Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX:
PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ("Paramount") announced today
that assay results from 14 new core and reverse circulation drill
holes at its 100% owned Sleeper Gold Mine Project in Nevada have
likely expanded the project`s resources and enhanced its economic
potential. A new NI 43-101 compliant resource estimate will now be
prepared incorporating all available data. Completion of the
resource estimate is expected in June, 2011.
FACILITIES TARGET
Drill testing of the Facilities Target was designed to off-set
previously drilled gold intersections in order to establish
projected extensions of the mineralized structures in this zone. A
total of nine holes were completed, all of which encountered
mineralized intervals.
Paramount`s interpretation is that several of these
intersections, in conjunction with previous drilling, will show
continuity of structures within the Facilities Target zone,
enabling the calculation of additional resources. All of these
intersections are also likely to reduce the-ore-to-waste ratio
within the Facilities Target. The full impact of these results will
not be known until the current resource model is modified to
incorporate these new data.
Facilities Target Drill Results
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Hole ID Total Depth From To Width Au g/t Ag g/t
(meters) (meters) (meters) (meters)
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PGC-11-006 262.0 117.4 122.0 4.6 0.56 less
than DL
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----------------------------------------------------------------------------
PGR-10-005 300.4 44.2 47.3 3.1 1.31 5.6
----------------------------------------------------------------------------
106.7 109.8 3.1 0.71 5.1
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147.9 154.0 6.1 0.58 1.5
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186.0 189.1 3.1 1.11 1.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-10-006 330.9 82.3 85.4 3.1 0.88 less
than DL
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140.3 144.9 4.6 1.33 4.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-10-007 359.9 208.9 213.5 4.6 1.03 0.9
----------------------------------------------------------------------------
301.9 314.2 12.3 0.73 9.2
----------------------------------------------------------------------------
340.0 343.1 3.1 1.22 5.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-10-008 300.4 10.7 15.3 4.6 0.71 5.8
----------------------------------------------------------------------------
103.7 106.8 3.1 0.73 4.6
----------------------------------------------------------------------------
184.5 192.2 7.7 0.87 4.4
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218.1 224.2 6.1 0.87 6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-10-009 170.8 38.1 45.8 7.7 1.47 13.6
----------------------------------------------------------------------------
83.8 86.9 3.1 0.64 7.3
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91.5 100.7 9.2 0.53 6.3
----------------------------------------------------------------------------
108.2 114.3 6.1 0.88 10.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-10-010 329.4 0 7.7 7.7 0.61 4.9
----------------------------------------------------------------------------
59.4 74.7 15.3 0.86 1.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-11-011 286.7 265.3 268.4 3.1 0.83 66.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PGR-11-012 256.2 85.3 93.0 7.7 0.73 9.4
----------------------------------------------------------------------------
97.6 100.7 3.1 0.57 12.5
----------------------------------------------------------------------------
The reported drill intercepts above are believed to represent
true widths. Grades are similar to those mined profitably at the
original Sleeper open pit mine which was operated by AMAX Gold from
1986 to 1996, producing 1.7 million ounces of gold and 2.3 million
ounces of silver.
The current NI 43-101 compliant resource estimate for the
Facilities Target at a 0.40 g/t Au cut-off is as follows:
----------------------------------------------------------------
Indicated
----------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces Ag Ounces
(000) (000)
----------------------------------------------------------------
10,000 0.69 7.8 220 2,500
----------------------------------------------------------------
--------------------------------------------------------------------------
Inferred
--------------------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
--------------------------------------------------------------------------
19,600 0.60 6.7 370 4,200
--------------------------------------------------------------------------
WEST WOOD TARGET
As reported by Paramount in its news release of February 15,
2011, the first four holes on the West Wood target successfully
verified the current resource model, likely upgrading resource
categories and increasing overall resource size. An additional five
drill holes were designed to test the north extension of the West
Wood target. Although anomalous gold and silver values were noted,
no strongly mineralized intervals were encountered in these drill
holes (PGC-10-1 through 5). However, the evidence clearly suggests
that drilling for a northern extension should continue.
