Paramount Receives Permit to Drill Bald Peak Project in Mineral County, Nevada
Figure 1: Location map showing Bald Peak prospect in proximity to the Aurora and Borealis mines
Figure 2: CSAMT pseudo resistivity section showing interpreted structures and high resistivity zones
Figure 3: An approximate 60 foot long, strong silicified outcrop with gold grades from sampling that will be drill tested
WINNEMUCCA, Nev., Dec. 05, 2022 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount” or the “Company”) announced today that it has received the permit from the US Forest Service to drill its Bald Peak Project (“Bald Peak”) in Mineral County, Nevada.
The Bald Peak project consists of a 4-mile-long prospective area with significant gold mineralization identified in surface samples, promising geophysical targets, and excellent geology within the Aurora-Borealis mining district. These two mines have produced more than 2 million ounces of gold for owner Hecla Mining. Hecla plans to conduct exploration drilling at their Aurora site to replenish resources after having consolidated their land position, and the nearby, open pit Borealis Mine is currently in production with a heap leach recovery operation.
Figure 1: Location map showing Bald Peak prospect in proximity to the Aurora and Borealis mines is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a52e2ab1-aec3-4f24-b5d0-e3c2a54a524c
With significant gold grades identified at surface, Bald Peak displays similar surface features as Hecla’s Aurora mine. In 2021, Paramount conducted additional surface sampling to supplement soil and rock samples taken by previous property holders. A total of 44 rock chip samples were assayed yielding an average of 2.62 g/T gold with values up to 10.58 Au g/T. Many of the rock samples were taken from areas with large vein structures and silicified outcrops (see Figure 2 below).
A Control Source Audio Magneto Telluric (“CSAMT”) survey totalling 21-line kilometers was conducted over the most prospective areas. The CSAMT resulted in the mapping of several structural features and high resistivity zones that coincide with silicified outcrops host to significant gold values identified in rock chip samples.
Figure 2: CSAMT pseudo resistivity section showing interpreted structures and high resistivity zones is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f1107f84-5704-4d79-abf4-8646d8514e78
Paramount President and COO, Glen Van Treek commented: “Our team has been excited about this Nevada opportunity from the completion of the initial due diligence. When considering the proximity to open pit gold mines coupled with initial excellent mineralized surface samples and co-incident geophysical anomalies on this property, which has never been drilled, all indications point to the potential for an open pit deposit.” An initial drill program is expected to begin next year.
The objectives of our drill program are to confirm the results of the surface sampling at depth. Targeting will focus on where the surface samples with the highest gold occurrences are clustering near the most intense area of the geophysical anomaly.
Figure 3: An approximate 60 foot long, strong silicified outcrop with gold grades from sampling that will be drill tested is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d5fbc8fe-c9c9-440e-a85b-deb098ba29bd
About Paramount Gold Nevada Corp.
Paramount Gold Nevada Corp. is a U.S. based precious metals exploration and development company. Paramount’s strategy is to create shareholder value through exploring and developing its mineral properties and to realize this value for its shareholders in three ways: by selling its assets to established producers; entering joint ventures with producers for construction and operation; or constructing and operating mines for its own account.
Paramount holds a 100% interest in four gold projects: Grassy Mountain; Frost; Sleeper and Bald Peak.
The Grassy Mountain Gold Project consists of approximately 8,200 acres located on private and BLM land in Malheur County, Oregon. The Grassy Mountain Gold Project contains a gold-silver deposit (100% located on private land) for which results of a positive Feasibility Study have been released and key permitting milestones accomplished.
Frost is comprised of 84 unpatented lode claims covering approximately 1,730 acres located 12 miles southwest of the Company’s proposed high-grade, underground Grassy Mountain gold mine in Malheur County, Oregon (“Grassy”). An initial drill program is ongoing.
The Sleeper Gold Project is located in Northern Nevada, the world’s premier mining jurisdiction. The Sleeper Gold Project, which includes the former producing Sleeper mine, totals 2,322 unpatented mining claims (approximately 60 square miles or 15,500 hectares). The Sleeper gold project is host to a large gold deposit (over 4 million ounces of mineralized material) and the Company has completed and released a positive Preliminary Economic Assessment. With higher gold prices, Paramount has begun work to update and improve the economics of the Sleeper project.
The newly acquired Bald Peak Project in Nevada, consists of approximately 2,260 acres.
Safe Harbor for Forward-Looking Statements
This release and related documents may include "forward-looking statements" and “forward-looking information” (collectively, “forward-looking statements”) pursuant to applicable United States and Canadian securities laws. Paramount’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as "believes," "plans," "anticipates," "expects," "estimates" and similar expressions are intended to identify forward-looking statements, although these words may not be present in all forward-looking statements. Forward-looking statements included in this news release include, without limitation, statements with respect to the use of proceeds from the Offerings. Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the conclusions made in the feasibility study for the Grassy Mountain Gold Project (the “FS”); the quantity and grade of resources included in resource estimates; the accuracy and achievability of projections included in the FS; Paramount’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals and permits; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with current expectations; work meeting expectations and being consistent with estimates and plant, equipment and processes operating as anticipated. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results; environmental matters; the ability to obtain required permitting; equipment breakdown or disruptions; additional financing requirements; the completion of a definitive feasibility study for the Grassy Mountain Gold Project; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs and between estimated and actual production; the global epidemics, pandemics, or other public health crises, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens and the other factors described in Paramount’s disclosures as filed with the SEC and the Ontario, British Columbia and Alberta Securities Commissions.
Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.
Paramount Gold Nevada Corp.
Rachel Goldman, Chief Executive Officer
Christos Theodossiou, Director of Corporate Communications