Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURt:P6G)(WKN:A0HGKQ) ("Paramount")
announced today assay results from the final four holes drilled
during the recently completed program at its 100%-owned Sleeper
Gold Project in Nevada. These core holes targeted the Facilities
zone, the newly discovered PAD zone, an extension to the West Wood
vein zone and a new exploration target approximately 1 km southeast
of the Sleeper pit.
Hole PGC-11-012 drilled into the Facilities zone intersected
17.3 meters grading 0.925 g/T of gold and 6.2 g/T of silver. This
intercept is likely to increase and upgrade resources in the
Facilities zone. Hole PGC-11-014 drilled into an extension of the
Wood Vein on the western edge of the Sleeper Pit intersected 17.4
meters grading 2.73 g/T of gold and 4.3 g/T of silver. This
excellent high-grade intercept extends the Wood Vein zone towards
the west which is expected to increase resources in this area. Hole
PGC-11-013 into the PAD zone returned eight intercepts above the
resource cut-off grade.
These drill holes were not incorporated in the new updated
resource estimates completed by SRK Consulting (www.SRK.com) and
recently filed on SEDAR (see below).
Assays for these four drill holes are as follow:
----------------------------------------------------------------------------
From To Interval Au Ag
Hole ID Area (m) (m) (m) g/T g/T
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PGC-11-012 Facilities
zone 45.20 46.40 1.20 0.585 5.3
54.50 57.60 3.10 0.276 3.2
67.00 69.00 2.00 0.269 6.4
72.55 74.00 1.45 0.810 5.0
96.50 101.00 4.50 0.249 0.9
106.50 108.30 1.80 0.826 2.9
129.00 131.70 2.70 0.670 1.3
138.50 155.80 17.30 0.925 6.2
158.70 162.00 3.30 0.497 6.3
168.30 175.50 7.20 0.488 1.6
218.30 220.00 1.70 0.282 3.4
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PGC-11-013 PAD
discovery
zone 126.00 130.00 4.00 0.282 0.6
153.50 155.75 2.25 1.230 1.8
162.15 166.00 3.85 0.437 0.8
166.00 168.00 2.00 0.502 1.2
177.30 179.40 2.10 0.290 1.2
200.00 202.00 2.00 0.255 1.2
206.00 208.00 2.00 0.261 1.5
212.00 214.00 2.00 0.253 1.5
----------------------------------------------------------------------------
PGC-11-014 Wood Vein
Extension 47.24 56.39 9.14 1.242 0.7
including 50.29 51.82 1.52 5.320 0.3
81.50 82.90 1.40 0.255 0.3
134.40 136.00 1.60 0.384 0.3
139.00 141.00 2.00 0.309 0.6
145.00 162.40 17.40 2.725 4.3
including 146.50 152.70 6.20 6.794 7.5
169.00 171.00 2.00 0.258 0.3
179.00 183.00 4.00 0.466 0.3
187.00 189.00 2.00 0.377 0.3
210.00 216.00 6.00 0.268 1.0
224.00 226.00 2.00 0.423 0.7
242.20 246.00 3.80 0.304 1.0
327.20 332.23 5.03 0.368 7.8
----------------------------------------------------------------------------
PGC-11-015 Southeast no
Exploration significant
Target results
----------------------------------------------------------------------------
The orientation of these drill holes was designed to intercept
the structural features at right angles so as to provide a close
approximation of true width.
Paramount Gold will now start refining an exploration program
for 2012. The objectives of this program are: (1) infill drilling
to upgrade inferred resources: (2) resource delineation for the
newly recognized PAD zone, and; (3) exploring new targets.
Christopher Crupi, Paramount`s CEO, commented that "drilling the
Sleeper project continues to be highly rewarding. We have had
considerable success expanding resources in the immediate area of
the old pit and we will continue with this focus. We have also
learned a great deal from our first drill programs and we now
intend to take this knowledge further afield to explore a number of
new targets in 2012."
The Sleeper Gold Project is located off a main highway about 25
miles from the town of Winnemucca, Nevada. Acquired by Paramount in
2010, the 49.6 square mile project area includes the original
Sleeper high-grade open pit mine operated by Amax Gold from 1986 to
1996 as well as newly purchased claims stretching south down trend
to Newmont`s Sandman project.
The current work program at Sleeper is consistent with
Paramount's strategy of expanding and upgrading known, large-scale
precious metal occurrences in established mining camps, defining
their economic potential and then partnering them with nearby
producers. As a former high-grade gold producer, Sleeper is ideally
located near established, low cost production in Nevada, where the
infrastructure already exists for early, cost-effective
exploitation. Tetra Tech (www.TetraTech.com), a leading
international mining consulting firm, has been engaged to prepare
an NI 43-101 compliant Preliminary Economic Assessment (PEA) of the
Sleeper gold project for completion in early 2012.
The Sleeper property is emerging as one of Nevada's largest new
undeveloped gold projects, containing an in situ measured and
indicated resource of 2.6 million ounces of gold and 25.3 million
ounces of silver and an additional inferred resource of 1.1 million
ounces of gold and 8.2 million ounces of silver (see table below
and Paramount news release of September 13, 2011).
Sleeper Resource Table
----------------------------------------------------------------------------
MEASURED AND INDICATED
----------------------------------------------------
Material Cut-off Au g/T Tonnes Au g/T Ag g/T Au Oz Ag Oz
----------------------------------------------------------------------------
Oxide 0.20 42,789,940 0.37 4.20 511,872 5,781,121
Sulfide 0.25 129,973,513 0.51 4.68 2,113,527 19,556,454
----------------------------------------------------------------------------
Total 172,763,453 0.47 4.56 2,625,399 25,337,575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
INFERRED
----------------------------------------------------
Material Cut-off Au g/T Tonnes Au g/T Ag g/T Au Oz Ag Oz
----------------------------------------------------------------------------
Alluvial 0.20 151,675 2.03 - 9,890 -
Oxide 0.20 13,191,635 0.32 3.42 136,145 1,450,516
Sulfide 0.25 68,410,857 0.44 3.07 974,376 6,752,446
----------------------------------------------------------------------------
Total 81,754,167 0.43 3.12 1,120,410 8,202,962
----------------------------------------------------------------------------
Exploration activities at Sleeper are being conducted by
Paramount Gold under the supervision of Glen van Treek, Exploration
Vice President of the Company, and Bill Threlkeld, a Qualified
Person as defined by National Instrument 43-101, both of whom have
reviewed and approved this press release. An ongoing quality
control/quality assurance protocol is being employed during the
program including blank, duplicate and reference standards in every
batch of assays. Samples are being assayed at ALS Chemex, Reno,
Nevada while multi-element analysis is being performed in
Vancouver, Canada. External check samples are also being conducted
at Inspectorate Lab in Reno, Nevada.
Paramount also owns 100% of the San Miguel Project which
consists of 188,000 hectares (465,000 acres) in the Palmarejo
District of northwest Mexico, making Paramount the largest claim
holder in this rapidly growing precious metals mining camp.
Drilling continues at San Miguel with the aim of upgrading and
expanding its multi-million ounce gold and silver resource in the
coming months to be followed by completion of a PEA in 2012.
Cautionary Note to U.S. Investors Concerning Estimates of
Indicated and Inferred Resources
This news release uses the terms "measured and 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 not normally 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 Project
and the Dunes 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, 2011 and its most recent quarterly reports
filed with the SEC. 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. Glen Van Treek, VP
Exploration Chris Theodossiou, Investor Relations 866-481-2233
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