Paramount Gold Announces More Positive Results from Nevada Project: New Resource Estimate in Progess
WINNEMUCCA, NEVADA -- (Marketwire) -- 03/07/11 -- Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ('Paramount') announced today that assay results from 14 new core and reverse circulation drill holes at its 100% owned Sleeper Gold Mine Project in Nevada have likely expanded the project`s resources and enhanced its economic potential. A new NI 43-101 compliant resource estimate will now be prepared incorporating all available data. Completion of the resource estimate is expected in June, 2011.
FACILITIES TARGET
Drill testing of the Facilities Target was designed to off-set previously drilled gold intersections in order to establish projected extensions of the mineralized structures in this zone. A total of nine holes were completed, all of which encountered mineralized intervals.
Paramount`s interpretation is that several of these intersections, in conjunction with previous drilling, will show continuity of structures within the Facilities Target zone, enabling the calculation of additional resources. All of these intersections are also likely to reduce the-ore-to-waste ratio within the Facilities Target. The full impact of these results will not be known until the current resource model is modified to incorporate these new data.
Facilities Target Drill Results
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Hole ID Total Depth From To Width Au g/t Ag g/t
(meters) (meters) (meters) (meters)
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PGC-11-006 262.0 117.4 122.0 4.6 0.56 less
than DL
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PGR-10-005 300.4 44.2 47.3 3.1 1.31 5.6
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106.7 109.8 3.1 0.71 5.1
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147.9 154.0 6.1 0.58 1.5
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186.0 189.1 3.1 1.11 1.9
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PGR-10-006 330.9 82.3 85.4 3.1 0.88 less
than DL
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140.3 144.9 4.6 1.33 4.5
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PGR-10-007 359.9 208.9 213.5 4.6 1.03 0.9
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301.9 314.2 12.3 0.73 9.2
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340.0 343.1 3.1 1.22 5.1
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PGR-10-008 300.4 10.7 15.3 4.6 0.71 5.8
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103.7 106.8 3.1 0.73 4.6
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184.5 192.2 7.7 0.87 4.4
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218.1 224.2 6.1 0.87 6
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PGR-10-009 170.8 38.1 45.8 7.7 1.47 13.6
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83.8 86.9 3.1 0.64 7.3
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91.5 100.7 9.2 0.53 6.3
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108.2 114.3 6.1 0.88 10.5
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PGR-10-010 329.4 0 7.7 7.7 0.61 4.9
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59.4 74.7 15.3 0.86 1.5
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PGR-11-011 286.7 265.3 268.4 3.1 0.83 66.7
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PGR-11-012 256.2 85.3 93.0 7.7 0.73 9.4
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97.6 100.7 3.1 0.57 12.5
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The reported drill intercepts above are believed to represent true widths. Grades are similar to those mined profitably at the original Sleeper open pit mine which was operated by AMAX Gold from 1986 to 1996, producing 1.7 million ounces of gold and 2.3 million ounces of silver.
The current NI 43-101 compliant resource estimate for the Facilities Target at a 0.40 g/t Au cut-off is as follows:
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Indicated
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces Ag Ounces
(000) (000)
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10,000 0.69 7.8 220 2,500
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Inferred
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
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19,600 0.60 6.7 370 4,200
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WEST WOOD TARGET
As reported by Paramount in its news release of February 15, 2011, the first four holes on the West Wood target successfully verified the current resource model, likely upgrading resource categories and increasing overall resource size. An additional five drill holes were designed to test the north extension of the West Wood target. Although anomalous gold and silver values were noted, no strongly mineralized intervals were encountered in these drill holes (PGC-10-1 through 5). However, the evidence clearly suggests that drilling for a northern extension should continue.
Current and historical drill results in the West Wood target have established a systematic sequence of lithology and alteration surrounding a brecciated structural zone that is host to the precious metal concentrations at West Wood. The altered rock in this zone is characteristic of high fluid flow, both within and adjacent to the breccias, which was likely responsible for both the alteration and carried the precious metals that were deposited there. Although only anomalous values were encountered in these step-out holes north of the West Wood target, the same characteristic lithologies and alteration sequence were discovered, suggesting that the same fluid flows were present. Paramount`s conclusion is that the West Wood structural feature continues to hold potential to the north of the existing resource. This potential is either off-set to a deeper structural position or may be farther to the north where known changes in the orientation of the feature may have created dilatational zones suitable for deposition of precious metals carried by the fluids.
The current NI 43-101 compliant resource estimate for the West Wood target at a 0.4g/t Au cut-off is as follows:
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Indicated
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
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16,960 0.98 4.6 530 2,500
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Inferred
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
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390 0.56 2.3 10 30
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The total combined current NI 43-101 resource at Sleeper at a 0.4 g/t Au cut off is as follows:
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Indicated
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
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26,960 0.87 5.8 760 5,000
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Inferred
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Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000)
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19,990 0.60 6.6 390 4,300
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Note: Differences are due to rounding
Commenting on the drill program, Paramount CEO Christopher Crupi said that 'the key result here is that we are now in a position to complete a new resource estimate of the mineralized area which should significantly enhance the value of our Sleeper Project and provide a sound basis for the preparation of a Preliminary Economic Assessment. We expect to demonstrate that Sleeper is one of Nevada`s premier non-producing gold assets held by a junior company.'
This news release has been reviewed by Glen van Treek, a Vice President of the Company, and William Threlkeld, a Qualified Person pursuant to National Instrument 43-101. Although Paramount Gold is a U.S. domiciled corporation and a full SEC registrant, Paramount reports its mineral resources according to the Canadian standard known as National Instrument 43-101 to facilitate comparison with other similar companies that trade on the TSX.
Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources:
This news release uses the terms '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 are normally not 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 Mine 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 and X-Cal's filings with the 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
Chris Theodossiou, Investor Relations
866-481-2233 / 613-226-9881