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Paramount Gold Discovers High Grade Strike Extension of Main Palmarejo Mine Vein at San Miguel
Chihuahua, Mexico - (MarketWire) -
December 9, 2010, New drilling on the Don Ese
vein target on Paramount Gold and Silver Corp (NYSE/TSX:PZG)
San Miguel Project has discovered the south southeast strike extension of the
main Palmarejo structural corridor that hosts Coeur
d`Alene Mines (NYSE:CDE) Palmarejo Mine. The
structural corridor is partly obscured by younger volcanic rocks, but new
drilling has intersected the target below this cover.
The nearly vertical structural zone that is host to the Don Ese vein strikes north northwest towards the Palmarejo Mine. True width of the Don Ese vein is typically in the range of
10 meters, but locally is up to 19 meters wide. To date, the
mineralized vein has been traced by core drilling for a strike length of 550
meters; the feature remains open down dip and along strike for at least
another 200 meters. Don Ese is a massive
quartz vein with textures characteristic of low sulfidation
epithermal deposits, consistent with other vein deposits in the
district. The vein cuts and off-sets both andesite
and felsic volcanic units and has several localized
dacite intrusions. Follow-up drilling will
continue in the new year to develop resources on this discovery.
Paramount CEO, Christopher Crupi said, "this
is the most significant discovery we have made to date at our San Miguel
Project. In the beginning, our huge land position had too many targets and
different target types which needed to be assessed and prioritized.
Systematic exploration over the past two years has enhanced our understanding
of the district and we are now reaping the benefits with each drill program;
we have become more focused and effective. Finding this blind target
increases our confidence in making additional discoveries."
Assayresults from Don Ese
include:
Drill Hole Number
|
Drill Hole
Length (meters)
|
From (meters)
|
To (meters)
|
Interval
Length (meters)
|
Au g/t
|
Ag g/t
|
DS-10-001
|
|
481.4
|
497.4
|
16.0
|
2.11
|
90.4
|
|
Includes
|
483.5
|
491.1
|
7.6
|
4.25
|
133.4
|
|
|
|
|
|
|
|
DS-10-002
|
No
significant intervals
|
|
|
|
|
|
|
|
DS-10-003
|
|
211.4
|
214.8
|
3.4
|
0.11
|
56.6
|
|
|
519.2
|
535.5
|
16.3
|
1.60
|
62.0
|
|
Includes
|
522.0
|
529.7
|
7.7
|
3.06
|
90.1
|
|
|
|
|
|
|
|
DS-10-004
|
|
303.1
|
316.5
|
13.4
|
6.53
|
590.4
|
|
|
337.3
|
343.6
|
6.3
|
1.31
|
179.9
|
|
|
|
|
|
|
|
DS-10-005
|
429.85
|
394.5
|
421.5
|
27.0
|
3.11
|
169.4
|
|
Includes
|
397.8
|
399.1
|
1.3
|
28.80
|
175.0
|
DS-10-006
|
512.25
|
420.05
|
425.15
|
5.10
|
0.73
|
66.1
|
|
|
427.25
|
436.90
|
9.65
|
5.35
|
387.4
|
|
includes
|
429.05
|
430.50
|
1.45
|
13.60
|
864.0
|
|
Includes
|
434.40
|
435.40
|
1.00
|
14.75
|
1120.0
|
For
more information on Don Ese drill hole locations
see link below:
http://paramountgold.com/_docs/SanMiguel_TargetsGreater.jpg
and http://www.paramountgold.com/_docs/DONESE_map.pdf
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. Two programs are ongoing at San Miguel.
Exploration continues to develop new targets for drill testing. Four more new
targets are expected to be drilled in the first quarter of 2011.
Resource delineation drilling meanwhile has 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
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