Breaking News

Tweet TWEET

Paramount Gold and Silver Drills 18 Meters of 4.46 g/T Gold and 434.9 g/T Silver, Completing Its Don Ese Infill Program at San

Paramount Gold and Silver Drills 18 Meters of 4.46 g/T Gold and 434.9 g/T  Silver, Completing Its Don Ese Infill Program at San Miguel  Resource size and grade likely to rise as all 16 new holes intersect high grade material  WINNEMUCCA, NEVADA -- (Marketwired) -- 02/25/14 --  Paramount Gold and Silver Corp. (NYSE MKT: PZG) (TSX: PZG) (FRANKFURT: P6G) (WKN: A0HGKQ) ("Paramount") today reported results from the final two core holes drilled at Don Ese-part of its ongoing program to enhance the resource base at its 100%-owned San Miguel Project in northern Mexico. Paramount has been drilling at San Miguel since late last year with two core rigs. The focus now shifts to a potential new discovery on the southern end of the 7.5 km long Guazapares Megastructure.  Two additional holes were drilled into the Don Ese deposit to upgrade and expand resources. Infill drill hole DS-044 intersected 18 meters of 4.46 g/T of gold and 424.88 g/T of silver including a central portion of 3.4 meters grading 19.18 g/T of gold with 1,873.6 g/T of silver. Drill hole DS-045 intercepted two zones of higher silver and gold grades within the main Don Ese vein including 7.7 meters of 2.31 g/T of gold and 118.5 Ag g/T of silver and 6.2 meters of 0.65g/T of gold and 176.6 g/T of silver. These two holes were completed within the resource block model and are expected to move inferred resources to measured and indicated.  Commenting on these results, Paramount CEO Christopher Crupi noted that "on a gold equivalent basis, hole 44 is reporting 18 meters of 11.5 grams of gold per tonne. These are exceptional results which should enhance the economic potential of the Don Ese deposit compared to last year's PEA (Preliminary Economic Assessment)."  Paramount will now provide Mine Development Associates (www.mda.com) with the data from a total of 16 new core holes (8,027 meters) to be incorporated into a new resource estimate (see table below) which will be used to update the PEA. The new PEA will also evaluate the potential for including a heap leach operation into the project's design, to process lower grade material which was left out of last year's PEA. As previously announced on November 6, 2013, metallurgical tests support the potential viability of a heap leach component which would increase the resource base and could also serve as a low cost start-up option prior to commencing underground mining and milling.  Results from the final two holes drilled at Don Ese in 2014 are as follow:        ----------------------------------------------------------------------- ----- Hole #       Area    Total                                                                       Length  From (m)    To (m) Width (m)    Au g/T    Ag g/T ---------------------------------------------------------------------------- DS-044    DON ESE   436.35    421.15    421.80      0.65     0.861     79.20                                                                                                            435.00    435.50      0.50     1.000    224.00                               452.90    461.15      8.25     1.446    201.65                               468.10    468.80      0.70     0.264     44.30                               472.70    490.70     18.00     4.461    424.88                  including    472.70    476.10      3.40    19.178   1873.59 ---------------------------------------------------------------------------- DS-045    DON ESE   542.15    495.60    501.80      6.20     0.651    176.58                                                                                                            507.20    514.90      7.70     2.312    118.50 ----------------------------------------------------------------------------  True widths are expected to be 85 % of reported intercepts.  A map is available at the following address: http://media3.marketwire.com/docs/929538A.pdf.   Previously reported drill holes, to be incorporated in an updated resource estimate.         ----------------------------------------------------------------------- -----              Area    Total  From (m)    To (m) Width (m)    Au g/T    Ag g/T Hole #              Length                                                   ---------------------------------------------------------------------------- DS-13-030 DON ESE    524.4    433.60    438.40      4.80     0.082      9.95                                                                                                            442.35    492.90  50.55(i)     1.325    150.00                  Including    451.55    458.10      6.55     2.469    314.67                  Including    467.80    487.15     19.35     2.300    245.80 ---------------------------------------------------------------------------- DS-13-031 DON ESE      683    586.80    591.40      4.60      1.31    21.660 ---------------------------------------------------------------------------- DS-13-032 DON ESE   621.95    515.75    538.25  22.50(i)      3.16    44.340                                                                                               including    527.10    530.05      2.95    14.180     96.15                  including    527.10    527.95      0.85    42.500    186.00                  including    535.55    538.25      2.30     6.560    113.97                  including    535.95    536.55      0.60    17.000    125.00                               541.15    543.90      2.75     0.370     18.78                               555.90    556.40      0.50     2.340     13.10                               579.45    579.95      0.50     1.068     14.30                                                                              ---------------------------------------------------------------------------- DS-13-033 DON ESE   634.20    522.80    523.35      