Hello Newsrelease,
ExploratoryDrilling Program to Commence on the Santos Gold
Property in Peru
Ottawa, Canada
– (BUSINESS WIRE) – Friday, March 16th, 2007 – Paramount Gold
Mining Corp. (“Paramount”) (OTC: PGDP) (Frankfurt: P6G, WKN:
A0HGKQ) is pleased to announce that they have retained the services of Bradley
– MDH to conduct its exploratory drilling program at the Santos property
in Peru. This project is under option by Paramount Gold Mining Corp.’s
Peruvian subsidiary Cia. Minera Paramount SAC (“CMP”) from Teck
Cominco Peru S.A. and is part of the Andean Gold Alliance agreement (AGA)
signed with Teck Cominco Limited (“Teck Cominco”) (TSX: TCK.B) in
May 2006, for certain exploration properties in Chile,
Argentina and Peru.
The 1,500
meter drill program is scheduled to commence on March 19th,, 2007
and should be completed in May 2007. The program will be comprised of 6
holes that will test for gold and silver targeted deposits at 100 to 200 meters
below the surface.
Alain Vachon,
exploration manager, stated, “We are quite anxious to drill the first
holes into this mineralized system as no drilling has ever been done on the
property. The property is in close proximity to existing mining operations.
The objective of the program is to find the boiling zone which has the
potential for deposits of gold and silver.”
The Santos
project is comprised of 12 mining concessions totalling 9,300 hectares located
in the Department of Ayacucho, which is 400 km SSE of the city of Lima and 60
km NE of the city of Nasca.
Under the
terms of the AGA, Paramount
and/or its subsidiaries must incur minimum expenditures of US$3,000,000 on the
properties over 3 years, with US$1,000,000 in expenditures (including a minimum
of 3,000 metres of drilling on 3 properties) per year. In addition, Paramount must issue Teck
Cominco 50,000 units a year over the three years. Each unit will include a
common share and a 2 year stock purchase warrant that shall be priced at a 30%
premium to the 20 day trading average prior to issue.
Upon Paramount
vesting in the AGA, CMP may earn a 100% interest in the Santos Property,
subject to a retained 2% NSR Royalty and back-in right (as outlined below) to
Teck Cominco, by incurring an aggregate expenditure of US$250,000 (including a
US$50,000 minimum annual commitment) with respect to Santos.
Teck Cominco
may exercise its back-in right on the Santos property at any time up to 60 days
after CMP delivers notice that CMP has spent US$3,000,000 on Santos. Teck
Cominco may earn a 60% interest by incurring 2 times the expenditures incurred
by CMP to a maximum requirement of US$6,000,000. Upon earning back a 60%
interest, Teck Cominco shall extinguish the retained NSR Royalty and may elect
to earn an additional 10% interest by completing, at its sole cost, a
feasibility study on Santos.
About Teck Cominco Limited
Teck Cominco
Limited (TSX: TCK.B) is an $18 billion diversified mining company,
headquartered in Vancouver,
Canada. The
company is a leader in the production of zinc and metallurgical coal and is
also a significant producer of copper, gold and specialty metals.
About Paramount Gold
Paramount
Gold is a precious metals exploration company trading on the OTCBB under the
symbol PGDP and listed on the Frankfurt stock exchange under the symbol P6G
(WKN: A0HGKQ). The Company's objectives are to explore and develop the San
Miguel project, located in Chihuahua, Mexico within the Sierra Madre Occidental
gold/silver belt and fully develop the potential of the strategic alliance with
Teck Cominco for gold exploration in South America.
For more information, please visit the Company's web site at: www.paramountgold.com (now available in
the following languages: English, German, French, Spanish, and Mandarin).
Quality Control Person
Alain Vachon, P.Eng., Manager of Exploration, South
America, is acting as the qualified person and has prepared the
content of this news release.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained herein which are not historical are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays
beyond the company's control with respect to commencement of drilling
operations, concentration in mineral deposits, delays in testing and evaluation
of ore samples, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
Contacts:
Alain Vachon, Manager of Exploration, South America
011 511 446 9062 (From Canada
or US)
Chris Halkai, Corporate Relations
Toll-free:
1-866-481-2233
613-226-9881