New Resource Estimate and PEA Expected for Paramount Gold's San Miguel Project in Mexico
June 19 2014 - 8:00AM
Marketwired
New Resource Estimate and PEA Expected for Paramount Gold's San
Miguel Project in Mexico
Resource Estimate expected in July 2014 followed by PEA in
August 2014
WINNEMUCCA, NEVADA--(Marketwired - Jun 19, 2014) - Paramount
Gold and Silver Corp.
(TSX:PZG)(NYSEMKT:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount")
announced today that its independent consultants are nearing
completion of a new NI-43-101 compliant resource estimate for its
100%-owned San Miguel Project in Northern Mexico to be followed by
a revised Preliminary Economic Assessment (PEA) for the project. A
PEA is a complete, integrated project design which estimates mining
and processing methods and rates of production, capital and
operating costs, cash flows at specified metal prices, rates of
return, mine life and net present values at a proposed discount
rate.
Mine Development Associates ("MDA") (www.mda.com) of Reno,
Nevada is currently preparing the new resource estimate to
incorporate the results of drill holes within the resource areas
since the last estimate prepared in September 2012. The updated
resource estimate is expected to materially upgrade resources from
the inferred classification to measured and indicated
classifications as well as increase the overall size of the
resource.
A revised PEA for the San Miguel project will follow the
completion of the resource estimate, once again prepared by Metal
Mining Consultants ("MMC") (www.metalminingconsultants.com) of
Denver, Colorado. The revised Mine Plan will incorporate: the new
resource estimate; current gold/silver prices; a heap leach
scenario for the San Francisco and San Antonio zones; and a
reconfigured model using smaller ore blocks.
The new heap leach scenario at San Francisco and San Antonio is
the result of the Company's foresight to evaluate material which
was not included in the previous mill-only PEA scenario. The
metallurgical work completed by McClelland Laboratories of Reno, NV
confirmed that heap leaching this material is a likely scenario
(see news release May 27, 2014) and could increase estimated
resources, mine life and project economics.
Paramount CEO Christopher Crupi exclaimed, "We are eager to see
the results of the updated resource and mine plans for San Miguel.
We anticipate they will demonstrate the potential for a strong,
economically-rewarding project at current metal prices."
NI 43-101 Disclosure
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
employed including blank, duplicate and reference standards in
every batch of assays. Cross-check analyses are conducted at a
second external laboratory on 10% of the samples. Samples are
assayed at ALS Chemex and Acme Laboratories, Vancouver, B.C., using
fire assay atomic absorption methods for gold and aqua regia
digestion ICP methods for other elements.
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 expected new resources estimate and PEA for the San Miguel
Project and the expected results of this work, estimates of
resources including expected volumes and grades and the economic
projections included in the project's PEA and the results of
metallurgical testing. 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, 2013 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.
Paramount Gold and Silver Corp.Glen Van TreekVP
Exploration866-481-2233Paramount Gold and Silver Corp.Chris
TheodossiouInvestor Relations866-481-2233
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