Aug 26 2015
Paramount Gold Nevada Corp. ("Paramount") announced today that a helicopter magnetic survey conducted by Vancouver based, Precision Geosurveys (www.precisiongeosurveys.com) has successfully defined targets analogous to the original high grade Sleeper Mine operated by Amax Gold, which processed 6.015 million tons grading 0.203 opt of gold (6.95 g/T) through the mill.
The two day airborne survey was completed at a planned altitude of 25 meters flown on east-west lines spaced at 100 meters. For control purposes, north-south tie lines were flown every 1 kilometer. This survey, combined with an airborne magnetic survey completed by Placer Dome (a former major US gold producer) in the 1990s, covers an approximate area of 10 kilometers by 25 kilometers which includes some of the most prospective ground around the Sleeper deposit as outlined in the image below.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/1022451Figure1.jpg.
Seven structurally complex zones with possible magnetite destruction due to hydrothermal alteration can be interpreted from the combined surveys as priority targets (see magnetic interpretation below). These targets may represent large, favorable areas for gold deposition, each several kilometers in strike length. These targets require additional prioritization based on surface mapping and sampling, earlier geophysical survey data, and preliminary wide-spaced drilling performed in 2012. Paramount's Nevada staff and consultants will use the combined survey data to establish a drill plan which may call for additional detailed follow-up ground geophysical surveys before drilling begins.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/1022451Figure2(2).pdf.
Commenting on the results of the survey, Paramount's President and CEO, Glen van Treek said: "Our plan for Sleeper has always been twofold - to establish an economic project based on the bulk minable material left behind by the original operator, and to find another high grade gold deposit similar to the original Sleeper. Our own exploration work and meticulous re-interpretation of the work done by previous operators have taught us a great deal about why and how the original Sleeper deposit occurred where it did. The results of this magnetic survey support the model we have developed and take us one step closer to finding a new Sleeper."
Van Treek noted that finding a new high grade deposit is made more difficult by the overburden obscuring the structures which were the conduits for mineralizing solutions at the historic Sleeper mine. "We are doing detective work, using available data and inexpensive tools to narrow the search before drilling. We believe that the Sleeper mine was not a singular event and that we are taking the correct steps to explore for the next one."
As announced on May 5, 2015 (see news release), SRK Consulting (www.srk.com) has estimated Sleeper's total measured and indicated mineralized material at 294 million tonnes grading 0.36 Au g/T and 3.25 Ag g/T containing 3.42 million ounces of gold and 30.8 million ounces of silver. Additionally, inferred mineralized material was estimated at 241.8 million tonnes grading 0.32 Au g/T and 1.93 Ag g/T containing 2.47 million ounces of gold and 15.0 million ounces of silver. All resources were estimated at a gold cut-off grade of 0.15 Au g/T which SRK considers reasonable for large, near surface, bulk-minable deposits in Nevada at current metal prices. Please note that mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported Inferred resources are uncertain in nature and there has been insufficient exploration to classify these Inferred resources as Measured or Indicated, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured confidence level.
Source: http://www.paramountnevada.com/