Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or
the “Company”) reported today assay results from drill work
completed in conjunction with the re-assessment and expansion of
the multi-million-ounce gold and silver resource on its 100%-owned
Sleeper Gold Project, a former mine currently being evaluated for a
production restart given the significant increase in gold prices.
This first phase of exploratory drilling
consisted of six holes drilled to the east of the Sleeper pit along
a continuation of the range front (“Range Front”), a system of
faulting that it is believed to have played a key role in the
location and genesis of Sleeper and other important gold deposits
in Northern Nevada. The objective is to find an analog to the
original high grade Sleeper vein as these deposits are known to
exhibit periodicity along strike or along parallel structures.
Drilling into the Range Front extension returned grades up to 1.17
g/t of gold, a promising indication of the potential for another
high-grade occurrence.
Paramount President and COO, Glen Van Treek
said, “This initial phase is only the beginning of our plans at
Sleeper in an effort to exploit the enormous potential of this
large system which clearly extends beyond the original high-grade
historical pit.”
A second initiative is to develop a plan to
exploit high grade sulphide material left behind by the previous
operator that was not amenable to the heap leach recovery employed
in the original mine given the mineralogy and the low gold prices
at the time. Three reverse circulation drill holes were completed
through overburden to bedrock in the West Wood zone, a high grade,
sulphide-rich occurrence, to prepare for future metallurgical core
drilling in this area. One of these holes was drilled through the
overburden into ore and was sampled, returning grades up to 4.0 g/t
of gold and 100 g/t of silver, confirming the resource model and
presence of higher-grade mineralization in a zone not drilled since
2013 and not included in the current mine plan.
“The confirmation of the resource model of West
Wood, a zone not included in the previous mine plan, coupled with
initial met-results has the potential to significantly improve the
resource grade and overall economics in the mine plan, which will
be reflected in a new Preliminary Economic Assessment expected to
be completed in Q3 2022.”
The metallurgical test work will further assess
the potential for accelerated oxidation of this material for
inclusion in a heap leach operation. Accelerated oxidation was not
considered an option during the original exploitation of the
Sleeper property. Subsequent development of this technology and
testing by the Company, along with higher gold prices indicate it
could be used to bring existing high-grade sulphide material into a
low-cost heap leach operation. For more information on progress
made to date on this initiative, please see our news release of
January 27, 2022.
The table below indicates the highlights from
the drill program.
Hole Id |
From(ft.) |
To(ft.) |
Width(ft.) |
Au(g/t) |
Ag(g/t) |
PGR21-01 |
730 |
760 |
30 |
0.413 |
14.6 |
PGR21-04 |
980 |
995 |
15 |
0.38 |
3.3 |
PGR21-05 |
575 |
660 |
85 |
0.16 |
4 |
Including |
640 |
660 |
20 |
0.31 |
2.55 |
PGR21-05 |
765 |
785 |
20 |
0.195 |
3 |
PGR21-06 |
510 |
525 |
15 |
0.58 |
1.4 |
Including |
515 |
520 |
5 |
1.167 |
13 |
PGR21-06 |
550 |
565 |
15 |
0.34 |
2.46 |
PGR21WW-04 |
255 |
660 |
405 |
0.90 |
4.4 |
Including |
260 |
310 |
50 |
1.44 |
1.3 |
|
370 |
380 |
10 |
2.38 |
0.5 |
|
470 |
530 |
60 |
1.50 |
23.3 |
|
560 |
605 |
45 |
1.69 |
3.1 |
Including |
570 |
575 |
5 |
4.0 |
8.6 |
These widths are expected to represent true
thickness
An internal review of the Company’s database of
historic assays (see map below) in collaboration with MDA, a
division of RESPEC, identified numerous targets in the Range Front
that exhibited specific qualities and merits geared towards
resource expansion. These initial holes were targeted to intercept
a more discrete high-grade vein similar to the original feeder vein
of the historic Sleeper mine. Analyzing the assays from this
program is key to defining the next phase of the program and will
be prioritized along with targets from other zones.
The figure below shows the location of the drill
holes completed at the Range Front east target and the West Wood
zone.
A map accompanying this announcement is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/09586e25-5997-44d4-948e-a822069879ff
A figure accompanying this announcement is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/f48e81ab-6412-497e-a733-713a405d7f96
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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 Sleeper are conducted
by 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 OfficerChristos
Theodossiou, Director of Corporate
Communications844-488-2233Twitter:
@ParamountNV
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