Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”)
announced today it has initiated a reverse circulation drill
program to test several exploration targets identified by our team
and Mine Development Associates (“MDA”) in our joint evaluation
designed to bring the Sleeper Mine back into production.
Paramount Gold Nevada owns a 100% interest in the Sleeper Gold
Project, a former high-grade open pit gold producer located
off a main highway approximately 25 miles northwest of the town of
Winnemucca, Nevada. The famed Sleeper mine was operated by AMAX
Gold Inc. (“Amax”) from 1986 until 1996, producing 1.66 million
ounces of gold and 2.3 million ounces of silver. Paramount has
assembled a district-scale project with significant unexplored gold
potential. The project land position includes staked and purchased
lands which brings the total holdings to approximately 60 square
miles or about 40,000 acres.
Paramount President and Chief Operating Officer Glen Van Treek
stated: “After a thorough review of the extensive database of
historic assays and geophysical data during the first half of the
year, our technical team has identified numerous drill targets. We
are excited to have started this first phase of drilling and for
the potential of discovering another high-grade “Sleeper type”
deposit.
As part of the Company’s ongoing effort to
restart the historic Sleeper Gold Mine, Paramount contracted MDA in
December of 2020 to evaluate the following:
- The most prospective drill targets with the goal of defining a
new high-grade Sleeper type vein deposit;
- Priority drill targets within the Sleeper deposit which could
improve the overall grade and confidence level of the
current resource;
- A scoping level study comparing various processing and
throughput alternatives for restarting production at Sleeper;
and
- Define the parameters of a new technical report.
The Sleeper Project currently hosts a large, low-grade open pit
resource.
Sleeper Project Pit Constrained Mineral
Resource Estimate
Classification |
Tonnes (000’s) |
Au Grade (g/t) |
Au oz (000’s) |
Ag Grade (g/t) |
Ag oz (000’s) |
Measured |
209,464 |
0.35 |
2,354 |
3.2 |
21,823 |
Indicated |
87,662 |
0.28 |
789 |
2.5 |
7,065 |
Measured &
Indicated |
297,126 |
0.33 |
3,143 |
3.0 |
28,888 |
Inferred |
148,844 |
0.31 |
1,488 |
1.4 |
6,698 |
Source: (As Filed) Amended Technical
Report and Preliminary Economic Assessment, September 2017
Rachel Goldman, Paramount CEO stated: “The
current gold price environment has made Sleeper a much more
attractive asset, and as such, a more prominent focus of our
exploration activities within our well diversified asset portfolio.
We look forward to receiving the results of this drill program,
which will help to guide the next phases of exploration and
development on our largely unexplored land package in and around
the former high-grade Sleeper mine.”
The initial ~8,000-foot drill program has been
designed to drill an area east of the original Sleeper mine that
lies on the margin of a structural occurrence known as a
‘range-front fault’. In Nevada, these favorable geologic
occurrences have acted as, or generated conduits for precious metal
bearing fluids that fed mineralized deposits including Sleeper. In
the Sleeper district, this feature is marked by a transition from
‘high density’ Jurassic-Triassic rock to the ‘lighter’ Tertiary
volcanic sequences where the Sleeper mineralization is hosted. This
major transition or break, together with other favorable structural
zones, can be mapped in the field by geologists or, when covered by
alluvium, using geophysical surveys. The Paramount team used a
gravimetric survey to map the variations in density due to rock
changes or significant alteration processes. At Sleeper, these
favorable structures trend south-south-west, converging on the new
claims recently acquired by Paramount.
https://www.globenewswire.com/NewsRoom/AttachmentNg/8687ad1b-c92b-4926-9031-1c2725f0660aFigure
illustrates the most prospective target areas and are indicated by
the black dashed lines
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 holds a 100% interest in four gold
projects: Grassy Mountain; Frost; Sleeper and Bald Peak.
The Grassy Mountain Gold Project 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.
Frost is comprised of 84 unpatented lode claims
covering approximately 1,730 acres located 12 miles southwest of
the Company’s proposed high-grade, underground Grassy Mountain gold
mine in Malheur County, Oregon (“Grassy”). An initial drill program
is ongoing.
The Sleeper Gold Project is located in Northern
Nevada, the world’s premier mining jurisdiction. 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 and search for additional high-grade deposits
similar to the former producer.
The newly acquired Bald Peak Project in Nevada, consists of
approximately 2,260 acres.
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
Communications866-481-2233
Twitter: @ParamountNV
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