Business
Paramount Gold Nevada Completes Last Water Monitoring Well for Modeling Grassy Mountain Baseline Aquifer Data
NO WATER IN LAST WELL; REGULATORS AGREE TO REDUCED DRILLING LESS WATER THAN EXPECTED LIKELY TO LESSEN DEWATERING COSTS AND ROCK SUPPORT REQUIREMENTS WINNEMUCCA,
About this update from Paramount Gold Nevada Corp.
[{"type":"text","content":" NO WATER IN LAST WELL; REGULATORS AGREE TO REDUCED DRILLING LESS WATER THAN EXPECTED LIKELY TO LESSEN DEWATERING COSTS AND ROCK SUPPORT REQUIREMENTS WINNEMUCCA, Nev., June 12, 2018 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American:PZG) (\"Paramount”) reported today that the final monitoring water well drilled adjacent to the mineral reserves at the proposed Grassy Mountain underground mine did not encounter water to a final depth of 950ft., which is considerably below the bottom of the mine plan. The absence of water in the last well could further improve the robust economics of the recently released Pre-Feasibility Study (“PFS”) (see PFS results) by lowering estimated dewatering costs and reducing the requirement for measures to improve rock stability. Paramount CEO, Glen Van Treek commented: “The PFS estimates an after tax internal rate of return (“IRR”) of 28% which is certainly very positive. However, a PFS is based on a set of assumptions, usually with a built in margin of safety to be conservative. Optimizing the PFS is therefore an ongoing process as we move towards permit approvals followed by final feasibility analysis and construction. We will now review the positive implications of reduced water flow on mine operations.” Mr. Van Treek also noted that the Oregon State Technical Review Team (“TRT”) had reviewed the results of the most recent water well drilling and accepted Paramount’s proposed reduction in the water monitoring program, agreeing that a shallower well is no longer needed to be drilled. “We continue to be pleased with the cooperation we are receiving from Oregon State agencies,” Van Treek said. The TRT decision allows Paramount to complete and submit its Ground Water Baseline Report on schedule. In total, the environmental baseline report will consist of 23 separate work plans. To date, Paramount has filed 17 of these baseline reports, four of which have been approved by the TRT (see press releases dated March 13, 2018 and March 27, 2018) and six remain to be filed of which one will be filed as part of the Consolidated Permit Application. All final baseline reports will be included in the Consolidated Permit Application for the proposed Grassy Mountain Gold Mine which Paramount plans to submit to the TRT in 2018. Grassy Mountain recently released a PFS (see press release of May 24, 2018) for...