Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or
the “Company”) announced positive results from its first drill
program at its Frost project located within trucking distance of
the proposed Grassy Mountain Mine operation.
“We are pleased with the results of this initial program. We
have encountered a robust gold system which could have the
potential to generate significant tonnage of economic material,”
said Glen Van Treek, Paramount’s President and Chief Operating
Officer. “There is much more drilling to be done but these results
confirm the presence of a gold system as indicated by our surface
work.”
A total of 13 reverse circulation drill holes totaling 9,010
feet were completed to test targets based upon surface geology and
sampling, along with ground and helicopter borne geophysical
surveys. The drill plan was also designed to locate and test
historical intercepts from drilling in the 1990’s which had
significant gold values, however no records remain of the precise
locations of the historic holes.
Several drill holes intersected significant gold grades over
interesting intervals including a 5-foot sample with a gold grade
of 14.4 g/t and shallow intercepts up to 70 feet averaging 1.04
g/t.
Highlights of assay results (true width is undetermined):
HoleID |
|
From (ft.) |
|
To(ft.) |
|
Drill Width(ft.) |
|
Au(ppm) |
|
Ag(ppm) |
F21-02 |
|
165 |
|
235 |
|
70 |
|
1.04 |
|
3.3 |
including |
|
165 |
|
185 |
|
20 |
|
2.48 |
|
3.9 |
F21-03 |
|
175 |
|
235 |
|
60 |
|
0.66 |
|
3.4 |
F21-06 |
|
880 |
|
885 |
|
5 |
|
1.54 |
|
0.3 |
F21-12 |
|
130 |
|
140 |
|
10 |
|
1.23 |
|
1.2 |
F21-12 |
|
220 |
|
225 |
|
5 |
|
0.42 |
|
1.1 |
F21-13 |
|
360 |
|
380 |
|
20 |
|
4.85 |
|
9.5 |
including |
|
365 |
|
370 |
|
5 |
|
14.40 |
|
12.7 |
The high-grade intercepts are related to silicified structures
that have been interpreted to have near vertical dips.
Specifically, intercepts in holes 2, 3 and 13 are interpreted to be
the same vertical structure where the gold grade is increasing with
depth as evidenced from the 20-feet grading 2.48 g/t of gold at
170-foot depth, and 4.85 g/t of gold at a depth of 370 feet. See
figure 1 which illustrates the intercepts along with the CSAMT
line.
The initial drill program has provided Paramount with an
increased understanding of the gold distribution. The orientation
of the main mineralized zone and the increase in gold grade with
depth will be key factors for defining a second, follow-up drilling
phase. 3D modeling of the drilling, assays and geologic
interpretation are ongoing. Results will be used for targeting a
wider or more disseminated zone of mineralized material that can be
mined and trucked to the proposed Grassy Mountain operation thus
increasing the project’s overall mine life.
Based upon similar low sulfidation epithermal deposits around
the world and Paramount’s experience with the Grassy Mountain and
Sleeper projects, it is expected that the Frost veins will pinch
and swell, changing in width dramatically along strike or at depth.
The Company is pursuing evidence that these veins could be the
lateral extension of a much larger mineralized zone.
Figure 1: illustrates the intercepts along with the CSAMT
linehttps://www.globenewswire.com/NewsRoom/AttachmentNg/7c172639-4841-427d-ae06-157831daaa9d
Data from the main drill holes intercepts
HoleID |
|
From(ft.) |
|
To(ft.) |
|
Width(ft.) |
|
Au(ppm) |
|
Ag(ppm) |
F21-02 |
|
165 |
|
170 |
|
5.0 |
|
1.435 |
|
2.4 |
|
170 |
|
175 |
|
5.0 |
|
3.640 |
|
2.3 |
|
175 |
|
180 |
|
5.0 |
|
3.510 |
|
7.0 |
|
180 |
|
185 |
|
5.0 |
|
1.345 |
|
4.1 |
|
185 |
|
190 |
|
5.0 |
|
0.592 |
|
2.3 |
|
190 |
|
195 |
|
5.0 |
|
0.256 |
|
2.1 |
|
195 |
|
200 |
|
5.0 |
|
0.846 |
|
4.0 |
|
200 |
|
205 |
|
5.0 |
|
0.146 |
|
2.7 |
|
205 |
|
210 |
|
5.0 |
|
0.318 |
|
2.5 |
|
210 |
|
215 |
|
5.0 |
|
0.642 |
|
3.4 |
|
215 |
|
220 |
|
5.0 |
|
0.230 |
|
2.6 |
|
220 |
|
225 |
|
5.0 |
|
0.354 |
|
2.8 |
|
225 |
|
230 |
|
5.0 |
|
0.773 |
|
3.8 |
|
230 |
|
235 |
|
5.0 |
|
0.506 |
|
3.9 |
F21-03 |
|
175 |
|
180 |
|
5.0 |
|
0.615 |
|
1.5 |
|
180 |
|
185 |
|
5.0 |
|
0.225 |
|
1.1 |
|
185 |
|
190 |
|
5.0 |
|
0.680 |
|
1.3 |
|
190 |
|
195 |
|
5.0 |
|
1.480 |
|
2.8 |
|
195 |
|
200 |
|
5.0 |
|
0.597 |
|
1.6 |
|
200 |
|
205 |
|
5.0 |
|
0.863 |
|
4.6 |
|
205 |
|
210 |
|
5.0 |
|
0.623 |
|
4.0 |
|
210 |
|
215 |
|
5.0 |
|
0.814 |
|
7.1 |
|
215 |
|
220 |
|
5.0 |
|
0.869 |
|
6.0 |
|
220 |
|
225 |
|
5.0 |
|
0.586 |
|
8.2 |
|
225 |
|
230 |
|
5.0 |
|
0.095 |
|
1.2 |
|
230 |
|
235 |
|
5.0 |
|
0.475 |
|
1.4 |
F21-06 |
|
880 |
|
885 |
|
5.0 |
|
1.545 |
|
0.3 |
F21-13 |
|
360 |
|
365 |
|
5.0 |
|
2.850 |
|
8.2 |
|
365 |
|
370 |
|
5.0 |
|
14.400 |
|
12.7 |
|
370 |
|
375 |
|
5.0 |
|
1.705 |
|
9.3 |
|
375 |
|
380 |
|
5.0 |
|
0.450 |
|
7.7 |
F21-12 |
|
130 |
|
135 |
|
5.0 |
|
2.130 |
|
2.1 |
|
135 |
|
140 |
|
5.0 |
|
0.338 |
|
0.6 |
F21-12 |
|
220 |
|
225 |
|
5.0 |
|
0.421 |
|
1.1 |
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”).
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. Detailed planning and U.S. Forest
Service permitting of a first phase drill program at Bald Peak, is
underway.
NI 43-101 Disclosure
Exploration activities at Frost are conducted by
Calico Resources USA Corp./Paramount Gold Nevada 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. A quality
control/quality assurance protocol was employed for the drill
program; including blank, duplicate and reference standards in
every batch of assays.
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
Communications844-488-2233
Twitter: @ParamountNV
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