What changed in this filing

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Item 2. Properties

2021-09-17 compared with 2020-09-25 · 41 added, 13 removed, 223 unchanged (19% of the section changed)

14 unchanged sentences

Sleeper Gold Mine

South Sleeper

The following map illustrates the general location of the Sleeper Gold Project and the associated mining claims:

2 unchanged sentences

Franco-Nevada U.S.

Corporation (“Franco”), holds a two percent (2%) net smelter return royalty on minerals produced from the 2,322 mining claims at the Sleeper Gold Project.

Corporation (“Franco”), holds a two percent (2%) net smelter return royalty on minerals produced from 2,474 mining claims at the Sleeper Gold Project.

The following map illustrates the claims subject to the royalty:

45 unchanged sentences

The life of mine average cash operating expenses are estimated to be $529 per equivalent gold ounce produced and the total life of mine capital requirements are estimated to be $258.8 Million.

This PEA is preliminary in nature and should not be considered to be a pre-feasibility or feasibility study, as the economics and technical viability of the Sleeper Gold Project have not been demonstrated at this time.

The PEA is preliminary in nature and should not be considered to be a pre-feasibility or feasibility study, as the economics and technical viability of the Sleeper Gold Project have not been demonstrated at this time.

Therefore, there can be no certainty that the estimates contained in the PEA will be realized.

In April, 2021, we purchased 152 unpatented lode claims from South Sleeper Resources LLC for a total consideration of $365,441.

The claims are located approximately 2 miles south of past producing Sleeper Gold Mine.

The purchased claims carry a mineral production royalty based on a Net Smelter Returns (“NSR”) of one percent (1%).

The purchased claims are without known mineral reserves.

Geology and Mineralization

7 unchanged sentences

Post – alluvial gold-silver deposits in Pliocene gravels.

Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the BLM and the Nevada State Department of Environmental Protection.

Under the filed BLM Plan of Operations (“PoO”) and reclamation permit a surety bond in the amount of $4,010,403 has been posted as financial security to ensure that required reclamation activities are fulfilled.

The surety bond for the Sleeper mine reclamation activities forms a part of the Company’s comprehensive insurance program.

The insurance policy, which is in effect until 2033, covers reclamation costs up to an aggregate of $25 million.

The Company periodically submits updates to its Reclamation Cost Estimate (“RCE”) to the BLM to account for completed reclamation work or new reclamation requirements.

As of September 2020, the Company’s RCE submitted in October 2019 was accepted by the BLM and the posted surety bond was deemed sufficient.

The Company expects to file a revised RCE in the second half of 2021 with the BLM.

The revised RCE will incorporate the significant reclamation work that has been completed by the Company over the past several years.

In addition to the BLM reclamation requirements, the Company is required to satisfy the State of Nevada’s reclamation requirements under various permits it holds for the Sleeper Gold Project.

Grassy Mountain Gold Project

58 unchanged sentences

the results of the 2011 exploration work, and subsequent supporting geophysical surveys were completed in March, 2012.

On February 5, 2013, Calico exercised its option to acquire a 100% interest in the Grassy M ountain Project from Seabridge.

On February 5, 2013, Calico exercised its option to acquire a 100% interest in the Grassy Mountain Project from Seabridge.

A mineralized material estimate was prepared by Hardrock Consulting Inc.

7 unchanged sentences

The drill program is a key component of its NI 43-101 Pre-Feasibility Study (“PFS”) that the Company began in August 2016.

Drilling was commenced in late November and was completed in the Company’s fourth quarter.

Drilling was commenced in late November 2016 and was completed in June 2016..

In May 2018, we released the results of a new PFS for our Grassy Mountain Project in Oregon.

9 unchanged sentences

Therefore, there can be no certainty that the estimates contained in the PFS will be realized.

In November 2019, Paramount submitted its Consolidated Permit Application (“CPA”) to DOGAMI to enable the Company to build and operate its proposed, high grade underground gold mine located in Malheur County of eastern Oregon.

The Application was reviewed by the DOGAMI and cooperating agencies for completeness.

1 unchanged sentence

Paramount, the DOGAMI and the permitting agencies will continue to work together to discuss the additional information requested, ensuring the submission of a complete modified CPA which will trigger the 225 day maximum permit evaluation process, upon which draft permits are issued.

The NI 43-101 Feasibility Study for the Grassy Mountain Project is well underway and being led by Ausenco Engineering Canada Inc.

In February 2020, the Company submitted a revised Plan of Operation (the ”POO”) to the Federal Bureau of Land Management (“ BLM ”) outlining the Company’s plans to build and operate the proposed Grassy Mountain underground gold mine located in Malheur County, eastern Oregon.

