Resource Expansion Likely at Veronica Target on Paramount Gold's San Miguel Project
WINNEMUCCA, NEVADA -- (Marketwire) -- 11/04/10 -- Paramount Gold (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: WKN:A0HGKQ) ('Paramount') announced today that exploration drilling has confirmed the potential for a significant expansion of resources at the Veronica target at Paramount Gold`s 100% owned San Miguel Project in the Palmarejo District of northwest Mexico.
La Veronica is a vein deposit analogous to Coeur d'Alene`s nearby Palmarejo Mine which has a defined reserve totalling 90.5 million ounces of silver and 1.04 million ounces of gold. La Veronica varies in width from 4 meters to 25 meters and sits within a northwest trending, sheared contact zone between felsic tuff and andesite. Mineralization focused in this sheared contact zone is accompanied by breccia, quartz veins and intrusive rock.
In previous programs, the La Veronica vein system was successfully drill tested at shallow depths over a strike length of 1,800 meters, generating a small initial resource. The target remained open on strike and down dip. New drilling has confirmed part of the down dip and north strike extensions. The potential target size has therefore been increased to 300,000 to 500,000 ounces of gold and 25 million to 30 million ounces of silver. The current drill program has been designed to test this potential for possible inclusion in a new resource estimate.
New results from La Veronica (RCLV) include:
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Hole No. Total Depth Interval
(m) From (m) To (m) (m) Au g/t Ag g/t
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RCLV-10-01 176.8 no significant intervals
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RCLV-10-02 192.0 22.9 39.6 16.8 0.04 99.2
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62.5 65.5 3.0 0.04 121.6
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80.8 85.3 4.6 0.03 25.0
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169.2 176.8 7.6 0.07 47.6
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RCLV-10-03 198.1 79.2 82.3 3.0 0.34 25.8
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99.1 103.6 4.6 0.10 23.2
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118.9 121.9 3.0 0.10 28.7
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RCLV-10-04 176.8 77.7 86.9 9.1 0.94 368.3
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131.1 176.8 45.7 0.23 92.9
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RCLV-10-05 262.1 126.5 134.1 7.6 0.04 36.1
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172.2 179.8 7.6 0.06 51.5
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RCLV-10-06 277.4 97.5 103.6 6.1 0.04 52.6
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242.3 246.9 4.6 0.02 41.4
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RCLV-10-07 237.7 89.9 94.5 4.6 0.09 61.3
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RCLV-10-08 283.5 89.9 93.0 3.0 0.01 97.2
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172.2 184.4 12.2 0.06 30.4
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RCLV-10-09 216.4 no significant intervals
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RCLV-10-10 246.9 198.1 201.2 3.0 0.02 21.4
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RCLV-10-11 no significant intervals / drill hole
48.8 lost
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For more information on the La Veronica target and a detailed map, visit: http://paramountgold.com/Projects/SanMiguel_TargetMap.asp.
Although these initial results are believed to approximate true width, additional drilling will be required to fully establish true widths in all intervals. Vertical zonation of silver and gold is common in this target style and these results are therefore being pursued at depth in the current program to determine if higher gold concentrations are present.
Paramount owns a 100% interest in the 188,000 hectare (465,000 acre) San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in this rapidly growing precious metals mining camp. Ongoing exploration at San Miguel continues to develop new targets for drill testing. Four new targets are expected to be drilled in the first quarter of 2011. Resource delineation drilling has meanwhile been focused on the San Francisco, Veronica, Monte Cristo, and San Miguel Vein targets. Results from the resource delineation drilling will be incorporated into a new National Instrument 43-101 compliant resource estimate expected in the first quarter of 2011.
Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during 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 adsorption methods for gold and aqua regia digestion ICP methods for other elements.
Paramount Gold is a U.S. domiciled exploration and development company with multi-million ounce advanced stage projects in Nevada (Sleeper) and northern Mexico (San Miguel). Fully funded programs are now in progress at our two main projects to substantially expand resources over the next two years. Plans are also underway to exploit a large, surface inventory of gold in tailings and leach pad heaps on our Sleeper property for potential near-term cash flow. For more information visit the Company's website at www.paramountgold.com.
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, 2010 and its most recent quarterly reports filed with the SEC available on www.sec.gov and applicable Canadian securities regulators available on www.sedar.com. 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.
Christopher Crupi
CEO
866-481-2233
613-226-9881
Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
866-481-2233
613-226-9881