Paramount Gold Nevada Corp. · AMEX:PZG
Paramount Gold Nevada — Investor Presentation (February 2017)
35 slides from Paramount Gold Nevada's investor presentation, Feb 23, 2017
Slide 1: Industry-leading US-Based Gold Ownership Per Share
Industry-leading US-Based Gold Ownership Per Share NYSE MKT: PZG February 2017 Exhibit 99.1
Slide 2: Forward-looking statements
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: Paramount: A Case Study
paramountnevada.com | @ParamountNV Paramount: A Case Study ü ü ü ü ü ü ü ü ü U.S Only Advanced Stage Projects Gold Only Over 8.3M AuEq Ounces High Grade Project with Robust Economics Defined Permitting Processes Exploration Upside High leverage to the Gold price Low Political Risk
Slide 4: Value Creating Strategy
Value Creating Strategy paramountnevada.com | @ParamountNV PROJECT SELECTION Focused on gold in US Exploration: Adding and upgrading mineral inventories Engineering: Proving and improving project economics Mid to Advanced projects only ADDING VALUE Undervalued Environmental De-risking
Slide 5: Grassy Mountain
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN Acquired July 2016 PEA completed in 2015 Excellent Recoveries from simple process Book value of $16 M or ~$9/ oz of Au 99% M&I Resources PFS and Permitting Process underway
Slide 6: Grassy Mountain: Ideal Location
GRASSY MOUNTAIN: IDEAL LOCATION paramountnevada.com | @ParamountNV 9,300 acres in East, OR 22 miles S of Vale, OR Nevada like desert No human habitation to disturb No protected species of vegetation or wildlife
Slide 7: Grassy Mountain: Deposit located on private land
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN Deposit located on private land
Slide 8: Geology of Grassy Mountain
paramountnevada.com | @ParamountNV GEOLOGY OF GRASSY MOUNTAIN High grade core of deposit starting at 200-300ft. below surface Under Several Sinter (Silica deposition)
Slide 9: Grassy Mountain High Grade Core
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN HIGH GRADE CORE Assays released Jan 30, 2017 from first 4 of 29 holes in current drill program GM 16-02 intersected 43m of 47.51g/T gold and 12.7 g/T silver Including 1.5m of 1,090 g/T gold
Slide 10: Grassy Exploration
Grassy Exploration paramountnevada.com | @ParamountNV MINERALIZED MATERIAL PEA (M&I) 238 Drill holes in Grassy Area 100 % M&I Underground Mineralization Tonnes (000’s) Au Grade (g/T) Au Ounces Ag Grade (g/T) Ag Ounces Global Resource 68,693 0.82 1,653,000 2.25 4,976,000 PEA UG Resource 3,245 5.32 51
Slide 11: Grassy Mountain Metallurgy
paramountnevada.com | @ParamountNV GRASSY MOUNTAIN METALLURGY EXTENSIVE TESTING DEFINED, GRAVITY AND LEACH OF GRAVITY TAILS AS THE BEST RECOVERY OPTION WITH UP TO 97% TOTAL RECOVERY
Slide 12: Grassy Mountain Recovery Process
GRASSY MOUNTAIN RECOVERY PROCESS paramountnevada.com | @ParamountNV
Slide 13: PEA Economics (July 2015)
Gold Price (USD$) $ 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 (L.O.M) $ 119.6 M ($140 M) Production Life (years) 9 Cash Cost per Au Ounce (USD) $ 577 All-in Cost per Au Ounce (USD) $
Slide 14: Strengths of Grassy Mountain
Higher grade means robust economics at current and lower gold prices Excellent recoveries from simple process yields a lower mining cost per ounce PFS to report reserves and potentially lower capital and operating costs should enhance market value Strong relationship with DOGAMI and defined permitti
Slide 15: Ongoing Drill Program
24 holes remaining OBJECTIVES: Further define and expand existing high grade zone Material for PFS level metallurgical testing Geotechnical data for rock stability Obtain hydrological data Expected completion Q2 2017 paramountnevada.com | @ParamountNV ONGOING DRILL PROGRAM
Slide 16: PFS in Motion
PFS IN MOTION EM Strategies PZG ENVIRONMENTAL COORDINATOR MDA - PFS Lead (Resource, Mining, Economics) PROJECT MANAGER SFP Water (Hydrology , SPF Flow Modeling, Monitoring Wells) AUSENCO (Metallurgy, Process & Infrastructure design) Community Relations GOLDER (Geo-tech mine & facility, Tailings desi
Slide 17: Permitting Process Structure
