Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today
reported new assay results from ongoing core drilling at its
100%-owned San Miguel Project in Mexico. The reported drill holes
come from the high-grade gold and silver deposits of Don Ese North
and La Union.
Three new core holes drilled at Don Ese North have intersected
widths of up to 17.6 meters of strong gold and silver values
including 6.0 meters grading 6.89 g/T of gold and 363.62 g/T of
silver. This drilling, together with previously reported results,
continues to confirm the persistent strength of this wholly-owned
high-grade zone first discovered by Paramount just over one year
ago (see 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 such as the Palmarejo. To date, the
mineralized vein has been traced by core drilling for nearly 1,000
meters along strike and the feature remains open down dip.
Paramount is also expecting to receive permits shortly to expand
drilling along strike on to its wholly-owned Don Ese South target
area.
To date, a total of 20 drill holes totaling 10,050 meters have
been completed into Don Ese North of which only seven holes were
incorporated into the current NI 43-101 resource estimate prepared
by Mine Development Associates (MDA, www.mda.com) of Reno, Nevada
and released on April 11, 2011 (see news release). Another four
drill holes are planned prior to starting geological modeling and
updating the resource. Measured and indicated resources for this
deposit are expected to increase significantly.
Assays from another core hole into the central portion of La
Union provide further evidence that the high grade in this deposit
remains open to the north as well as to the south and at depth. La
Union is part of what is now believed to be a continuous mega
structure which strikes for at least seven kilometers from La
Veronica in the north to Santa Clara (see January 11th, 2012 news
release for details). Paramount will shortly begin drilling the 2.5
kilometers of this mega structure which have not yet been
tested.
To view long sections with drill hole locations of both the La
Union and Don Ese zones, go to
http://paramountgold.com/Projects/SanMiguel_Maps.asp.
Assays from the four most recent San Miguel drill holes are as
follows:
----------------------------------------------------------------------------
Total
Hole # Area Length (m) From (m) To (m)Width (m) Au g/T Ag g/T
----------------------------------------------------------------------------
DS-11-021 DON ESE 557.95 523.85 526.85 3.00 0.39 48.72
----------------------------------------------------------------------------
DS-11-023 DON ESE 527.45 478.05 487.20 9.15 1.76 128.24
including 481.70 484.20 2.50 4.62 293.40
489.70 492.20 2.50 0.26 46.03
----------------------------------------------------------------------------
DS-11-024 DON ESE 475.50 403.10 420.70 17.60 2.75 166.83
including 410.65 416.65 6.00 6.89 363.62
----------------------------------------------------------------------------
LU-12-023 LA UNION 155.50 106.35 110.15 3.80 1.08 27.36
116.10 135.30 19.20 2.07 3.97
including 97.70 98.40 0.70 4.18 15.60
----------------------------------------------------------------------------
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 encountered in drilling.
Christopher Crupi, Paramount`s CEO, commented that "the Don Ese
increasingly resembles the neighboring Guadalupe deposit on Coeur`s
Palmarejo's Project. The Guadalupe, which is now being prepared for
production later this year, is just one km to the west of Don Ese
and contains measured and indicated resources of 0.45 million
ounces of gold and 37.3 million ounces of silver (as of January,
2010). Ore from the Guadalupe deposit will be moved by road to the
Palmarejo mill which has the effect of improving access to Don Ese.
Meanwhile, every hole we drill in the La Veronica-Santa Clara mega
structure takes us closer to the possibility that this is one
continuous precious metal occurrence with major economic
consequences. We are very excited to begin filling in the gaps in
this corridor."
During the last two quarters of 2011, Paramount`s drill program
was focused on infilling and expanding known deposits on the San
Miguel Project to improve the quality of resources from inferred to
measured and indicated for the Preliminary Economic Assessment
(PEA) expected in 2012. Drilling is now being shifted to exploring
for new resources in the gaps of the mega structure and other
untested targets.
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 the PEA 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.
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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