Paramount Gold Nevada Corp. (NYSE: PZG) announced a positive Initial Assessment for its 100%-owned Sleeper Gold Project in Humboldt County, Nevada. The study outlines a potential 17-year mine life for the former producing site. Total payable production is estimated at 1.1 million ounces of gold and 3.38 million ounces of silver.
The base case scenario uses a gold price of $3,600 per ounce. This projection indicates an after-tax net present value (NPV) of $402 million. The internal rate of return (IRR) is estimated at 44%.
An upside case assumes a gold price of $4,700 per ounce. This scenario increases the after-tax NPV to $867 million with a 66% IRR. Initial capital costs are estimated at $201 million. The base case features a payback period of 1.4 years.