Paramount Gold and Silver Reports New Drill Results Expand San Francisco Deposit and Discover New Higher Grade Veins at Its San Miguel Project in Mexico
WINNEMUCCA, NEVADA -- (Marketwire) -- 06/15/11 -- Paramount Gold and Silver Corp. (NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ('Paramount Gold') announced today new assay results from its ongoing drilling program at the San Miguel project in Mexico have extended the bulk-mineable San Francisco deposit and discovered a new, closely-spaced swarm of higher grade gold-silver veins named Santa Clara.
Drilling in 2011 has been focused on testing several new targets and expanding known mineralized areas. Drilling continues to enlarge the San Francisco area, one of the larger mineralized zones at San Miguel, which has been extended approximately 200 meters along strike with this year's drilling. Excellent results were also intersected at a new target area named Santa Clara where follow up drilling will be carried out this year (See map of San Francisco Area).
Only five holes were permitted and drilled to date on the promising Don Ese Sur target located 3.5 km south of last year's Don Ese high grade vein discovery. One of these holes generated two significant intercepts, with grades up to 78 g/t of silver, while the other four returned no significant values. However, Don Ese Sur remains an important target with more than 1.6 km of strike length left to explore and 15 more holes planned once permits are obtained. One of four initial holes drilled on the new La Verde and El Ojito targets produced an intercept with good grade while the other three had no significant intervals. (See map).
Drilling continues at San Miguel with two core rigs to upgrade and expand resources in the main target areas, including San Miguel, San Francisco and San Antonio. Follow up drilling at the main Don Ese structure will also resume this year to increase the size and quality of the initial resource reported in early April 2011. Drill hole intercepts are as follows:
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Total
Depth From To Interval Au Ag
Hole No. AREA (m) (m) (m) (m)(i) g/t g/t
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SF-11-036 SAN FRANCISCO 252.95 119.25 125.80 6.55 0.47 5.9
148.20 154.00 5.80 0.54 6.6
177.00 183.00 6.00 0.82 7.8
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SF-11-037 SAN FRANCISCO 204.15 10.05 32.25 22.20 0.92 6.2
73.40 79.10 5.70 0.47 12.0
82.50 84.50 2.00 1.51 4.1
145.00 151.00 6.00 0.29 1.8
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SF-11-038 SAN FRANCISCO 225.50 23.00 26.00 3.00 0.67 2.9
33.00 37.00 4.00 0.51 2.2
90.60 94.60 4.00 1.09 8.9
112.50 114.50 2.00 1.70 1.1
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SF-11-039 SAN FRANCISCO 191.95 16.65 20.65 4.00 0.34 75.2
22.65 28.20 5.55 0.63 27.0
6.85 8.70 1.85 4.04 174.0
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SF-11-040 SAN FRANCISCO 216.35 0.00 9.00 9.00 0.50 7.1
87.95 92.35 4.40 0.37 7.9
12.10 14.00 1.90 1.48 22.1
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SF-11-041 SAN FRANCISCO 207.20 35.35 42.40 7.05 0.56 4.46
44.40 48.40 4.00 0.89 6.65
78.50 87.80 9.30 0.97 7.45
93.05 96.15 3.10 0.74 29.59
102.60 107.30 4.70 0.40 5.98
131.60 135.15 3.55 2.13 13.43
136.30 145.40 9.10 0.44 5.14
147.40 151.60 4.20 0.83 4.02
197.25 199.25 2.00 1.28 10.8
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SF-11-042 SAN FRANCISCO 222.45 59.65 63.55 3.90 0.41 4.20
66.90 70.90 4.00 0.74 5.40
including 187.45 188.40 0.95 1.09 86.80
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SF-11-043 SAN FRANCISCO 167.50 102.85 105.90 3.05 0.66 6.29
144.65 147.80 3.15 0.37 29.17
159.20 167.50 8.30 1.02 72.61
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SF-11-044 SAN FRANCISCO 271.25 192.85 199.70 6.85 1.97 89.16
203.60 205.55 1.95 0.51 11.80
227.55 229.55 2.00 1.15 5.30
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SF-11-045 SAN FRANCISCO 249.90 19.50 21.15 1.65 0.93 2.70
91.20 92.80 1.60 0.56 9.40
137.80 143.15 5.35 2.78 10.86
144.75 152.30 7.55 3.50 6.07
212.95 215.60 2.65 0.32 30.17
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SF-11-046 SAN FRANCISCO 240.75 89.30 96.35 7.05 4.08 144.05
118.25 121.80 3.55 1.62 55.45
138.55 146.15 7.60 0.85 1.91
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SCL-11-001 Santa Clara 280.40 No significant intervals
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SCL-11-002 Santa Clara 130.95 110.75 111.90 1.15 0.48 11.9
111.90 113.10 1.20 0.57 7.6
113.10 114.75 1.65 4.53 26.0
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SCL-11-003 Santa Clara 195.00 167.55 168.30 0.75 10.95 31.3
168.30 169.25 0.95 4.61 11.7
169.25 169.75 0.50 1.81 22.9
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SCL-11-004 Santa Clara 195.00 148.85 150.70 1.85 0.46 59.9
153.50 154.90 1.40 1.65 14.7
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DS-11-008 Don Ese Sur 298.65 164.45 166.00 1.55 0.05 78.4
172.90 174.90 2.00 0.01 32.1
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DS-11-009 Don Ese Sur 298.70 No significant intervals
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DS-11-010 Don Ese Sur 292.60 No significant intervals
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DS-11-011 Don Ese Sur 253.75 No significant intervals
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DS-11-012 Don Ese Sur 301.75 No significant intervals
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EO-11-001 EL OJITO 387.15 No significant intervals
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VE-11-001 La Verde 201.10 No significant intervals
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VE-11-002 La Verde 228.55 182.00 186.70 4.70 0.20 50.6
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VE-11-003 La Verde 231.60 No significant intervals
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The orientation of these drill holes was designed to intercept the structural features at right angles so as to provide a true width on those structures. Although the intersections are believed in general to be the true width of the mineralized feature, additional drilling and modeling is required to confirm this conclusion.
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 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. 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.
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.
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
Chris Theodossiou, Investor Relations
866-481-2233