en.Wedoany.com Reported - A technical report released by Hycroft Mining (Nasdaq: HYMC) shows that its gold and silver mine project in Nevada has a 51-year mine life and a post-tax net present value of $10 billion, positioning it as the industry's next multi-generational asset.

The S-K 1300 technical report, published on Tuesday, outlines what the company describes as "compelling economics" for a large-scale, long-life precious metals mine, leveraging the upward trend in gold and silver prices. Based on a post-tax net present value of $10 billion at a 5% discount rate, the project boasts an internal rate of return of 30.1% and a payback period of less than three years. These estimates are based on spot gold prices of $4,569 per ounce and silver at $77.94 per ounce.

The report also presents a base case scenario: assuming gold at $3,600 per ounce and silver at $48 per ounce, the net present value is approximately $4.3 billion, with an internal rate of return of 16.9% and a payback period of 4.7 years.

"The project delivers strong economics and significant leverage to rising gold and silver prices, solidifying Hycroft's position as one of the most attractive large-scale development opportunities in the industry, located in a top-tier jurisdiction," said Diane Garrett, Executive Chair and CEO of Hycroft Mining, in a press release.

The company's shares fell as much as 4% in early trading, tracking declines in precious metal prices. Hycroft Mining, backed by Canadian mining billionaire Eric Sprott, has a market capitalization of nearly $3 billion.

The Hycroft project, located in the Sulfur mining district of Nevada, will utilize conventional pressure oxidation (POX) and heap leaching processing methods. The mine has already obtained both permits, and the site features extensive infrastructure, including a tertiary crushing facility, leach pad capacity, and two Merrill Crowe plants equipped with refineries.

According to the technical summary, the plant is designed to process 57,100 tons of mineralized material per day, with all-in sustaining costs of $2,147 per gold equivalent ounce. The initial capital cost for the mine is estimated at $2.4 billion, with an additional $3.1 billion for sustaining capital. The Hycroft mine plan is based on current resource estimates: 16.4 million ounces of gold and 562.6 million ounces of silver in the measured and indicated categories. This supports a 51-year mine operation with average annual production of 204,000 ounces of gold and 6.8 million ounces of silver, or 295,000 gold equivalent ounces.

The company believes that upgrading inferred resources—totaling 5 million ounces of gold and 132.8 million ounces of silver (not included in the mine plan)—could further boost production. Hycroft also plans to advance the Brimstone and Vortex discoveries, aiming to integrate underground mine options with the open pit to bring high-grade ounces into production earlier in the mine life. Garrett stated that advancing the high-grade Brimstone and Vortex silver systems could further improve project economics and unlock additional value.

Additionally, Hycroft has identified new oxide targets that could be heap leached early in the mine life, while also considering processing low-grade ore stockpiles. Currently, the mineral resource estimate covers less than 15% of the over 64,000 acres of land holdings in Nevada.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com