Current and historical drill results in the West Wood target
have established a systematic sequence of lithology and alteration
surrounding a brecciated structural zone that is host to the
precious metal concentrations at West Wood. The altered rock in
this zone is characteristic of high fluid flow, both within and
adjacent to the breccias, which was likely responsible for both the
alteration and carried the precious metals that were deposited
there. Although only anomalous values were encountered in these
step-out holes north of the West Wood target, the same
characteristic lithologies and alteration sequence were discovered,
suggesting that the same fluid flows were present. Paramount`s
conclusion is that the West Wood structural feature continues to
hold potential to the north of the existing resource. This
potential is either off-set to a deeper structural position or may
be farther to the north where known changes in the orientation of
the feature may have created dilatational zones suitable for
deposition of precious metals carried by the fluids.
The current NI 43-101 compliant resource estimate for the West
Wood target at a 0.4g/t Au cut-off is as follows:
--------------------------------------------------------------------------
Indicated
--------------------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
--------------------------------------------------------------------------
16,960 0.98 4.6 530 2,500
--------------------------------------------------------------------------
-----------------------------------------------------------------------
Inferred
-----------------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
-----------------------------------------------------------------------
390 0.56 2.3 10 30
-----------------------------------------------------------------------
The total combined current NI 43-101 resource at Sleeper at a
0.4 g/t Au cut off is as follows:
-------------------------------------------------------------------------
Indicated
-------------------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
-------------------------------------------------------------------------
26,960 0.87 5.8 760 5,000
-------------------------------------------------------------------------
-----------------------------------------------------------------------
Inferred
-----------------------------------------------------------------------
Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
-----------------------------------------------------------------------
19,990 0.60 6.6 390 4,300
-----------------------------------------------------------------------
Note: Differences are due to rounding
Commenting on the drill program, Paramount CEO Christopher Crupi
said that "the key result here is that we are now in a position to
complete a new resource estimate of the mineralized area which
should significantly enhance the value of our Sleeper Project and
provide a sound basis for the preparation of a Preliminary Economic
Assessment. We expect to demonstrate that Sleeper is one of
Nevada`s premier non-producing gold assets held by a junior
company."
This news release has been reviewed by Glen van Treek, a Vice
President of the Company, and William Threlkeld, a Qualified Person
pursuant to National Instrument 43-101. Although Paramount Gold is
a U.S. domiciled corporation and a full SEC registrant, Paramount
reports its mineral resources according to the Canadian standard
known as National Instrument 43-101 to facilitate comparison with
other similar companies that trade on the TSX.
Cautionary Note to U.S. Investors Concerning Estimates of
Indicated and Inferred Resources:
This news release uses the terms "indicated resources" and
"inferred resources". We advise U.S. investors that while these
terms are defined in, and permitted by, Canadian regulations, these
terms are not defined terms under SEC Industry Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of a feasibility
study or prefeasibility studies, except in rare cases. The SEC
normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant "reserves", as
in-place tonnage and grade without reference to unit measures. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into
reserves. U.S. investors are cautioned not to assume that any part
or all of an inferred resource exists or is economically or legally
minable.
Safe Harbor for Forward-Looking Statements:
This release and related documents may include "forward-looking
statements" including, but not limited to, statements related to
the interpretation of drilling results and potential
mineralization, future exploration work at the Sleeper Gold Mine
Project and the expected results of this work. Forward-looking
statements are statements that are not historical fact and are
subject to a variety of risks and uncertainties which could cause
actual events to differ materially from those reflected in the
forward-looking statements including fluctuations in the price of
gold, inability to complete drill programs on time and on budget,
and future financing ability. Paramount's future expectations,
beliefs, goals, plans or prospects constitute forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and other applicable
securities laws. Words such as "believes," "plans," "anticipates,"
"expects," "estimates" and similar expressions should also be
considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to
differ materially from those indicated by such forward-looking
statements, including, but not limited to: uncertainties involving
interpretation of drilling results, environmental matters, lack of
ability to obtain required permitting, equipment breakdown or
disruptions, and the other factors described in Paramount's Annual
Report on Form 10-K for the year ended June 30, 2010 and its most
recent quarterly reports filed with the SEC available on
www.sec.gov and applicable Canadian securities regulators available
on www.sedar.com and X-Cal's filings with the applicable Canadian
securities regulators available on www.sedar.com.
Except as required by applicable law, Paramount disclaims any
intention or obligation to update any forward-looking statements as
a result of developments occurring after the date of this
document.
Contacts: Paramount Gold and Silver Corp. Christopher Crupi, CEO
Chris Theodossiou, Investor Relations 866-481-2233 /
613-226-9881
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