Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today
reported more high-grade assay results from eight additional holes
drilled at the fast-growing silver-rich San Antonio deposit on its
100%-owned San Miguel Project in Mexico.
All eight holes reported significant silver mineralization
including intercepts of 24 meters grading 172 g/T of silver, 12.4
meters grading 299 g/T of silver and 9.4 meters of 318 g/T of
silver. These new results were not included in the most recent
resource estimation for the San Antonio deposit completed by Mine
Development Associates (MDA) of Reno, Nevada (see news release of
December 28, 2011 for details). The drill results reported today
are expected to increase the recently-reported resource, upgrade
inferred resources and improve the deposit's overall grade.
San Antonio is a shallow, bulk-mineable target with considerable
potential to grow. Recent drilling and surface exploration provides
evidence that the silver-rich San Antonio, the gold-rich La Union
immediately to the south, the Santa Clara farther to the south and
the silver-gold-rich La Veronica to the north are all parts of the
same mega structure that can be traced for almost 7.5 kilometers.
To date, much of this highly-prospective structure remains
undrilled including approximately 1.2 kilometers in the central
part of the structure, about 300 meters between the gold-rich La
Union zone and San Antonio and approximately 1.3 kilometers between
La Union and Santa Clara. These gaps offer an exciting, low cost
opportunity to increase the overall resource substantially. Once
the known resource areas have been upgraded for the Preliminary
Economic Assessment, drilling will focus on expanding resources in
these gaps. (See map:
http://media3.marketwire.com/docs/Paramount_map_0111.pdf)
Drill hole intercepts for the most recent eight holes are as
follows:
----------------------------------------------------------------------------
Hole # Area Total Length
(m) From (m) To (m) Width (m) Ag g/T
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SA-11-082 SAN ANTONIO 246.50 6.60 10.00 3.40 69.17
47.40 50.10 2.70 208.10
91.70 94.80 3.10 35.43
128.20 134.60 6.40 33.71
141.05 155.00 13.95 63.18
158.10 179.10 21.00 41.48
212.70 214.70 2.00 314.00
226.50 234.10 7.60 19.82
236.75 240.10 3.35 46.26
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SA-11-083 SAN ANTONIO 170.05 0.00 25.50 25.50 54.94
33.80 57.85 24.05 172.31
59.05 67.30 8.25 99.08
69.15 81.60 12.45 298.95
82.75 104.70 21.95 77.97
126.00 133.55 7.55 51.55
135.15 139.15 4.00 22.80
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SA-11-084 SAN ANTONIO 161.00 13.80 18.45 4.65 164.54
29.90 33.70 3.80 159.97
37.70 46.15 8.45 111.59
47.35 56.70 9.35 318.04
58.70 66.80 8.10 102.63
98.40 102.20 3.80 28.83
110.55 116.00 5.45 74.70
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SA-11-085 SAN ANTONIO 191.40 118.40 119.45 2.90 66.22
123.30 127.30 4.00 33.30
----------------------------------------------------------------------------
SA-11-086 SAN ANTONIO 301.30 49.40 56.15 6.75 121.24
109.80 112.70 2.90 209.52
188.55 213.05 24.50 76.53
including 208.60 212.50 3.90 161.63
217.00 220.95 3.95 42.59
223.85 234.60 10.75 47.17
258.15 262.95 4.80 17.88
298.25 301.30 3.05 37.02
----------------------------------------------------------------------------
SA-11-087 SAN ANTONIO 273.85 37.50 42.60 5.10 87.17
148.30 151.20 2.90 42.14
215.45 228.25 12.80 69.01
----------------------------------------------------------------------------
SA-11-088 SAN ANTONIO 200.65 17.65 20.70 3.05 65.91
100.80 104.50 3.70 31.45
132.90 142.30 9.40 39.35
174.80 179.30 4.50 71.12
183.20 188.90 5.60 73.92
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SA-11-089 SAN ANTONIO 121.35 46.45 60.10 13.65 124.09
including 54.25 58.10 3.85 387.14
----------------------------------------------------------------------------
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.
Christopher Crupi, Paramount's CEO, commented that "a bigger
picture is now emerging for the San Miguel Project. What were
originally thought to be smaller, individual deposits now appear to
be connected links within very large mineralized corridors similar
to the one hosting Couer d'Alene's neighboring Palmarejo mine.
These continuous corridors not only offer the potential for
expanded resources but also important economies of scale when they
are exploited. The more we drill, the better San Miguel looks. We
anticipate an exciting year of progress on this project in
2012."
Paramount has commenced its 2012 drill campaign with three core
rigs. The first priority is to increase and upgrade resources at
the San Antonio, San Miguel Vein and Don Ese deposits, to be
followed by high-potential exploration drilling between existing
deposits along known structures, to increase resources further.
A new resource estimate by MDA is expected during the second
quarter of 2012 for the entire San Miguel Project which will
include 2011 and early 2012 drill results. This new estimate will
be incorporated into a Preliminary Economic Assessment planned for
later this 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,
Paramount is continuing to explore the potential of its large
property position and is prioritizing numerous untested targets as
well as extensions of known deposits, many of which remain
open.
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. (See global
resource table below)
SUMMARY OF ALL PZG NI 43-101 COMPLIANT RESOURCE ESTIMATES
----------------------------------------------------------------------------
MEASURED AND INDICATED RESOURCES
----------------------------------------------------------------------------
PROJECT Tonnes Au g/T Au Ounces Ag g/T Ag Ounces
----------------------------------------------------------------------------
San Miguel 8,005,000 0.38 98,800 62.00 15,759,000
Sleeper 172,763,453 0.47 2,625,399 4.56 25,337,575
Total 2,724,199 41,096,575
----------------------------------------------------------------------------
----------------------------------------------------------------------------
INFERRED RESOURCES
----------------------------------------------------------------------------
PROJECT Tonnes Au g/T Au Ounces Ag g/T Ag Ounces
----------------------------------------------------------------------------
San Miguel 45,890,000 0.60 877,700 38.00 56,848,000
Sleeper 81,754,167 0.43 1,120,410 3.12 8,202,962
Total 1,998,110 65,050,962
----------------------------------------------------------------------------
For a detailed report on these resource estimates, their QPs and
methodologies please see the following news releases: April 11,
2011 San Miguel; September 13 2011, Sleeper; December 28 2011, San
Miguel.
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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