Acquisition Of Calico Resources And Grassy Mountain Gold Project

 

WINNEMUCCA, NV - Paramount Gold Nevada Corp. has completed its acquisition of Calico Resources Corp. Calico is now a wholly-owned subsidiary of Paramount.

The Grassy Mountain Gold Project consists of approximately 9,300 acres with its main deposit located on private land in Malheur County, Oregon. The Grassy Mountain gold-silver deposit has a completed Preliminary Economic Assessment (PEA) and key permitting milestones have been accomplished. 

The PEA contemplates a 10 year underground mining operation with low cash operating costs driven by a high average underground gold grade of 5.32 g/T gold. The annual average production of 53,000 ounces of gold and 82,000 of silver yield robust economics assuming a $1,300 gold price and silver at $17.50 per ounce. At a 5% discount rate, the project produces an estimated pre-tax NPV of $144 million and a 32.6% IRR. The PEA is preliminary in nature and 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. Consequently, there is no certainty that the PEA will be realized.

Paramount's immediate action plans are to improve confidence in Grassy Mountain's overall project design and development in preparation for completing a Pre-feasibility Study with the commencement of a core drilling program in 2016.