Paramount Announces Positive Assay Results From Geotechnical Drill Holes With the Potential to Reclassify Waste Rock as Ore
July 08 2021 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or
“the Company”) announced today that assay results from two new core
holes at the Company’s proposed high grade underground Grassy
Mountain gold mine in eastern Oregon drilled outside the mineral
reserve area indicate the potential for additional economic
material.
The two holes were initially drilled as part of
the geotechnical program for alignment and to support the design of
the portal and decline access to the mine. Both holes were drilled
outside the boundaries of the current underground reserve, in areas
considered as waste rock (see image below).
Drill hole GM19-37 was designed to acquire data
related to ground conditions in proximity to the underground
decline spiral as well as to provide ground water and permeability
data. The hole was drilled to a depth of 831 ft. returning gold
grades up to 2.56 g/T. Overall, this hole intersected a true width
of 675 ft. grading an average of 0.4 g/T gold and 1.8 g/T Ag.
Drill hole GM19-38 was drilled at the proposed
portal location and intercepted gold mineralization of up to 0.98
g/T of gold. The hole was drilled to 100 ft. and intersected a zone
of 29 ft. grading 0.6 g/T gold beginning at a depth of 71 ft.
Paramount’s COO Glen van Treek commented, “The
significance of these assays is that material with sufficient grade
will be stockpiled separately and sent to the mill, rather than
being classified as waste, thereby improving overall project
economics.”
Based on the September 2020 Feasibility Study,
projected processing costs are $28 per ton, suggesting that at
current gold prices, any material with grades over 0.55 g/T
previously classified as waste, but that needs to be extracted as
part of the current mine plan, will be sent to the mill for
processing.
“As we approach a construction decision, the updated reserves
will be included in a final mine plan accounting for short-term
gold and silver prices at that time,” van Treek added.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a0b503d6-c79c-43f0-ae3d-2e083ce875b8
NI 43-101 DisclosureExploration activities at
Grassy Mountain are being conducted by wholly-owned subsidiary
Calico Resources USA Corp. personnel under the supervision of
Michael McGinnis (CPG 10914) Project Manager and a Qualified Person
under National Instrument 43-101, who has reviewed and approved
this release. An ongoing quality control/quality assurance protocol
is being employed for the program including blank, duplicate and
reference standards in every batch of assays.
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 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. With higher gold
prices, Paramount has begun work to update and improve the
economics of the Sleeper project.
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," "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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