According to a recent announcement by Paramount Gold Nevada Corp., a U.S.-based precious metals exploration and development company, assay findings from two new core holes at its proposed high-grade underground Grassy Mountain gold mine exhibit the potential for more economic material.
Location of geotechnical drill holes at Grassy Mountain. Image Credit: Paramount Gold Nevada Corp.
The new core holes are located in eastern Oregon and have been drilled outside the mineral reserve area.
At first, two holes were drilled as part of the geotechnical program for alignment and to aid the design of the portal and drop access to the mine. Both the holes were drilled on the outer part of the boundaries of the existing underground reserve, in regions regarded to be waste rock.
A drill hole named GM19-37 was developed particularly to obtain data associated with ground conditions next to the underground decline spiral, as well as to offer groundwater and permeability data. The hole was drilled to a depth of around 831 ft and returned gold grades of up to 2.56 g/T. On the whole, this hole sectioned a true width of 675 ft grading an average of 0.4 g/T gold and 1.8 g/T silver.
The drill hole GM19-38 was bored at the suggested portal location and returned gold mineralization of up to 0.98 g/T of gold. This hole was drilled to around 100 ft and sectioned a zone of 29 ft grading 0.6 g/T gold starting at a depth of 71 ft.
The significance of these assays is that material with sufficient grade will be stockpiled separately and sent to the mill, rather than being classified as waste, thereby improving overall project economics.
Glen van Treek, COO, Paramount Gold Nevada Corp.
As per the September 2020 Feasibility Study, the predicted processing charges are around $28 per ton, implying that at existing gold prices, any material with grades more than 0.55 g/T classified as waste earlier, but which must be extracted as part of the present mine plan, will be dispatched to the mill for processing.
As we approach a construction decision, the updated reserves will be included in a final mine plan accounting for short-term gold and silver prices at that time.
Glen van Treek, COO, Paramount Gold Nevada Corp.