WINNEMUCCA, Nev., June 21, 2017 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE MKT:PZG) ("Paramount”) announced today that assay results from four new holes drilled at the Grassy Mountain Project confirm the consistency of grade and thickness of gold mineralization required for underground mining and may enhance the mineable resource. The 30-hole drill program is part of a Preliminary Feasibility Study (“PFS”) which Paramount is undertaking for construction and operation of an underground mine to exploit the high-grade gold core at its Grassy Mountain Project located on private ground in eastern Oregon.
The PFS is expected to: convert, a significant portion of the underground measured plus indicated resources to proven and probable reserves; establish the parameters of a mining and milling operation; define capital and operating costs; and advance the project through the permitting process with the Bureau of Land Management (“BLM”), Oregon Department of Geology and Mineral Industries (“DOGAMI”) and the local agencies of Malheur County. The drilling is designed to: improve the confidence level of the resource; better define and potentially expand the high grade core; and acquire material for additional metallurgical testing and geotechnical data required to determine precious metal recovery processes and mining method. The PFS is scheduled for completion in early 2018.
The four holes reported today were drilled into the southwest portion of the deposit (see the map below). All four confirmed or exceeded the expected grades and thicknesses predicted in the resource model contained in the project’s current Preliminary Economic Assessment (“PEA”). In particular, an impressive intercept in hole GM17-19 returned 8.15 g/T gold and 12.4 g/T silver over 245 feet (75 meters), which is likely to increase the overall grade of the resource in this area (see the cross section below).
Drilling was completed using a reverse circulation (“RC”) rig for the upper portion of the deposit and a core rig for the high grade underground portion which will be incorporated into a mine plan.
The tables below provide detailed assay results, objectives and observations for each drill hole:
| Hole ID | Type | From (ft.) |
To (ft.) |
Width (ft.) |
Width (m) |
Au (g/T) |
Ag (g/T) |
|
| GM17-12 | Core & RC | 85 | 145 | 60 | 18.3 | 1.00 | 1.2 | |
| 170 | 255 | 85 | 25.9 | 0.52 | 1.8 | |||
| 280 | 682 | 388 | 118.1 | 1.89 | 8.7 | |||
| Including* | 472 | 682 | 195.5 | 59.6 | 2.79 | 10.3 | ||
| Including* | 575 | 682 | 93 | 28.2 | 3.77 | 10.3 | ||
| GM17-15 | Core & RC | 327 | 732 | 400 | 121.9 | 1.88 | 7.4 | |
| Including | 348 | 421 | 73 | 22.3 | 1.26 | 7.6 | ||
| Including | 487 | 537 | 50 | 15.2 | 3.41 | 11.0 | ||
| Including | 607 | 688 | 81 | 24.7 | 3.68 | 7.4 | ||
| GM17-18 | Core & RC | 454 | 871 | 417 | 127.1 | 2.87 | 12.2 | |
| Including | 559 | 597 | 38 | 11.6 | 2.46 | 20.9 | ||
| Including | 614 | 632 | 18 | 5.5 | 3.33 | 16.2 | ||
| Including | 670 | 77 | 97 | 29.6 | 6.15 | 15.1 | ||
| Including | 830 | 858 | 28 | 8.5 | 5.70 | 13.6 | ||
| GM17-19 | Core & RC | 315 | 390 | 75 | 22.9 | 0.60 | 3.7 | |
| 527 | 772 | 245 | 74.7 | 8.15 | 12.4 | |||
| Including | 532 | 652 | 120 | 36.6 | 3.68 | 10.7 | ||
| Including | 682 | 772 | 90 | 27.4 | 16.83 | 15.6 | ||
| Including | 732 | 772 | 40 | 12.2 | 31.10 | 21.7 |
Note: Intercepts are believed to approximate true widths of mineralization except for some of the small, very high grade intercepts that show a lower angle to the core. *14.5 ft. not included due to no core recovery
| ID | Purpose | Total depth (ft.) |
Total depth (m) |
Azimuth | Inclination | Specific objective |
Observations | |
| GM17-12 | Metallurgical & Resource | 689 | 210.0 | 0 | -90 | Met hole to acquire various rock types and grade distributions for recovery process optimization | Intersected expected grades/widths and rock types with grade variability suitable for metallurgy | |
| GM17-15 | Resource | 780 | 237.7 | 318 | -70 | Intersect the edge of the underground core | Better than expected grades/widths may expand mineable core zone | |
| GM17-18 | Resource | 884.5 | 269.6 | 335 | -67 | Infill & resource confirmation drill hole | Intersected expected gold grades/widths | |
| GM17-19 | Resource | 857.5 | 261.4 | 322 | -67 | Infill & resource confirmation drill hole | Better than expected grades/widths likely increasing gold grades in the area |
|
Paramount CEO, Glen Van Treek, commented: “Our drill results continue to confirm the high grade core of the deposit which we expect will meet the requirements for underground mining. The material grading an ounce of gold per tonne over 12 meters intersected in hole 19 indicates to us that we can expect to encounter more of these ‘Clavos-style’ high grade pockets during mining of the deposit.”
Paramount has completed its resource, metallurgical and geotechnical Pre-Feasibility drill program. The remaining holes are currently in the queue to be logged by the geologist, sawed and sampled, or assayed at the ALS lab. Paramount expects to release the remaining assays over the next several months.
Figure 1. Drill Hole Location
Figure 2. Cross section showing hole GM17-19 with the individual gold assays in g/T
Prefeasibility Update
Prefeasibility work is continuing on all aspects of the project. Paramount and SPF Water Engineering, LLC (www.spfwater.com) have also selected the contractor company to conduct the deep monitoring water well program which has been agreed upon and approved by the DOGAMI. Drilling is expected to commence next month.
Paramount expects to submit a final Plan of Operation to the BLM in the third quarter of 2017 which will trigger the initiation of the Environmental Impact Statement (“EIS”) by the BLM and its selected consulting firm HDR Inc. (www.hdrinc.com).
Construction level design to modify the existing road access has commenced by CK3, LLC (www.ck3llc.net).
NI 43-101 Disclosure
Exploration activities at Grassy Mountain are being conducted by Calico Resources USA Corp. personnel under the supervision of Michael McGinnis, 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 is a U.S. based precious metals exploration company. Paramount has a high ratio of ounces of gold in mineral inventory to shares outstanding, providing its shareholders with exceptional leverage to the gold price. For our mineral inventory, click here.
Paramount holds a 100% working interest in 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 project contains a gold-silver deposit (100% located on private land) for which a PEA has been prepared and key permitting milestones accomplished. For the PEA, click here. 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).
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.
