Paramount Gold Nevada Corp. announced the results of an Initial Assessment for its 100%-owned Sleeper Gold Project, outlining a potential restart with strong projected returns. The study, prepared in accordance with S-K 1300, evaluates the redevelopment of the past-producing mine located in Humboldt County, Nevada, utilizing existing waste rock dumps and conventional open-pit mining methods alongside a 30,000 tonne per day crush-agglomerate-heap-leach processing facility with Merrill-Crowe recovery.

The Project demonstrates robust economics under base case assumptions of $3,600 per ounce gold and $48 per ounce silver. The Assessment indicates 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. A sensitivity analysis assuming higher metal prices of $4,700 per ounce gold and $80 per ounce silver projects an after-tax NPV of $867 million, an IRR of 66%, and a payback period of 1.2 years.

Project Economics and Production

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 infrastructure contributes to the Project's strong economics by reducing upfront capital requirements. Approximately 47 million tonnes of mineralized waste dump material containing approximately 420,000 recoverable ounces of gold are included in the mine plan, providing a lower-cost source of early production. The economic analysis considers only oxide and mixed mineralized material amenable to heap leaching and does not include sulfide mineralization.

Rachel Goldman, Chief Executive Officer of Paramount, stated that the first five years of the Project are expected to produce approximately 348,000 ounces of gold and 1.33 million ounces of silver. This initial phase is anticipated to generate after-tax cash flow of approximately $514 million in the Base Case and $826 million in the Upside Case, supported by a low strip ratio of 0.74:1.

Key Financial Metrics

The following table summarizes the key metrics from the Assessment, comparing the Base Case and Upside Case scenarios.

Resource Estimate and Next Steps

The updated Mineral Resource estimate reports 1.99 million ounces of gold in Measured and Indicated Mineral Resources and an additional 2.30 million ounces of gold in Inferred Mineral Resources. This represents an increase of approximately 5% in Measured and Indicated Resources and 90% in Inferred Resources compared to the 2023 estimate.

The Assessment recommends an $8.7 million advancement program to improve resource confidence, complete environmental baseline studies, and advance permitting activities. The Company plans to initiate permitting for infill drilling targeting surface material, with the updated S-K 1300 Technical Report Summary to be filed with the U.S. Securities and Exchange Commission on Form 8-K.