Paramount Gold Nevada Corp. · AMEX:PZG
Paramount Gold Nevada — Investor Presentation (September 2016)
35 slides from Paramount Gold Nevada's investor presentation, Sep 20, 2016
Slide 1: Industry-leading US-Based Gold Ownership Per Share
Industry-leading US-Based Gold Ownership Per Share NYSE MKT: PZG September 2016 Exhibit 99.1
Slide 2: Forward-looking statements and cautionary note
This Presentation contains “forward-looking statements” within the meaning of applicable securities laws relating to Paramount Gold Nevada Corp. (“Paramount”, “we”, “us”, “our”, or the “Company”) which represent our current expectations or beliefs including, but not limited to, statements concerning
Slide 3: Overview
OVERVIEW paramountnevada.com | @ParamountNV PZG Large US Based Gold and Silver Inventory 5.1 M oz Au M&I 2.5 M oz Au Inferred Advanced Assets Sleeper Gold Project in Nevada High Grade Grassy Mountain Gold Project in Oregon NYSE MKT Listed PZG Spin off from Paramount/Coeur transaction Transaction val
Slide 4: Value Creating Strategy
Value Creating Strategy paramountnevada.com | @ParamountNV PROJECT SELECTION Focused on gold Exploration: Adding and upgrading mineral inventories Engineering: Proving and improving project economics REALIZING VALUE Sell asset Advanced projects only US only ADDING VALUE Joint venture with producer M
Slide 5: Grassy Mountain: Ideal Location
GRASSY MOUNTAIN: IDEAL LOCATION Southeastern Oregon, 70 miles from Boise, ID and 22 miles south of Vale, OR No human habitations to disturb Excellent access via Highway, BLM and County roads paramountnevada.com | @ParamountNV
Slide 6: Grassy Mountain: Ideal Location
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN: IDEAL LOCATION Control 9,300 acres Deposit located 100% on Private Land simplifies permitting No protected species of vegetation or wild life Desert like climate
Slide 7: Overview of Grassy Mountain
Acquired through the Calico transaction in July 2016 All stock transaction valued at under $9M USD (at signing) Purchase price of ~$6/Au oz (M&I) for 1.7 M oz Au (at signing) Advanced Stage Project PEA completed in 2015 Defined, high quality resource Excellent recoveries from simple processing param
Slide 8: Purchase Price for Grassy Well Below 23yr Average
paramountnevada.com | @ParamountNV PURCHASE PRICE FOR GRASSY WELL BELOW 23YR AVERAGE Source: Cipher Analytics GRASSY COST TO PZG ~$6/Oz
Slide 9: Overview of Grassy Mountain
Fits Current Gold Market Higher grade means robust economics at low gold prices Defined Permitting Process Baseline environmental studies already accepted by the DOGAMI Clear path established to final permits in 2017 Short-Term Opportunities to Increase Value PFS could lower capital and operating co
Slide 10: Geology of Grassy Mountain
paramountnevada.com | @ParamountNV GEOLOGY OF GRASSY MOUNTAIN
Slide 11: Geology of Grassy Mountain
paramountnevada.com | @ParamountNV GEOLOGY OF GRASSY MOUNTAIN
Slide 12: Grassy Exploration Mineralized Material
Grassy Exploration paramountnevada.com | @ParamountNV MINERALIZED MATERIAL PEA (M&I) 238 Drill holes in Grassy Area 100 % M&I Underground Mineralization Tonnes (000’s) Au Grade (g/T) Au Ounces Ag Grade (g/T) Ag Ounces Global Resource 68,693 0.82 1,653,000 2.25 4,976,000 PEA UG Resource 3,245 5.32 51
Slide 13: Grassy Mountain Metallurgy
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN METALLURGY EXTENSIVE TESTING DEFINED, GRAVITY AND LEACH OF GRAVITY TAILS AS THE BEST RECOVERY OPTION WITH UP TO 97% TOTAL RECOVERY
Slide 14: PEA Economics (Aug 2015)
Gold Price (USD$) $ 1,300 Silver Price (USD$) $ 17.50 Average Annual Gold Production (ounces) 53,000 Average Annual Silver Production (ounces) 82,000 Pre-Production Capital Costs (USD) $ 119.6 M Production Life (years) 9 Cash Cost per Au Ounce (USD) $ 578 All-in Cost per Au Ounce (USD) $ 880 PRE-TAX
Slide 15: Comparable Cost Per Ounce
COMPARABLE COST PER OUNCE paramountnevada.com | @ParamountNV
Slide 16: Permitting Activities: Defined Path to Mining Permit
paramountnevada.com | @ParamountNV PERMITTING ACTIVITIES DEFINED PATH TO MINING PERMIT
Slide 17: Permitting Accomplishments
paramountnevada.com | @ParamountNV PERMITTING ACCOMPLISHMENTS Requirements Completed : Baseline Studies Prime Contractor for Baseline Studies – HDR Engineering Surface Water and Groundwater - SPF Water Geochemistry - SRK Consultants Fish & Wildlife – Northwest Wildlife Consultants Air Quality – Biso
