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CHIHUAHUA,
MEXICO--(Marketwire - Oct. 1, 2009) - New diamond drilling by Paramount
Gold and Silver Corp. ("Paramount Gold") (TSX:PZG)(NYSE:PZG)
(FRANKFURT:P6G)(WKN:A0HGKQ) on its San Miguel (Clavo 99) deposit in the
Palmarejo District of North Central Mexico confirms: (1) gold grades
increase with depth; (2) gold is concentrated in southwest plunging
zones; and (3) a significant strike extension which should lead to
resource expansion.
"These are the best drill results obtained to date from San Miguel
and they demonstrate that we are beginning to understand the
distribution of high-grade gold in this very large system,"
Paramount Gold CEO Chris Crupi said. "We are now certain that a number of
gold occurrences previously explored in shallow holes could represent
much richer deposits at depth."
Paramount Gold owns 188,461 hectares (approximately 466,000 acres) of
mining claims in the Palmarejo District, making it the largest land
owner in this rapidly emerging precious metals mining camp. The San
Miguel deposit is a north-northwest trending quartz vein containing
about 50% of Paramount's current reported mineral resource. Results of
the most recent drilling are:
-------------------------------------------------------------------------- Hole No. From (m) To (m) Interval (m) Au g/t Ag g/t -------------------------------------------------------------------------- SM-09-62 211.6 216.5 4.9 1.72 193.4 235.9 241.5 5.6 1.25 14.5 -------------------------------------------------------------------------- SM-09-63 287.4 307.8 20.4 4.03 103.4 Includes 288.7 295.7 7.0 10.56 267.1 -------------------------------------------------------------------------- SM-09-64 199.4 227.0 27.6 1.5 146.2 Includes 215.7 224.5 8.8 12.7 369.0 344.0 347.6 3.6 5.6 1.4 --------------------------------------------------------------------------
The
above reported drill holes were designed to intersect the structures at
right angles. Although the above reported intervals are believed to be
close to true widths, additional drilling will be required to confirm
this.
A map of CLAVO 99 SAN MIGUEL VEIN is available on the Marketwire
website at the following address: http://media3.marketwire.com/docs/SECCLONGSM_21.JPG.
Paramount Gold's current drilling program is evaluating three different
types of potentially gold-rich targets: (1) north-northwest trending
epithermal veins like San Miguel, of which three trends are known to
date with typical widths of around 10 meters and strike lengths of one
kilometer or more; (2) volcanic basin prospects of which the best known
is Monte Cristo; and (3) northwest trending vein swarms ranging from
100 to 600 meters wide and one to two kilometers long such as the
Temoris prospect where surface sampling is in progress.
"Our aim in this first pass drilling program is to identify
targets for further definition drilling so that we can add to gold
resources early next year. We will be following up the San Miguel
results with additional work in this area and evaluating the potential
of other similar targets that have only been tested with shallow drill
holes. Results from the Monte Cristo target also appear to be promising
and we expect to release them shortly," Mr. Crupi said.
Exploration activities at San Miguel are being conducted by Paramount
de Mexico 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 and Silver holds a 100% interest in
several North American gold projects. The Corporation's principal asset
is the San Miguel property in Chihuahua State, Mexico.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this press release regarding 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 statements
containing the words "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 as described in Paramount's Annual
Report and Annual Information Form on Form 10-K for the year ended June
30, 2009 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 press release.
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