Paramount Gold Nevada Corp. · AMEX:PZG
Paramount Gold Nevada — Investor Presentation (September 2016)
32 slides from Paramount Gold Nevada's investor presentation, Sep 12, 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
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 Large US Based Gold and Silver Inventory Measured and Indicated Gold Resource 5.1 million ounces Advanced Assets Large Sleeper Gold Project in Nevada High Grade Grassy Mountain Gold Project in Oregon NYSE MKT Listed PZG
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-1
GRASSY MOUNTAIN: IDEAL LOCATION-1 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-2
GRASSY MOUNTAIN: IDEAL LOCATION-2 Control 9,300 acres Deposit located 100% on Private Land simplifies permitting No protected species of vegetation or wild life Desert like climate paramountnevada.com | @ParamountNV
Slide 7: Grassy Exploration Drill holes in Grassy Area
paramountnevada.com | @ParamountNV Grassy Exploration 238 Drill holes in Grassy Area 100 % M&I
Slide 8: Grassy Exploration Underground Mineralization
paramountnevada.com | @ParamountNV Grassy Exploration Underground Mineralization 1 km
Slide 9: Overview of Grassy Mountain
Acquired in the Calico purchase in July 2016 All stock transaction valued at under $9M USD (at signing) Purchase price of $9.4/Au oz (M&I) (at closing) Advanced Stage Project PEA completed in 2015 Defined, high quality resource Excellent recoveries from simple processing paramountnevada.com | @Param
Slide 10: Purchase Price for Grassy Well Below 23yr Average
paramountnevada.com | @ParamountNV PURCHASE PRICE FOR GRASSY WELL BELOW 23YR AVERAGE Source: Cipher Analytics
Slide 11: Overview of Grassy Mountain: Fits Current Gold Market
Fits Current Gold Market Higher grade means robust economics at low gold prices Defined Permitting Process Baseline environmental studies already accepted by the BLM Clear path established to final permits in 2017 Short-Term Opportunities to Increase Value PFS could lower capital and operating costs
Slide 12: Mineralized Materials (M&I Only)
MINERALIZED MATERIALS (M&I ONLY) Tonnes (000’s) Au Grade (g/T) Au Ounces Ag Grade (g/T) Ag Ounces Global Resource 68,693 0.82 1,653,000 2.25 4,976,000 PEA UG Resource 3,245 5.32 511,000 8.9 843,000 paramountnevada.com | @ParamountNV
Slide 13: PEA Economics (Aug 2015)
Gold Price (USD$) $ 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 14: Permitting Activities
paramountnevada.com | @ParamountNV Permitting Activities Potentially Applicable Major Regulatory Requirements
Slide 15: 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 16: Permitting Plan Objectives 2016-2017
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 17: Paramount's Plan
PARAMOUNT’S PLAN Q1 2018 Milestones of PFS $5 million estimated budget Sept. - Dec. 2017: Drilling Program Update to Resource Modeling Complete EIS Complete Permitting Process Dec 2017: Submit Plan of Operation to the BLM Complete PFS
Slide 18: Grassy Claim Map
paramountnevada.com | @ParamountNV GRASSY CLAIM MAP
Slide 19: Sleeper Gold Mine
Sleeper Gold Mine 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 |
Slide 20: 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 21: The Past Year
paramountnevada.com | @ParamountNV THE PAST YEAR May 2015: Mineralized Material Estimate August 2015: Mag Survey December 2015: Preliminary Economic Assessment June 2015: Metallurgical Testing New targets identified Multiple column tests confirm recoveries Increased M&I resource Heap leach option ec
Slide 22: 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 23: 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 24: 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 25: Value Enhancing Opportunities
paramountnevada.com | @ParamountNV VALUE ENHANCING OPPORTUNITIES Explore for High Grade Satellite Deposits Evaluate Moving to PFS Define Drill Program Gold Market Capital Costs Grade
Slide 26: Corporate Overview
Stock Exchange and Symbol NYSE MKT: PZG Cash Position ~$7.1M (As at March 31, 2016) Debt Nil Share Price $2.10 (As at September 7, 2016) Shares Outstanding 15,690,000 (As at September 7, 2016) Market Capitalization $33 Million Average Volume (3 months) 141,346 (As at September 7, 2016) Float Approx.
Slide 27: Investment Opportunity
paramountnevada.com | @ParamountNV INVESTMENT OPPORTUNITY Outstanding Leverage to the Gold Price - 0.53 AuEq resource ounces per share, nearly 10 times the industry average Short Term Value Creation by Completing PFS and Permitting Short timeframe to production decision Industry valuations increase
Slide 28: Performance vs GLD
paramountnevada.com | @ParamountNV PERFORMANCE VS GLD
Slide 29: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 30: Company Comparables
paramountnevada.com | @ParamountNV COMPANY COMPARABLES
Slide 31: 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 32: 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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