Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today
reported high-grade gold and silver values from 10 additional core
holes drilled on the San Miguel Vein deposit at its 100%-owned San
Miguel Project in Mexico. All 10 holes drilled in late 2011 on the
San Miguel Vein deposit returned multiple intercepts of significant
gold and silver mineralization including 5.1 meters grading 6.58
grams per tonne of gold and 1,285.9 grams per tonne of silver.
A total of 34 infill drill holes totaling 9,160 meters were
completed on the San Miguel Vein deposit in 2011 of which assays
have now been released for 33 holes. The results from these holes
should significantly increase measured and indicated resources at
this deposit. In total, Paramount has completed 100 drill holes
comprising 30,952 meters into the San Miguel Vein deposit.
The figure below shows a typical section of the San Miguel Vein
deposit. (See Map:
http://media3.marketwire.com/docs/San-Miguel-Typical-Cross-Section.jpg)
Drill hole intercepts for the most recent 10 holes are as
follows:
----------------------------------------------------------------------------
Hole # Area Total Length From (m) To (m) Width (m) Au g/T Ag g/T
(m)
----------------------------------------------------------------------------
SM-11-090 SAN MIGUEL 419.85 203.05 203.55 0.50 1.08 118.00
222.80 225.15 2.35 0.72 37.03
244.15 245.50 1.35 3.94 88.00
259.25 264.20 4.95 3.81 245.70
including 259.25 260.95 1.70 10.31 664.12
267.70 274.35 6.65 0.37 11.67
276.45 287.15 10.70 1.44 9.03
292.25 296.65 4.40 0.60 2.74
324.95 325.45 0.50 1.99 7.20
332.20 337.55 4.35 0.50 1.76
401.70 407.90 6.20 0.52 39.16
----------------------------------------------------------------------------
SM-11-091 SAN MIGUEL 344.20 240.95 243.65 2.70 0.63 17.61
248.60 253.20 4.60 0.79 86.02
255.20 281.00 25.80 1.17 26.82
including 267.80 269.90 2.10 3.94 123.43
including 274.65 280.20 5.55 1.89 12.46
----------------------------------------------------------------------------
SM-11-092 SAN MIGUEL 191.70 128.00 131.10 3.10 0.26 5.22
138.45 142.50 4.05 1.17 9.14
148.50 149.20 0.70 14.60 24.50
152.95 153.50 0.55 7.20 11.70
----------------------------------------------------------------------------
SM-11-093 SAN MIGUEL 237.35 148.05 154.80 6.75 1.68 24.07
including 151.45 152.70 1.25 6.31 104.19
172.00 175.00 3.00 0.36 1.99
204.65 206.30 1.65 3.65 18.20
----------------------------------------------------------------------------
SM-11-094 SAN MIGUEL 260.00 130.20 130.90 0.70 0.98 801.00
183.50 186.60 3.10 0.17 27.59
186.25 197.20 8.95 0.69 62.66
212.55 218.00 5.45 0.19 68.29
225.30 230.65 5.35 0.28 10.13
235.90 239.90 4.00 0.69 10.28
444.20 250.90 6.70 4.87 23.04
including 245.60 246.15 0.50 22.00 25.30
including 247.45 249.80 2.35 6.30 41.16
----------------------------------------------------------------------------
SM-11-095 SAN MIGUEL 234.65 106.55 121.90 15.35 0.20 338.75
including 107.50 108.15 0.65 0.56 2900.00
158.05 161.45 3.40 0.47 5.47
179.40 180.00 0.60 3.52 1.30
----------------------------------------------------------------------------
SM-11-096 SAN MIGUEL 240.75 124.25 129.25 5.00 0.08 36.28
137.25 140.50 3.25 0.12 14.56
146.20 165.05 18.85 1.06 11.10
including 157.00 158.40 1.40 9.14 14.30
----------------------------------------------------------------------------
SM-11-097 SAN MIGUEL 271.25 121.80 125.25 3.45 0.14 245.51
146.20 149.55 3.35 0.26 67.55
155.45 177.20 21.75 0.11 25.41
195.70 202.40 6.70 1.25 10.54
including 206.75 208.35 1.60 0.43 8.50
including 213.40 215.40 2.00 0.60 4.87
----------------------------------------------------------------------------
SM-11-098 SAN MIGUEL 232.70 187.30 200.75 13.45 2.61 513.84
including 189.25 194.35 5.10 6.58 1285.87
203.40 214.80 11.40 0.97 28.68
----------------------------------------------------------------------------
SM-11-099 SAN MIGUEL 359.75 213.30 215.55 1.95 1.27 58.90
241.15 249.15 8.00 2.05 17.42
250.60 255.35 4.75 0.18 9.49
258.95 265.15 6.20 0.37 4.30
273.00 280.90 7.90 0.52 6.93
320.20 321.85 1.65 1.12 2.10
----------------------------------------------------------------------------
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, however deep intercepts may have
intersected the structures at less than right angles due to normal
deviation.
Christopher Crupi, Paramount's CEO, commented that "our drilling
on the San Miguel vein has exceeded expectations in terms of both
continuity and grade. Our new infill program is focused on
expanding and confirming high-grade resources at Don Ese, La Union
and San Francisco. In addition, exploration drilling is probing the
highly-prospective gaps within the 7.5 km long La Union-La Veronica
mega structure including the 1.3 km gap between the San Antonio and
La Veronica deposits as well as the 1.2 km gap between La Union and
Santa Clara. If we are right about the continuity of this
structure, we expect to announce significant new discoveries this
year." The 2012 drill campaign recently commenced with three rigs
after the holiday break.A new resource estimate by Mine Development
Associates (MDA) of Reno, Nevada 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); and 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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