Business
Paramount Gold’s Feasibility Study Confirms Economic Viability of the Proposed Grassy Mountain Gold Mine With an After-Tax NPV of $105 Million
LOW INITIAL CAPITAL REQUIREMENTS OF $98 MILLION INCLUDING $10 MILLION OF CONTINGENCIES LOW CASH COSTS OF $583 AND ALL-IN SUSTAINING COSTS OF $671 PER OUNCE OF G
About this update from Paramount Gold Nevada Corp.
[{"type":"text","content":" LOW INITIAL CAPITAL REQUIREMENTS OF $98 MILLION INCLUDING $10 MILLION OF CONTINGENCIES LOW CASH COSTS OF $583 AND ALL-IN SUSTAINING COSTS OF $671 PER OUNCE OF GOLD PRE-TAX NPV5% OF $123 MILLION AT BASE CASE METAL PRICE OF $1472 GOLD AND $238 MILLION AT $1,900 AFTER TAX IRR OF 26% AT $1,472 AND 41% AT $1,900 WINNEMUCCA, Nevada, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Paramount Gold Nevada Corp. (NYSE American: PZG) (\"Paramount”)(the ”Company”) today released the results of the Feasibility Study (“FS”)(the ”Study”) for its 100% owned Grassy Mountain Gold Project (the “Project”) in eastern Oregon. The Study outlines an underground mining operation with exceptional economic viability yielding strong NPV and IRR results, low initial capital and low all-in sustaining costs (“AISC”) that generate substantial cash-flows over the life of mine. The Study will be filed on SEDAR within 45 days of this news release. The base case was conducted using two-year trailing gold and silver prices per ounce of $1,472 and $16.96 respectively. The highlights of the NI 43-101 Technical Report in the base case scenario are as follows: Pre-tax IRR of 27.9% and NPV5% of $123M which increase significantly to 44.7% and $238M at $1,900 gold; After-tax IRR of 26.0% and NPV5% of $105M which increase significantly to 40.9% and $195M at $1,900 gold; Life of mine cash costs of $5831 and AISC of $6712 per ounce of gold3; Initial CapEx of $97.5M includes $10.1M of estimated contingencies, $25.6M of sustaining CapEx and $6.3M closure costs for a 750 tpd mine and milling operation; Initial 8 year mine life producing 362,000 ounces of gold and 425,000 ounces silver; Annual production of 47,000 ounces of gold and 55,000 ounces of silver; Exceptional average gold and silver recoveries of 92.8% and 73.5 % respectively; After-tax payback of 3.1 years; and Total free cash flow of $165M (post-tax); \"This study is everything we had hoped for, including important improvements over the preliminary feasibility study we completed a little over two years ago. Paramount can now satisfy the remaining permitting requirements identified by the State of Oregon and the Bureau of Land Management in Paramount’s recently submitted Consolidated Permit Application and Plan of Operation. We are very close to realizing our goal o...