Name of the Project
Grassy Mountain gold project.

Location
The project is located in eastern Oregon, in the US.

Project Owner/s
Paramount Gold.

Project Description
A feasibility study has outlined an underground mining operation with exceptional economic viability yielding strong net present value (NPV) and internal rate of return (IRR) results.

The project has measured and indicated resources of 28.03-million grading 1.17 g/t gold and 3.67 g/t silver. Proven and probable reserves are estimated 1.73-million grading 6.82 g/t gold and 9.94 g/t silver.

Envisaged is an operation with an initial eight-year mine life, producing 362 000 oz of gold and 425 000 oz of silver.

The mine plan has been developed using a drift-and-fill underhand mining method.

Processing from the upper portion of the mine is expected to start concurrently with the completion of the processing plant and infrastructure. Following ramp up, the mine is expected to produce an average of 1 300 t/d to 1 400 t/d, four days a week, which will provide enough material for the 750 t/d mill and processing plant to operate at full capacity for seven days a week.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 5% discount rate, of $123-million and an internal rate of return of 27.9%, which increases significantly to an NPV of $238-million and an IRR of 44.7% at $1 900/oz.

Capital Expenditure
The project as initial capital costs of $97.5-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada (feasibility study – processing and infrastructure design, as well as overseeing the metallurgical testing) and Mine Development Associates (feasibility study – mineral resource estimate, mine planning and reserves estimation); Golder Associates (tailings storage facility); and EM Strategies (overseeing all environmental aspects of feasibility study).

Contact Details for Project Information
Paramount Gold, tel +1 866 481 2233 or email info@paramountnevada.com.