paramountnevada.com | @ParamountNV PERMITTING PROCESS STRUCTURE PERMITTING PROCESS STATE FEDERAL COUNTY DIV 33 (EXPLORATION) NOI (12) EXPL NOTICE (<5 ACRE) PLAN OF OPERATION Zoning/Land Use EA/EIS DIV 37/43 (CHEM MIN PROCESS)
Slide 18: Permitting Accomplishments
paramountnevada.com | @ParamountNV PERMITTING ACCOMPLISHMENTS Baseline Studies completed for the core of the project and expected facilities layout Plan Of Operations Initial Draft Plan submitted Updated Plan will be submitted in 2017 EIS Contractor HDR selected by BLM Work approved for PFS under DO
Slide 19: Paramount's Plan
PARAMOUNT’S PLAN $6M budget through permitting A PATH FROM ACQUISITION TO CONSTRUCTION PFS DRILLING REVISED POO BLM BLM EIS STATE PERMIT APPLICATION CONSTRUCTION DESIGN INITIATE CONSTRUCTION 2016 2017 2018 2019
Slide 20: Exploration Upside
paramountnevada.com | @ParamountNV EXPLORATION UPSIDE 1 mile Wood sinter GM
Slide 21: Exploration Upside
EXPLORATION UPSIDE High resistivity target GM Wood Sinter
Slide 22: Exploration Upside
EXPLORATION UPSIDE 27m @ 0.85 Au >» NUMEROUS UNFOLLOWED DRILLHOLES WITH O GRADE GOLD VALUES. ¢ = Drill Hole ee IDENTIFIED TARGETS
Slide 23: Sleeper Gold Project
Sleeper Gold Project 100% ownership of former high grade open pit gold producer AMAX Gold produced 1.7 million ounces of gold from 1986-96 Large, near surface, low grade resource with excellent exploration potential Large land position (15,500 hectares) and valuable infrastructure (Access by major r
Slide 24: The Sleeper Gold Project
THE SLEEPER GOLD PROJECT paramountnevada.com | @ParamountNV Tonnes (000’s) Gold Grade (g/T) Gold (000’s of ounces) Measured 200,500 0.39 2,488 Indicated 93,900 0.31 933 M&I 294,400 0.36 3,421 Inferred 241,800 0.32 2,472 Additional silver M&I resource of 30.7M ounces and inferred of 15Mounces
Slide 25: PEA Economics (December 2015)
Gold Price (USD$) $ 1,250 Silver Price (USD$) $ 16 30,000 T/Day Heap Leach Operation Average Annual Gold Production (ounces) 83,500 Average Annual Silver Production (ounces) 82,500 Pre-Production Capital Costs (L.O.M) $ 175 M ($259 M) Production Life (Payback) 9yrs (3.5yrs) Cash Cost per Au Ounce (U
Slide 26: Strengths of Sleeper
District scale land package in Nevada Large multi-million ounce deposit of over 6 million ounces Positive Economics defined by multiple P.E.A’s Bioleach testing confirms opportunity to process sulfide material Exploration targets outside of current resource area Strengths of Sleeper paramountnevada.
Slide 27: Value Creating Strategy: Realizing Value
Value Creating Strategy paramountnevada.com | @ParamountNV REALIZING VALUE Sell asset Joint venture with producer Mine development and operation
Slide 28: Recent Financing
$3.66M Equity Financing of 2,090,000 units priced at $1.75 Each unit consists of one common share and a warrant to purchase ½ of a common share Warrants have a two year expiry Exercise price in year 1 of $2.00/share Exercise price in year 2 of $2.25/share No commissions or underwriting fees paid REC
Slide 29: Paramount Recap
Multi-advanced stage projects in the US Short term opportunity to permit Grassy Mountain and advance to production Medium term opportunity to leverage higher gold prices with Sleeper EV/resources well below the industry average at $4 Pro-forma ACB of Grassy ~$21/oz. of Gold PARAMOUNT RECAP paramount
Slide 30: Corporate Overview
Stock Exchange and Symbol NYSE MKT: PZG Cash Position $1.8M (As at December 31, 2016) Cash from Equity Financing $3.66M (Closed Feb. 14, 2017) Debt Nil Share Price $2.09 (As at February 10, 2017) Shares Outstanding 17,779,054 (As at February 14, 2017) Market Capitalization ~$33 Million Average Volum
Slide 31: Performance vs GLD
paramountnevada.com | @ParamountNV PERFORMANCE VS GLD
Slide 32: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 33: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 34: Experienced Team
EXPERIENCED 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 sell side M&
Slide 35: Professional Governance by Independent Directors
PROFESSIONAL GOVERNANCE BY INDEPENDENT DIRECTORS paramountnevada.com | @ParamountNV David Smith 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 international exp
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