Paramount Gold and Silver Discovers A Major New Structure at San Miguel Project in Mexico

Paramount Gold and Silver Discovers A Major New Structure at San Miguel Project 
in Mexico 
San Isidro surface samples generate spectacular values; first two
shallow holes yield intercepts up to 2.8 g/T Au and 214 g/T Ag;
structure traced for more than 4 km 
WINNEMUCCA, NEVADA -- (Marketwired) -- 09/19/13 -- Paramount Gold and
Silver Corp. (TSX:PZG) (NYSE MKT:PZG) (FRANKFURT:P6G) (WKN:A0HGKQ)
("Paramount") today reported promising results from two preliminary
drill holes targeting a new structural system recently defined by
Paramount's geologists from surface mapping, rock sampling and
alteration analysis.  
The new San Isidro structural system runs parallel to, and west of,
the 7 km long Guazapares Mega-structure which hosts Paramount's rich
La Union and San Antonio deposits. San Isidro has been recognized
along strike for at least four kilometers and passes near the
proposed location of the process plant as set out in the San Miguel
Preliminary Economic Assessment (PEA) released on February 28, 2013. 
Several rock samples from San Isidro returned spectacular
grades--over 100 grams per tonne (g/T) of gold and up to 2,291 g/T of
silver (about 70 ounces per tonne). Surface sampling has consistently
found high grade material, predominantly silver. At San Miguel,
higher silver values are generally found at the top of the system,
near surface, while gold grades tend to improve with depth. Rock
sampling at San Isidro supports this observation.  
A total of 57 chip samples were collected from the central part of
the structural system which is characterized by silica-rich
replacement, massive quartz veins and altered rocks. Over 35 % of
these samples returned silver values greater than 15 g/T and averaged
a highly prospective 301 g/T silver (almost 10 ounces per tonne). 
Two shallow core holes were then drilled to confirm the orientation
of the structure and test for mineralization. Both holes successfully
intersected several veins containing excellent precious metal values
including gold grades up to 2.8 g/T and silver up to 214 g/T. The
best intercept (in SI-13- 001) averaged 0.61 g/T of gold and 31.6 g/T
of silver over 11 meters (from 174 to 185 m). See the table below.
Further drilling is required to determine the optimum elevation for
better
 gold grades. 
Paramount's geological team is continuing detailed surface mapping
along the structure to define areas that are potentially wider and
higher grade. About 3 km. of the structural system is within
Paramount's concessions. The remainder of the San Isidro structural
system strikes onto ground owned by Fresnillo PLC, the world's
largest primary silver producer. Fresnillo is actively exploring its
relatively smaller claims package which is surrounded by Paramount's
claims and lies adjacent to Coeur's Palmarejo Mine (see map below). 
Results from the two preliminary San Isidro drill holes are as
follows: 


 
----------------------------------------------------------------------------
                     Total Length                                           
Hole #    Area                (m) From (m)  To (m) Width (m)  Au g/T  Ag g/T
                     -------------------------------------------------------
SI-13-001 SAN ISIDRO       465.75   174.20  185.55     11.35   0.610   31.62
                                                                            
                        Including   174.20  179.25      5.05   1.043   39.74
                        Including   176.20  177.20      1.00   2.840  103.00
                        Including   182.50  183.00      0.50   1.874  155.00
                                    193.30  194.05      0.75   0.387   41.80
                           
         252.60  254.60      2.00   0.189   21.70
                                    278.75  280.10      1.35   1.619  206.00
                                    330.75  331.60      0.85   0.352   18.10
                                    371.20  372.45      1.25   0.240  214.00
                                    394.60  395.40      0.80   0.012   82.10
----------------------------------------------------------------------------
SI-13-002 SAN ISIDRO       274.15    13.20   14.80      1.60   0.442    0.70
                                                                            
                                     21.00   22.00      1.00   0.008  113.00
                                     65.90   67.40      1.50   0.031   57.10
                                     74.10   75.50      1.40   0.020   58.20
                                    108.85  111.00      2.15   0.026   33.57
                                    242.20  244.20      2.00   0.151   78.00
----------------------------------------------------------------------------

