Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount”)(the
“Company”) is pleased to announce that it has filed on SEDAR, the
National Instrument 43-101 Technical Report on Feasibility Study
(“FS”)(the ”Study”) for its 100% owned Grassy Mountain Gold Project
(the “Project”) in eastern Oregon. The complete Technical Report is
available for download at the Company’s website and confirms the
robust economics for the proposed underground gold mine as
initially released by Paramount on September 15, 2020.
The base case scenario in the Report was
conducted using per ounce gold and silver prices of $1,472 and
$16.64 respectively. Highlights are as follows:
- Simple Carbon-in-Leach process
yielding average gold and silver recoveries of 92.8% and 73.5 %
respectively;
- Average mill head grade of
approximately 6.5 g/T gold plus 9.6 g/T silver;
- P&P reserves of 390,000ozs of
gold and total M&I resources of 1,060,000 ounces of gold;
- Initial 8-year mine life;
- Annual production of 47,000 ounces
of gold and 55,000 ounces of silver;
- Initial CapEx of $97.5M includes
$10.1M of estimated contingencies, $25.6M of sustaining CapEx and
$6.3M closure costs for a 750 tpd mine and milling operation;
- Life of mine cash costs of $5841
and AISC of $6722 per ounce of gold3;
- After-tax IRR of 26.0% and NPV5% of
$105M which increases significantly to 40.9% and $195M at $1,900
gold; and
- After-tax payback of 3.1
years.
The FS was completed by a group of industry
leading consulting firms led by: Ausenco Engineering Canada Inc.
(“Ausenco”) who managed the overall study and were responsible for
processing and infrastructure design and oversaw metallurgical
testing; Mine Development Associates (“MDA”), who updated the
mineral resource estimate and completed the mine planning and
reserves estimation; Golder Associates (“Golder”), who designed the
tailings storage facility; and EM Strategies who oversaw all
environmental aspects of the Feasibility Study.
Paramount Golds President and COO, Glen Van
Treek stated, “With the completion of the Feasibility Study our
efforts at Grassy are now focused on completing the permitting
process to make this highly profitable mine a reality.”
NI 43-101 DisclosureThe metallurgical analysis,
process design development of the process plant capital and
operating cost estimates and financial modeling were supervised and
reviewed by Tommaso Roberto Raponi of Ausenco, a Qualified Person
(as defined under National Instrument 43-101) and is independent of
Paramount Gold Nevada Corp.
The mineral reserve estimate was estimated by Joseph Seamons PE,
from MDA, a Division of RESPEC, a Qualified Person (as defined
under National Instrument 43-101) and is independent of Paramount
Gold Nevada Corp.
The mineral resource estimate was completed and reviewed by
Michael Gustin of MDA, a Division of RESPEC, a Qualified Person (as
defined under National Instrument 43-101) and is independent of
Paramount Gold Nevada Corp.
All the above-named Qualified Persons have provided their
consents and approved the technical information pertaining to the
Feasibility Study disclosed in this press release.
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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 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 11,000 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 Pre-Feasibility Study
have been released and key permitting milestones accomplished.
Paramount owns a 100% interest in the Sleeper
Gold Project located in Northern Nevada, the world’s premier mining
jurisdiction. 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). 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.
About AusencoAusenco is a global diversified
engineering, construction and project management company providing
consulting, project delivery and asset management solutions to the
resources, energy and infrastructure sectors. Ausenco’s experience
in gold and silver projects ranges from conceptual, pre-feasibility
and feasibility studies for new project developments to project
execution with EPCM and EPC delivery. Ausenco is currently engaged
on a number of global projects with similar characteristics and
opportunities to the Grassy Mountain Gold Project.
Cautionary Note to U.S. Investors Concerning Estimates
of Indicated, Inferred Resources and ReservesThis news
release uses the terms "measured and indicated resources",
"inferred resources" and “proven and probable reserves”. We advise
U.S. investors that while these terms are defined in, and permitted
by, Canadian regulations, these terms are not defined terms under
SEC Industry Guide 7 and not normally permitted to be used in
reports and registration statements filed with the SEC.
"Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility studies, except in rare cases. The SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant "reserves", as
in-place tonnage and grade without reference to unit measures. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into
reserves. U.S. investors are cautioned not to assume that any part
or all of an inferred resource exists or is economically or legally
minable. Under SEC Industry Guide 7 standards, a “final” or
“bankable” feasibility study is required to report reserves, the
three-year historical average price is used in any reserve or cash
flow analysis to designate reserves and the primary environmental
analysis or report must be filed with the appropriate governmental
authority.
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
preliminary feasibility study for the Grassy Mountain Gold Project
(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 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
Communications866-481-2233Twitter:
@ParamountNV
1 Cash costs consist of mining costs, processing costs,
mine-level G&A and refining charges and royalties2 AISC
includes cash costs plus sustaining capital and closure costs3
After silver credits
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