Paramount Gold Nevada Nears Key Grassy Mountain Permit Milestone

Key Points

• Grassy Mountain is nearing a major permitting milestone: Paramount expects final Oregon state permits by year-end. Construction would still require a reclamation bond, wildlife mitigation approval, additional engineering and financing.
• The updated Grassy Mountain feasibility study assumes a $3,600-per-ounce gold price and estimates nearly $400 million in after-tax NPV, with a nine-year mine plan targeting roughly 400,000 ounces of reserves through a smaller-footprint underground operation.
• Paramount is also advancing a potential restart of Nevada’s past-producing Sleeper mine, which could produce about 65,000 ounces of gold annually over 17 years. The company has approximately $9 million in cash and does not currently plan a near-term equity offering.

Paramount Gold Nevada NYSEAMERICAN: PZG said it expects to receive final state permits for its Grassy Mountain gold project in Oregon before the end of the calendar year, a milestone that the company said would support the development of what could become Oregon’s first permitted mine under the state’s modern permitting framework.

During a company presentation, Rachel, the company’s presenter, said Grassy Mountain’s permitting outlook changed after the project was added to the federal FAST-41 program in May 2025. The company subsequently received a federal draft environmental impact statement, a final Environmental Impact Statement and Record of Decision, and approval from the Bureau of Land Management for its management plan of operations and reclamation cost estimate.

The next major requirement before construction can begin is posting a reclamation bond that will be jointly held by the BLM and Oregon’s Department of Geology and Mineral Industries, known as DOGAMI. Rachel said the joint bonding arrangement would reduce the complexity and cost of maintaining separate bonds.

Grassy Mountain Study Assumes Higher Gold Prices

The company released an updated feasibility study for Grassy Mountain earlier in the summer. The study uses a base-case gold price of $3,600 per ounce, compared with $1,750 per ounce in the company’s 2022 study.

At the $3,600 gold-price assumption, the project’s after-tax net present value was described as nearly $400 million. At a $4,600 gold price, the study estimated after-tax NPV of more than $600 million. Rachel said the study also showed improved returns and payback periods at higher gold prices.

Grassy Mountain contains about 1.3 million ounces of resources, according to the presentation, though the current mine plan includes roughly 400,000 ounces of reserves from the higher-grade core. Paramount opted to pursue a smaller-footprint underground mine rather than an open-pit operation, a decision Rachel said was intended to make the project more manageable for Oregon regulators overseeing a mine-permitting process for the first time.

The current plan envisions a nine-year mine life. Rachel said the deposit is relatively shallow and that the company sees potential for additional high-grade mineralization at depth and at near-mine exploration targets. The company intends to use underground exploration drilling after developing the decline, which it said would be more economical than surface drilling.

Remaining Steps and Community Considerations

Rachel said Oregon’s permitting process is front-end loaded and that Paramount has been working with state agencies since 2017. Draft state permits were issued in December of the prior year, followed by public hearings and a comment period.

After final state permits are issued, Paramount will still need approval of a wildlife mitigation plan by the Oregon Department of Fish and Wildlife, along with additional engineering work and construction financing arrangements. Rachel said these steps can be addressed following permit issuance.

The company also highlighted its engagement with Malheur County, where Grassy Mountain is located. Rachel said the county has a reported 20% poverty rate and median household income of $50,000, and that Paramount is evaluating ways the project could support local needs, including employment, firefighting and wildfire-prevention resources.

Sleeper Project Study Points to Potential Restart

Paramount also discussed its Sleeper project in Nevada, a past-producing mine that operated from the mid-1980s to the mid-1990s and produced about 1.7 million ounces of gold from the high-grade Sleeper vein. The company controls approximately 45,000 acres at the property and has identified 4.3 million ounces of resources there.

An initial assessment released during the summer evaluated a smaller heap-leach operation using oxide and mixed material, as well as an estimated 47 million tons of mineralized waste rock from the historical operation. The study outlined a 17-year mine life, after-tax NPV8 of about $400 million at a $3,600 gold price and more than $800 million at $4,700 gold.

The contemplated operation would produce about 65,000 ounces of gold annually and 200,000 ounces of silver annually, according to the presentation. The study includes approximately $140 million of sustaining capital for dewatering the original pit. Rachel said the first five years could process waste material alone, generating more than $500 million in aggregate after-tax cash flow at lower costs than the overall life-of-mine estimate.

• Paramount plans an infill sonic drilling program at Sleeper to test historical heap-leach pads, tailings and other surface material.
• The company also aims to convert inferred waste-rock ounces to indicated resources.
• It has applied for BLM permits and said it intends to complete the program during the year if approvals are received.

Rachel said Sleeper could face a lower permitting burden than a greenfield project because it is a past producer, while noting that the company is beginning longer-lead baseline data collection that can take up to two years.

Cash Position and Capital Plans

In response to an analyst question, Rachel said Paramount had approximately $9 million in cash. She said the company had no near-term equity offering planned, with future funding needs dependent on engineering work and discussions around a construction financing package for Grassy Mountain.

The company’s only capital raise since Rachel joined was completed in 2020 at approximately $1.04 per share, she said. Paramount has an at-the-market program in place, which Rachel described as a tool for maintaining operations and taking advantage of liquidity opportunities, rather than a source of funding for construction of Grassy Mountain.

About Paramount Gold Nevada (NYSEAMERICAN:PZG)

Paramount Gold Nevada Corp. is a mineral exploration and development company focused on precious metals projects in the United States. The company's activities include acquiring, evaluating, exploring, and advancing properties with the potential to host gold and other valuable minerals.

Paramount Gold Nevada's principal assets include the Sleeper Gold Project in Humboldt County, Nevada, and the Grassy Mountain Gold Project in Malheur County, Oregon. The Sleeper property is a former producing gold and silver mine that the company is evaluating for potential redevelopment, while Grassy Mountain is an exploration and development project targeting gold and silver mineralization.

The company was previously known as Paramount Gold and Silver Corp.

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