Paramount Gold Nevada (NYSEAMERICAN:PZG) has received approval from the US Bureau of Land Management (BLM) for operations at its Grassy Mountain Gold Project in Oregon, effectively completing the project’s federal permitting process.
The project covers an 8,200-acre land package in Malheur County and is expected to become Oregon’s first modern gold mining operation.
According to a Feasibility Study published this year, the proposed underground mine is expected to produce an average of 41,400 ounces of gold and 51,500 ounces of silver annually over an initial 9.3-year mine life.
Paramount previously secured a positive Record of Decision and Final Environmental Impact Statement for Grassy Mountain and is now working through the final stages of state permitting.
The project has also received local support, including a conditional use permit that has been extended through 2027.
Federal permitting effectively complete
On 2 September, the BLM approved Paramount’s Plan of Operations after completing the required review under the National Environmental Policy Act (US).
The agency also agreed that the reclamation cost estimate outlined in the project’s February Reclamation Plan is adequate to cover anticipated reclamation obligations under the current mine plan.
Under a memorandum of understanding, the BLM and the Oregon Department of Geology and Mineral Industries will jointly hold the project’s financial guarantee, which Paramount says will streamline the process and reduce duplicative bonding requirements.
Posting the financial guarantee, which is planned before construction begins, will trigger an official Decision Letter and the final Notice to Proceed.
“With the approval of the Plan of Operations and concurrence on the financial bonding requirement for reclamation, our federal permitting work is functionally complete,” Paramount CEO Rachel Goldman said.
“We now have the visibility and the flexibility to continue to sequence further development work at Grassy Mountain and post the bond ahead of groundbreaking on the project.”
Eastern Oregon gold potential
Grassy Mountain sits in eastern Oregon, a region attracting exploration interest for its potential to host epithermal and orogenic gold systems that have seen relatively limited large-scale modern mining.
Directly north of Grassy Mountain is the Eldorado Project, a district-scale property being explored by Provenance Gold (CSE:PAU).
With federal permitting now out of the way, Paramount’s focus shifts to securing its remaining state approvals, which it expects this year, before making a construction decision.
Write to Jackson Chen at Mining.com.au
Images: Paramount Gold Nevada
