Paramount Gold Obtains State Approval to Commence Drilling
Drilling set to begin at Grassy Mountain Gold Project in Oregon
Winnemucca, Nevada – November 1, 2016. Paramount Gold Nevada Corp. (NYSE MKT: PZG) (“Paramount” or the “Company”) announced today that it has received approval of the Company’s drill program at its 100%-owned Grassy Mountain Gold Project in Eastern Oregon under Division 37 guidelines by the Oregon Department of Geology and Mineral Industries (“DOGAMI”). The drill program is a key component of its Pre-Feasibility Study (“PFS”) that the Company began in August.
A 29-hole drill program was developed by Paramount in conjunction with its advisors, Mine Development Associates, Golder Associates, AUSENCO, and SPF Water Engineering to obtain additional data required for completion of the PFS, as follows:
- Further define the high grade gold zone to be mined underground and potentially expand the size of the zone;
- Acquire material for PFS-level metallurgical testing needed to design the recovery process including definition of crushing equipment and milling circuits required to optimize gold recoveries;
- Obtain geotechnical data on rock stability for underground mine design and mining methodology.
- Obtain hydrological data for hydrological modeling and to install various sensors for monitoring.
Paramount has contracted Major Drilling to mobilize three rigs to the site and start the drilling in early November.
Glen Van Treek, Paramount’s President and CEO, said: “We are excited to work with DOGAMI to advance Grassy Mountain and we are very pleased with the level of co-operation we have received. This drill campaign will enable us to advance the project to the PFS level and report reserves. We will continue to work with DOGAMI and the federal Bureau of Land Management to obtain all necessary permits to initiate construction and mining.” The PFS is scheduled for completion in late 2017.
The PFS will provide the deliverables required to meet important milestones in the permitting process in 2017, including initiation of an Environmental Impact Statement (“EIS”) and commencement of the final permitting processes with the federal Bureau of Land Management and state authorities in 2017.
The project’s Preliminary Economic Assessment (“PEA”) completed last year contemplated a 10-year underground mining operation with low cash operating costs driven by a higher than average underground gold grade of 5.32 g/T gold. The PEA estimated average annual production of 53,000 ounces of gold and 82,000 of silver yielding robust economics at a $1,300 per ounce gold price and silver at $17.50 per ounce. The project contains a global measured plus indicated mineralized inventory of 69 million tonnes with an average grade of 0.82 g/T gold and 2.25 g/T Ag containing an estimated 1.7 million ounces of gold and 4.9 million ounces of silver. The core underground mineralized material totals 3.3 million tonnes grading 5.32 g/T Au and 8.9 g/T Ag (For more details, see our release of July 7, 2016).
Richard Delong of Enviroscientists Inc., Paramount’s Environmental and Permitting Coordinator and an Environmental Qualified Person under National Instrument 43-101, has reviewed and approved this release.
About Paramount Gold Nevada Corp.
Paramount Gold Nevada is a U.S. based precious metals exploration company. Paramount has an unusually high ratio of ounces of gold in mineral inventory to shares outstanding, providing its shareholders with exceptional leverage to the gold price. For our mineral inventory, click here.
Paramount holds a 100% working 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 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 realizing 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.
Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources
This news release, and the disclosure to which it refers, use the terms “measured and indicated resources” and “inferred resources”. We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves”, as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.
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 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