Paramount Gold and Silver Reports Gold Grades Up to 27.1 g/T From Bulk-Minable San Francisco Deposit in Mexico
WINNEMUCCA, NEVADA -- (Marketwire) -- 03/04/12 -- Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ('Paramount') reported today that new drilling has found higher gold grades at the San Francisco target on its 100%-owned San Miguel Project in Mexico. Eight new holes in the northern and western portions of the San Francisco deposit have returned: (a) higher-grade mineralization up to 27.1 g/T of gold and 24.0 g/T of silver; and (b) near surface, wide intercepts including 23.6 meters grading 1.51 g/T of gold and 11.9 g/T of silver, confirming the bulk tonnage nature of this deposit. Drilling continues at the San Miguel Project with three core rigs.
The San Francisco area is in the northwestern part of what is now known as the Guazapares Megastructure which has a recognized strike of 7.5 kilometers and hosts gold and silver resources stretching from La Veronica in the north through San Antonio and La Union to the mineralization intercepted in limited drilling to the south at Santa Clara. Approximately 2.5 kilometers of this strike length has yet to be drilled. (For a map of the Guazapares Megastructure see: http://www.paramountgold.com/_img/GuazaparesMegaStructure.jpg). The character of the mineralization in San Francisco is one of stock works and multiple vein swarms in several directions rather than the discrete vein and breccia type deposits to the south such as La Union. Continuous, gold-bearing zones at San Francisco cover a widening area which could support an open pit mining strategy with a very low strip ratio. Details of the intercepts in these eight holes are as follows:
--------------------------------------------------------------------------
Total
Length From To Width Au Ag
Hole # Area (m) (m) (m) (m) g/T g/T
--------------------------------------------------------------------------
SF-12-047 SAN FRANCISCO 176.65 155.90 169.75 13.85 0.73 9.92
including 155.90 157.00 1.10 3.73 53.80
--------------------------------------------------------------------------
SF-12-048 SAN FRANCISCO 152.25 11.30 14.60 3.30 0.34 3.65
22.70 43.05 20.35 0.37 3.59
51.50 55.60 4.10 0.56 5.73
60.75 68.45 7.70 0.66 4.77
75.45 87.10 11.65 0.57 16.26
143.80 144.30 0.50 5.11 93.30
--------------------------------------------------------------------------
SF-12-049 SAN FRANCISCO 185.15 32.70 56.30 23.60 1.51 11.90
including 37.65 39.75 2.10 5.46 4.50
58.10 65.45 7.35 0.69 3.16
68.40 70.55 2.15 0.94 5.36
79.05 94.45 15.40 0.30 11.44
99.55 103.20 3.65 0.13 31.97
106.15 111.90 5.75 0.27 23.97
116.50 122.90 6.40 0.67 13.66
129.45 137.00 7.55 0.52 5.33
146.50 163.95 17.45 0.35 4.07
--------------------------------------------------------------------------
SF-12-050 SAN FRANCISCO 225.45 12.45 15.30 2.85 0.23 34.84
99.05 102.30 3.25 0.45 5.75
125.55 128.15 2.60 0.68 20.31
143.55 148.80 5.45 1.34 14.68
160.60 170.85 10.25 0.87 5.27
196.70 205.65 8.95 4.67 19.39
including 200.35 201.80 1.45 25.50 86.60
--------------------------------------------------------------------------
SF-12-051 SAN FRANCISCO 203.4 5.95 12.90 6.95 0.37 45.03
31.35 43.75 12.40 0.46 20.63
79.60 83.60 4.00 0.35 17.00
101.30 107.75 6.45 0.27 4.99
115.90 121.80 5.90 0.92 2.89
--------------------------------------------------------------------------
SF-12-052 SAN FRANCISCO 261.35 31.00 41.00 10.00 0.17 8.64
95.50 106.00 10.50 1.12 65.93
127.87 142.65 14.78 0.94 13.24
138.65 140.20 1.55 1.04 42.93
161.00 163.75 2.75 0.86 0.50
--------------------------------------------------------------------------
SF-12-053 SAN FRANCISCO 270.25 13.20 20.40 7.20 1.06 13.20
161.85 167.95 6.10 0.46 7.70
208.10 213.20 5.10 0.70 4.33
223.95 227.60 3.65 0.35 1.61
242.10 246.25 4.15 0.34 2.13
--------------------------------------------------------------------------
SF-12-054 SAN FRANCISCO 243.8 8.05 10.35 2.30 0.26 11.22
19.00 21.55 2.55 1.18 5.86
27.35 31.30 3.95 0.37 16.86
35.65 43.70 8.05 2.46 4.50
including 42.15 42.80 0.65 27.10 24.00
47.30 70.65 23.35 1.04 14.49
including 48.35 49.90 1.55 8.43 120.41
74.55 83.55 9.00 0.59 16.48
86.60 90.05 3.45 0.27 5.01
97.80 101.65 3.85 1.06 27.87
118.25 120.70 2.45 0.24 21.77
127.75 130.95 3.20 0.47 36.14
137.20 143.65 6.45 0.22 6.76
166.30 170.05 3.75 0.59 1.20
173.65 176.70 3.05 0.57 1.00
--------------------------------------------------------------------------
San Francisco is predominantly a stock work type of mineral occurrence and although it is believed that drill hole intersections represent a true width of the mineralized zone, geological modeling is required to fully define orientations and widths of the mineralization.
Christopher Crupi, Paramount's CEO, commented that 'we are delighted that this recent drilling at San Francisco has likely increased both the grade and the size of the deposit. All eight holes intersected strong gold and silver mineralization. The Guazapares Megastructure continues to evolve in a quite extraordinary fashion with near-surface, bulk minable zones such as San Antonio and San Francisco linked to bonanza grade 'clavo' style occurrences. These results open up options for large, low cost mining and processing without sacrificing grade, all within a well-established North American mining district.'
A new resource estimate by Mine Development Associates (MDA, www.mda.com) of Reno, Nevada is expected during the second quarter of 2012 for the entire San Miguel Project, including 2011 and early 2012 drill results. This new estimate will be incorporated into a Preliminary Economic Assessment planned for later this year that will evaluate mining scenarios, mining rates and process alternatives and define a path to a Preliminary Feasibility Study and report reserves. In addition, Paramount is continuing to explore the potential of its large property position and is prioritizing numerous untested targets including large, undrilled gaps in the Veronica-Santa Clara mega structure.
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 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; 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
866-481-2233
Paramount Gold and Silver Corp.
Chris Theodossiou, Investor Relations
866-481-2233