WINNEMUCCA, Nev., Nov. 06, 2018 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (“Paramount”) today announced that it has entered into a definitive agreement with Cryla LLC. (“Cryla”), giving Paramount the right to acquire a 100% interest in 44 mining claims covering approximately 580 acres located immediately to the west of the proposed Grassy Mountain Mine site and associated infrastructure. Paramount now owns or controls all of the mining claims within its ~10,000 acre Grassy Mountain land package.
To view Figure 1, please click on the following link: http://www.globenewswire.com/NewsRoom/AttachmentNg/e41a78f8-72a0-4edc-8fda-b0c155e50887
Glen Van Treek, Paramount CEO stated, “We are pleased to secure the Cryla mining claims, the only claims within our land package that we did not control. We believe these claims offer excellent exploration potential and owning them eliminates any risk of having another party control mining claims in close proximity to our proposed mine site.”
The Cryla claims sit between the Wally/Wood target and the Crabgrass target, a zone with a small historical resource. Paramount’s recently completed air mag and radiometric study identifies that a portion of the Cryla claims contain elevated radiometric potassium, which is analogous to the Grassy deposit itself. Radiometric potassium is interpreted to correspond to adularia sericite alteration, which is part of the alteration system associated with gold deposition at Grassy Mountain.
Additionally, a significant break in the magnetometry could correspond to a structure that lies within the Cryla claims, aligning the Crabgrass and Wally/Wood areas (see images below).
To view Figure 2, please click on the following link: http://www.globenewswire.com/NewsRoom/AttachmentNg/6d9003d5-355c-4f41-a700-a94d1a8e11db
To view Figure 3, please click on the following link: http://www.globenewswire.com/NewsRoom/AttachmentNg/1ed7d894-6560-4031-9ad8-c98dec719585
Highlights of the agreement:
The definitive agreement is structured as a lease to own. Paramount will make annual payments to Cryla, an Alaska corporation, which are credited against a production Net Smelter Royalty (“NSR”) of 2% with a gold price less than $1,500 per ounce and 4% with a gold price equal to or greater than $1,500 per ounce. Following year three, Paramount has the right to purchase the claims for a payment of $560,000 but Cryla would maintain its NSR. Paramount also has the right to reduce the NSR to 1% for a payment of $800,000.
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About Paramount Gold Nevada Corp.
Paramount Gold Nevada is a U.S. based precious metals exploration and development company. Paramount’s strategy is to create shareholder value through exploring and developing its mineral properties and to realize this value for its shareholders in three ways: by selling its assets to established producers; entering into joint ventures with producers for construction and operation; or constructing and operating mines for its own account.
Paramount owns 100% of the Grassy Mountain Gold Project which consists of approximately 9,300 acres located on private and BLM land in Malheur County, Oregon. The Grassy Mountain Gold Project contains a gold-silver deposit (100% located on private land) for which results of a positive PFS have been released and key permitting milestones accomplished (see press release dated May 24, 2018). Additionally, Paramount owns a 100% interest in the Sleeper Gold Project located in Northern Nevada. The Sleeper Gold Project, which includes the former producing Sleeper mine, totals 2,322 unpatented mining claims (approximately 60 square miles or 15,500 hectares).
Safe Harbor for Forward-Looking Statements
This release and related documents may include "forward-looking statements" and “forward-looking information” (collectively, “forward-looking statements”) pursuant to applicable United States and Canadian securities laws. Paramount’s future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as "believes," "plans," "anticipates," "expects," "estimates" and similar expressions are intended to identify forward-looking statements, although these words may not be present in all forward-looking statements. Forward-looking statements included in this news release include, without limitation, statements with respect to: production estimates and assumptions, including production rate and grade per tonne; revenue, cash flow and cost estimates and assumptions; statements with respect to future events or future performance; anticipated exploration, development, permitting and other activities on the Grassy Mountain project; the economics of the Grassy Mountain project, including the potential for improving project economics and finding more ore to extend mine life; and mineral reserve and mineral resource estimates. Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the conclusions made in the PFS; the quantity and grade of resources included in resource estimates; the accuracy and achievability of projections included in the PFS; Paramount’s ability to carry on exploration and development activities, including construction; the timely receipt of required approvals and permits; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with current expectations; work meeting expectations and being consistent with estimates and plant, equipment and processes operating as anticipated. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results; environmental matters; the ability to obtain required permitting; equipment breakdown or disruptions; additional financing requirements; the completion of a definitive feasibility study for the Grassy Mountain project; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs and between estimated and actual production; and the other factors described in Paramount’s disclosures as filed with the SEC and the Ontario, British Columbia and Alberta Securities Commissions.
Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.
Paramount Gold Nevada Corp.
Glen Van Treek, President, CEO and Director
Christos Theodossiou, Director of Corporate Communications
866-481-2233
Twitter: @ParamountNV