Paramount Gold Enters Into An Agreement With Ausenco To Complete A Bankable Feasibility Study On Its Grassy Mountain Project
June 25 2019 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount”)
announced today that it has entered into an agreement with Ausenco
Engineering Canada Inc. (“Ausenco”) to complete a National
Instrument 43-101 Feasibility Study (“FS”) for its proposed Grassy
Mountain gold mine in eastern Oregon.
Ausenco is a global diversified engineering,
construction and project management company providing consulting,
project delivery and asset management solutions to the resources,
energy and infrastructure sectors. Ausenco has significant
experience in the study and execution of projects similar to Grassy
Mountain.
In lieu of cash compensation, Ausenco or a
wholly owned subsidiary in the Ausenco Pty Ltd Group will receive
100% of its fees in restricted common stock of Paramount, resulting
in the issuance of 1,109,225 shares to Ausenco. The stock price
used to calculate the number of shares was determined using the
30-day Volume Weighted Average Price of Paramount’s listed common
shares on the New York Stock Exchange American as of the closing
price on June 21, 2019, the date of acceptance of Ausenco’s
proposal to Paramount. The common stock will be escrowed until
Ausenco delivers a final FS to Paramount.
Paramount CEO, Glen Van Treek stated, “We are
thrilled to have Ausenco, a globally recognized industry leader in
engineering, project development and construction, as a partner to
advance our high-grade Grassy Mountain gold project through
feasibility, construction and ultimately production.” Mr. Van Treek
added, “Having Ausenco on board and becoming a PZG shareholder is a
great support that further validates the merits of the Grassy
Mountain project.”
Ausenco, together with several other consulting
groups, completed the Pre-Feasibility Study (“PFS”) on Grassy
Mountain last year. All of the firms have been working with
Paramount since then to complete all the required analysis and
detailed design for the Consolidated Permit Application to be filed
at the State level and the Plan of Operation to be updated and
filed with the Federal Bureau of Land Management (“BLM”). Both
reports are expected to be filed in the third quarter of this
year.
Ausenco along with Golder Associates and Mine
Development Associates (now part of RESPEC) will initiate the FS in
July with expected completion in mid-2020.
Paramount expects to have all permits in place
in 2020, and is preparing to initiate construction immediately
following receiving all permits.
As evaluated and positively tested in the PFS,
the FS will focus on a 750 ton per day mill followed by a gravity
concentration and subsequent Carbon in Leach (“CIL”) process in a
closed and confined circuit. The ore will be extracted using a
drift and fill underground mining method and trucked to
surface.
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About Paramount Gold Nevada
Corp.Paramount Gold Nevada is a U.S. based precious metals
exploration and development company. 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.
Paramount owns 100% of the Grassy Mountain Gold
Project which consists of approximately 11,000 acres located on
private and BLM land in Malheur County, Oregon. The Grassy Mountain
Gold Project contains a gold-silver deposit (100% located on
private land) for which results of a positive PFS have been
released and key permitting milestones accomplished (see press
release dated May 24, 2018). 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).
Safe Harbor for Forward-Looking
StatementsThis 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. 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,"
,”bankable”, "plans," "anticipates," "expects," "estimates" and
similar expressions are intended to identify forward-looking
statements, although these words may not be present in all
forward-looking statements. Forward-looking statements
included in this news release include, without limitation,
statements with respect to: production estimates and assumptions,
including production rate and grade per tonne; revenue, cash flow
and cost estimates and assumptions; statements with respect to
future events or future performance; anticipated exploration,
development, permitting and other activities on the Grassy Mountain
project; the economics of the Grassy Mountain project, including
the potential for improving project economics and finding more ore
to extend mine life; and mineral reserve and mineral resource
estimates. 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 conclusions made in the PFS; the quantity and grade of
resources included in resource estimates; the accuracy and
achievability of projections included in the PFS; Paramount’s
ability to carry on exploration and development activities,
including construction; the timely receipt of required approvals
and permits; 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. 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; the ability to obtain required permitting;
equipment breakdown or disruptions; additional financing
requirements; the completion of a definitive feasibility study for
the Grassy Mountain project; discrepancies between actual and
estimated mineral reserves and mineral resources, between actual
and estimated development and operating costs and between estimated
and actual production; and the other factors described in
Paramount’s disclosures as filed with the SEC and the Ontario,
British Columbia and Alberta Securities Commissions.
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 DirectorChristos
Theodossiou, Director of Corporate
Communications866-481-2233Twitter:
@ParamountNV
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