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Paramount Gold Nevada’s Proposed Underground Gold Mine Project in Oregon Advances with Environmental Safeguards

Writer's picture: witan nookwitan nook

5 minute read - Published 11:00 AM EST, Thursday January 30, 2025

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


In the heart of Oregon, a significant mining project is moving forward with the proposed construction of an underground gold mine and indoor processing facility, overseen by Paramount Gold Nevada. The project, governed by stringent state regulations, aims to extract gold while ensuring environmental protection through a series of robust measures, and will mark the inception of Oregon’s first modern-day gold mine. As part of the permitting process, Paramount Gold is adhering to the Chemical Mining Rules, which are essential to ensuring safe mining operations, given the use of cyanide in processing the gold. This development represents an intersection between industrial ambition and environmental stewardship, with Oregon’s regulatory framework at the forefront of the process. This stringent permitting process may result in an attractive precedent to be set in the necessary area of sustainable mining, which can be looked to by sustainably minded miners globally.


Aerial Shot of Paramount Gold’s high-grade Grassy Mountain Gold Mine

Aerial Shot of Paramount Gold’s high-grade Grassy Mountain Gold Mine | Paramount Gold Nevada


Stringent Chemical Mining Regulations

The chemical mining process triggers specific regulatory requirements under Oregon’s Chemical Mining Rules. These rules mandate that all processed tailings from the mine be handled with the utmost care, particularly in terms of environmental safety. The tailings will be stored in a specially designed tailings disposal facility that must be lined and capped to prevent any contamination. A core element of the project’s design is ensuring there is no discharge into either groundwater or surface waters, an essential safeguard to protect local ecosystems in Malheur County in which agriculture is a substantial industry.


Upon completion of mining activities, the tailings impoundment will be permanently capped and sealed with vegetation, a necessary step to meet the rigorous environmental performance standards set by the state. These measures are part of Oregon’s broader objective to minimize environmental damage using the best available technologies.


Oversight by Multiple Agencies

Paramount Gold’s project, like all chemical mining operations in Oregon, falls under the purview of the

Department of Geology and Mineral Industries (DOGAMI), which oversees the consolidated application

process for mining permits. DOGAMI’s mission is to provide science-based regulation and to ensure mining projects contribute to Oregon’s safety and prosperity while adhering to environmental standards.


In collaboration with DOGAMI, several other state agencies are involved in ensuring compliance with

environmental regulations. The Oregon Department of Environmental Quality (DEQ), the Oregon Water

Resources Department (WRD), and Oregon Fish and Wildlife (ODFW) are key players in evaluating water and waste management plans. Additionally, depending on specific elements of the mine’s construction, permits may be required from the Department of State Lands or the Oregon Health Authority (OHA). Paramount Gold is also subject to local land-use laws, further expanding the web of regulations governing the project.


These permitting agencies work together to enforce Oregon’s environmental performance standards, which are designed to protect ecosystems while allowing for industrial development. Central to these standards is the mandate for wildlife protection, requiring Paramount Gold to implement a comprehensive wildlife protection plan. This plan will ensure that wildlife habitats are preserved and that the project adheres to the state’s zero wildlife mortality objective.


Public Engagement in the Process

Oregon’s permitting process is not only extensive but also transparent, offering multiple opportunities for

public and stakeholder engagement, which allows other miners and state agencies to observe and implement similar guidelines and processes. The public has had and will continue to have a chance to review and comment on Paramount Gold’s application and the various conditions required for the project’s approval. This transparent approach ensures that the local community and environmental groups can have a voice in shaping the final project.


A technical review team will meet on January 30 of this year to evaluate the best available practicable and

necessary technology (BAPNT) for the Grassy Mountain Gold project. The discussion, involving Paramount Gold, Calico Resources (a subsidiary of Paramount Gold) and the Oregon Department of Geology and Mineral Industries (DOGAMI), is a key step in the permitting process, which aims to ensure compliance with state regulations minimizing environmental damage. The team will assess technologies for mine construction, mill operations, tailings management, and emergency response to recommend BAPNT to DOGAMI. If no suitable technology is identified, a consolidated permit cannot be issued. The meeting, open to the public via Zoom, will run from 14:30 to 16:30 Mountain Time (16:30 to 18:30 Eastern Time), with a summary posted on DOGAMI’s website shortly thereafter.


Long Road to Permit Approval: A Decade of Preparations

The history of the project’s permitting process dates back over a decade, reflecting the complexity and the

scrutiny under which mining projects of this scale operate. Prior to Paramount Golds acquisition of Calico Resources in 2016, they initiated the process in 2012, filing a Notice of Intent (NOI) to develop the

underground mine in Malheur County. The project’s early stages were marked by efforts to collect baseline environmental data, a prerequisite for moving forward with the mine’s construction.


Between 2012 and 2017, Calico Resources submitted several updated NOIs, refining the project’s scope and

addressing environmental concerns. This period also saw the expansion of the proposed permit boundary to 1,762 acres, signalling the growing ambition behind the project. Paramount Gold Nevada’s acquisition of Calico in 2016 provided further momentum and prominence, helping to advance the project’s regulatory reviews.


However, progress was not without challenges. In February 2020, DOGAMI informed Paramount Gold that its Consolidated Permit Application (CPA) was incomplete, leading to a series of revisions and additional data collection efforts. A revised CPA was filed in December 2021, marking a significant step toward project approval. By February 2023, Paramount Gold achieved a critical milestone when the final baseline data report was accepted as complete by the Technical Review Team (TRT).



Side View of Paramount Gold’s high-grade Grassy Mountain Gold Mine

Side View of Paramount Gold’s high-grade Grassy Mountain Gold Mine | Paramount Gold Nevada


Current Status and Next Steps

Fast-forward to 2023, and the project has finally reached a key juncture. In October 2023, the TRT determined that Paramount Gold’s CPA was complete, allowing the company to file a clean version of the application incorporating all necessary changes. This achievement set the stage for the next phase of permitting. In November 2023, DOGAMI issued the Notice to Proceed (NTP), signalling formal approval to begin the final permitting stages. From this point forward, Paramount Gold will be working closely with regulatory bodies to ensure all conditions are met before construction can commence.


Balancing Industrial Development with Environmental Protection

As Paramount Gold’s underground gold mine project advances, it stands as a case study in the careful balance between industrial development and environmental preservation. Oregon’s stringent regulatory landscape ensures that while the state benefits from the economic opportunities brought by mining, its natural ecosystems remain protected.


Paramount Gold’s adherence to the state’s Chemical Mining Rules, wildlife protection plans, and the

involvement of multiple regulatory agencies, underscore the high level of oversight that accompanies projects of this magnitude. The next few months will be critical as Paramount Gold moves from the permitting phase to the eventual construction and operation of the mine, ensuring that it fulfils both its industrial ambitions and its environmental obligations.

Conclusion

The development of this underground gold mine in Malheur County is not just a major industrial project, but also a testament to Oregon’s commitment to environmental stewardship, and a substantial precedent-setting project with global implications for sustainable mining. With the current momentum behind its permitting process, Paramount Gold is nearing the point where construction can finally begin. However, the project’s success will ultimately be judged not only by the gold it extracts but also by how well it preserves the surrounding environment for future generations.


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

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