Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today
reported more exceptional high-grade intercepts from ongoing
in-fill and exploration drilling at its 100%-owned San Miguel
Project in northwestern Mexico. The exciting new results are from
the Don Ese North target and the San Antonio silver zone, two
important discoveries made by Paramount in the past year.
Two new core holes drilled at Don Ese North have intersected
significant widths (up to 38.9 meters) of strong gold and silver
values including 5.55 meters grading 4.73 g/T of gold and 249.68
g/T of silver. This drilling, together with previously reported
results, confirms the continuity of this wholly-owned high-grade
zone first discovered last December (see Paramount news release of
December 9, 2010).
The Don Ese North vein strikes north-northwest directly towards
the nearby Palmarejo Mine owned by Couer d`Alene and appears to be
an extension of the structure which hosts this highly successful
gold-silver producer. True width of the Don Ese vein is typically
in the range of 10 meters but is locally up to 19 meters wide. Don
Ese is a massive quartz vein with textures characteristic of low
sulfidation, epithermal deposits consistent with other vein
deposits in the district. To date, the mineralized vein has been
traced by core drilling along a strike length of nearly 1,000
meters and the feature remains open down dip. Paramount is also
expecting to receive permits shortly to expand drilling along
strike to the highly-prospective northern portion of its
wholly-owned Don Ese South target area.
Assay results were also received for five new holes drilled on
the fast-growing San Antonio bulk tonnage silver-rich zone. Drill
holes into the near-surface San Antonio deposit continue to return
multiple intercepts with high silver values, some of which are
exceptional. Drill Hole number SA-11-78 intercepted 1,440 g/T of
silver in one sample within a particularly wide and high-grade
zone.
Christopher Crupi, Paramount`s CEO, commented that "results from
Don Ese North continue to support a favorable comparison with the
neighboring Palmarejo mine in terms of width and grade. Similar
success on the southern extension would be highly significant.
Meanwhile, the surprising San Antonio zone continues to generate
impressive silver intercepts right from surface. San Antonio is
emerging as a potentially high value open pit deposit with a very
low strip ratio."
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Hole # Area Total Length From To Width Au g/t Ag g/t
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SA-11-077 San Antonio 142.70 49.10 57.35 8.25 0.00 228.16
59.35 69.55 10.20 0.00 38.92
82.70 85.40 2.70 0.00 76.58
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SA-11-078 San Antonio 151.65 31.70 80.60 48.90 0.00 216.10
including 63.60 75.15 11.55 0.01 594.57
including 70.75 72.35 1.60 0.02 1440.00
----------------------------------------------------------------------------
SA-11-079 San Antonio 200.65 34.85 35.35 0.50 0.01 762.00
71.10 73.35 2.25 0.00 275.44
78.50 87.20 8.70 0.01 245.96
----------------------------------------------------------------------------
SA-11-080 San Antonio 163.95 32.60 36.95 4.35 0.00 53.56
69.40 73.10 3.70 0.02 68.98
76.90 84.55 7.65 0.00 44.11
----------------------------------------------------------------------------
SA-11-081 San Antonio 185.30 5.35 10.55 5.20 0.00 19.74
20.50 25.30 4.80 0.00 28.48
38.40 42.70 4.30 0.00 32.85
45.45 62.00 16.55 0.00 41.38
72.60 84.60 12.00 0.00 30.25
91.10 94.20 3.10 0.00 31.06
100.30 105.40 5.10 0.00 18.99
116.45 121.15 4.70 0.01 90.74
122.55 126.65 4.10 0.00 36.25
147.90 157.30 9.40 0.00 115.35
----------------------------------------------------------------------------
DS-11-019 Don Ese 422.05 369.30 400.85 31.55 1.21 79.00
including 382.80 394.90 12.10 2.46 162.56
----------------------------------------------------------------------------
DS-11-020 Don Ese 551.30 453.15 492.05 38.90 2.26 139.41
including 457.95 460.35 2.40 7.09 305.96
including 469.15 473.40 4.25 4.51 303.96
including 480.80 486.35 5.55 4.73 249.68
500.00 503.60 4.80 0.18 26.64
----------------------------------------------------------------------------
The orientation of these drill holes was designed to intercept
the structural features at right angles so as to provide a close
approximation to true width. Deeper drilling at Don Ese may have
experienced some deviation in the planned intersections, requiring
additional analysis and modeling to determine true widths of
structures.
Paramount has commissioned Mine Development Associates (MDA,
www.mda.com) of Reno, Nevada to update resource estimations on the
San Miguel project. MDA is expected to complete modeling and
resource estimates for deposits on the La Union Vein structure (San
Jose, San Luis and La Union) and the silver-rich San Antonio bulk
tonnage zone in December 2011. These are the remaining deposits
which were not updated in April 2011. With this update, Paramount
will have re-modeled all the San Miguel deposits to current
industry standards required for mine planning. The other deposits
currently being drilled (San Miguel, San Francisco and Don Ese)
will also be re-estimated in early 2012.
Updated models for all of the identified San Miguel deposits
will be incorporated into a Preliminary Economic Assessment (PEA)
planned for next year which will evaluate mining scenarios, mining
rates and process alternatives and define a path to a Preliminary
Feasibility Study which would report reserves. In addition, the
Company is continuing to explore the potential of its large
property position and is prioritizing numerous untested
targets.
Exploration activities at San Miguel are being conducted by
Paramount Gold de Mexico S.A de C.V personnel 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, who have both reviewed and approved this press
release. An ongoing quality control/quality assurance protocol is
being employed for the program including blank, duplicate and
reference standards in every batch of assays. Cross-check analyses
are being conducted at a second external laboratory on 10% of the
samples. Samples are being assayed at ALS Chemex, Vancouver, B.C.,
using fire assay atomic absorption methods for gold and aqua regia
digestion ICP methods for other elements.
About Paramount Gold
Paramount Gold is a U.S. based exploration and development
company with multi-million ounce advanced stage precious metals
projects in Nevada (Sleeper) and northern Mexico (San Miguel).
Fully funded exploration programs are now in progress at these two
core projects which are expected to generate substantial additional
value for our shareholders. Engineering studies are scheduled for
completion in 2012 to define a development path and economic
valuation for each project.
The 100% owned San Miguel Project 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. The current work program at San Miguel
is part of 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. The San Miguel Project is ideally situated near
established, low cost production where the infrastructure already
exists for early, cost-effective exploitation.
Paramount also owns 100% of the Sleeper Gold Project which is
emerging as one of Nevada's largest new undeveloped gold resources,
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 at
http://www.paramountgold.com/Resources/Index.asp).
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 San Miguel 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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