Initial 15-hole drill program expected to commence in June
Geology reconnaissance and surface sampling; helicopter borne magnetometry and radiometric (“Heli-mag”); and a 14-line Controlled Source Audio Magneto Telluric survey, (“CSAMT”)
WINNEMUCCA, Nevada, April 13, 2021 (GLOBE NEWSWIRE) — Paramount Gold Nevada Corp. (NYSE American: PZG) announced today that it has received all required permits to conduct exploratory drilling at the Frost Project (“Frost”) in Eastern Oregon from the Bureau of Land Management (“BLM”), the Oregon Department of Geology and Mineral Industries (“DOGAMI”) and associated agencies.
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”).
Paramount CEO, Rachel Goldman stated: “Our team is excited to undertake the upcoming drill program at Frost given the high-grade nature of the historic intercepts which yielded up to 25 g/T gold and 27 g/T silver but were never properly evaluated.”
Given the proximity of Frost to Grassy, mineralized material would be trucked as mill feed to the Grassy processing facility. Every incremental 270,000 tonnes of economic mineralized material would extend the mine life by a year, improving overall project economics as defined in the Grassy Feasibility study.
The interpretation of the historic drilling data in conjunction with geophysical survey results provided the basis for the planned 9,000 ft., 15-hole reverse circulation drill campaign which is expected to start in late Q2, 2021.
The historic high-grade gold encountered at Frost was from structures exhibiting magnetic lows in rock formations similar in nature to those found at Grassy.
Since acquiring the Frost Project in 2018, Paramount has completed multiple surveys, including: geology reconnaissance and surface sampling; helicopter borne magnetometry and radiometric (“Heli-mag”); and a 14-line Controlled Source Audio Magneto Telluric survey, (“CSAMT”).
Heli-mag & Radiometric: Due to the nature of deposits like Grassy and the Frost prospect, alteration and/or oxidation along mineralized or fluid conducting structures, exhibit a relatively lower magnetic signature. Additionally, potassium rich minerals such as adularia and sericite are often associated with gold deposition and since potassium is a slightly radiometric element, it can be mapped by sensors.
CSAMT: This study measures the variation in electrical conductivity of different rock types, enabling the favourable rocks and faults to be mapped at varying elevations to create a three-dimensional model. Grassy and Frost are the type of deposits where gold is also associated with an increase in non-conductive silica. By mapping conductivity, areas of increased silicification are identified as zones of very low conductivity or inversely, as high resistivity.
Paramount President and COO, Glen van Treek explained: “All of these surveys, along with field examination, rock sampling, mapping, geological staff experiences and 3-D analysis have helped to design the upcoming drilling campaign.”
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6895e0c1-f156-418d-8d53-141d200e30f7
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 into 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