Paramount Gold Nevada announced the results of an independent NI 43-101 compliant Pre-Feasibility Study for its 100% owned Grassy Mountain Gold Project in Eastern Oregon. The company beleives the PFS confirms robust economics for a proposed underground mining operation at the current gold price. The base case projects an after tax Internal Rate of Return of 28% at $1,300 gold and the estimated Net Present Value exceeds $87M at a 5% discount rate. The PFS also provides an updated resource estimate and the project's first statement of proven and probable reserves. The full PFS report will be posted within 45 days.
Paramount Gold Nevada reported that two more baseline environmental reports have been approved and accepted by the Oregon Department of Geology and Mineral Industries and the Department of Environmental Quality. Paramount CEO, Glen Van Treek commented: "Thanks to the ongoing co-operation of Oregon state agencies, we are pleased to report that we remain on track to submit our Consolidated Permit Application in mid-2018." The next major milestone for Paramount is the completion of a Preliminary Feasibility Study for the proposed underground mine at its Grassy Mountain Gold Project. "We expect to release the PFS early next month. The PFS is a key component of the consolidated permit application. It will also give markets a much better idea of the economics of Grassy Mountain as well as reporting the project's first ever estimate of reserves," Van Treek said. The latest baseline reports approved and accepted by the DOGAMI were on grazing and recreation. The grazing report was submitted to the state of Oregon on January 18, 2018 and approved on March 9, 2018. The purpose of the grazing management baseline report is to describe existing Bureau of Land Management grazing allotments, active grazing preferences, current grazing practices, and management strategies within the Grassy Mountain Mine Project grazing management study area. The baseline recreational report was submitted to the state of Oregon on January 12, 2018 with receipt of final approval on March 15, 2018. The purpose of the recreation baseline study is to characterize existing recreation opportunities, amenities, and usage in the Grassy Mountain Mine Project recreation study area in Malheur County, Oregon. The primary local recreation area is located on BLM administered land.
Paramount Gold Nevada reported that the Oregon Department of Geology and Mineral Industries and the Department of Environmental Quality have approved and accepted the first two baseline environmental reports required for the permitting of Paramount's proposed Grassy Mountain gold mine in Oregon. The baseline air quality report and the baseline visual resources report were submitted to the state of Oregon on January 18, 2018 and December 22, 2017 respectively. Final approval for both reports was received on February 28, 2018. Last year, Paramount established a methodology and work plans for the preparation of updated baseline studies in consultation with the DOGAMI. The updated studies were required to cover a larger area for the proposed Grassy Mountain mine and its facilities as well as revisions to access roads. Paramount and its consultants have subsequently been acquiring baseline data and filing reports to meet DOGAMI's data requirements in accordance with these work plans. To date, a total of 11 baseline reports have been filed with DOGAMI for review by their staff and the specific state agency responsible for the subject matter of the report. Paramount expects to complete a Preliminary Feasibility Study for the proposed underground mine at its Grassy Mountain Gold Project in late March or early April. The PFS is a key component of the consolidated permit application. The PFS is expected to report the project's first proven and probable reserves. The proposed Grassy Mountain project is located on 100%-owned private land which was recently acquired by Paramount and announced on February 20, 2018.