Paramount Announces Positive Assay Results From Geotechnical Drill Holes With the Potential to Reclassify Waste Rock as Ore

Rhea-AI Summary

Paramount Gold Nevada Corp (NYSE American: PZG) announced promising assay results from two new core holes at its Grassy Mountain gold mine in Oregon. Drilling outside the current mineral reserve area revealed gold grades, with GM19-37 returning up to 2.56 g/T gold and an average of 0.4 g/T over a significant width. Meanwhile, GM19-38 intercepted 0.98 g/T gold. These results suggest previously considered waste material may now be processed, enhancing project economics as the company approaches a construction decision.

Positive

• Assay results indicate the potential for additional economic material at Grassy Mountain.
• GM19-37 returned gold grades up to 2.56 g/T over significant widths.
• Material previously classified as waste may now be processed, improving project economics.

Negative

• None.

WINNEMUCCA, Nev., July 08, 2021 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount” or “the Company”) announced today that assay results from two new core holes at the Company’s proposed high grade underground Grassy Mountain gold mine in eastern Oregon drilled outside the mineral reserve area indicate the potential for additional economic material.

The two holes were initially drilled as part of the geotechnical program for alignment and to support the design of the portal and decline access to the mine. Both holes were drilled outside the boundaries of the current underground reserve, in areas considered as waste rock (see image below).

Drill hole GM19-37 was designed to acquire data related to ground conditions in proximity to the underground decline spiral as well as to provide ground water and permeability data. The hole was drilled to a depth of 831 ft. returning gold grades up to 2.56 g/T. Overall, this hole intersected a true width of 675 ft. grading an average of 0.4 g/T gold and 1.8 g/T Ag.

Drill hole GM19-38 was drilled at the proposed portal location and intercepted gold mineralization of up to 0.98 g/T of gold. The hole was drilled to 100 ft. and intersected a zone of 29 ft. grading 0.6 g/T gold beginning at a depth of 71 ft.

Paramount’s COO Glen van Treek commented, “The significance of these assays is that material with sufficient grade will be stockpiled separately and sent to the mill, rather than being classified as waste, thereby improving overall project economics.”

Based on the September 2020 Feasibility Study, projected processing costs are $28 per ton, suggesting that at current gold prices, any material with grades over 0.55 g/T previously classified as waste, but that needs to be extracted as part of the current mine plan, will be sent to the mill for processing.

“As we approach a construction decision, the updated reserves will be included in a final mine plan accounting for short-term gold and silver prices at that time,” van Treek added.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a0b503d6-c79c-43f0-ae3d-2e083ce875b8

NI 43-101 Disclosure
Exploration activities at Grassy Mountain are being conducted by wholly-owned subsidiary Calico Resources USA 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. An ongoing quality control/quality assurance protocol is being employed for the program including blank, duplicate and reference standards in every batch of assays.

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 owns 100% of the Grassy Mountain Gold Project which 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.

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. With higher gold prices, Paramount has begun work to update and improve the economics of the Sleeper project.

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 Officer
Christos Theodossiou, Director of Corporate Communications
866-481-2233
Twitter: @ParamountNV

 

FAQ

What are the latest assay results from Paramount Gold Nevada Corp's Grassy Mountain gold mine?

Paramount Gold announced that drill hole GM19-37 returned gold grades up to 2.56 g/T and GM19-38 intercepted up to 0.98 g/T of gold.

How do the new assay results affect the economics of the Grassy Mountain project?

The results suggest that material once considered waste can now be processed, improving overall project economics.

When will construction at the Grassy Mountain gold mine begin?

Paramount Gold is approaching a construction decision, with updated reserves to be included in the final mine plan.