Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount”)
announced today that it has submitted a modified Consolidated
Permit Application (“Application” or “CPA”) with the State of
Oregon seeking approval to construct and operate its proposed,
high-grade gold mine located in Malheur County in eastern Oregon.
Paramount CEO, Rachel Goldman commented: “We have a high degree
of confidence that the rigorous review and subsequent modifications
will result in the CPA achieving administrative completeness which
will mark a first in the state of Oregon for a proposed modern
mine. With the submission of the revised CPA, the prospect of
receiving permits and advancing Grassy towards production will
represent a historic moment for the communities of eastern Oregon
and for the state. Equally as important is the substantial
value-creating opportunity that a production scenario creates for
our stockholders.”
After its initial application, the Company received from the
State of Oregon a detailed completeness review and recommendations
for the submission of a modified CPA. To ensure a complete modified
CPA, the Company, with its industry leading permitting consultants,
worked diligently with the State of Oregon’s lead permitting
agency, the Oregon Department of Geology and Mineral Industries
(“DOGAMI”), and all other permitting and cooperating agencies
involved in the process to address the issues and recommendations
raised in the completeness review.
In addition to responding to the State of Oregon’s completeness
review, the modified CPA includes changes and additional
information that resulted from mine design optimizations and
permitting regulation changes. The modified CPA includes, but is
not limited to the following:
- Completion of additional geotechnical drilling and design of
the waste rock dump to improve stability analysis;
- Further analysis and modeling of ground water including new
data gathered for the Feasibility Study;
- Design review of the Tailings Storage Facility’s leak
collection and detection systems;
- Adjustments to the Wildlife Protection and Mitigation plan
including design adjustments to include Avian diverters and
wildlife protection measurements;
- Adjustments to the personnel safety and environmental training
program to include additional detail on the transport of dangerous
materials and emergency protocols; and
- Revisions to the reclamation, monitoring and mine closure plan
including associated cost estimates.
Prior to the submission of the modified CPA, last week the
Company submitted the modified Plan of Operation (“Plan”) and all
baseline data reports to the Bureau of Land Management for the
federal approval (see press release of December 16, 2021).
Paramount President and COO, Glen Van Treek stated: “The
submission of the modified applications, to both the BLM and the
DOGAMI, reflects our commitment to ensuring our proposed mine meets
and exceeds all of the combined requirements under Oregon and
federal regulations. We appreciate the level of collaboration from
all the state permitting agencies that greatly assisted us in
addressing the issues identified in the state’s completeness
review. We continue to have the utmost confidence in our ability to
permit, build and operate Grassy Mountain.”
The DOGAMI along with the other permitting and cooperating
agencies will review the modified CPA for completeness. Once the
modified CPA is deemed complete, the State of Oregon will proceed
with completing an environmental evaluation and socio-economic
analysis and instruct permitting agencies to prepare draft permits.
Under the law, the State must complete these steps within 225
days.
The proposed high grade, underground Grassy Mountain gold mine
will be the first modern mine in the state of Oregon, which based
on the Feasibility Study will be a highly profitable operation with
a quick initial payback. Highlights of the study in the base case
scenario, which were completed using a price of $1,472 and $16.96
per ounce of gold and silver respectively, include:
- Initial 8 year mine life producing 362,000 ounces of gold and
425,000 ounces silver in a 750 tpd mine and milling operation;
- Low initial capital requirement of $97.5 million includes
$10.1M of estimated contingencies, $25.6M of sustaining CapEx and
$6.3M closure costs;
- Life of mine cash costs of $5831
and AISC of $6712 per ounce of gold3;
- Annual production of 47,000 ounces
of gold and 55,000 ounces of silver;
- Exceptional gold and silver
recoveries average 92.8% and 73.5 % respectively;
- At Feasibility Study (FS) metal
prices of $1470 for gold and $17 for silver, payback of 3.1 years
with an IRR of 26.0% and an NPV5% of $105M which increase
significantly to 40.9% and $195M at $1,900 gold (all figures after
tax); and
- Total free cash flow of $165M (post-tax) at the three year look
back FS metal prices.
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 Officer
Christos Theodossiou, Director of Corporate
Communications866-481-2233
Twitter: @ParamountNV
1 Cash costs consist of mining costs, processing costs,
mine-level G&A and refining charges and royalties2 AISC
includes cash costs plus sustaining capital and closure costs3
After silver credits
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