PFS to be completed on schedule followed by submission of Mining Permit Application with the State of Oregon in mid-2018

Winnemucca, Nevada – February 20, 2018 – Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”) announced today that the Company has exercised its option to reduce the existing Net Smelter Royalty (“NSR”) from 6% down to 1.5% and to acquire all rights to the private land at Grassy Mountain where the estimated 1.7 million ounce measured and indicated gold resource lies.

In its original lease agreement signed in 2004 and subsequent amendments, the Company was granted an option to purchase the private land and reduce the NSR for a total payment of $2.4 million. In the event the option was not exercised, and based on the assumptions contained in the project’s Preliminary Economic Assessment (“PEA”), the Company would have made approximately $28 million more in future royalty payments over the projected life of the mine once production began. The gold and silver price assumptions in the PEA were $1,300 and $17.50 per ounce respectively.

Paramount CEO, Glen van Treek commented: “With a clear path to a mining permit now in sight, we believe Grassy will become Oregon’s first modern day gold mine. Exercising this option has unlocked significant value for our shareholders. The reduction of the NSR will add to our mine cash flows well in excess of the exercise price. We also have the added certainty of direct ownership of the land on which the deposit is located.”

The PEA completed by Metal Mining Consultants in July 2015 contemplated a 10 year underground mining operation producing an annual average of 53,000 ounces of gold (excluding silver) with low cash operating costs driven primarily by the project’s high grade which, in the PEA, averages 5.32 g/T gold. Paramount expects to complete a more definitive Preliminary Feasibility Study (“PFS”) for an underground mining operation next month as scheduled. The PFS will include the project’s first estimation of proven and probable reserves.

The PFS is a key component in the application for a mine permit. The Company plans to submit its consolidated mining permit application to the Oregon Department of Geology and Mineral Industries (“DOGAMI”) in the first half of 2018. Once the application is accepted as complete by State regulators, a decision should be expected within approximately 300 days.

About Paramount Gold Nevada Corp.

Paramount Gold Nevada is a U.S. based precious metals exploration company. Paramount has a high ratio of ounces of gold in mineral inventory to shares outstanding, providing its shareholders with exceptional leverage to the gold price.

Paramount owns a 100% interest in the Grassy Mountain Gold Project which consists of approximately 9,300 acres located on private and BLM land in Malheur County, Oregon. The Grassy Mountain project contains a gold-silver deposit (100% located on private land) for which a Preliminary Economic Assessment (“PEA”) has been prepared and key permitting milestones accomplished. For the PEA, click here. Additionally, Paramount owns a 100% interest in the Sleeper Gold Project located in Northern Nevada. The Sleeper Gold Project, which includes the former producing Sleeper mine, totals 2,322 unpatented mining claims (approximately 60 square miles or 15,500 hectares).

Paramount’s strategy is to create shareholder value through exploring and developing its mineral properties and to realize this value for its shareholders in three ways: by selling its assets to established producers; entering into joint ventures with producers for construction and operation; or constructing and operating mines for its own account.

Safe Harbor for Forward-Looking Statements

This release and related documents may include “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) pursuant to applicable United States and Canadian securities laws. Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the completion of a PFS; the quantity and grade of resources included in resource estimates; the accuracy and achievability of projections included in PEAs; Paramount’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with current expectations; work meeting expectations and being consistent with estimates and plant, equipment and processes operating as anticipated. Paramount’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount’s disclosures as filed with the SEC and the Ontario Securities Commission.

Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

Paramount Gold Nevada Corp.
Glen Van Treek, President, CEO and Director
Christos Theodossiou, Director of Corporate Communications

Share this post