In February 2020, the Company submitted a revised Plan of Operation (the ”PoO”) to the Federal Bureau of Land Management (“ BLM ”) outlining the Company’s plans to build and operate the proposed Grassy Mountain underground gold mine.

The BLM has reviewed the PoO for completeness and has provided the Company with comments to address.

2 unchanged sentences

The Notice initiates the Environmental Impact Statement (“ EIS ”) process under the National Environmental Policy Act.

In July 2020, the Company announced that the Oregon Water Resource Department (“OWRD”) had reviewed and approved the plans and specifications for the tailings dam proposed for the Grassy Mountain mine and stated that from a safety perspective the plans are construction ready.

The OWRD reviewed the data within the Consolidated Permit Application which Paramount submitted in November 2019 and which included all tailings design drawings, safety analysis, field data collected and laboratory testing.

The OWRD and its engineering team are required to review and evaluate the data and design, classify the hazard level (high, significant, or low hazard rating) and evaluate readiness for construction from a dam safety perspective.

Considering the project’s remote geographic location, low population density, arid nature with no rivers or permanent streams in close proximity, seismic analysis and all other data compiled, OWRD has rated the dam as low hazard, its lowest risk level.

The approval for construction is valid for 5 years with extensions possible on request.

In September 2020, we announced the results of a Canadian NI 43-101 Feasibility Study (“FS”) for our Grassy Mountain Project.

The FS was completed by a group of industry leading consulting firms led by Ausenco Engineering Canada Inc.

(“Ausenco”) who managed the overall study and were responsible for processing and infrastructure design and oversaw metallurgical testing;

Mine Development Associates (“MDA”) who updated the mineral resource estimate and completed the mine planning and reserves estimation;

Golder Associates designed the tailings storage facility;

and EM Strategies oversaw the environmental aspects of the FS.

This mining scenario in the FS results in an average annual production of 47,000 ounces of gold and 55,000 ounces of silver for eight years.

The metal prices used for the economic analysis includes $1,472 per ounce of gold sold and $16.64 per ounce of silver sold.

The life of mine average cash operating costs are estimated to be $583 per gold ounce including silver revenues as by product credit and the total initial capital requirements are estimated to be $97.5 million resulting in a net present value of $105 million using a 5% discount rate.

There can be no assurance that the foregoing scenario can be achieved, or if achieved, that it would generate the anticipated economic return.

In October, 2020, we filed the completed FS on SEDAR as required by Canadian securities laws.

Geology and Mineralization

2 unchanged sentences

the buried cratonic margin, the northern Basin and Range, and the Snake River Plain.

During the mid-Miocene caldera volcanism occurred in the shallow crust throughout the

region, predominately ash-flow sheets and rhyolite tuff cones.

During the mid-Miocene caldera volcanism occurred in the shallow crust throughout the region, predominately ash-flow sheets and rhyolite tuff cones.

The resulting regional stratigraphic section is a thick sequence of mid-Miocene volcanic rocks and coeval-to-Pliocene age non-marine lacustrine, volcaniclastic, and fluvial sedimentary rocks.

42 unchanged sentences

Clast-supported breccias contain sub-rounded to sub-angular sand to boulder-sized clasts of silicified arkose and siltstone in a jarosite-sericite clay matrix.

The Grassy Mountain deposit has a trace element signature that includes low levels of As, Sb, and Hg.

The Grassy Mountain deposit has a trace element signature that includes low levels of arsenic, antimony, and mercury.

Other Non-Material Properties

1 unchanged sentence

The Mill Creek property which comprises 36 unpatented lode mining claims are located in Lander County.

The Company intends to maintain the annual mining claim fees of approximately $7,000 for these claims and is actively marketing them for sale to interested third parties.

The Company intends to maintain the annual mining claim fees of approximately $7,000 for these claims.

The Mill Creek claims are without known mineral reserves and there is no current exploratory work being performed.

1 unchanged sentence

Paramount will make annual lease payments to Cryla and following year three of the agreement, Paramount has the right to purchase the claims for a cash payment of $560,000.

If purchased, Cryla will maintain a production Net Smelter Royalty (“NSR”) based on the prevailing price of gold.

If purchased, Cryla will maintain a production NSR based on the prevailing price of gold.

Paramount has the right to reduce the NSR from 2% to 1% for a payment of $800,000.

3 unchanged sentences

Legal Proceedings.

Mine Safety Disclosures.

Mine Saf ety Disclosures.

Not applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties