Paramount Gold Submits Plan of Operations With Federal Regulators for Its Proposed Grassy Mountain Gold Mine

Rhea-AI Summary

Paramount Gold Nevada Corp. (PZG) has submitted an updated Plan of Operations to the Federal Bureau of Land Management for the Grassy Mountain Gold Mine in Oregon. This Plan addresses BLM feedback from earlier submissions and outlines the operational and environmental considerations necessary for the project. The BLM is expected to review this Plan within 30 days, followed by the Environmental Impact Statement process, which will last approximately 12 months. CEO Rachel Goldman emphasizes the project's potential for profitability and community value amidst high-cost inflation.

Positive

• Submission of Plan of Operations to BLM is a critical step toward permitting.
• CEO states the operation is expected to generate significant community value and job creation.
• Feasibility Study for Grassy Mountain has been positively received with all required modifications addressed.

Negative

• The permitting process may face delays due to the lengthy Environmental Impact Statement process.
• Current high-cost inflation could impact project economics.

WINNEMUCCA, Nev., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or the “Company”) announced today that it has submitted an updated Plan of Operations (the “Plan”) to the Federal Bureau of Land Management (“BLM”) for the Company’s proposed Grassy Mountain Gold Mine in eastern Oregon. The Plan integrates all BLM comments related to the previous submission and defines the Company’s proposal to build and operate the high-grade underground gold mine.

The submission reflects collaborative exchanges between the Company and the BLM over several meetings throughout this year to clarify and resolve outstanding issues, finalize additional geochemistry studies and include additional supporting documents to the plan as requested. All aspects related to changes to the plan were incorporated into the Company’s recently filed S-K 1300 Technical Report Summary on Feasibility Study (“TRS”).

Rachel Goldman, the Company CEO, stated, “Even under the current high-cost inflationary environment, the Plan outlines a profitable operation creating significant value to the surrounding communities, job creation and ultimately increasing stockholder value.”

The BLM is expected to take 30 days to review the Plan for completeness, and if deemed complete, will register a Notice of Intent in the Federal Register. The registration notifies the public of the upcoming Environmental Impact Statement (“EIS”) under the National Environmental Policy Act.

The BLM has selected HDR Inc, out of Boise, Idaho, to complete the EIS in a process expected to take approximately 12 months to complete. HDR is well informed in the review of the proposed Grassy operation having conducted field visits and taking into account their level of involvement with the BLM in both, the review of the Base Line Data Reports, and the clarifications to the Plan, which have been addressed within this submission. The EIS process ends with the issuance of the Record of Decision (“ROD”) that explains the BLM’s decision regarding the proposed mining operations.

“The receipt of the Federal Notice of Intent will be a significant milestone in the permitting process for Grassy Mountain, achieving one of the three major permitting achievements required to advance the high-grade Grassy Mountain project to a construction decision, the other two being the County’s Conditional Use Permit, which has already been received, and the final being the State permit, which continues to advance”, added Ms. Goldman.

The recently filed Feasibility Study for Grassy Mountain (see press release) incorporated all requested design modifications from permitting agencies, an enhanced reclamation plan and updated cost estimates.

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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”). An initial drill program is ongoing.

The Sleeper Gold Project is located in Northern Nevada, the world’s premier mining jurisdiction. The Sleeper Gold Project, which includes the former producing Sleeper mine, totals 2,474 unpatented mining claims (approximately 44,917 acres).

The newly acquired Bald Peak Project consists of approximately 2,260 acres located in the Aurora mining district of Mineral County, Nevada.

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 
844-488-2233 
Twitter: @ParamountNV

FAQ

What is Paramount Gold Nevada Corp.'s recent update regarding the Grassy Mountain project?

Paramount Gold has submitted an updated Plan of Operations to the BLM, which includes all comments from their previous submission.

How long will the BLM take to review the Plan of Operations for the Grassy Mountain Gold Mine?

The BLM is expected to take 30 days to review the Plan for completeness.

What is the significance of the Federal Notice of Intent for Paramount Gold?

The Notice of Intent marks a major milestone in the permitting process, required for advancing the Grassy Mountain project.

What are the anticipated next steps following the submission of the Plan of Operations?

If deemed complete, the BLM will begin the Environmental Impact Statement process, expected to take about 12 months.

What challenges does Paramount Gold face with the Grassy Mountain project?

The project faces potential delays associated with the Environmental Impact Statement and is impacted by high-cost inflation.