Each one in plain English, with the numbers worked through for a shareholder.
19 Sept 2011resource reserve update▲ GoodMajor
The company announced a positive feasibility study for a milling expansion at the wholly owned Hycroft mine, on top of the heap leach expansion already in progress. The study projects average annual output of 616,800 ounces of gold and 25.9 million ounces of silver in 2015-2024 at an adjusted cash cost of $190 per ounce, with total initial capital of about $1.2 billion ($985 million for the mill) and an after-tax return of 34% at $1,000 gold and $18 silver. It rests on a Proven and Probable reserve of 10.2 million ounces of gold and 388.6 million ounces of silver (August 23, 2011 release), and the board approved $47.1 million for long-lead items and detailed engineering ($3.6 million in 2011, $43.5 million in 2012), with permits expected January 2013. The mill financing is not yet arranged: the company says it is in discussions with US and Canadian financial institutions. The filing's cover date reads September 16, 2010, but the press release is dated September 16, 2011, so the 2010 date looks like a typo (inference).
A July 19, 2011 press release reported two new higher-grade zones at Hasbrouck east of the Saddle Zone, including the 'Franco Zone' (97 meters at 2.3 g/t gold and 34 g/t silver, 3.1 g/t gold equivalent). The company says one zone may be part of a feeder system to the Saddle Zone, follow-up drilling is under way, and a first-phase drill program has started at Klondike Flats, the newly acquired land to the south. These are drill results, not a resource estimate; this continues the Hasbrouck high-grade story.
A July 6, 2011 press release reported infill drilling in the Vortex Zone at the Hycroft mine, including 125 meters at 0.7 g/t gold and 158.0 g/t silver (4.3 g/t gold equivalent). The company says results are at or above the average grade of the resource, that the mineralization remains open in several directions, and that drilling will continue through year end with five to six rigs. This continues the Vortex drilling described in 2010; these are drill results, not a resource update.
A May 19, 2011 press release gave more drilling results from the Saddle Zone at the wholly owned Hasbrouck project: a hole south of the discovery hole hit 85 meters at 3.0 g/t gold and 102.9 g/t silver (5.3 g/t gold equivalent), and another hole extended the zone south. The zone remains open along its trend and at depth, so this continues the Saddle Zone discovery from April; these are drill results, not a resource estimate. The company also said it grew its Hasbrouck land position from about 2 km2 to about 27 km2 in Q1 and plans a drill program on the new Klondike Flats area in the second half of 2011.
The company announced a high-grade 'Saddle Zone' discovery at the wholly owned Hasbrouck project in the first quarter of 2011, with the discovery hole at 160 meters grading 4.5 g/t gold and 83.3 g/t silver (7.1 g/t gold equivalent at spot prices) and visible gold in several holes. The zone is still open and step-out drilling is under way. The company has realigned its 2011 drilling to target high-grade zones and has decided to defer the preliminary economic assessment it had planned for the first quarter until the zone's size is established. That reverses the Q1 2011 assessment timing given in January. These are drill results, not a resource estimate.
The company reported more Hasbrouck results (best 30 meters at 1.02 g/t gold equivalent) and said the 2010 program finished with 14 holes totaling 2,202 meters; results for 12 holes have been released, with two pending. It expects a revised resource estimate and a preliminary economic assessment in Q1 2011, and plans to resume drilling in January 2011 with a 10,000-meter goal using four rigs. This continues the Hasbrouck thread and moves the resource and assessment timing to Q1 2011. These are drill results, not a resource change.
The company reported phase II drilling at its wholly owned Hasbrouck Mountain property, best 75 meters at 1.53 g/t gold equivalent and 50 meters at 2.2 g/t, which it says exceed the average grades of the current resource. Eight of a planned 14 holes are done, with four assays pending. A year-end resource calculation is expected in February 2011 and a preliminary economic assessment in early 2011. This continues the earlier three-hole Hasbrouck program and expands it. The old 2006 resource (459,000 oz gold) is still the only resource cited, and these are drill results only.
The company reported more North Brimstone drilling at Hycroft, best 40 meters at 2.17 g/t gold equivalent and 37 meters at 1.32 g/t. The company says these are higher than the average reserve grades being mined in the area. The zone now measures about 300 x 185 meters (up from ~250 x 185 in September), still outside the current reserve pit, and the results will go into the year-end resource and reserve update, which it expects to issue in February 2011. Year to date, 321 holes (80,539 m) have been drilled with nine rigs and 30 more holes planned for Q4. This continues the September North Brimstone results; the six additional holes then planned have effectively been followed up. These are drill results, not a change to reserves or resources.
Two press releases were furnished. The first reports three more Vortex zone holes at Hycroft, best 166 meters at 1.51 g/t gold equivalent; the zone is now defined over 900 x 850 meters, 296 holes (73,793 m) have been drilled this year, and 15 Vortex infill holes remain. Management says it expects the drilling to expand the known resource and convert a significant amount of inferred resource, which is an expectation, not a result. The second gives preliminary Q3 2010 sales of 30,585 oz gold and 69,365 oz silver at about $416 cost of sales per oz of gold sold. Year-to-date gold sales are 80,584 oz at about $406, and the mine remains on track for 100,000 oz of gold at $400-$450 for 2010. Full Q3 results are due November 5, 2010. This continues the Vortex drilling and the Q2 operating results, and the quarterly figures are preliminary.
