Paramount Gold Nevada Acquires Promising High Grade Gold Prospect Near Its Grassy Mountain Project in Eastern Oregon
November 14 2018 - 7:00AM
Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”)
today announced that it has entered into an agreement with Nevada
Select Royalty (“Nevada Select”), a wholly owned subsidiary of Ely
Gold Royalties, Inc. (TSX-v: ELY) (OTCQB: ELYGF) (“Ely Gold”), to
purchase a 100% interest in the Frost Project (“Frost”), which
totals approximately 900 acres and is located approximately 12
miles west of its 100%-own Grassy Mountain Project.
Paramount CEO, Glen Van Treek, commented: “The
Frost gold occurrence is in a favourable geological setting which
is strikingly similar to the Grassy Mountain Deposit and located
within trucking distance to our proposed mine and mill operation.
We are very encouraged by the historical drill intercepts at Frost,
although it has not been systematically explored. We believe that
there is excellent potential to find a deposit similar to Grassy
Mountain using the expertise we have developed in the area and at
other epithermal deposits.”
The historical drilling conducted in 1989
through 1990 intersected very promising gold intercepts including
1.5 meters grading 20 g/T gold at a relatively shallow depth
(between 18 to 93 meters). A few other examples of these historical
intercepts are: 4.6 meters grading 14.5 g/T Au; 4.6 meters grading
8.0 g/T Au; and 7.6 meters grading 1.2 g/T Au.
Additionally, as part of its due diligence
process, Paramount extended the Grassy Mountain helicopter magnetic
and radiometric surveys over the entire Frost Project (See October
2, 2018 news release).
“Data from the recently completed magnetic
survey reveals a large magnetic low. This suggests the
existence of a favourable structural corridor which could have
transported precious metal-bearing fluids. The historic drill holes
yielding high grade gold intercepts correlate with this magnetic
low and represent an excellent drill target that we expect to
include in our 2019 exploration program. If an economic deposit is
found at Frost, we expect to truck the ore to the proposed Grassy
Mountain Mill for processing”, Van Treek added. “We see this as a
potentially low-cost option to increase the life of the proposed
Grassy Mountain mine.”
Transaction Highlights:
- Paramount has the right to acquire
a 100% interest in the Frost claims for total consideration of
$250,000 payable to Nevada Select as follows:
- $10,000 on closing;
- $15,000 upon the receipt of the drilling permit (the “Permit
Date”) from the State;
- $25,000 one year following the Permit Date;
- $50,000 due on each of the second and third years following the
Permit Date; and
- A final payment of $100,000 four years following the Permit
Date.
- Nevada Select will retain a 2% Net
Smelter Royalty (“NSR”) on the Frost Claims
- Paramount has the right to reduce
the NSR to 1% for a payment of $1 million.
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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/db3ae3d8-2a1b-4291-9547-efb65bcd6048
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