WINNEMUCCA, Nev., Sept. 07, 2017 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”) announced today that all of the the final eight holes drilled at its Grassy Mountain Project intersected excellent gold grades, confirming the high grade nature of the mineable material for the project.
The 30-hole drill program now completed was a key component 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 drill program was designed with the primary objective of better defining the high-grade core for underground mining. Secondly, material was recovered in the drill program for additional metallurgical testing and geotechnical data required to optimize precious metal recovery processes and to determine the most efficient mining method. Previous extensive metallurgical testing has demonstrated that a simple gravity circuit followed by leaching yields a 95% recovery of contained gold.
The PFS will also establish the parameters of a mining and milling operation, define capital and operating costs, upgrade resources to reserves and advance the project through the permitting process with the Bureau of Land Management (“BLM”) and Oregon Department of Geology and Mineral Industries (“DOGAMI”). The PFS is scheduled for completion in early 2018.
The eight holes announced today were drilled in the central portion of the deposit to better define the high-grade zone which will be targeted for initial underground production and also to evaluate the lower grade envelope, some of which could be incorporated within the PFS mine plan. All eight holes reported grades consistent with underground mining.
Paramount CEO, Glen van Treek commented: “We are extremely pleased with the outcome of our drill program which has substantially increased our confidence in the Grassy Mountain resource. The drilling has not only confirmed the high-grade nature of the deposit but also generated better than expected grades in many of the drill holes. We therefore expect a positive reserve outcome in the upcoming PFS”.
| Hole-ID | Type | From | To | Width | Width | Au | Ag | |
| (ft.) | (ft.) | (ft.) | (m) | (g/T) | (g/T) | |||
| GM17-23 | Core & RC | 250 | 901 | 649 | 197.8 | 1.26 | 6.4 | |
| Including | 637 | 671 | 34 | 10.4 | 2.76 | 16.1 | ||
| Including | 730 | 782 | 52 | 15.8 | 2.85 | 4.6 | ||
| GM17-24 | Core & RC | 100 | 896 | 786 | 239.6 | 0.95 | 4.4 | |
| Including | 862 | 896 | 34 | 10.4 | 2.58 | 2.9 | ||
| GM17-25 | Core & RC | 556 | 747 | 191 | 58.2 | 4.02 | 6.5 | |
| Including | 644 | 725 | 81 | 24.7 | 8.04 | 8.9 | ||
| GM17-26 | Core & RC | 185 | 807 | 622 | 189.6 | 2.10 | 7.8 | |
| Including | 702 | 804 | 102 | 31.1 | 6.09 | 9.5 | ||
| GM17-27 | Core & RC | 225 | 772 | 547 | 166.7 | 1.17 | 4.8 | |
| Including | 703 | 761 | 58 | 17.7 | 2.84 | 4.9 | ||
| GM17-28 | Core & RC | 175 | 860 | 680.5 | 207.4 | 2.41 | 7.3 | |
| Including | 662 | 691 | 29 | 8.8 | 5.83 | 10.5 | ||
| Including | 705 | 722 | 17 | 5.2 | 35.70 | 21.9 | ||
| Including | 763.5 | 787 | 23.5 | 7.2 | 5.19 | 8.1 | ||
| GM17-29 | Core & RC | 270 | 747 | 477 | 145.4 | 4.01 | 8.4 | |
| Including | 694.5 | 747 | 52.5 | 16.0 | 25.46 | 18.5 | ||
| GM17-30 | Core & RC | 519 | 770 | 251 | 76.5 | 3.36 | 8.4 | |
| Including | 715 | 749 | 34 | 10.4 | 11.22 | 7.4 | ||
Drill hole intercepts are believed to approximate true width. See map below for the location of the drill holes.
Permitting/Pre-Feasibility Update
As per the press release issued on September 5, 2017 Paramount has filed the Grassy Mountain Mine Plan of Operation (“POO”) with the BLM. Now that the POO is filed, the BLM is now in a position to begin their National Environmental Policy Act (“NEPA”) process. The BLM’s contractor for the preparation of the Environmental Impact Statement (”EIS”), HDR, Inc, has been selected and will begin work when directed to by the BLM.
Paramount has initiated five drill holes for a water monitoring program to define a water flow model, characterize the water quality and determine if there will be any mine dewatering needs. These wells will also be used for monitoring during operation of the mine.
Mine Development Associates (“MDA”) of Reno, Nevada now has all the assay and geological sections necessary to prepare a three dimensional geological model and resource estimation which will be used to define proven and probable reserves.
Location of newly reported drill holes
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NI 43-101 Disclosure
Exploration activities at Grassy Mountain are being conducted by personnel of Paramount subsidiary Calico Resources USA Corp. under the supervision of Michael F. McGinnis, Project Manager. Mr. McGinnis is a Qualified Person under National Instrument 43-101 and 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 Preliminary Economic Assessment (“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.
