Results From Initial Drill Program At The Sleeper Gold Project

WINNEMUCCA, NV - Paramount Gold Nevada Corp. reported on assay results from drill work completed in conjunction with the re-assessment and expansion of the multi-million-ounce gold and silver resource on the Sleeper Gold Project. This first phase of exploratory drilling consisted of six holes drilled to the east of the Sleeper pit along a continuation of the range front (“Range Front”), a system of faulting that it is believed to have played a key role in the location and genesis of Sleeper and other important gold deposits in Northern Nevada. The objective is to find an analog to the original high grade Sleeper vein as these deposits are known to exhibit periodicity along strike or along parallel structures. Drilling into the Range Front extension returned grades up to 1.17 g/t of gold, a promising indication of the potential for another high-grade occurrence.

President and COO, Glen Van Treek, said, “This initial phase is only the beginning of our plans at Sleeper in an effort to exploit the enormous potential of this large system which clearly extends beyond the original high-grade historical pit.”

A second initiative is to develop a plan to exploit high grade sulphide material left behind by the previous operator that was not amenable to the heap leach recovery employed in the original mine given the mineralogy and the low gold prices at the time. Three reverse circulation drill holes were completed through overburden to bedrock in the West Wood zone, a high grade, sulphide-rich occurrence, to prepare for future metallurgical core drilling in this area. One of these holes was drilled through the overburden into ore and was sampled, returning grades up to 4.0 g/t of gold and 100 g/t of silver, confirming the resource model and presence of higher-grade mineralization in a zone not drilled since 2013 and not included in the current mine plan.

“The confirmation of the resource model of West Wood, a zone not included in the previous mine plan, coupled with initial met-results has the potential to significantly improve the resource grade and overall economics in the mine plan, which will be reflected in a new Preliminary Economic Assessment expected to be completed in Q3 2022,” said Treek.

The metallurgical test work will further assess the potential for accelerated oxidation of this material for inclusion in a heap leach operation. Accelerated oxidation was not considered an option during the original exploitation of the Sleeper property. Subsequent development of this technology and testing by the Company, along with higher gold prices indicate it could be used to bring existing high-grade sulphide material into a low-cost heap leach operation. For more information on progress made to date on this initiative.