Overview and Location
On November 14, 2018, Paramount entered into an agreement with a wholly owned subsidiary of Ely Gold Royalties (TSX-v: ELY) to purchase a 100% interest in 896 acres known as the Frost Project (“Frost”). Frost, located in the Owyhee uplands of southeastern Oregon is approximately 70 miles west of Boise, Idaho and 12 miles west of Paramount’s flagship Grassy Mountain Gold project (“Grassy”).
Since the acquisition of Grassy in 2016, Paramount has systematically advanced Grassy through the completion of an economically robust Pre-Feasibility Study while achieving significant permitting milestones as it progresses towards its goal of submitting the Consolidated Permit Application with the Oregon Department of Geology and Mineral Industries (“DOGAMI”) in mid-2019. Throughout this progression Paramount has gained significant knowledge of the state permitting process and has created a first mover advantage in the State.
This expertise and confidence led them to the acquisition of Frost, their second asset in eastern Oregon, and subsequently to the increase of its land position at Frost in January 2019 whereby the Company staked an additional 40 claims (810 acres) increasing the project size to 1,706 acres.
In October of 2018, as part of its due diligence process, Paramount extended its Grassy helicopter magnetic and radiometric surveys over the entire Frost project. The Frost project has similar rock formations and geologic signatures to those seen at Grassy. At Grassy, these sinter formations and mag-low areas, seem to be representative of gold formations.
AirMag geophysics carried out by Paramount in 2018 revealed significant magnetic lows that directly correlate with the known vein zone. These results were another key element to staking the additional 40 claims surrounding Frost in January 2019.
The positive results of the survey coupled with promising gold intercepts seen in historical drilling are the focus of Paramount’s geological team putting together its 2019 exploration program. The company is planning additional geophysical work in the form of a CSAMT study to confirm the teams interpretations as they review and compile targets which will be incorporated into a follow up reverse circulation drill program.
The Frost Project is in the semi-arid high desert plateau region of eastern Oregon approximately 12 miles southwest of Grassy Mountain. The terrain is gentle to moderate, with elevations ranging from approximately 4,400 to 5,000 feet above mean sea level.
The area is underlain by Mesozoic volcanic, volcaniclastic and minor interbedded sedimentary rocks, with Quaternary alluvial deposits filling the valleys. The observed volcanic stratigraphy records a complex history of middle Miocene to early Pliocene bimodal eruption and concurrent faulting. The Frost stratigraphy lacks significant sequences of intermixed fluvial and lacustrine sedimentation. This could indicate that the north-trending rift basins of the Lake Owyhee Volcanic Field did not form in the immediate vicinity and as a result, the Frost Project area and nearby Freezeout Mountain were most likely topographic highlands and did not receive the sedimentation that can be found nearby to both the east and west of the project.
Banded to vuggy chalcedony-quartz-adularia vein material along with smectite, hematite and native gold, fills a steeply dipping, northwest trending fracture zone developed within Middle to Late Miocene age rhyolites and basalts. The vein zone penetrates previously silicified and hydrothermally brecciated rock containing low level sub-ore grade gold values. Geologic mapping reveals the presence of a fossil hot spring system, similar to Grassy Mountain that underwent multiple episodes of rupturing and sealing.
The structural setting at Frost includes fault orientations grouped into two major sets:
- North-South to N10°W with varying dips.
- N45°W striking faults with varying dips.
The known mineralized vein occurs in association with a N45°W trending fault. These structures appear to be the main controlling fractures for fluids that produced hydrothermal alteration and mineralization.
Work completed by Western Mining Corp in the early 90’s discovered the presence of a gold mineralized epithermal vein at the Frost project. The vein is a concealed host that does not outcrop at the surface. Drill testing identified a portion of the vein containing gold grades of 8 to 25 g/T. Potential strike and dip extensions have not been adequately drill tested.