Paramount Gold Announces Initial Assessment Results for Sleeper Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Source: Newsfilter
- Strong Economic Benefits: The Sleeper Project demonstrates a robust economic profile with an after-tax NPV of $402 million and an IRR of 45% at a gold price of $3,600 per ounce, indicating a payback period of 1.4 years, showcasing its strong potential.
- High-Price Scenario Analysis: Should gold prices rise to $4,700 per ounce, the project's after-tax NPV increases to $867 million, with an IRR of 66% and a reduced payback period of 1.2 years, highlighting significant profitability in a high-price environment.
- Production Capacity Expectations: Over a 17-year mine life, the project is expected to produce approximately 65,000 ounces of gold annually, totaling around 1.1 million ounces, generating about $514 million in after-tax cash flow in the first five years, further solidifying its financial foundation.
- Resource Potential Expansion: The project plans to leverage existing mineralized surface materials and infrastructure to reduce upfront capital requirements, while future exploration programs will assess additional surface materials not included in this assessment, enhancing resource base and future growth potential.
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About PZG
Paramount Gold Nevada Corp. is engaged in the business of acquiring, exploring and developing precious metals projects in the United States of America. The Company owns both exploration and development stage projects in the states of Nevada and Oregon. Its projects include Sleeper Gold Project, Grassy Mountain Project, and Bald Peak Project. The Sleeper Gold Project is located in Humboldt County, Nevada, approximately 26 miles northwest of the town of Winnemucca. The Grassy Mountain Project is located in Malheur County, Oregon, approximately 22 miles south of Vale, Oregon, and roughly 70 miles west of Boise, Idaho. The project lies within the rolling high desert hills of the western Snake River Plain. The Bald Peak project is located in the Aurora mining district in Mineral County, Nevada and situated on a parallel structure to that which hosts the prolific open-pit Bodie, Aurora, and Borealis mines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Paramount Gold Announces Initial Assessment Results for Sleeper Project
- Strong Economic Benefits: The Sleeper Project demonstrates a robust economic profile with an after-tax NPV of $402 million and an IRR of 45% at a gold price of $3,600 per ounce, indicating a payback period of 1.4 years, showcasing its strong potential.
- High-Price Scenario Analysis: Should gold prices rise to $4,700 per ounce, the project's after-tax NPV increases to $867 million, with an IRR of 66% and a reduced payback period of 1.2 years, highlighting significant profitability in a high-price environment.
- Production Capacity Expectations: Over a 17-year mine life, the project is expected to produce approximately 65,000 ounces of gold annually, totaling around 1.1 million ounces, generating about $514 million in after-tax cash flow in the first five years, further solidifying its financial foundation.
- Resource Potential Expansion: The project plans to leverage existing mineralized surface materials and infrastructure to reduce upfront capital requirements, while future exploration programs will assess additional surface materials not included in this assessment, enhancing resource base and future growth potential.
See More
Paramount Gold Updates Feasibility Study for Grassy Mountain Project
- Significant Economic Improvement: The updated feasibility study indicates an after-tax NPV of $374.7 million and an IRR of 38.9% for the Grassy Mountain project, reflecting increases of 228% and 72% in NPV and IRR, respectively, compared to the 2022 study, showcasing strong projected returns in the current gold price environment.
- Increased Mineral Resources: The study reveals an increase in recoverable gold ounces from 361,800 to 385,800, extending the mine life from 7.8 years to 9.3 years, further solidifying the project's long-term potential.
- Capital Expenditure and Cost Structure: Initial capital expenditures are set at $189.8 million with sustaining capital at $65.1 million, while the all-in sustaining costs (AISC) are projected at $1,442 per ounce of gold, demonstrating effective cost control that ensures future profitability.
- Environmental Approval Progress: The Grassy Mountain project has received a positive Record of Decision from the Federal Bureau of Land Management along with the final Environmental Impact Statement, with state permitting expected in the second half of 2026, marking a significant step toward a construction decision.
See More
Paramount Gold Initiates Initial Assessment for Sleeper Gold Project
- Assessment Launch: Paramount Gold Nevada Corp. has announced the commencement of an Initial Assessment for its 100%-owned Sleeper Gold Project, aimed at evaluating the project's economic potential, particularly focusing on a staged development approach for approximately 54 million tons of heap-leachable material, which is expected to accelerate cash flow and enhance overall project economics.
- Development Strategy Optimization: The assessment will concentrate on a phased development of heap-leachable materials, leveraging substantial historical data to support future expansion opportunities, especially in the current gold price environment, which presents significant potential for value unlocking.
- Strengthened External Collaboration: Paramount has engaged SLR International Corporation to conduct the assessment, leveraging SLR's ongoing monitoring and reclamation experience on-site, along with enhanced leach kinetics expertise from its recent acquisition of Forte Dynamics to improve the assessment's quality.
- Clear Future Planning: The Initial Assessment is expected to be completed by late Q2 2026, marking a key milestone in the company's evaluation of development options at Sleeper, while also advancing the final permitting and feasibility activities for the Grassy Mountain Project.
See More
PARAMOUNT IMPROVES ITS $30 PER SHARE ALL-CASH BID FOR WARNER BROS. DISCOVERY AND SHARES REGULATORY PROGRESS UPDATE
Paramount's Offer: Paramount has made an all-cash offer of $30 per share for Warner Bros. Discovery.
