CHIHUAHUA, MEXICO--(Marketwire - Feb. 1, 2011) - Paramount Gold (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ)
Drilling has recommenced on the Don Ese
Corridor which hosts the high-grade Don Ese
gold-silver vein discovered by Paramount in December, 2010 on its 100%
owned San Miguel Project in northwestern Mexico. This phase of the
drill program will include 19 core drill holes totaling 6,000 meters
over a 3 month timeframe.
Paramount`s initial drill testing of the Don Ese
area discovered the north-northwest trending Don Ese
vein within a strike extension of the main structural corridor (named
the Don Ese Corridor) which hosts the
neighboring Palmarejo Mine (see news release
of December 9, 2010). The Don Ese vein is not
exposed at the surface but was initially located by surface features
including fractured and broken rocks indicative of a fault zone,
anomalous silver and gold geochemistry and distinctive clay mineralogy.
Surface exploration for these markers was conducted along strike to the
south of the Don Ese discovery, successfully
identifying the favorable geology, geochemistry and clay mineralogy as
well as vein exposures within the Don Ese
Corridor which has to date been traced for 7,500 meters along strike,
with a width of 2,500 meters, on Paramount`s San Miguel concessions
(see news release of December 21, 2010).
Work in the Don Ese Corridor to date has
identified a continuation of the Don Ese vein
(Don Ese Sur) as well as three other parallel
north-northwest trending veins (El Cura, La
Verde and Temoris) where drill testing is
indicated from surface work. A 7,500 meter core drilling program has
been designed to test these targets starting immediately. The surface
expressions of these veins identified to date range from 800 meters to
1500 meters but they remain open along strike.
Final results were received for drill hole DS-10-07 which confirmed the
continuity of the north-northwest trending structure but contained no
significant gold or silver intersections. High-grade vein deposits
typically do not return significant values in every hole. The complete
record of the seven holes on the Don Ese vein
are as follows:
Drill Hole Interval Drill Hole Length From To Length Number (meters) (meters) (meters) (meters) Au g/t Ag g/t -------------------------------------------------------------------------- DS-10-001 536.80 481.4 497.4 16.0 2.11 90.4 -------------------------------------------------------------------------- Includes 483.5 491.1 7.6 4.25 133.4 -------------------------------------------------------------------------- -------------------------------------------------------------------------- DS-10-002 667.75 No significant intervals: structural feature was identified but unmineralized -------------------------------------------------------------------------- -------------------------------------------------------------------------- DS-10-003 576.20 211.4 214.8 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-10-004 411.55 303.1 316.5 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 -------------------------------------------------------------------------- DS-10-007 539.65 No significant intervals: structural feature was identified but unmineralized. --------------------------------------------------------------------------
Although these initial results are believed to
approximate true width, additional drilling will be required to fully
establish true widths in all intervals.
The San Miguel project consists of 188,000 hectares (465,000 acres) in
the Palmarejo District of northwest Mexico,
making Paramount the largest claim holder in this rapidly growing
precious metals mining camp. 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 assayed
at ALS Chemex, Vancouver, B.C., using fire
assay atomic absorption 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.
|