Paramount Gold Nevada Corp. ("Paramount") announced today that the Technical Review Team ("TRT") of the Oregon Department of Geology and Mineral Industries ("DOGAMI") has approved installation of deep monitoring wells at its 100%-owned Grassy Mountain Gold Project. Drilling will begin shortly. Water quality monitoring data is required as part of the process of preparing a Consolidated Permit Application for construction and operation of a proposed underground mine. Paramount expects to initiate the Consolidated Permit Application preparation later this year.
Work is also progressing on schedule for completion of a Pre-Feasibility Study ("PFS") for the Grassy Mountain Gold Project before year end. The PFS is a highly detailed analysis of all the key parameters involved in constructing and operating a mine including projected capital and operating costs, production levels and the expected economic return under different scenarios. The PFS will form a central component of the Consolidated Permit Application.
A 29-hole drill program was initiated in November, 2016 as part of the PFS to better define the Grassy Mountain deposit's high grade gold zone and potentially expand its size; acquire material for PFS-level metallurgical testing needed to design the gold recovery process; and obtain geotechnical data on rock stability for underground mine design and mining methodology. Major Drilling is currently operating three rigs on site. The first assay results from this program are expected shortly.
The PFS will only use measured and indicated (M&I) mineralized material as the basis for the mine design and economic analysis. Paramount expects a positive PFS report which would include estimated proven and probable reserves.
Glen Van Treek, Paramount's President and CEO, noted that "completing a PFS this year and concluding the permitting process in 2018/19 are the key to creating additional value for our shareholders in the short term. The PFS represents a major step towards commercial production. It will also enable us to complete the permitting process which continues to move more quickly than anticipated thanks to outstanding co-operation from Oregon State regulators."
In the water-monitoring program, five newly constructed wells and one existing well, will be used to evaluate and model:
- Vertical gradients
- Hydraulic connectivity
- Aquifer static water levels
- Groundwater quality
The construction of these wells will comply with the State of Oregon monitoring well construction by a licensed Monitoring Well Constructor having at minimum five years of experience drilling monitoring wells of greater than 500 feet deep. One well to be constructed on BLM managed lands is awaiting BLM authorization, which is expected shortly. Throughout the process, an on-site geologist will collect and evaluate drill cuttings for geologic interpretation at 5-foot intervals and at each significant change in lithology.
Water quality samples will be collected from all water-producing wells. All quality assurance/quality control sampling will be in accordance with the Final Revised Environmental Baseline Study Work Plans for the Grassy Mountain Project approved by the TRT on March 13, 2013, as amended. Following construction and testing of the new monitoring wells, a report will be prepared describing well construction, test pumping results and water quality results for review and comment by the TRT.
Richard Delong of EM Strategies Inc., Paramount's Environmental and Permitting Coordinator and an Environmental Qualified Person under National Instrument 43-101, has reviewed and approved this release.