Gold Mining in Oregon: A Legacy of Economic Prosperity and a New Era of Sustainable Development

6 minute read - Published 09:00 AM EST,  Thursday,  May 15, 2025

This article was authored by witan nook. for Paramount Gold Nevada

For over a century and a half, gold mining has been a cornerstone of Oregon’s economic history, sparking growth, creating jobs, and shaping communities, particularly in the state’s rugged eastern regions amongst the Blue Mountains. From the early gold rushes of the 19th century to modern exploration efforts, the industry has left an indelible mark on Oregon’s identity. Today, Paramount Gold Nevada’s Grassy Mountain gold project in Malheur County stands poised to usher in a new chapter, promising to become Oregon’s first modern gold mine while setting a precedent for sustainable mining practices and driving economic revitalization in Eastern Oregon.

Oregon’s Primary Mining Regions | Western Mining History

A Rich History of Gold Mining in Oregon

Gold mining in Oregon began in earnest in the 1850s when prospectors flocked to the state’s southern and eastern regions, and was spurred by the attention given to the neighbouring gold rush in California. The discovery of gold in Jacksonville in 1851 ignited a rush that transformed the area into a bustling hub of commerce. Miners poured in, establishing camps that grew into towns, complete with general stores, saloons, and Assay offices. By the 1860s, the focus shifted to Eastern Oregon, where placer deposits in Baker County and hard-rock mines in the Blue Mountains fuelled a mining boom.

The economic impacts of this era were profound for the development of Oregon. Mining towns like Baker City and Sumpter became economic engines, attracting merchants, blacksmiths, and teamsters. The influx of wealth spurred infrastructure development, including roads, railways, and telegraph lines, connecting remote areas to broader markets. According to historical records, Oregon’s gold production peaked in the late 19th century, with millions of dollars’ worth of gold extracted annually, equivalent to hundreds of millions in today’s dollars. This wealth not only enriched miners but also supported ancillary industries, from agriculture to manufacturing, creating a ripple effect across the state’s economy. 

By the early 20th century, however, many of Oregon’s easily accessible deposits were depleted, and the industry waned. Small-scale operations persisted, but large-scale mining remained dormant, overshadowed by environmental concerns and stricter regulations. Despite this, the legacy of gold mining, and mining towns, endured, with Eastern Oregon’s communities retaining a cultural and economic connection to their mineral-rich past.

A lithograph of Jacksonville, Oregon in 1883

Paramount Gold Nevada’s Grassy Mountain Project: A Modern Revival

Enter Paramount Gold Nevada, a company determined to revive Oregon’s gold mining legacy with its Grassy Mountain gold project, located 22 miles south of Vale in Malheur County. Acquired through the purchase of Calico Resources in 2016, the project has progressed steadily, achieving key milestones in exploration, feasibility studies, and permitting. If approved, the Grassy Mountain gold project will be Oregon’s first modern-day gold mine, a landmark achievement in a state where modern mining has faced significant regulatory hurdles.

The project’s scope is ambitious yet carefully planned. A 2022 feasibility study projects an initial eight-year mine life, producing 47,000 ounces of gold and 55,000 ounces of silver annually from a high-grade underground deposit. With proven and probable reserves of 380,000 ounces of gold and 554,000 ounces of silver, the mine is expected to generate significant revenue, with an after-tax net present value of $114.1 million at a base-case gold price of $1750/oz.

US Units

Classification	Tons	Au (oz/ton)	Ag (oz/ton)	Au (ounces)	Ag (ounces)
Proven	259,600	0.181	0.264	47,000	68,000
Probable	1,651,900	0.202	0.294	333,000	486,000
Total Reserves	1,911,400	0.199	0.290	380,000	554,000

Metric Units

Classification	Tonnes	Au (g/T)	Ag (g/T)	Au (ounces)	Ag (ounces)
Proven	235,508	6.206	9.051	47,000	68,000
Probable	1,498,594	6.926	10.080	333,000	486,000
Total Reserves	1,734,011	6.823	9.943	380,000	554,000

Grassy Mountain Gold Project’s Mineral Resource Estimate Figures | Paramount Gold Nevada

Economic Benefits for Eastern Oregon

The economic implications of Grassy Mountain are particularly significant for Eastern Oregon, a region characterized by rural communities and limited industrial activity. The 2022 study estimates the project will employ approximately ~100 workers, with salaries totalling approximately $250 million over the mine’s life. These jobs, ranging from skilled mining roles to administrative positions, will provide stable, well-paying employment in an area where economic opportunities are scarce. Additionally, the company plans to source goods and services locally whenever possible, boosting businesses in Malheur County and beyond.