 
These holes were drilled to intersect the structures at what were
thought to be right angles and it is therefore expected that the
reported intercepts closely approximate true widths. 
Christopher Crupi, Paramount's CEO, commented: "We are very excited
to discover this new structure which once again demonstrates that San
Miguel remains an outstanding exploration project as well as a robust
mining opportunity at even lower than current metal prices. We
believe this structure has the potential to deliver multiple deposits
with grades that equal anything found in the Palmarejo District." 
A figure is available at the following address:
http://media3.marketwire.com/docs/SanIsidro899218.pdf. 
NI 43-101 Disclosure 
Exploration activities at San Miguel are being conducted by Paramount
Gold de Mexico S.A de C.V personnel 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 and approved this press release. An ongoing quality
control/quality assurance protocol is being employed for 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 and Acme Laboratories, Vancouver, B.C., using fire assay
atomic absorption methods for gold and aqua regia digestion ICP
methods for other elements.  
San Miguel Project PEA 
The PEA was prepared by Metal Mining Consultants ("MMC") of Denver,
Colorado incorporating a resource model developed by MDA. The PEA
confirms that the San Miguel Project represents an unusually robust
economic opportunity to develop a low cost mine in the prolific
S
ierra Madre belt in Mexico. In their analysis, MMC proposed a 4,000
tonnes per day mill fed by open pits and underground mines, resulting
in a projected 14 year operation with a total metal production of
803,000 ounces of gold and 43.2 million ounces of silver (1,637,000
ounces of gold equivalent at the base case gold-to-silver price ratio
of 51.7 to 1).  
Start-up capital costs including working capital are estimated at
$243 million. Sustaining capital costs over the project's life are
projected to be an additional $227 million. With $70.3 million in
contingencies, total life-of-mine capital costs are estimated at $540
million. Projected life-of-mine average cash operating costs are $512
per ounce of equivalent gold recovered. The total cost of production
(including cash operating costs and total capital and contingency
costs over the life of the mine) is estimated at US$842 per ounce of
gold equivalent, which compares favorably with current producers in
the region. At a gold price of $1500 per ounce and a silver price of
$29 per ounce (the 3 year trailing average of gold and silver prices
at the end of January 2013), the San Miguel PEA estimated a $1.1
billion pre-tax net cash flow, a $707 million pre-tax net present
value at a 5% discount rate and a highly accretive internal rate of
return of 33.2%. Note that the PEA incorporates inferred mineral
resources which are considered to be too geologically speculative to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves and, as such, do not have
demonstrated economic viability. There can be no certainty that the
estimates contained in the PEA will be realized. 
About Paramount 
Paramount is a U.S.-based exploration and development company with
multi-million ounce advanced stage precious metals projects in
northern Mexico (San Miguel) and Nevada (Sleeper). Fully-funded
exploration and engineering programs are now in progress at these two
core projects which are expected to generate substantial additional
value for our shareholders.  
The San Miguel Project consists of over 142,000 hectares (over
353,000 acres) in the Palmarejo District of northwest Mexico, making
Paramount the largest claim holder in this rapidly growing precious
metals mining camp. The San Miguel Project is ideally situated near
established, low cost production where the infrastructure already
exists for early, cost-effective exploitation. A PEA for San Miguel
was completed and announced on February 28, 2013. 
The Sleeper Gold Project is located off a main highway about 25 miles
from the town of Winnemucca. In 2010, Paramount acquired a 100%
interest in the project including the original Sleeper high-grade
open pit mine operated by Amax Gold from 1986 to 1996 as well as
staked and purchased lands now totaling 2,570 claims and covering
about 47,500 acres which stretch south down trend to Newmont's
Sandman project. This acquisition is consistent with the Company's
strategy of district-scale exploration near infrastructure in
established mining camps. A PEA was completed for Sleeper and
announced on July 30, 2012. 
Summary of PZG's Estimated NI 43-101 Compliant Resources  


 
MEASURED AND INDICATED RESOURCES                                            
----------------------------------------------------------------------------
PROJECT                     Tonnes   Au g/T   Au Ounces   Ag g/T   Ag Ounces
----------------------------------------------------------------------------
San Miguel              23,918,000     0.83     639,000     70.0  53,559,000
----------------------------------------------------------------------------
Sleeper                326,963,000     0.33   3,479,000     3.86  40,606,000
----------------------------------------------------------------------------
Total                                         4,118,000           94,165,000
----------------------------------------------------------------------------
INFERRED RESOURCES                                                          
----------------------------------------------------------------------------
PROJECT                     Tonnes   Au g/T   Au Ounces   Ag g/T   Ag Ounces
----------------------------------------------------------------------------
San Miguel              37,470,000     0.69     830,000    38.00  46,243,000
----------------------------------------------------------------------------
Sleeper                223,624,000     0.27   1,972,000     2.84  20,459,000
----------------------------------------------------------------------------
Total                                         2,802,000           66,702,000
----------------------------------------------------------------------------

 
For details on these resource estimates please see the following news
releases: San Miguel Resource Estimate, September 5, 2012; and
Sleeper Resource Estimate, July 30, 2012. 
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 not
normally 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 San Miguel Project and the expected
results of this work, estimates of resources including expected
volumes and grades and the economic projections included in the
project's PEA. 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, 2013 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.  
See more at: http://www.paramountgold.com/News/NewsRelease.asp?ID=100
269#sthash.wQKdFVmR.dpuf
Contacts:
Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration
866-481-2233 
Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
866-481-2233
 
 
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