BLM Approves Paramount Gold's Grassy Mountain Plan of Operations; State Permits Still Pending

en.Wedoany.com Reported - On September 2, Paramount Gold Nevada Corp. announced that the U.S. Bureau of Land Management (BLM) has completed its review under the National Environmental Policy Act and approved the Plan of Operations for the Grassy Mountain gold-silver project in Oregon. The BLM also completed its review of the cost estimate for the project's 2026 reclamation plan, confirming that the estimate is sufficient to cover the reclamation obligations anticipated under the current mine plan.

Under a Memorandum of Understanding between the BLM and the Oregon Department of Geology and Mineral Industries (DOGAMI), the two agencies will jointly hold the project's financial assurance to satisfy both federal and state reclamation bonding requirements. Paramount Gold must post the financial assurance prior to construction; once the bond is in place, the BLM will issue a formal Decision Record and a final Notice to Proceed for the approved Plan of Operations. The company plans to complete the bonding after making a construction decision.

The federal environmental review for Grassy Mountain was previously completed on January 29, when the BLM signed the Final Environmental Impact Statement and Record of Decision (ROD), approving the development of an underground gold-silver mine approximately 22 miles south of Vale in Malheur County, Oregon. The federal plan covers 469 acres of public land and includes an underground mine, a dedicated processing plant, storage facilities, and certain road upgrades; the BLM documents schedule the project over approximately 10 years of mining and ore processing activities, followed by 4 years of reclamation and 20 years of monitoring.

State permits remain in the final approval stage. DOGAMI and relevant state agencies issued a consolidated draft permit package in December 2025, covering mining operations, air emissions, water pollution control, industrial stormwater, public water use, and tailings dam permits, with the public comment period having closed on February 6, 2026. The state draft explicitly states that no surface disturbance or construction activities may occur until final permits are issued; Paramount Gold currently expects final state permits to be completed within 2026.

Paramount Gold completed an updated feasibility study for Grassy Mountain in May. The project plan employs underground mining with an initial mine life of 9.3 years, producing an average of approximately 41,400 ounces of gold and 51,500 ounces of silver per year, with cumulative gold recovery estimated at 385,800 ounces at an average recovery rate of approximately 93%. Proven and probable gold reserves total 405,000 ounces, corresponding to approximately 2.002 million tonnes of ore at an average gold grade of 6.29 grams per tonne; measured and indicated gold resources, including reserves, total approximately 1.36 million ounces.

The 2026 feasibility study, based on $3,600 per ounce gold and $48 per ounce silver, estimates initial capital expenditures of approximately $189.8 million and sustaining capital of approximately $65.1 million; after-tax net present value at a 5% discount rate is $374.7 million, with an after-tax internal rate of return of 38.9% and a payback period of approximately 2.2 years. The project is designed to produce an average of approximately 41,400 ounces of gold per year, with mine life extended to 9.3 years from 7.8 years in the 2022 feasibility study.

Grassy Mountain is controlled by Calico Resources USA Corp., a wholly owned subsidiary of Paramount Gold. The project's consolidated state permitting process is led by DOGAMI, with the Oregon Department of Environmental Quality responsible for permit reviews covering air quality, water pollution control, and industrial stormwater. Subsequent construction milestones still include issuance of final state permits, the company's construction decision, posting of reclamation financial assurance, and issuance of the BLM's final Notice to Proceed.