Paramount Gold to Commence First Step Out Exploration Drilling at Grassy Mountain Gold Project in Eastern Oregon
November 20 2018 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or
“the Company”) announced today that it has mobilized drill rigs to
its 100%-owned Grassy Mountain Gold Project (“Grassy”) in Eastern
Oregon where the Company is in the process of permitting a proposed
high grade underground gold mine.
Approvals from the Bureau of Land Management
(“BLM”) and the Oregon Department of Geology and Mineral Industries
(“DOGAMI”) have been received for the first phase of the program,
which will consist of both exploration and geotechnical drilling
within the area currently being permitted for the proposed mine. A
second phase of the drill program will test targets outside the
proposed mine project area.
The first phase exploration program will include
reverse circulation drill holes in the immediate vicinity of the
Grassy Mountain deposit at the North Spur target and shallow core
holes 1,000 feet east of the deposit for geotechnical reasons and
to test for possible extensions to the mineralization underneath
post mineral basalts.
In the first phase, reverse circulation drilling
to a depth of approximately 700 feet will test the North Spur zone,
a target located 500 feet north of the Grassy deposit. Historical
shallow drilling at North Spur returned low grade gold values but
did not penetrate the deeper silicified structures where the
mineralization could have been concentrated. In addition to testing
the hidden upper portion of the underlying Grassy formation, which
is the host for the gold deposit at Grassy Mountain, a core rig
will be used for geochemical and geotechnical testing to define
material for back-fill and tailings dam construction.
Paramount has also received approval from the
BLM to drill beyond the Grassy permit area and will initiate the
second phase of drilling upon completion of BLM bonding and DOGAMI
approval. In the second phase, five reverse circulation holes are
planned in two high priority target areas, including three holes at
the Wally/Wood zone and two holes at the Dennis Folley target.
Wally/Wood is located one mile north-northwest of the main Grassy
deposit, while the Dennis Folley target is located about two miles
north of the deposit, as shown in the map below.
Paramount President and CEO Glen Van Treek
stated: “We are excited to have begun our first step-out
exploration program at Grassy to test several high priority
targets. These targets not only have successful historical shallow
drilling, but also exhibit similar geophysical properties to the
Grassy deposit, including a well-defined resistivity anomaly.”
“We are also planning to include our recently
acquired Frost Project in our 2019 exploration program. The Frost
property is located just 12 miles west of Grassy and historical
drilling has returned several high grade gold intercepts in a
geological setting which is strikingly similar to the Grassy
deposit. The helicopter mag and radiometric survey results from
Frost are still pending and will be a great asset in prioritizing
drill targets,” Van Treek added. See the Frost press release of
November 14, 2018.
NI 43-101 Disclosure
The exploration program will be overseen by Michael F. McGinnis,
Project Manager. Mr. McGinnis is a Qualified Person under National
Instrument 43-101. He has reviewed and approved this press
release.
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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
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/4bae4a21-4c00-47ca-a99e-db3c9a63f0b0.
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