up on high-grade intercepts within the resource area and plan to begin targeted step-out drilling in the fourth quarter within the more than 60,000 acres that has not previously been explored,” the company said.
Hycroft completed a hyperspectral flyover of its 70,000 acres recently to help identify which areas had certain mineral deposits.
“We are very excited about these initial drill results and still have so many targets yet to drill,” Hycroft CEO Diane R. Garrett said. “This supports our belief that there remains untapped potential at Hycroft. With the largest exploration program in nearly a decade, we are the first company to systematically explore the world-class system to understand the genesis of this deposit, including potential feeder systems.”
Why It’s Important: The new drill results from Hycroft Mining could instill confidence in shareholders of the company. Hycroft has one of the largest unmined deposits of gold and silver.
Earlier this year, movie theater leader AMC Entertainment Holdings Inc (NYSE:AMC) invested in Hycroft Mining, providing funding for the company’s operations.
“Eureka! In Hycroft’s early efforts, the biggest exploration program there in a decade, they found it! There’s MORE gold in them thar hills. And MORE silver. And it is MUCH higher grade than previously known at the site,” AMC CEO Adam Aron tweeted Tuesday.
AMC previously launched an NFT for members of AMC Investor Connect that highlighted its investment in Hycroft Mining. Aron highlighted the NFT and investment with “there is gold in them thar hills,” referencing an expansion of a quote of there being millions of dollars worth of gold in California. The 1892 Mark Twain novel “The American Claimant” used the phrase as well.
Aron said earlier this year the investment was part of using the company’s large cash position.
“In Hycroft, we found a company that was exactly like AMC a year ago,” Aron said. “It had great assets, in this case silver and gold in the ground, millions of ounces, but it had a cash squeeze, it had a liquidity problem.”
Garrett highlighted the potential of the gold and silver for Hycroft Mining in an interview with Benzinga earlier this year.
“We know the process to recover the gold and silver from Hycroft. It is proven, reliable, well established,” Garrett said.
The Hycroft CEO said the company’s focus will shift to scaling operations and construction beginning in 2023.
“We’re several years out still from commercial production, but you know, keep in mind we’re also conducting a big exploration program and one of the best value drivers that you see in our industry is for identification and discovery of new material,” Garrett said.
HYMC Price Action: Hycroft Mining shares are up 11.95% to $0.89 cents on Tuesday versus a 52-week trading range of $0.28 to $3.10.