The company reported oxide drilling in the Central Zone next to the historically mined Central Pit at Hycroft, with highlights of 32 meters at 2.20 g/t gold equivalent and 62 meters at 1.59 g/t. It says recent interval grades are above those of the current oxide resource, and the 100-hole program aims to upgrade the inferred oxide resource. 279 holes (67,309 meters) have been drilled this year. This is a new drilling thread alongside Vortex and North Brimstone; these are drill results, not a change to resources.
The company reported drilling in a new area, North Brimstone at Hycroft, with highlights of 36 meters at 3.13 g/t gold equivalent and 50 meters at 1.01 g/t. The company says these are higher than the average proven and probable reserve grades and the area is outside the current reserve pit; assays suggest potentially oxide leachable material. It plans six more holes there, aiming to expand the resource in this area by year-end. These are drill results, not a change to reserves or resources.
Three more Vortex zone holes at Hycroft were reported, with highlights of 177 meters at 2.58 g/t gold equivalent, 134 meters at 1.4 g/t and 173 meters at 2.18 g/t. The company says it believes the data will lead to a resource increase and an upgrade of current inferred resources, which is management's expectation rather than a result. The drill fleet has been expanded to eight rigs, and 263 holes (63,468 meters) have been drilled this year. This continues the Vortex drilling; the mid-year resource update promised earlier is not mentioned in this release.
The company reported three more Vortex holes at Hycroft, including 456 meters at 1.58 g/t gold equivalent and 255 meters at 2.33 g/t, and said the zone has been defined by over 70 holes with about 900 meters of strike length. A second release gave preliminary Q2 2010 results: record sales of about 29,600 ounces of gold and 64,000 ounces of silver, at an expected cost of sales around $400 per ounce of gold sold, with year-to-date sales of about 50,000 ounces of gold. Production in the quarter was 30,500 ounces of gold, and the mine is described as on track for its 100,000-ounce gold production guidance. The quarterly figures are preliminary and the filing text is cut off partway through the guidance cost range. This continues the Vortex drilling and the operating ramp-up at the Hycroft heap leach.
Three more Vortex zone holes at the wholly owned Hycroft mine were reported, the best being 165 meters at 1.9 g/t gold equivalent (0.77 g/t gold, 64.74 g/t silver). The company says the Vortex zone remains open in several directions. It plans 164 holes (64,000 meters) in the second half of 2010, with the drill fleet going to eight rigs by mid-July, and a mid-year resource update expected in Q3 2010. This continues the earlier Vortex results and expands the drill plan from the six rigs mentioned in June. These are drill results, not a change to reserves or resources.
The company reported results of its three-hole Hasbrouck Mountain program: final assays improved the first hole to 120 meters at 2.22 g/t gold equivalent, with the other two at 1.15 and 1.2 g/t. All three are higher grade than the property's average resource grade. It plans about 100,000 meters of drilling at Hycroft in 2010 with six rigs, and 5,000 meters at Hasbrouck, Contact and Wildcat, with Contact drilling to start in early July. This completes the preliminary Hasbrouck results from May.
On May 17, 2010 the company agreed to sell 13,000,000 shares at Cdn$21.00 each to a syndicate of underwriters including Cormark and GMP, with an option for 1,800,000 more; commission is 6.2%. Closing was expected June 3, 2010. Gross proceeds would be about Cdn$273 million before the option (calculated from the stated figures), and the new shares dilute existing holders. The filing does not state how the money will be used. This follows the Cdn$9.00 offering of August 2009.
The first core hole at the Hasbrouck Mountain project near Tonopah, Nevada returned 110 meters at 1.45 g/t gold (silver assays not yet complete). A follow-up Vortex hole at Hycroft returned 130 meters at 1.73 g/t gold equivalent, including 10 meters at 9.05 g/t. Hasbrouck is an exploration property with a historical indicated resource of 459,000 ounces of gold per a 2006 report. Results are preliminary and do not change reserves.
Two more Vortex zone holes at Hycroft were reported: 172 meters at 3.4 g/t gold equivalent and 41 meters at 2.43 g/t gold equivalent. The company says the first hole extends the known Vortex system about 275 meters west and that mineralization remains open in several directions. This continues the January 2010 Vortex results, and more holes are planned. These are drill results, not a change to reserves or resources.
The company published updated reserve and resource figures for the wholly owned Hycroft mine. Proven and probable gold reserves rose to 2.4 million ounces from 1.1 million ounces in March 2009, and a first silver reserve of 32.3 million ounces was set. Measured and indicated gold equivalent resources rose 28% to 10.3 million ounces. Inferred gold resources fell to 3.9 million ounces from 6.0 million, which the release says was expected as much of it was converted to higher categories. This follows the infill drilling program (129 holes in 2009) and the earlier Vortex results. A technical report is still to be filed.
