Paramount Gold Nevada Acquires Strategic Land Package at Its Grassy Mountain Gold Project in Eastern Oregon
November 06 2018 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”)
today announced that it has entered into a definitive agreement
with Cryla LLC. (“Cryla”), giving Paramount the right to acquire a
100% interest in 44 mining claims covering approximately 580 acres
located immediately to the west of the proposed Grassy Mountain
Mine site and associated infrastructure. Paramount now owns or
controls all of the mining claims within its ~10,000 acre Grassy
Mountain land package.
To view Figure 1, please click on the following
link: http://www.globenewswire.com/NewsRoom/AttachmentNg/e41a78f8-72a0-4edc-8fda-b0c155e50887
Glen Van Treek, Paramount CEO stated, “We are
pleased to secure the Cryla mining claims, the only claims within
our land package that we did not control. We believe these
claims offer excellent exploration potential and owning them
eliminates any risk of having another party control mining claims
in close proximity to our proposed mine site.”
The Cryla claims sit between the Wally/Wood
target and the Crabgrass target, a zone with a small historical
resource. Paramount’s recently completed air mag and radiometric
study identifies that a portion of the Cryla claims contain
elevated radiometric potassium, which is analogous to the Grassy
deposit itself. Radiometric potassium is interpreted to correspond
to adularia sericite alteration, which is part of the alteration
system associated with gold deposition at Grassy Mountain.
Additionally, a significant break in the
magnetometry could correspond to a structure that lies within the
Cryla claims, aligning the Crabgrass and Wally/Wood areas (see
images below).
To view Figure 2, please click on the following
link: http://www.globenewswire.com/NewsRoom/AttachmentNg/6d9003d5-355c-4f41-a700-a94d1a8e11db
To view Figure 3, please click on the following
link: http://www.globenewswire.com/NewsRoom/AttachmentNg/1ed7d894-6560-4031-9ad8-c98dec719585
Highlights of the agreement:The
definitive agreement is structured as a lease to own. Paramount
will make annual payments to Cryla, an Alaska corporation, which
are credited against a production Net Smelter Royalty (“NSR”) of 2%
with a gold price less than $1,500 per ounce and 4% with a gold
price equal to or greater than $1,500 per ounce. Following year
three, Paramount has the right to purchase the claims for a payment
of $560,000 but Cryla would maintain its NSR. Paramount also has
the right to reduce the NSR to 1% for a payment of $800,000.
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About Paramount Gold Nevada
Corp.Paramount Gold Nevada 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 9,300 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 PFS have been
released and key permitting milestones accomplished (see press
release dated May 24, 2018). Additionally, Paramount owns a 100%
interest in the Sleeper Gold Project located in Northern Nevada.
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).
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:
production estimates and assumptions, including production rate and
grade per tonne; revenue, cash flow and cost estimates and
assumptions; statements with respect to future events or future
performance; anticipated exploration, development, permitting and
other activities on the Grassy Mountain project; the economics of
the Grassy Mountain project, including the potential for improving
project economics and finding more ore to extend mine life; and
mineral reserve and mineral resource estimates. 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 PFS; the quantity and grade of resources included in resource
estimates; the accuracy and achievability of projections included
in the PFS; 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 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; 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. Glen Van Treek, President,
CEO and DirectorChristos Theodossiou, Director of
Corporate
Communications866-481-2233Twitter:
@ParamountNV
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