Paramount Nevada - Strategy

Paramount Gold Nevada is a U.S. domiciled and U.S. listed company in the business of acquiring, exploring and developing precious metals projects in the United States of America. We own projects where our expertise can add measurable value as we believe that is what will ultimately drive the market value of our assets.

As we continuously strive to manage risks and crystalize value for our stockholders, we will look to either:

sell assets to established producers;
enter joint ventures with established producers for construction and operation; or
construct and operate mines for our own account under appropriate market conditions.

We expect select States in the U.S. will continue to be ranked as top mining jurisdictions on a global basis, hence providing Paramount the opportunity to continue to grow attributable domestic gold exposure for our stockholders. The Company’s philosophy is to provide our stockholders with exposure to high quality, yet overlooked, advanced stage U.S. gold assets, while reducing many of the risks inherent to junior mining companies.

History

Paramount Gold Nevada Corp. (NYSE American: PZG) was spun out as a separate entity post the acquisition of the predecessor company Paramount Gold and Silver Corp. by Coeur Mining in 2015 in an all-stock transaction worth ~$200M. Our current team at PZG oversaw the development and de-risking of the San Miguel property in Mexico from the company’s initial listing in 2005 at a sub $20mm market cap, through multiple drill programs, strategic land acquisitions, resource estimates and a PEA.

Risk Mitigation

One of the ways Paramount seeks to mitigate risks is through disciplined, low upfront acquisition costs. Our flagship Grassy Mountain project was acquired in an all-stock transaction in 2016 for a total purchase price of ~$17M or for ~$15/oz.

PZG does not take on projects with significant technical risks such as acquiring prospects in environmentally sensitive areas or projects with known metallurgical issues.

Creating Value

We are methodical in our evaluation and analysis of assets prior to sinking capital into drilling or development work, and we are committed to creating value by advancing our assets through development at the appropriate time. We acquire known deposits that we believe can be expanded by targeted, cost-effective exploration or by unlocking a hidden value contained in the exploration data and not yet realized in the project. Our Sleeper property in Nevada was initially acquired in 2010 with less than 1M ounces of Gold in the indicated category, and has been advanced through drill programs, metallurgical work, strategic claims acquisitions, and a PEA in 2015 built on an expanded resource base of over 3M ounces.

PZG believes the key factors to evaluate when analyzing projects for development include:

proximity to Infrastructure;
proximity to other operating mines;
upside exploration potential to increase mineral inventory;
high grades to minimize projected operational cost per ounce, or potential for high grade discoveries through exploration;
good potential economic outcome in low metal price environments; and
good metallurgical recoveries to have a simple and proven process for gold and silver extraction.