Paramount Gold Initiates Program to Advance Former Sleeper Gold Mine in Nevada Towards Production
December 08 2020 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or
“the Company”) announced today that in response to higher gold
prices it has initiated a program to evaluate restarting the
historic Sleeper Mine. From 1986 to 1996 the Sleeper mine produced
1.7 million ounces of high-grade gold at costs well below $400 per
ounce. The 38,300 acre property in Humboldt County Nevada currently
hosts 3 million ounces of measured and indicated gold resources,
nearly 1.5 million ounces of inferred gold resources and a
considerable silver resource (see the 2015 resource estimate here).
Paramount CEO Rachel Goldman stated: “Gold at current levels
makes Sleeper a much more valuable asset. Located in one of the
world’s best mining jurisdictions, with excellent infrastructure
and access, as well as a sizable unexplored land package, we expect
Sleeper to become an increasingly important part of the Paramount
story moving forward.”
The Sleeper program is multi-faceted: exploring
to discover new, high grade satellite deposits similar to the
original Sleeper Mine, and developing a plan to exploit the
existing resource based on an in depth re-interpretation of
existing data and further work designed to upgrade the current
resource.
Paramount has contracted Mine Development
Associates (“MDA”) of Reno, Nevada to review all available data at
Sleeper. MDA will deploy a team of expert geologists, mining
engineers, metallurgists and geophysicists to analyze the entire
dataset with the following objectives:
(i) Identify the most prospective drill targets with the
goal of defining a new high-grade Sleeper type vein deposit;
(ii) Identify priority drill targets within the Sleeper
deposit which could improve the overall grade and confidence level
of the current resource;
(iii) Produce a scoping level study comparing various
processing and throughput alternatives for restarting production at
Sleeper;
(iv) Define the parameters of a prefeasibility or
feasibility study.
Paramount expects to commence drilling priority targets in the
first half of 2021.
Paramount President and Chief Operating Officer
Glen Van Treek stated: “Our team has always been confident that the
original Sleeper vein was not a unique occurrence. We look forward
to the prospect of discovering a new ‘Sleeper type’ deposit and
applying our extensive database and our understanding of the local
geology to a bigger land package. We have acquired additional
claims over the past years which have the right setting for
range-and-basin deposits like the original Sleeper.”
Nevada has a well-established permitting process
which facilitates advancing Sleeper towards a production scenario.
The company will begin compiling the required data to complete
baseline studies as part of the permitting process to re-open the
mine. Paramount has gained recognition from the State for the
award-winning reclamation work the team conducted at Sleeper over
the course of it’s ownership. The company expects that future
activity on the property will be carried out with a similar duty of
care.
About Paramount Gold Nevada Corp.
Paramount Gold Nevada Corp. 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 8,200 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 Feasibility Study
have been released and key permitting milestones accomplished.
Paramount owns a 100% interest in the Sleeper
Gold Project located in Northern Nevada, the world’s premier mining
jurisdiction. 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). The Sleeper
gold project is host to a large gold deposit (over 4 million ounces
of mineralized material) and the Company has completed and released
a positive Preliminary Economic Assessment.
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. 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 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 the use of proceeds
from the Offerings. 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
feasibility study for the Grassy Mountain Gold Project (the “FS”);
the quantity and grade of resources included in resource estimates;
the accuracy and achievability of projections included in the FS;
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 Gold 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; the global epidemics, pandemics, or other
public health crises, including the novel coronavirus (COVID-19)
global health pandemic, and the spread of other viruses or
pathogens 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. Rachel
Goldman, Chief Executive OfficerChristos
Theodossiou, Director of Corporate
Communications866-481-2233Twitter:
@ParamountNV
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