Denver, Colorado-based Hycroft Mining Holding Corporation, a gold, and silver producer engaged in the operations, development, and exploration activities of the Hycroft Mine, an open-pit heap leach operation in Nevada.
The company has announced that it ceased operations and laid off 109 employees on November 10, 2021. The remaining 100 employees at the mine will continue to process mined ore until finances are depleted.
Hycroft CEO and President Diane Garrett noted in a press release, “As a result of current and expected ongoing cost pressures for many of the reagents and consumables used at the Hycroft Mine, and the timeline for completing its updated technical studies in early 2022, effective immediately the Company is discontinuing pre-commercial scale mining at its run-of-mine operation. The Company will continue producing gold and silver from ore on the leach pads as long as it is economic and will right-size the workforce to meet ongoing operational requirements.”
“Despite the higher production and sales compared to the respective 2020 periods, Hycroft has consistently generated operating losses and used cash in operating activities as a result of operating a pre-commercial scale direct leaching ROM operation with high relative operating costs due to insufficient recoveries resulting from lower grades mined combined with escalating prices of consumables and reagents."
“Ongoing and future technical work for the Hycroft Mine will be primarily focused on the pre-feasibility study and technical report for the Acid POX milling for processing sulfide ore and completing the variability and metallurgical test work. We also plan to evaluate exploration opportunities targeting higher ore grades and expect to continue to advance the proprietary two-stage sulfide heap oxidation and leach process as time and resources permit.”
"We believe we are taking the most prudent approach to de-risking the project, including critical steps to continue the important work necessary for the development of this substantial mineral endowment.”
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