5 minute read - Published 09:30 AM EST, Friday August 16, 2024
This article was authored by witan nook. for Paramount Gold Nevada
Located in Malheur County of eastern Oregon, the Grassy Mountain Gold Project stands as a beacon of potential in the high desert region near the Snake River Plain. Nestled approximately 22 miles south of Vale, Oregon, and 70 miles west of Boise, Idaho, this expansive project spans ~8,280 acres of rolling hills and moderate terrain, ranging from 3,300 to 4,300 feet above sea level. Paramount Gold Nevada, the sole owner of the private land where the gold deposit resides, controls all mining claims within this extensive land package.
A CAT rig at the Grassy Mountain gold project in Malheur County, Oregon | Paramount Gold Nevada
Ever since Paramount’s acquisition of Calico Resources in 2016, the company has been steadfast in its mission to propel Grassy Mountain toward becoming Oregon’s first modern-day gold mine. Significant strides have been made to enhance the project’s mineral resources, metallurgical recoveries, and overall economic feasibility. Paramount’s dedication has paid off with the acquisition of the County permit, alongside progressing approvals at the State and Federal levels.
Grassy Mountain boasts a significant mineral resource estimate, which highlights its substantial potential. As of June 30, 2022, the project's Measured and Indicated mineral resources stand at ~34 million tonnes, with an average gold grade of 0.754 g/T and an average silver grade of 3.017 g/T, translating to 755,000 ounces of gold and 3,009,000 ounces of silver. In addition, the Inferred mineral resources are estimated at ~1 million tonnes, containing 42,000 ounces of gold and 126,000 ounces of silver. The project's mineral reserves, exclusive of the resource estimates, include ~1.9 million tonnes with an average gold grade of 6.823 g/T and an average silver grade of 9.943 g/T, totalling 380,000 ounces of gold and 554,000 ounces of silver.
Core Samples from the Grassy Mountain gold project at Paramount Gold’s office in Vale, Oregon | Paramount Gold Nevada
The project's feasibility study, filed in October 2022, outlines a small-footprint, high-grade underground mine with an initial 8-year mine life. It projects annual production of 47,000 ounces of gold and 55,000 ounces of silver. The mill head grades are anticipated to be 6.5 g/T for gold and 9.6 g/T for silver, showcasing the high quality of the ore. The mine's economic forecasts are promising, with an after-tax internal rate of return (IRR) of 22.5% and a net present value (NPV) of $114.1 million. The project's life-of-mine cash costs are estimated at $681 per ounce of gold, and the all-in-sustaining cost (AISC) is $815 per ounce, underscoring its potential profitability.
Critical to the project’s feasibility are the exceptional average gold and silver recoveries of 92.8% and 73.5%, respectively, with projected life-of-mine cash costs of $681 and All-In Sustaining Costs (AISC) of $815 per ounce of gold. The initial capital expenditure is estimated at $136.2 million, encompassing various contingencies and closure costs for the mining and milling operations.
Borehole drilling at the Grassy Mountain gold project | Paramount Gold Nevada
Permitting has been a cornerstone of Paramount’s strategy, achieving significant milestones across County, State, and Federal levels. The company secured a Conditional Use Permit from Malheur County, underscoring local support and marking a pivotal step towards construction readiness. Paramount has also garnered approvals for water appropriation from the Oregon Water Resources Department (OWRD) and has advanced its Plan of Operation with the Federal Bureau of Land Management (BLM), triggering the Environmental Impact Statement (EIS) process. In May of 2024, it was announced that Paramount would benefit from a joint reclamation bond between the Oregon Department of Geology and Mineral Industries (DOGAMI) and the Bureau of Land Management, who have executed a Memorandum of Understanding ensuring that they will not be required to post two reclamation bonds which will reduce capital requirements and lessen the administrative burden.
Grassy Mountain also promises significant economic benefits for Malheur County. The development of Oregon's first modern-day gold mine is poised to stimulate local employment and economic activity. Construction and operation of the mine will generate a considerable number of jobs, providing a boost to the local labour market. Moreover, the project's commitment to collaborating with local authorities, such as the Malheur County Sheriff’s Office and the Vale Rangeland Fire Protection Association, highlights its dedication to integrating into and supporting the local community.
Location of the Grassy Mountain gold project in relation to Vale and Ontario, Oregon | Paramount Gold Nevada
The economic impact extends beyond direct employment, as the project will likely spur growth in related sectors. Local businesses are expected to benefit from increased demand for goods and services, ranging from construction materials and equipment to hospitality and retail. Additionally, the project's substantial initial capital expenditure of $136.2 million, including $36.1 million in sustaining capital expenditure and $12.4 million in closure costs, reflects a significant investment in the region. This influx of capital will contribute to the broader economic development of Malheur County, fostering a more vibrant and prosperous community.
With these developments, Paramount continues to navigate regulatory landscapes and operational challenges, guided by a vision to establish Grassy Mountain as a cornerstone of responsible mining in eastern Oregon. As the project moves closer to production, the company remains dedicated to transparency and sustainable stewardship, setting a precedent for future mining endeavours in the region.
This article was authored by witan nook. and paid for by Paramount Gold Nevada in American dollars
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