Paramount Gold Nevada: Advancing Two Projects in Oregon and Nevada Towards Development

Key Concepts

• FAST-41: A U.S. federal program designed to streamline the permitting process for infrastructure and mining projects to improve efficiency and accountability.
• SK-1300 Initial Assessment: A U.S. regulatory standard for reporting mineral resources and reserves, equivalent to a Preliminary Economic Assessment (PEA).
• Record of Decision (ROD): The final step in the federal environmental review process, signaling approval for a project to proceed.
• "Pay-to-Play" Permitting: A regulatory environment where the mining company is responsible for reimbursing government agencies for the costs associated with processing their permit applications.
• In-situ Material: Mineralized material remaining in the ground, categorized into oxide, transitional, and sulfide ore.
• Cut-off Grade: The minimum grade of ore required for a mining operation to be economically viable.

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1. Project Overview

Paramount Gold Nevada holds 100% interest in two primary assets:

• Grassy Mountain (Oregon): An underground gold project targeting 50,000 ounces of gold equivalent annually. It is a 750-ton-per-day operation. It is notable for being the first project to navigate the modern Oregon mining permitting regime.
• Sleeper (Nevada): A former high-grade producer from the 1980s–90s. It currently holds 3 million low-grade gold ounces and 30 million silver ounces. The company is focusing on a "startup scenario" utilizing surface material (waste dumps, old tailings, and heap leaches) totaling approximately 54 million tons, plus 90 million tons of oxide/mixed material.

2. The FAST-41 Permitting Milestone

The Grassy Mountain project was added to the FAST-41 list in May 2025.

• Impact: It created a structured timeline and increased accountability for federal agencies (BLM).
• Outcome: Despite a five-week government shutdown, the project received its Record of Decision (ROD) in January. This is a precedent-setting achievement for mining in Oregon.
• Current Status: The company is now aligning state-level permits with the federal ROD to ensure consistency.

3. Strategic Leadership and Board Expertise

The company leverages a board with diverse, high-level experience:

• Seabridge Gold Connection: Board members Rudy Fronk and Chris Reynolds provide technical and capital-market support, having developed some of the world’s largest gold projects. Seabridge acts as a long-term strategic shareholder.
• Local Expertise: Consultants Andrew Bence and Lynn Finley provide essential connections to Oregon’s local government and community stakeholders, which is critical for navigating the state’s first modern mining permit.

4. 2026 Priorities and Catalysts

• Economic Updates: Releasing an updated feasibility study for Grassy Mountain (this quarter) and an SK-1300 Initial Assessment for Sleeper (June/July).
• Exploration: Initiating an infill drill program at Sleeper to convert "inferred" resources into "measured and indicated" categories.
• Permitting: Finalizing state-level permits for Grassy Mountain. The project is viewed as a vital economic driver for Malheur County, which has a 20% poverty rate.

5. Financial Position and Valuation

• Liquidity: The company reports approximately $10 million in cash, which is sufficient to fund current studies and planned infill drilling into 2027.
• Valuation Gap: The CEO notes that the company trades at roughly 20% of its Net Asset Value (NAV) and ~$35 per ounce in the ground.
• Rationale: The market previously discounted the stock due to skepticism regarding Oregon’s ability to permit a mine. As the company de-risks the project and moves toward production, management expects this valuation gap to narrow.

6. Notable Quotes

• "It shouldn't take 29 years to permit a mine in the US... [FAST-41] shines some light, some accountability on the federal lead permitting agency." — Rachel Goldman on the necessity of regulatory reform.
• "The cheapest time to buy assets is when they're unloved and nobody can see a prospect in the future for it." — Describing the investment philosophy of their major shareholder, Seabridge Gold.

Synthesis

Paramount Gold Nevada is transitioning from a long-term permitting phase to a development-ready phase. By successfully navigating the federal FAST-41 process for Grassy Mountain and preparing to unlock value at the Sleeper property through updated economic assessments, the company is positioning itself to bridge the current valuation gap. With a strong cash position and a clear path to production, the company’s primary focus for 2026 is executing its technical studies and finalizing state-level regulatory approvals.