Issue link: http://resourceworld.uberflip.com/i/807573
A P R I L / M A Y 2 0 1 7 www.resourceworld.com 43 Feasibility Study (PFS) on Grassy Mountain that started in August 2016. A Preliminary Economic Assessment (PEA) completed the year before contem- plated a 10-year underground mining operation with low cash operating costs driven by a high average underground gold grade of 5.32 grams/tonne. The PEA esti- mated average annual production of 53,000 ounces of gold and 82,000 ounces of silver yielding robust economics at a US $1,300 per ounce gold price and at a US $17.50 per ounce silver price. The project contains a total measured plus indicated mineralized inventory of 1.7 million ounces of gold and 4.9 million ounces of silver. A drill program of 15,000-20,000 feet (core and RC) is underway with three rigs that is designed to further expand, define and increase the confidence level in the inventory of high-grade underground mineralized material; acquire material for metallurgical testing and subsequent design of the recovery process; and obtain geotechnical data on rock quality for underground mine design and mining methodology. Assays results are now coming in with drill hole GM16-02 intersecting 43 metres grading 47.51 g/t gold and 12.7 g/t silver, including 1.5 metres of 1,090 g/t gold on the southwest edge of the deposit. Paramount recently signed a Memor- andum of Understanding (MOU) governing the preparation of a National Environmental Policy Act Analysis for Grassy Mountain. With an executed MOU, Paramount may now submit its proposed Plan of Operation to the BLM, which will trigger the initiation of the Environmental Impact Statement by the BLM. The com- pany will also commence the permitting process in early 2017. Glen van Treek, Paramount CEO, said, "This agreement is a major step forward for Paramount and the State of Oregon. It speaks to the level of co-operation which has developed between our company and the regulators. The integration of federal and state approval processes and the har- monizing of regulatory requirements are critical achievements. This MOU is the first of its kind for a mining project in Oregon and it represents Paramount's commitment to advance the Grassy Mountain Project in a professional and environmentally safe manner." Across the state line in Nevada, Paramount's Sleeper Gold Project is a former high-grade, open pit, gold mine located near Winnemucca and operated by AMAX Gold Inc. from 1986 until 1996, producing 1.66 million ounces of gold and 2.3 million ounces of silver. According to Paramount, Amax left a legacy of superb infrastructure in place including excel- lent accessibility by all-weather roads to and within the property; electrical power (from the Nevada State grid); and water (two operating, deep water wells located on the property). Paramount's recent exploration and engineering programs at Sleeper have con- firmed a very large, relatively low-grade, surface resource of gold and silver which is bulk mineable at a low cost. A recent study using current metal prices proposed a 30,000 tonne per day heap leach only operation with a low strip ratio and quick payback period of 3.5 years with an IRR of 27% and an NPV after-tax of US $125 mil- lion. Estimated annual production would be 102,000 ounces of gold and 105,000 ounces of silver at a capital cost of US $175 million. Paramount is now evaluating the advancement of Sleeper through to the completion of a Pre Feasibility Study. This would include an expanded metallurgical testing program to verify and optimize metallurgical recovery for the various zones, an assessment of the potential for new geophysics programs, including heli- copter magnetometry, to help identify high priority drill targets outside the main resource area, ongoing environmental monitoring with the goal of starting the permitting processes related to re-open- ing the former operation and converting inferred mineralized material within the mine plan to measured and indicated. n • Historic Gold Districts Meets Modern Technology • Applying modern techniques to historic districts – Positioned for the modern gold rush – Historic production new discovery potential RECENT HIGHLIGHTS • Four gold properties acquired Dawson Range Gold Belt, Yukon. • Gold Creek Project acquired in Caribou Mining District, BC www.eurekaresourcesinc.com info@eurekaresourcesinc.com 604-449-2273 A history of INTEGRITY A future of PROMISE