Paramount Gold posts positive initial assessment of Sleeper Gold Project, Nevada

Paramount Gold Nevada Corp. [NYSE American: PZG) reported the results of an Initial Assessment prepared in accordance with S-K 1300 for its 100%-owned Sleeper Gold Project, a past-producing gold mine located in Humboldt County, Nevada. All figures are in U.S. dollars.

The assessment evaluates the potential restart of the historic Sleeper Mine through the processing of existing waste rock dumps and mining of in situ oxide and mixed Mineral Resources utilizing conventional open-pit mining and a 30,000 tonne-per-day crush-agglomerate-heap-leach processing facility with Merrill-Crowe recovery.

The project demonstrates strong economics, based on assumed metal prices of $3,600/oz gold and $48/oz silver, including an after-tax net present value (NPV) at an 8% discount rate of $402 million, an after-tax internal rate of return (IRR) of 44%, and a payback period of approximately 1.4 years.

The assessment includes sensitivity analysis to higher commodity prices amongst other inputs. Assuming metal prices of $4,700/oz gold and $80/oz silver, the project’s after-tax NPV (8%) increases to $867 million, with an IRR of 66% and a payback period of 1.2 years.

Over a 17-year mine life, the assessment projects average annual gold production of approximately 65,000 ounces and total payable gold production of approximately 1.1 million ounces.

The use of existing mineralized surface material and existing infrastructure contributes to the project’s strong economics by reducing upfront capital requirements and leads to the expected, short payback period. Approximately 47 million tonnes of mineralized waste dump material containing approximately 420,000 recoverable ounces of gold are included in the mine plan, representing a significant, lower-cost source of early production and cash flow prior to initiation of open pit mining. The economic analysis considers only oxide and mixed mineralized material amenable to heap leaching, and does not include sulfide mineralization, which will be evaluated in subsequent studies.

Rachel Goldman, CEO of Paramount, stated: “The Sleeper Initial Assessment outlines an exciting restart opportunity, with strong projected returns, a short payback period and a 17-year mine life. In the first five years alone, the Project has a very low strip ratio of 0.74:1 and is expected to produce approximately 348,000 ounces of gold and 1.33 million ounces of silver, generating after-tax cash flow of approximately $514 million in the Base Case and $826 million in the Upside Case.

Building on these results, Sleeper offers further excellent optionality. The Project can advance toward a production restart, while additional surface materials not yet included in this Assessment will be evaluated for inclusion in future study updates. There exists meaningful potential to convert additional resource ounces and expand the surface sources of heap-leachable inventory. The longer we can extend that phase of operations, the stronger the overall project economics become.

Additionally, with no significant exploration conducted at Sleeper in over two decades, we see substantial upside through a focused exploration program across our large land position.

The Study reinforces our view that Sleeper is well positioned for redevelopment and has the potential to become an important producing asset for Paramount. We look forward to updating these results as we continue to advance the Project.”

The Sleeper Mine produced approximately 1.66 million ounces of gold and 2.3 million ounces of silver between 1986 and 1996 and benefits from existing infrastructure, established site access, extensive historical operating data, and a large land position in one of the world’s premier mining jurisdictions.

The assessment recommends an $8.7 million advancement program designed to improve resource confidence classifications, enhance metallurgical and geotechnical confidence, complete environmental baseline studies, advance permitting activities, optimize heap-leach design through engineering studies, and support the completion of a pre-feasibility study.

In parallel, the company plans to initiate permitting for infill drilling targeting surface material, which includes the historic heap leach pads and tailings storage facility at Sleeper. This work will support future resource updates and contribute to subsequent pre-feasibility or feasibility studies. Permitting is expected to be straightforward and timely, as the proposed activities fall within the scope of the existing Plan of Operations.

Paramount Gold Nevada is a U.S.-focused exploration and development company advancing a portfolio of high-quality gold assets. The company holds a 100% interest in approximately 50,000 acres across its portfolio, including the Grassy Mountain and Sleeper projects.

Grassy Mountain is an advanced-stage development project in Malheur County, Oregon. Sleeper is a past-producing development project in Humboldt County, Nevada, one of the world’s premier mining jurisdictions, with a large land position.

SLR Consulting is a global consulting firm providing integrated technical, advisory, environmental, and sustainability services to mining and investment clients. SLR supports projects across the entire lifecycle, from exploration and development through operations and closure.