Regulatory Updates: The announcement includes updates on the progress of regulatory matters related to the acquisition.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Paramount Gold's Grassy Mountain Project Receives Approval
- Approval Milestone: Paramount Gold's Grassy Mountain gold project receives a Record of Decision from the U.S. Bureau of Land Management, marking the completion of the federal environmental review process and driving a 37.5% increase in stock price.
- Environmental Impact Statement: The ROD and Final Environmental Impact Statement incorporate feedback from the public comment period, ensuring compliance with the National Environmental Policy Act, thereby enhancing the project's legitimacy and feasibility.
- Revitalization Opportunity: CEO Rachel Goldman states that this approval makes Grassy Mountain a shovel-ready project, expected to contribute to the revitalization of the U.S. mining industry and further stimulate local economic development.
- Increased Transparency: The BLM will provide project-related information through e-planning and FAST-41 portals, enhancing transparency and public engagement, which bolsters the company's reputation within the industry.
See More
Paramount Gold Announces Initial Assessment Results for Sleeper Project
- Strong Economic Benefits: The Sleeper Project demonstrates a robust economic profile with an after-tax NPV of $402 million and an IRR of 45% at a gold price of $3,600 per ounce, indicating a payback period of 1.4 years, showcasing its strong potential.
- High-Price Scenario Analysis: Should gold prices rise to $4,700 per ounce, the project's after-tax NPV increases to $867 million, with an IRR of 66% and a reduced payback period of 1.2 years, highlighting significant profitability in a high-price environment.
- Production Capacity Expectations: Over a 17-year mine life, the project is expected to produce approximately 65,000 ounces of gold annually, totaling around 1.1 million ounces, generating about $514 million in after-tax cash flow in the first five years, further solidifying its financial foundation.
- Resource Potential Expansion: The project plans to leverage existing mineralized surface materials and infrastructure to reduce upfront capital requirements, while future exploration programs will assess additional surface materials not included in this assessment, enhancing resource base and future growth potential.
See More
Paramount Gold Updates Feasibility Study for Grassy Mountain Project
- Significant Economic Improvement: The updated feasibility study indicates an after-tax NPV of $374.7 million and an IRR of 38.9% for the Grassy Mountain project, reflecting increases of 228% and 72% in NPV and IRR, respectively, compared to the 2022 study, showcasing strong projected returns in the current gold price environment.
- Increased Mineral Resources: The study reveals an increase in recoverable gold ounces from 361,800 to 385,800, extending the mine life from 7.8 years to 9.3 years, further solidifying the project's long-term potential.
- Capital Expenditure and Cost Structure: Initial capital expenditures are set at $189.8 million with sustaining capital at $65.1 million, while the all-in sustaining costs (AISC) are projected at $1,442 per ounce of gold, demonstrating effective cost control that ensures future profitability.
- Environmental Approval Progress: The Grassy Mountain project has received a positive Record of Decision from the Federal Bureau of Land Management along with the final Environmental Impact Statement, with state permitting expected in the second half of 2026, marking a significant step toward a construction decision.
See More
Paramount Gold Initiates Initial Assessment for Sleeper Gold Project
- Assessment Launch: Paramount Gold Nevada Corp. has announced the commencement of an Initial Assessment for its 100%-owned Sleeper Gold Project, aimed at evaluating the project's economic potential, particularly focusing on a staged development approach for approximately 54 million tons of heap-leachable material, which is expected to accelerate cash flow and enhance overall project economics.
- Development Strategy Optimization: The assessment will concentrate on a phased development of heap-leachable materials, leveraging substantial historical data to support future expansion opportunities, especially in the current gold price environment, which presents significant potential for value unlocking.
- Strengthened External Collaboration: Paramount has engaged SLR International Corporation to conduct the assessment, leveraging SLR's ongoing monitoring and reclamation experience on-site, along with enhanced leach kinetics expertise from its recent acquisition of Forte Dynamics to improve the assessment's quality.
- Clear Future Planning: The Initial Assessment is expected to be completed by late Q2 2026, marking a key milestone in the company's evaluation of development options at Sleeper, while also advancing the final permitting and feasibility activities for the Grassy Mountain Project.
See More
PARAMOUNT IMPROVES ITS $30 PER SHARE ALL-CASH BID FOR WARNER BROS. DISCOVERY AND SHARES REGULATORY PROGRESS UPDATE
Paramount's Offer: Paramount has made an all-cash offer of $30 per share for Warner Bros. Discovery.
Regulatory Updates: The announcement includes updates on the progress of regulatory matters related to the acquisition.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Paramount Gold's Grassy Mountain Project Receives Approval
- Approval Milestone: Paramount Gold's Grassy Mountain gold project receives a Record of Decision from the U.S. Bureau of Land Management, marking the completion of the federal environmental review process and driving a 37.5% increase in stock price.
- Environmental Impact Statement: The ROD and Final Environmental Impact Statement incorporate feedback from the public comment period, ensuring compliance with the National Environmental Policy Act, thereby enhancing the project's legitimacy and feasibility.
- Revitalization Opportunity: CEO Rachel Goldman states that this approval makes Grassy Mountain a shovel-ready project, expected to contribute to the revitalization of the U.S. mining industry and further stimulate local economic development.
- Increased Transparency: The BLM will provide project-related information through e-planning and FAST-41 portals, enhancing transparency and public engagement, which bolsters the company's reputation within the industry.
See More
