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Paramount intersects high grade gold at Grassy Mountains
Paramount Gold Nevada recently announced that all of the the final eight holes drilled at its Grassy Mountain Project intersected excellent gold grades, confirming the high grade nature of the mineable material for the project.
The 30-hole drill program now completed was a key component of a Preliminary Feasibility Study (“PFS”) which Paramount is undertaking for construction and operation of an underground mine to exploit the high-grade gold core at its Grassy Mountain Project located on private ground in Eastern Oregon.
The PFS drill program was designed with the primary objective of better defining the high-grade core for underground mining. Secondly, material was recovered in the drill program for additional metallurgical testing and geotechnical data required to optimize precious metal recovery processes and to determine the most efficient mining method. Previous extensive metallurgical testing has demonstrated that a simple gravity circuit followed by leaching yields a 95% recovery of contained gold.
The PFS will also establish the parameters of a mining and milling operation, define capital and operating costs, upgrade resources to reserves and advance the project through the permitting process with the Bureau of Land Management (“BLM”) and Oregon Department of Geology and Mineral Industries (“DOGAMI”). The PFS is scheduled for completion in early 2018.
The eight holes announced today were drilled in the central portion of the deposit to better define the high-grade zone which will be targeted for initial underground production and also to evaluate the lower grade envelope, some of which could be incorporated within the PFS mine plan. All eight holes reported grades consistent with underground mining.
Paramount CEO, Glen van Treek commented: “We are extremely pleased with the outcome of our drill program which has substantially increased our confidence in the Grassy Mountain resource. The drilling has not only confirmed the high-grade nature of the deposit but also generated better than expected grades in many of the drill holes. We therefore expect a positive reserve outcome in the upcoming PFS”.