Shareholders on Tuesday are cheering a milestone moment for Paramount Gold Nevada Corp. (NYSE MKT:PZG), as the precious metal explorer filed its mine plan of operation for the Grassy Mountain Gold Project with the Federal Bureau of Land Management. The company noted that the filing was actually submitted in August, as planned.
Paramount holds a 100% working interest in the Grassy Mountain project, which spans about 9,300 acres of private land in eastern Oregon.
The plan is necessary for the BLM to begin its review process. Concurrently, Winnemucca, Nevada-based Paramount is working to complete a preliminary feasibility study on an underground mine at the Grassy Mountain project.
The whole approval process to realize a new mine was spelled out in a precedent-setting agreement in March between Paramount, the Bureau of Land Management, Oregon’s Department of Geology and Mineral Industries and HDR Inc., a consulting firm working for the BLM on the project.
A preliminary economic assessment and several key approval components towards developing the mine have been accomplished already. Highlights from recent drilling in support of the preliminary feasibility study continue to define strong resources, with the latest batch of holes intersecting good widths of high-grade material suitable for an underground mine, such as 49 meters grading 2.91 g/t gold and 35.1 metres grading 5.37 g/t gold.
The mine plan news has catalyzed shares of PZG, sending them ahead 12.7% in early afternoon trading on Tuesday to $1.78, representing the highest level since April.
