Paramount Gold Nevada Corp. (NYSE:PZG) ("Paramount" or the "Company") announced today the results of an Initial Assessment prepared in accordance with S-K 1300 (the "Assessment" or "Study") for its 100%-owned Sleeper Gold Project ("Sleeper" or the "Project"), a past-producing gold mine located in Humboldt County, Nevada. All figures are in U.S. Dollars.  

The Assessment evaluates the potential restart of the historic Sleeper Mine through the processing of existing waste rock dumps and mining of in situ oxide and mixed Mineral Resources utilizing conventional open-pit mining and a 30,000 tonne per day crush-agglomerate-heap-leach processing facility with Merrill-Crowe recovery.

The Project demonstrates strong economics, based on assumed metal prices of $3,600 per ounce gold and $48 per ounce silver, including an after-tax net present value (NPV) at an 8% discount rate of $402 million, an after-tax internal rate of return (IRR) of 44%, and a payback period of approximately 1.4 years.  

The Assessment includes sensitivity analysis to higher commodity prices amongst other inputs. Assuming metal prices of $4,700 per ounce gold and $80 per ounce silver, the Project's after-tax NPV (8%) increases to $867 million, with an IRR of 66% and a payback period of 1.2 years.

Over a 17-year mine life, the Assessment projects average annual gold production of approximately 65,000 ounces and total payable gold production of approximately 1.1 million ounces.

The use of existing mineralized surface material and existing infrastructure contributes to the Project's strong economics by reducing upfront capital requirements and leads to the expected, short payback period. Approximately 47 million tonnes of mineralized waste dump material containing approximately 420,000 recoverable ounces of gold are included in the mine plan, representing a significant, lower-cost source of early production and cash flow prior to initiation of open pit mining. The economic analysis considers only oxide and mixed mineralized material amenable to heap leaching, and does not include sulfide mineralization, which will be evaluated in subsequent studies.