Paramount Gold Files Technical Report on Feasibility Study for the Grassy Mountain Gold Project in Eastern Oregon
ANNUAL AVERAGE PRODUCTION OF 47,000 OUNCES OF GOLD AND 55,000 OUNCES OF SILVER OVER 8 YEARS
LOW CASH COSTS AND AISC OF $ 584 AND $ 672 PER OUNCE OF GOLD
AFTER TAX IRR OF 26.0% AT BASE CASE GOLD PRICE OF $1,472
WINNEMUCCA, Nevada, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) ("Paramount”)(the “Company”) is pleased to announce that it has filed on SEDAR, the National Instrument 43-101 Technical Report on Feasibility Study (“FS”)(the ”Study”) for its 100% owned Grassy Mountain Gold Project (the “Project”) in eastern Oregon. The complete Technical Report is available for download at the Company’s website and confirms the robust economics for the proposed underground gold mine as initially released by Paramount on September 15, 2020.
The base case scenario in the Report was conducted using per ounce gold and silver prices of $1,472 and $16.64 respectively. Highlights are as follows:
- Simple Carbon-in-Leach process yielding average gold and silver recoveries of 92.8% and 73.5 % respectively;
- Average mill head grade of approximately 6.5 g/T gold plus 9.6 g/T silver;
- P&P reserves of 390,000ozs of gold and total M&I resources of 1,060,000 ounces of gold;
- Initial 8-year mine life;
- Annual production of 47,000 ounces of gold and 55,000 ounces of silver;
- Initial CapEx of $97.5M includes $10.1M of estimated contingencies, $25.6M of sustaining CapEx and $6.3M closure costs for a 750 tpd mine and milling operation;
- Life of mine cash costs of $5841 and AISC of $6722 per ounce of gold3;
- After-tax IRR of 26.0% and NPV5% of $105M which increases significantly to 40.9% and $195M at $1,900 gold; and
- After-tax payback of 3.1 years.
The FS was completed by a group of industry leading consulting firms led by: Ausenco Engineering Canada Inc. (“Ausenco”) who managed the overall study and were responsible for processing and infrastructure design and oversaw metallurgical testing; Mine Development Associates (“MDA”), who updated the mineral resource estimate and completed the mine planning and reserves estimation; Golder Associates (“Golder”), who designed the tailings storage facility; and EM Strategies who oversaw all environmental aspects of the Feasibility Study.
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