Hycroft to mix ore from two Nevada mines

Both Nevada heap leach mine projects were developed with the help of Granges Exploration (TSE), which now owns 59% of Hycroft, and Goldbelt Mines (VSE) which holds a 10% interest.

In return for the right to blend ores from the open pit mines, Hycroft has agreed to pay the lessor of the Lewis mine an immediate cash payment of $1.52 million (US) along with a commitment to make an additional $453,250(US) payment in about three years time.

Mike Muzylowski, chairman of Hycroft, said this will lower operating costs through the use of the Crofoot facilities for treatment of Lewis ore and permit recovery of ore on the common boundary. The agreement is to remain in effect until 13,680,000 tons of material have been mined, with royalties to the lessor suspended during this period.

A spokesman from Granges said Hycroft was facing an increase in operating costs on a per ton basis at the Lewis mine because of its smaller mill facilities. The Crofoot mine is far larger in scale than the Lewis and better economies of scale are expected to be achieved through the use of its large crushing and processing plant.

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