Nov 2 2020
Paramount Gold Nevada Corp., a U.S.-based precious metals exploration and development company, has reported that it has filed the National Instrument 43-101 Technical Report on Feasibility Study, on SEDAR, for its wholly-owned Grassy Mountain Gold Project located in eastern Oregon.
The complete Technical Report can be downloaded from Paramount Gold’s website and demonstrates the powerful economics for the proposed underground gold mine as announced previously by the Company on September 15th, 2020.
In the Technical Report, the base case scenario was carried out by using per ounce gold and silver prices of $1,472 and $16.64, respectively. Highlights of the report have been mentioned below:
- Average mill head grade of about 6.5 g/T gold and 9.6 g/T silver
- Preliminary mine life of 8 years
- Uncomplicated carbon-in-leach process that yields average gold and silver recoveries of 92.8% and 73.5%, respectively
- Yearly production of 47,000 oz. gold and 55,000 oz. silver
- P&P reserves including 390,000 oz. gold and total M&I resources including 1,060,000 oz. gold
- Initial CapEx of $97.5M (including $10.1M of predicted contingencies), $6.3M closure costs, and $25.6M of sustaining CapEx for a 750 tpd mine and milling operation
- Cash costs for the life of mine of $584 (including mining costs, processing costs, mine-level G&A, as well as refining charges and royalties) and AISC of $672 (including cash costs as well as sustaining capital and closure costs) per ounce of gold (after silver credits)
- After-tax payback for 3.1 years
- After-tax IRR of 26.0% and NPV5% of $105M, which considerably increases to 40.9% and $195M at $1,900 gold
The Feasibility Study was completed by a group of pioneering consulting firms headed by Ausenco Engineering Canada Inc., which managed the overall study, was responsible for processing and infrastructure design, as well as monitored metallurgical testing; Mine Development Associates, which updated the mineral resource estimate and completed the mine scheduling and estimation of reserves; Golder Associates, which designed the facility for storage of tailings; and EM Strategies, which was responsible for supervising all environmental aspects of the Feasibility Study.
With the completion of the Feasibility Study our efforts at Grassy are now focused on completing the permitting process to make this highly profitable mine a reality.
Glen Van Treek, President and COO, Paramount Gold Nevada Corp.
The process design development of the process plant capital and operating cost estimates, the metallurgical analysis, and financial modeling are independent of Paramount Gold.
The mineral reserve estimate and the mineral resource estimate are also independent of Paramount Gold.