Paramount Gold’s New Magnetic Survey At The Sleeper Project Defines Seven Targets Around, And Parallel To, The Original High Grade Sleeper Deposit
- 1,024 line Kilometers flown by helicopter at 100 meter spacing AT AN altitude of 25 meters for tight target definition
- survey results define prospective hidden structures with magnetic signatures analogous to sleeper mineralizing alteration
Winnemucca, Nevada – August 25, 2015 –Paramount Gold Nevada Corp. (NYSE MKT: PZG) (“Paramount”) announced today that a helicopter magnetic survey conducted by Vancouver based, Precision Geosurveys (www.precisiongeosurveys.com) has successfully defined targets analogous to the original high grade Sleeper Mine operated by Amax Gold, which processed 6.015 million tons grading 0.203 opt of gold (6.95 g/T) through the mill.
The two day airborne survey was completed at a planned altitude of 25 meters flown on east-west lines spaced at 100 meters. For control purposes, north-south tie lines were flown every 1 kilometer. This survey, combined with an airborne magnetic survey completed by Placer Dome (a former major US gold producer) in the 1990s, covers an approximate area of 10 kilometers by 25 kilometers which includes some of the most prospective ground around the Sleeper deposit as outlined in the image below.
Seven structurally complex zones with possible magnetite destruction due to hydrothermal alteration can be interpreted from the combined surveys as priority targets (see magnetic interpretation below). These targets may represent large, favorable areas for gold deposition, each several kilometers in strike length. These targets require additional prioritization based on surface mapping and sampling, earlier geophysical survey data, and preliminary wide-spaced drilling performed in 2012. Paramount’s Nevada staff and consultants will use the combined survey data to establish a drill plan which may call for additional detailed follow-up ground geophysical surveys before drilling begins.
Commenting on the results of the survey, Paramount’s President, Glen van Treek said: “Our plan for Sleeper has always been twofold—to establish an economic project based on the bulk minable material left behind by the original operator, and to find another high grade gold deposit similar to the original Sleeper. Our own exploration work and meticulous re-interpretation of the work done by previous operators have taught us a great deal about why and how the original Sleeper deposit occurred where it did. The results of this magnetic survey support the model we have developed and take us one step closer to finding a new Sleeper.”
Van Treek noted that finding a new high grade deposit is made more difficult by the overburden obscuring the structures which were the conduits for mineralizing solutions at the historic Sleeper mine. “We are doing detective work, using available data and inexpensive tools to narrow the search before drilling. We believe that the Sleeper mine was not a singular event and that we are taking the correct steps to explore for the next one.”
As announced on May 5, 2015 (see news release), SRK Consulting (www.srk.com) has estimated Sleeper’s total measured and indicated mineralized material at 294 million tonnes grading 0.36 Au g/T and 3.25 Ag g/T containing 3.42 million ounces of gold and 30.8 million ounces of silver. Additionally, inferred mineralized material was estimated at 241.8 million tonnes grading 0.32 Au g/T and 1.93 Ag g/T containing 2.47 million ounces of gold and 15.0 million ounces of silver. All resources were estimated at a gold cut-off grade of 0.15 Au g/T which SRK considers reasonable for large, near surface, bulk-minable deposits in Nevada at current metal prices. Please note that mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these Inferred resources as Measured or Indicated, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured confidence level.
About Paramount Gold Nevada
Paramount Gold Nevada is the successor to Paramount Gold and Silver Corp. which merged with Coeur Mining, Inc. (“Coeur”) on April 17, 2015. In the merger, Coeur issued its shares to acquire Paramount Gold and Silver Corp. in order to obtain its Mexican assets and spun out Paramount Gold and Silver’s Nevada assets, including the famed Sleeper Gold Project, thereby giving birth to Paramount Gold Nevada Corp. Upon completion of the spin out, Paramount Gold Nevada had approximately $9.6 million in cash in its treasury.
Paramount’s strategy is to realize shareholder value by acquiring district-scale, advanced-stage gold projects in established mining camps in Nevada, enhancing their value through exploration and engineering and then joint venturing or selling them to producers for construction and operation. The Coeur transaction just completed exhibits this strategy.
The Sleeper Gold Project is a former high-grade open pit gold producer located off a main highway about 25 miles from the town of Winnemucca, NV. In 2010, Paramount Gold and Silver Corp. acquired a 100% interest in the project including the original Sleeper mine, operated by Amax Gold from 1986 to 1996, and subsequently staked and purchased lands now totalling 2,322 unpatented mining claims (approximately 60 square miles or 15,500 hectares) which stretch south, down trend towards Newmont’s Sandman project.
Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources
This news release uses 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” including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project and the expected results of this work, estimates of resources for Sleeper including expected volumes and grades, improvements in the project’s expected economics and the expected completion of a PEA. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. 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.
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
Chris Theodossiou, Director of Corporate Communications