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Oregon grants water permit for Paramount’s Grassy Mountain

15th January 2020

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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The Oregon Water Resources Department has granted precious metals explorer and developer Paramount Gold a water permit for its proposed Grassy Mountain gold mine and processing facilities in eastern Oregon. 

This is the first Oregon State Agency permit issued as part of the consolidated permitting process initiated by Paramount in 2019.

The permit describes the appropriation and use of 57 litres a second of water within the permit area, which will be sufficient for the proposed mining and processing operations throughout the mine life.

In November, Paramount submitted the consolidated permit application to the Oregon Department of Geology and Mineral Industries. The company previously received final approval for the conditional use permit from Malheur county.

The developer is currently finalising the amended plan of operation that it will submit to the US Bureau of Land Management, initiating the federal permitting process.

A feasibility study for Grassy Mountain will be completed in mid-2020.

The gold/silver project consists of about 11 000 acres located on private and BLM land in Malheur county, Oregon.

The 2018 prefeasibility study outlined a robust case for the proposed Grassy Mountain project, with the base case projecting an after-tax internal rate of return of 28% at $1 300/oz of gold and the estimated net present value exceeding $87-million at a 5% discount rate.

The mine will produce about 47 000 oz of gold and 50 000 oz of silver for 7.25 years.

Edited by Creamer Media Reporter

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