Feasibility Study For Grassy Mountain Project

 

WINNEMUCCA, NV - Paramount Gold Nevada Corp. reported that it expects to complete the Pre-Feasibility Study (PFS) for its Grassy Mountain Gold Project as planned in early 2018. Paramount is undertaking to construct and operate an underground mine to exploit the high-grade gold core at its Grassy Mountain Project located on private ground in eastern Oregon. The PFS will establish the parameters of a mining and milling operation, define capital and operating costs, convert resources to reserves, and advance the project through the permitting process with the Bureau of Land Management, the Oregon Department of Geology and Mineral Industries, and the local agencies of Malheur County.

“All phases of the work, from resource estimation to mine planning and plant design are on schedule and within budget,” said Paramount CEO, Glen Van Treek. “Thus far, the technical details of the project are meeting all of our expectations and we are getting some pleasant surprises along the way. For example, preliminary results from our water well monitoring program and piezometers indicate that we should not expect any significant water within the underground mine workings.”

In May 2017, 15 piezometers were installed in five selected drill holes within the deposit to define water dynamics and to prepare a hydrological model. Initial analysis of over five months of data from these piezometer sensors shows little presence of water within the mineable material, and the water table being below the high grade core of the deposit, is likely below any planned mining activity. “This is a very positive development for mine stability and safety and should also contribute to lower mining costs,” Van Treek noted.

“We continue to think that the Grassy Mountain deposit can support a profitable mining operation at or below current gold prices,” Van Treek added, “and we believe the PFS will provide the proof.”