Infrastructure upgrades, including improvements to power lines and roadways, will further stimulate the local economy. The project’s ~$185 million investment, coming from initial capital expenditure, sustaining capital, and closure and reclamations costs, is expected to create a multiplier effect, supporting industries such as construction, transportation, and hospitality. For communities like Vale and Ontario, Grassy Mountain could serve as a catalyst for long-term growth, attracting new residents and businesses to the region.

At the state level, Grassy Mountain aligns with Oregon’s recognition of mining’s economic potential. In 2015, the Oregon Legislature passed House Bill 3089, directing the Department of Geology and Mineral Industries (DOGAMI) to highlight mineral resources’ importance to rural economies. The bill specifically noted Grassy Mountain, underscoring its potential to drive prosperity in Eastern Oregon. If successful, the project could pave the way for additional mining ventures, leveraging Malheur County’s known low-grade gold deposits to sustain economic development.

Grassy Mountain Gold Project Location within Oregon | Paramount Gold Nevada

Beyond its economic promise, Grassy Mountain is positioned to redefine mining in Oregon through a commitment to sustainability. Paramount Gold has prioritized environmental responsibility, incorporating best available, practicable, and necessary technologies (a standard known as “BAPNT”) to minimize ecological impacts. The project’s design includes underground mining with backfilling, a milling circuit with enclosed cyanide and carbon-in-leach recovery, cyanide destruction, and a tailings storage facility with robust reclamation plans. These measures, approved unanimously by state agencies in March 2025, reflect Paramount Gold’s dedication to balancing resource extraction with environmental stewardship.

The company’s permitting journey, one of the most rigorous in Oregon’s history, demonstrates its commitment to transparency and collaboration. Grassy Mountain became the first mining project in the state to receive a positive completeness determination from the Technical Review Team in October 2023, a milestone that advanced the project to the permit drafting phase. The Environmental Evaluation, completed by Stantec and approved by DOGAMI in October 2024, incorporated enhanced water and mine monitoring plans to safeguard wildlife and ecosystems. Paramount Gold’s successful engagement with agencies like the Oregon Department of Environmental Quality and the U.S. Bureau of Land Management has set a high standard for future projects.

Looking Ahead: Strong Support and Steady Progress

Grassy Mountain continues to make steady progress, with strong community support and key milestones ahead. While the project must still navigate potential public scrutiny to secure federal permits, momentum remains positive. The BLM, which initiated the Environmental Impact Statement (EIS) in 2024, is expected to release the draft EIS this summer, with the final EIS anticipated in the fourth quarter of 2025. These steps will provide a comprehensive evaluation of the project’s environmental footprint and offer further opportunities for public input. Community support and enthusiasm remains strong, highlighted by Malheur County’s Planning Commission approving a Conditional Use Permit in 2019 including multiple extensions, signalling recognition of the project's potential economic benefits.

For Paramount Gold, the stakes are high. CEO Rachel Goldman has emphasized the project’s alignment with rising gold prices, which recently hit record highs, enhancing its financial viability. The $15 million financing secured from Sprott Resource and Streaming Royalty Corp. in December 2023 provides the capital needed to navigate the final permitting stages, positioning Grassy Mountain to become a reality in the not too distant future.

A New Chapter for Oregon’s Gold Legacy

As Paramount Gold Nevada advances Grassy Mountain, it carries forward Oregon’s gold mining heritage while charting a path for the future. The project promises to deliver substantial economic benefits to Eastern Oregon, creating jobs, stimulating local businesses, and upgrading infrastructure. By prioritizing sustainable practices and rigorous permitting, Paramount Gold is setting a precedent for modern mining that could inspire similar ventures across the state.

For communities in Malheur County, Grassy Mountain represents more than a mine - it’s a beacon of hope for economic revitalization. As Oregon stands on the cusp of a new gold rush, the lessons of the past and the innovations of the present converge, offering a model for how mining can coexist with environmental responsibility and community prosperity.

This article was authored by witan nook. and paid for by Paramount Gold Nevada in American dollars