Editor's Note: There is a photo associated with this release
Paramount Gold and Silver Corp. (NYSE
Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ)("Paramount")
announced today highly-favorable assay results from 65 holes
drilled into the waste dumps located on its 100%-owned Sleeper Gold
Project in Nevada, including a 45 meter intercept grading 0.558 g/T
of gold, a 24 meter intercept grading 0.754 g/T and an 18 meter
intercept averaging 0.963 g/T.
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 purchased claims stretching south down trend to
Newmont`s Sandman project. Work to date by Paramount has
established a large, in situ gold and silver resource (see table
below).
According to AMAX operations reports, approximately 54 million
tonnes of waste were place on the north, west and south waste dumps
during the mine`s life. In 2011, Paramount completed nine sonic
drill holes on these three waste dumps to determine if they could
make a contribution to the growing resource on the Sleeper Gold
Project. This drilling established that precious metal grades were
high enough to offer economic potential. Undisturbed material for
initial metallurgical testing generated very promising recoveries
averaging 70% for gold and 34% for silver over a short leach cycle
(see November 22, 2011 news release). These results prompted
Paramount to undertake a more detailed program consisting of 65
vertical drill holes totaling 2,321 meters on all three dumps...a
density sufficient to establish a reportable resource estimate.
McClelland Lab of Reno, Nevada was also commissioned to perform
large column leach tests on representative samples. Results from
the column leach tests are expected shortly.
Of the 65 holes drilled, 47 (a surprising 72%) returned
intercepts with grades above 0.20 grams of gold per tonne,
including 18 holes with significant intervals averaging more than
0.40 grams per tonne. A drill hole database has been provided to
Tetra Tech (www.TetraTech.com), a leading international mining
consulting firm, to prepare a resource estimation for the dumps.
Tetra Tech has been engaged to prepare an NI 43-101 compliant
Preliminary Economic Assessment (PEA) of the Sleeper Gold Project
for completion in the current quarter.
Commenting on the drill results, Paramount CEO, Christopher
Crupi stated that "all the data now points to the waste dumps
making an important contribution to the overall resource. While we
need to see the final results from the leach column tests, we are
increasingly confident of the economic potential of this mineral
inventory. We are frankly surprised that some of this material did
not go to the leach pads when it was first mined even given the
lower gold prices at that time."
To view assay results on all 65 holes completed on the waste
dumps, go to http://paramountgold.com/_docs/WasteDumpRC.pdf. All
holes were drilled vertically into the flat-lying dumps to assure
that intercepts represent true widths.
Exploration activities at Sleeper are being conducted by
Paramount 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 during the program including
blank, duplicate and reference standards in every batch of assays.
Samples are being assayed at Inspectorate, Reno, Nevada using fire
assay atomic absorption methods for gold.
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 Sleeper Gold Project is emerging as one of Nevada's largest
new undeveloped gold resources. (See global resource table below).
The current work program at Sleeper 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
Sleeper Gold 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 San
Miguel Project consisting 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.
SUMMARY OF ALL IN GROUND 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 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.
To view the photo associated with this release, please visit the
following link:
http://media3.marketwire.com/docs/sleeperwaste_feb0704.pdf
Contacts: Paramount Gold and Silver Corp. Glen Van Treek, VP
Exploration Chris Theodossiou, Investor Relations 866-481-2233
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