WINNEMUCCA, Nev., Sept. 28, 2017 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American:PZG) ("Paramount”) announced that at the request of the Ontario Securities Commission (the “OSC”), it has amended and restated its technical report (the “Amended and Restated Report”) related to the Preliminary Economic Assessment (the “Sleeper PEA”) on its 100% owned Sleeper Gold Project. The Sleeper PEA was originally contained in a technical report filed in December 2015 (the “Original Report”), and the OSC noted that the mineral resource estimate contained in the Original Report was not constrained by a pit and may have included mineralization that did not meet CIM Definition Standards.
The mineral resource estimate is now reported within an economic whittle pit optimization at the same economic parameters identified in the Original Report and has been restated as follows:
Sleeper Project Pit Constrained Mineral Resource Estimate
| Classification | Tonnes (x1,000) |
Au Grade (gpt) | Au Oz (x1,000) |
Ag Grade (gpt) | Ag Oz (x1,000) |
| Measured | 209,464 | 0.35 | 2,354 | 3.2 | 21,823 |
| Indicated | 87,662 | 0.28 | 789 | 2.5 | 7,065 |
| Measured and Indicated | 297,126 | 0.33 | 3,143 | 3.0 | 28,888 |
| Inferred | 148,844 | 0.31 | 1,488 | 1.4 | 6,698 |
Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
The Sleeper Preliminary Economic Assessment remains unchanged as follows:
Projected Economic and Physical Performance Parameters for the Sleeper Evaluation Using Base Case, Spot Price and Long Term Price Assumptions
| Parameter | Base Case | Spot Price Case | Long Term Price Case | |||
| Gold Price Assumption | US$1,250 | US$1,185 | US$1,400 | |||
| Silver Price Assumption | US$16 | US$16 | US$16 | |||
| In-pit Measured Material (000’s) | 32,956 | 32,956 | 32,956 | |||
| In-pit Indicated Material (000’s) | 10,089 | 10,089 | 10,089 | |||
| In-pit Inferred Material (000’s) | 34,924 | 34,924 | 34,924 | |||
| Pre-tax Net Cash Flow | US$290.5 M | US$241.6 M | US$405.5 M | |||
| Pre-tax Net Present Value (NPV) at 5% | US$201.8 M | US$161.7 M | US$296.4 M | |||
| Internal Rate of Return Pre-tax (IRR) | 28.4% | 24.1% | 38.1% | |||
| After tax Net Cash Flow | US$198.5 M | US$165.0 M | US$277 M | |||
| After tax Net Present Value (NPV) at 5% | US$125.8 M | US$98.3 M | US$190.5 M | |||
| After tax Internal Rate of Return (%) | 20% | 17% | 27% | |||
| Overall Strip Ratio (overburden:mineralization) | 0.72 | 0.72 | 0.72 | |||
| Average Annual Gold Production | 92.4 k oz | 92,.4 k oz | 92.4 k oz | |||
| Average Annual Silver Production | 91.8 k oz | 91.8 k oz | 91.8 k oz | |||
| Average Gold Recovery | 73.6% | 73.6% | 73.6% | |||
| Average Silver Recovery | 14.6% | 14.6% | 14.6% | |||
| Average Total Mining Rate* | 46.2 k tpd | 46.2 k tpd | 46.2 k tpd | |||
| Average Mineralized Material Mining Rate* | 26.6 k tpd | 26.6 k tpd | 26.6 k tpd | |||
| Average Processing Rate* | 26.6 k tpd | 26.6 k tpd | 26.5 k tpd | |||
*over production years 1-8
Note: spot price as of December 2015
The Sleeper PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Sleeper PEA will be realized.
National Instrument 43-101 Disclosure
The Amended and Restated Report for the Sleeper Gold Project, titled “Technical Report and Preliminary Economic Assessment – Paramount Gold Nevada Corp. – Sleeper Project, Humboldt County, Nevada” and dated September 25, 2017, was prepared by Scott E. Wilson, CPG and Carl Brechtel, SME-RM, both of whom are Qualified Persons (as defined under National Instrument 43-101), and both of whom are independent of Paramount Gold Nevada Corp. Scott Wilson has reviewed and approved of the scientific and technical information contained in this press release.
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.
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 (“Grassy Mountain PEA” and together with the Sleeper PEA, the “PEAs”) has been prepared and key permitting milestones accomplished. 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.
