Paramount
completed a total of nine vertical large diameter sonic drill holes to
collect undisturbed samples for assay and metallurgical testing of the
waste dump material. Paramount completed this work as part of its
ongoing evaluation of historically mined materials that could be amenable
to reprocessing. Drill holes were distributed across the three dumps
and drilled to the base of the dump with total depths ranging between 16
meters and 43 meters and averaging 29 meters. Samples were collected on 1
meter intervals, with assays from these samples ranging up to 1.51 g/t Au.
The North waste dump returned the most consistent results with drill hole
9 containing 19 meters of 0.60 g/t Au. (See the complete table of assay
results below).
Drilling and sample collection were executed based on guidelines
provided by Tetra Tech (www.TetraTech.com) and McClelland
Laboratories (www.mettest.com).
Tetra Tech, a leading international mining consulting firm, has been
engaged to prepare a NI 43-101 compliant Preliminary Economic Assessment
(PEA) of the Sleeper Gold Project for completion in early
2012. Sample preparation was performed by McClelland Laboratory and
assays were conducted by ALS Chemex of Reno, Nevada. McClelland is
now proceeding with metallurgical testing to determine how to process this
material and to estimate precious metal recoveries. If this work is
positive, further drilling is likely to establish a resource estimate for
the dumps.
Sonic
Drill Holes |
Area |
Total
length(meters) |
Average Au
g/t |
Includes |
WDS-11-1 |
South
dump |
39.3 |
0.21 |
16
m @ 0.32 g/t Au |
WDS-11-2 |
South
dump |
37.8 |
0.23 |
14
m @ 0.42 g/t Au |
WDS-11-3 |
South
dump |
25.0 |
0.23 |
11
m @ 0.32 g/t Au |
WDW-11-4 |
West
Dump |
21.0 |
0.12 |
|
WDW-11-5 |
West
Dump |
16.0 |
0.23 |
9
m @ 0.37 g/tAu |
WDW-11-6 |
West
Dump |
18.3 |
0.23 |
|
WDN-11-7 |
North
dump |
43.0 |
0.31 |
15
m @ 0.43 g/t Au |
WDN-11-8 |
North
dump |
27.4 |
0.35 |
19
m @ 0.46 g/t Au |
WDN-11-9 |
North
dump |
33.5 |
0.46 |
19
m @ 0.60 g/t Au |
According to operation reports prepared by Amax Gold, the mine's
original operator, a total of 66 million metric tonnes of waste material
was extracted during the operation, of which approximately 54 million
metric tonnes were placed on these three dumps.
Christopher Crupi, CEO commented that "the results from this sonic
drilling program confirm the presence of potentially valuable gold grades
within these sizeable and easily accessible waste dumps. With current
gold prices, if recovery rates and processing costs are favorable, these
dumps could significantly add to the resource inventory at the Sleeper
Gold property. Testing of the old previously-leached heaps has not
been as favorable and no further work on them is planned."
Paramount is currently employing two drill rigs at Sleeper to expand
known mineral zones and to recover samples for metallurgical
testing. Results from last year's drilling will be incorporated into
an updated NI 43-101 compliant resource model being prepared by SRK (www.srk.com), a recognized international
consulting firm, which is scheduled for completion in early
September. SRK's resource model and metallurgical test work from the
2010 and 2011 drilling campaigns will be incorporated into the Tetra Tech
PEA.
The current work program at Sleeper is consistent with 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. Sleeper is a sizeable
former high-grade gold producer located near low cost production in
Nevada, where the infrastructure already exists for early, cost-effective
exploitation. Exploration activities at Sleeper are being conducted by
Paramount Gold 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. Samples are being assayed at ALS Chemex, Reno
Nevada using fire assay atomic absorption methods for gold, and aqua regia
digestion ICP methods at ALS Chemex Vancouver, Canada for other elements.
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 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 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.