Slide 18: Permitting Plan
paramountnevada.com | @ParamountNV PERMITTING PLAN Objectives to be Completed in 2016-2017 Complete Engineering Studies - Establish facilities layout Initiate EIS - 1st quarter 2017 Update the Plan of Operations and Submit to BLM Update Baseline Studies as required Work Closely with DOGAMI, DEQ, BLM
Slide 19: Paramount's Plan
PARAMOUNT’S PLAN 2018 Milestones of PFS $5 million estimated budget 2016 Drilling Program Update to Resource Modeling Complete EIS Complete Permitting Process Dec 2017: Submit Plan of Operation to the BLM Complete PFS
Slide 20: Grassy Claim Map
paramountnevada.com | @ParamountNV GRASSY CLAIM MAP
Slide 21: Exploration Upside
paramountnevada.com | @ParamountNV EXPLORATION UPSIDE 1 mile
Slide 22: Exploration Upside
EXPLORATION UPSIDE High resistivity target GM
Slide 23: Sleeper Gold
Sleeper Gold 100% ownership of former high grade open pit gold producer AMAX Gold produced 1.7 million ounces of gold from 1986-96 Large, near surface, low grade resource with excellent exploration potential Large land position (15,500 hectares) and valuable infrastructure paramountnevada.com | @Par
Slide 24: The Sleeper Gold Project
THE SLEEPER GOLD PROJECT Grassy Mountain IDAHO OREGON Vale Winnemucca NEVADA Sleeper Infrastructure Excellent access by major roadways Key water rights owned Electric power on site 17 permits in place Assets in the Ground Global contained metal of 4 MM M&I oz (Au eq.) paramountnevada.com | @Paramoun
Slide 25: Sleeper Mineralized Material Estimate
Tonnes (000’s) Gold Grade (g/T) Gold (000’s of ounces) Silver Grade (g/T) Silver (000’s of ounces) Measured 200,500 0.39 2,488 3.5 22,368 Indicated 93,900 0.31 933 2.8 8,427 Measured plus indicated 294,400 0.36 3,421 3.3 30,794 Inferred 241,800 0.32 2,472 1.9 15,004 paramountnevada.com | @ParamountN
Slide 26: PEA: Positive Economics
Completed by Metal Mining Consultants, experienced in small-scale western US operations Base Case assumed $1250 Au & $16 Ag 9 year, 30,000 T/day Heap Leach operation Low strip ratio of 0.72 Heap leach material only; sulfide material excluded Estimated Average Annual Production of 83,500 and 82,500 o
Slide 27: PEA Economics (Post Tax)
BASE CASE LONG TERM Gold Price per ounce $1,250 $1,400 Silver Price per ounce $16 $19 Estimated LOM Production Gold: Silver: 752,000 743,000 NPV (at 5% Discount) $126 M $191 M IRR 20 % 27 % Operating Costs per oz. of AuEq. Produced (LOM) $529 $529 Total Costs per oz. of AuEq. Produced (incl. all cap
Slide 28: Sleeper: New Targets Gravity Targets
paramountnevada.com | @ParamountNV SLEEPER: NEW TARGETS GRAVITY TARGETS
Slide 29: Corporate Overview
Stock Exchange and Symbol NYSE MKT: PZG Cash Position $5.8M (As at June 30, 2016) Debt Nil Share Price $2.09 (As at September 15, 2016) Shares Outstanding 15,690,000 (As at September 15, 2016) Market Capitalization ~$33 Million Average Volume (3 months) 150,379 (As at September 15, 2016) Float Appro
Slide 30: Performance vs GLD
paramountnevada.com | @ParamountNV PERFORMANCE VS GLD
Slide 31: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 32: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 33: Recap Highlights
RECAP HIGHLIGHTS VALUE CREATION Outstanding Leverage to the Gold Price - 0.53 AuEq resource ounces per share Grassy Mountain works well in the current gold market Well defined plan in a short timeframe Completion of PFS Mining Permit Resources to Reserves paramountnevada.com | @ParamountNV
Slide 34: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM paramountnevada.com | @ParamountNV Glen van Treek (President & CEO, Director) 25+ years of experience in all stages of the mining life cycle … from junior exploration to major producers Carlo Buffone (CFO) 20+ years in senior financial management roles including buy and s
Slide 35: Professional Governance by Independent Directors
PROFESSIONAL GOVERNANCE BY INDEPENDENT DIRECTORS paramountnevada.com | @ParamountNV David Smith (Chairman) Christopher Reynolds Eliseo Gonzalez-Urien John Carden Vice President Finance and CFO of Seabridge Gold since 2007 Professional Geologist Former VP Exploration with Placer Dome Extensive intern
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