Paramount Gold Announces Positive Drill Results From Sleeper Gold Project in Nevada
February 15 2011 - 7:45AM
Marketwired
Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX:
PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ("Paramount") announced today
assay results from the first four core holes drilled on the West
Wood target at its 100% owned Sleeper Gold Mine Project in Nevada
have returned gold values consistent with past production from the
project and confirmed the resource model developed by the previous
owner. Assay results from a further 14 holes completed at the
Sleeper project are expected shortly.
In September, 2010 Paramount announced a $3 million exploration
program designed to expand and upgrade resources at the Sleeper
project. The exploration program had three main objectives, they
were: (1) definition drilling to up-grade resources at the West
Wood deposit and prepare it for a Preliminary Assessment (`PA`) of
its economic potential; (2) delineation drilling to expand and
evaluate resources at the Facilities deposit for possible inclusion
in the PA; and (3) drill evaluation of up to six new priority
targets on the property identified by Paramount's geological team.
(See property map for targets -
http://www.paramountgold.com/_docs/sleepertargetmap0913.pdf).
Paramount CEO Christopher Crupi noted, "The evidence from the
drill program suggests that we are likely to have success upgrading
inferred resources to higher categories and increasing the overall
size of the West Wood deposit. The first four holes targeted
distinct gaps between previous drilling. All four intercepted good
grades over excellent widths as predicted by the resource model. We
can now proceed with the resource model provided by the previous
owner with confidence. In addition, we encountered mineralized
intervals in the hanging wall which provide evidence of continuity
for several of these adjacent zones, likely enabling them to be
classified as resources." (See cross-section -
http://paramountgold.com/_docs/sleeperWWSections.pdf).
Results from the four holes are as follows:
--------------------------------------------------------------------------
Total Thickness
Hole ID Depth (m) From (m) To (m) (m) Au g/T Ag g/T
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PGC-10-001 351.7 116.8 120.5 3.7 5.32 NA
--------------------------------------------------------------------------
124.4 132.1 7.6 3.04 NA
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147.3 161.0 13.7 0.73 NA
--------------------------------------------------------------------------
167.1 170.2 3.1 1.29 2.5
--------------------------------------------------------------------------
174.8 179.3 4.6 0.89 1.2
--------------------------------------------------------------------------
183.9 189.3 5.3 1.75 NA
--------------------------------------------------------------------------
203.7 209.8 6.1 1.31 4.0
--------------------------------------------------------------------------
219.0 252.5 33.6 1.52 4.0
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275.4 280.0 4.6 0.59 3.0
--------------------------------------------------------------------------
284.6 290.7 6.1 1.35 6.8
--------------------------------------------------------------------------
301.3 305.9 4.6 0.52 1.2
--------------------------------------------------------------------------
--------------------------------------------------------------------------
PGC-10-002 230.9 91.2 98.8 7.6 0.85 NA
--------------------------------------------------------------------------
103.5 132.4 28.9 0.95 1.0
--------------------------------------------------------------------------
170.5 173.5 3.1 0.89 1.9
--------------------------------------------------------------------------
181.0 185.3 4.2 1.28 1.4
--------------------------------------------------------------------------
188.8 230.9 TD 42.1 2.72 13.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
PGC-10-003 335.8 168.7 171.7 3.1 0.84 NA
--------------------------------------------------------------------------
191.5 196.1 4.6 1.02 NA
--------------------------------------------------------------------------
209.8 240.3 30.5 1.57 1.1
--------------------------------------------------------------------------
258.6 275.1 16.5 1.00 2.5
--------------------------------------------------------------------------
283.3 290.7 7.3 0.76 2.4
--------------------------------------------------------------------------
298.0 302.6 4.6 0.68 0.4
--------------------------------------------------------------------------
313.5 329.2 15.7 0.73 2.6
--------------------------------------------------------------------------
--------------------------------------------------------------------------
PGC-10-004 219.0 145.8 150.4 4.6 0.88 NA
--------------------------------------------------------------------------
183.9 205.3 21.4 0.63 13.2
--------------------------------------------------------------------------
215.9 219.0 3.1 1.73 3.2
--------------------------------------------------------------------------
West Wood Vein Target
The West Wood target is on the southwest corner of the Sleeper
Pit and has been extensively drilled to reveal a high grade core
zone surrounded by lower grade gold concentrations. With
characteristics similar to the original Sleeper deposit, this
target has NI 43-101 compliant estimated resources of:
-- Indicated Resources of 16.96 million tonnes grading 0.98g/t of gold and
4.6g/t of silver containing 530,000 ounces of gold and 2.5 million
ounces of silver at a 0.4g/t Au cutoff;
-- Inferred Resources of 390,000 tonnes grading 0.56g/t of gold and 2.3g/t
of silver containing 10,000 ounces of gold and 30,000 ounces of silver
at a 0.4g/t Au cutoff.
Six core holes totaling 1,705 meters, and three reverse
circulation holes totaling 957 meters have been completed on the
West Wood target. Drilling was conducted to determine the northern
limits of the West Wood target and to upgrade resources. This work
also obtained sample material for metallurgical testing and
geotechnical information for conceptual pit planning to enable
basic processing and engineering studies required for a PA. The
southern limit of the West Wood target remains open under the
historical waste dump and will be evaluated in the coming months in
conjunction with evaluating the gold-bearing potential of the
substantial amount of waste material from the former mine. Further
results are expected shortly.
Facilities Target Area
The Facilities Target is on the eastern side of the Sleeper pit
and is a broad area of continuous lower grade gold-bearing
material. Several drill holes by previous operators encountered
bonanza grade intersections but the drill spacing was too wide to
define the extent and distribution of the higher grade material. It
is anticipated that defining the limits of the higher grade
intervals in the Facilities Target should have a positive effect on
the grade of this resource. The current NI 43-101 resource estimate
is the following:
-- Indicated Resources of 10 million tonnes grading 0.69g/t of gold and
7.8g/t of silver containing 220,000 ounces of gold and 2.5 million
ounces of silver at a 0.4g/t Au cutoff;
-- Inferred Resources of 19.6 million tonnes grading 0.60g/t of gold and
6.7 g/t of silver containing 370,000 ounces of gold and 4.2 million
ounces of silver at a 0.4g/t Au cutoff.
A program of eight reverse circulation drill holes totaling
2,330 meters, and one core hole of 261.8 meters was completed on
the Facilities Target. These holes were designed to evaluate the
continuity of existing bonanza-grade intersections. Results are
expected shortly.
New Targets
Results from work at West Wood and Facilities have identified
several new targets not previously considered. Ongoing work is
dedicated to prioritizing other targets for drill testing.
Originally, a drill campaign of approximately 1,250 meters was
established for these target tests, however, the size and depth of
identified targets may require expansion of this program.
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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