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WINNEMUCCA, NEVADA--(Marketwire - March 7, 2011) - 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
---------------------------------------------------------------------------- Hole ID Total Depth From To Width Au g/t Ag g/t (meters) (meters) (meters) (meters) ---------------------------------------------------------------------------- PGC-11-006 262.0 117.4 122.0 4.6 0.56 less than DL ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-005 300.4 44.2 47.3 3.1 1.31 5.6 ---------------------------------------------------------------------------- 106.7 109.8 3.1 0.71 5.1 ---------------------------------------------------------------------------- 147.9 154.0 6.1 0.58 1.5 ---------------------------------------------------------------------------- 186.0 189.1 3.1 1.11 1.9 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-006 330.9 82.3 85.4 3.1 0.88 less than DL ---------------------------------------------------------------------------- 140.3 144.9 4.6 1.33 4.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-007 359.9 208.9 213.5 4.6 1.03 0.9 ---------------------------------------------------------------------------- 301.9 314.2 12.3 0.73 9.2 ---------------------------------------------------------------------------- 340.0 343.1 3.1 1.22 5.1 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-008 300.4 10.7 15.3 4.6 0.71 5.8 ---------------------------------------------------------------------------- 103.7 106.8 3.1 0.73 4.6 ---------------------------------------------------------------------------- 184.5 192.2 7.7 0.87 4.4 ---------------------------------------------------------------------------- 218.1 224.2 6.1 0.87 6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-009 170.8 38.1 45.8 7.7 1.47 13.6 ---------------------------------------------------------------------------- 83.8 86.9 3.1 0.64 7.3 ---------------------------------------------------------------------------- 91.5 100.7 9.2 0.53 6.3 ---------------------------------------------------------------------------- 108.2 114.3 6.1 0.88 10.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-10-010 329.4 0 7.7 7.7 0.61 4.9 ---------------------------------------------------------------------------- 59.4 74.7 15.3 0.86 1.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-11-011 286.7 265.3 268.4 3.1 0.83 66.7 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- PGR-11-012 256.2 85.3 93.0 7.7 0.73 9.4 ---------------------------------------------------------------------------- 97.6 100.7 3.1 0.57 12.5 ----------------------------------------------------------------------------
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:
---------------------------------------------------------------- Indicated ---------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces Ag Ounces (000) (000) ---------------------------------------------------------------- 10,000 0.69 7.8 220 2,500 ---------------------------------------------------------------- -------------------------------------------------------------------------- Inferred -------------------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000) -------------------------------------------------------------------------- 19,600 0.60 6.7 370 4,200 --------------------------------------------------------------------------
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:
-------------------------------------------------------------------------- Indicated -------------------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000) -------------------------------------------------------------------------- 16,960 0.98 4.6 530 2,500 -------------------------------------------------------------------------- ----------------------------------------------------------------------- Inferred ----------------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000) ----------------------------------------------------------------------- 390 0.56 2.3 10 30 -----------------------------------------------------------------------
The total combined current
NI 43-101 resource at Sleeper at a 0.4 g/t Au cut off is as follows:
------------------------------------------------------------------------- Indicated ------------------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000) ------------------------------------------------------------------------- 26,960 0.87 5.8 760 5,000 ------------------------------------------------------------------------- ----------------------------------------------------------------------- Inferred ----------------------------------------------------------------------- Tonnes (000) Au Grade g/t Ag Grade g/t Au Ounces (000) Ag Ounces (000) ----------------------------------------------------------------------- 19,990 0.60 6.6 390 4,300 ----------------------------------------------------------------------- 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.
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