A January 11, 2010 news release reports high-grade drill results in the Vortex zone at Hycroft, including 47 meters at 0.55 g/t gold and 578 g/t silver (11.21 g/t gold equivalent). Management believes the drilling has reached mineralizing feeder systems, but says more drilling is needed to confirm continuity. It says the drill program that began in September 2009 after the C$100 million financing has completed 123 holes. The Vortex inferred resource figures are unchanged from before.
On August 18, 2009 the company signed an underwriting agreement to sell 11,150,000 shares at Cdn$9.00 each (gross proceeds Cdn$100,350,000) to a syndicate led by GMP Securities and Genuity, with a 5.0% commission. Closing was expected around August 31, 2009. The money is intended for exploration and general corporate purposes. This adds new shares to the share count, diluting existing holders. The March 2009 Ionic loan required prepayment if a public equity offering was completed; this filing does not say whether that happened (an open question).
Three August 2009 news releases were furnished. They report preliminary tests suggesting 70% to 80% gold recovery from acid-leached oxide material, although management keeps using the previously published 56.6% average. Tests found 7 of 8 sulfide samples amenable to flotation. Vortex zone drilling returned 55 feet of 16.85 g/t gold equivalent. The third release announces a new Director, Corporate Environmental Affairs. These are exploration and testing results, not reserve changes.
On March 30, 2009 the company and its Hycroft Resources & Development subsidiary signed a CDN$8 million secured bridge loan with Ionic Capital Corp. and drew the full amount that day. It bears 15% interest compounded monthly, is due by September 30, 2010, carries a CDN$80,000 structuring fee, and is secured by the company's interest in the Komatsu mining fleet. It must be prepaid if the company completes a public equity or debt offering. Executive Chairman Robert Buchan again disclosed he is a participant, as with the 2008 Ionic facility. The press release says the money is for working capital and that the mine is expected to reach 7,500 ounces of gold a month in mid-2009.
On May 14, 2008 the company submitted a $6,793,737 reclamation surety bond to the Bureau of Land Management, secured by a cash commutation account. Together with the $7,549,363 bond from December 2006, the total is $14,343,100, which the BLM requires for Hycroft reclamation. The company says it may resume operations once the BLM approves the financial guarantee, so approval is still outstanding.
On March 20, 2008 the company signed a CDN$27 million secured bridge loan with Ionic Capital Corp. and drew CDN$10 million immediately. It carries 12% interest compounded monthly, must be repaid by March 2009, and is secured by the Hycroft properties and its personal property. Fees include a CDN$135,000 structuring fee, a CDN$1,080,000 standby fee and a 5% drawing fee. Executive Chairman Robert Buchan disclosed he is a participant in the facility. It is available for drawdown until July 2008, and funds the Hycroft reopening.
25 Mar 2008asset acquisition disposition▲ GoodMajor
On March 19, 2008 the company bought a used mining fleet from Komatsu Financial for $13.9 million for the Hycroft open pit mine: five 200-ton haul trucks, two wheel loaders, two blast hole drills and support equipment. The fleet is due to start operating in the second quarter of 2008, and the company's goal is gold production in the fourth quarter of 2008. The company expects owning equipment to lower direct mining costs versus contractor estimates.
20 July 2007capital raising announcement▲ GoodMajor
The private placement closed on July 16, 2007: 3,696,000 units at CDN$4.60 for CDN$17 million (about US$16.3 million). Each unit has one share and one warrant to buy another share at CDN$5.75 for two years, so existing holders face possible dilution. The company says proceeds go to developing the Hycroft Mine, working capital and general purposes. Finders got CDN$528,020 and 114,850 warrants at CDN$4.60; Quest Securities, chaired by Buchan, received part of this. This completes the financing announced on July 12.
What it means for a shareholder
3.7m new shares at C$4.60 to raise about C$17.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
16 July 2007capital raising announcement▲ GoodMajor
The company added three independent directors (John Ivany, D. Bruce Sinclair, Robert Wardell) and named Robert Buchan Executive Chairman. It also raised the planned private placement from 3,260,870 to 3,696,000 units and from CDN$15 million to CDN$17 million, with insiders subscribing about CDN$6,435,400 (Buchan about CDN$4,002,000). The board approved $4.8 million for second-half 2007 exploration, about $3.1 million of it at Hycroft.
The plan of arrangement closed on May 10, 2007: Allied Nevada Gold (the company later known as Hycroft Mining) acquired Vista Gold's Nevada projects, including the Hycroft mine, plus the Pescios' interests in 53 Nevada properties. It issued 26,933,055 shares and $25 million in cash to Vista and 12,000,000 shares and $15 million in cash to the Pescios. Vista's shareholders received 0.794 of an Allied Nevada share per Vista share, and the Pescios now hold about 23.5%. It ends the company's status as a wholly-owned Vista subsidiary and completes the listing step noted on May 10.
