Feasibility Study Confirms Economic Viability Of Grassy Mountain Gold Mine

WINNEMUCCA, NV - Paramount Gold Nevada Corp. reported the results of the Feasibility Study (FS) for its Grassy Mountain Gold Project in eastern Oregon. The Study outlines an underground mining operation with exceptional economic viability yielding strong NPV and IRR results, low initial capital and low all-in sustaining costs (AISC) that generate substantial cash-flows over the life of mine.

The base case was conducted using two-year trailing gold and silver prices per ounce of $1,472 and $16.96 respectively. The highlights of the NI 43-101 Technical Report in the base case scenario are as follows: Pre-tax IRR of 27.9% and NPV5% of $123M which increase significantly to 44.7% and $238M at $1,900 gold; After-tax IRR of 26.0% and NPV5% of $105M which increase significantly to 40.9% and $195M at $1,900 gold; Life of mine cash costs of $5831 and AISC of $6712 per ounce of gold; 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; Initial 8 year mine life producing 362,000 ounces of gold and 425,000 ounces silver; Annual production of 47,000 ounces of gold and 55,000 ounces of silver; Exceptional average gold and silver recoveries of 92.8% and 73.5 % respectively; After-tax payback of 3.1 years; and Total free cash flow of $165M (post-tax);

"This study is everything we had hoped for, including important improvements over the preliminary feasibility study we completed a little over two years ago. Paramount can now satisfy the remaining permitting requirements identified by the State of Oregon and the Bureau of Land Management in Paramount’s recently submitted Consolidated Permit Application and Plan of Operation. We are very close to realizing our goal of building Grassy Mountain into a modern and environmentally friendly mine, leveraging the industry’s best practices and technologies,” said, Glen Van Treek, President and COO. ”Our focus now is to add resources to extend mine life and generate further economic returns for our shareholders.”

Paramount’s CEO, Rachel Goldman added, “Since acquiring Grassy Mountain in 2016, the Company has been committed to building a profitable mine with a quick payback. The results of the Feasibility Study confirm our goal is achievable, validating the hard work that the team has dedicated towards advancing Grassy to become Oregon’s first gold mine, and giving us a first-mover advantage in the state.”