0.55     1.075    816.00                                                                                                            537.95    538.70      0.75     0.678    136.00                               544.30    546.70      2.40     0.694     74.43                               552.15    553.15      1.00     1.147     38.10                               561.55    563.70      2.15     0.481     23.91                               576.55    585.95      9.40     0.562     52.33                  Including    580.00    582.35      2.35     1.286     87.53 ---------------------------------------------------------------------------- DS-13-034 DON ESE   643.20    573.80    592.75     18.95     0.890    111.77                                                                                               Including    588.10    591.20      3.10     2.400    183.45                               607.05    609.40      2.35     1.740     36.67 ---------------------------------------------------------------------------- DS-13-035 DON ESE   423.50    332.00    348.75  16.75(i)     1.479    209.80                                                                                               Including    338.10    342.50      4.40     3.567    484.44                               352.85    357.75      4.90     0.143     25.37                               364.65    366.60      1.95     3.969    200.85                               398.15    398.65      0.50     1.000    247.00 ---------------------------------------------------------------------------- DS-13-036 DON ESE   505.05    421.35    422.10      0.75     0.346     87.10                                                                                                            429.80    432.45      2.65     2.184    133.79                  including    431.40    432.45      1.05     5.254    247.00                               439.75    470.30  30.55(i)     0.742     86.30                  including    439.75    441.75      2.00     3.034    448.00                               489.40    489.95      0.55     3.794     89.30 ---------------------------------------------------------------------------- DS-13-037 DON ESE   359.05    278.25    281.25      3.00     0.297     28.22                                                                                                            352.60    353.90      1.30     0.246    132.00 ---------------------------------------------------------------------------- DS-13-038 DON ESE   340.85    296.90    304.65      7.75     2.535    230.81                                                                                               including    298.00    299.65      1.65     4.190    271.24                               312.05    314.00      1.95     0.198     35.90                               315.45    316.05      0.60     0.407     63.40                               327.00    327.90      0.90     2.440    303.00                               335.00    335.65      0.65     3.913    624.00                               339.35    339.85      0.50     2.457    268.00 ---------------------------------------------------------------------------- DS-13-039 DON ESE   383.80    293.30    298.80      5.50     1.475    198.71                                                                                                            300.25    301.65      1.40     0.513     89.90                               326.35    326.80      0.45     0.224     70.50                               344.80    345.45      0.65     0.752    210.00                               367.90    371.85      3.95    11.866   2294.78                  including    369.70    371.85      2.15    17.995   3435.44                  including    369.70    370.50      0.80    29.400   4833.00                               374.30    376.10      1.80     0.509    161.67 ---------------------------------------------------------------------------- DS-13-040 DON ESE   466.25    354.45    378.35     23.90     4.986    335.94                                                                                               including    361.10    367.85      6.75    12.797    741.77                  including    363.00    364.65      1.65    37.130   1883.88                  including    363.95    364.65      0.70    59.700   2793.00                               400.25    401.90      1.65     0.600     54.34                               413.85    414.55      0.70     0.656     55.00 ---------------------------------------------------------------------------- DS-13-041 DON ESE   472.60    384.75    421.20     36.45     3.662    222.17                                                                                               including    393.55    397.35      3.80     2.769    242.99                  including    403.05    418.90     15.85     7.042    365.25                  including    405.05    409.65      4.60    16.509    723.45                  including    405.05    406.05      1.00    56.600   1907.00                  including    407.05    408.00      0.95    10.900    483.00                               423.80    424.35      0.55     1.050     33.50                               427.70    428.95      1.25     1.711    130.26 ---------------------------------------------------------------------------- DS-13-042 DON ESE                                                                                                                                                              551.7    477.40    479.15      1.75     0.295     40.60                               480.85    484.80      3.95     0.855     47.32                               488.10    511.45     24.35     4.818    311.69                  Including    488.10    491.80      3.70    13.214    697.36                  Including    495.50    501.55      6.05     8.712    584.02 ---------------------------------------------------------------------------- DS-13-043 DON ESE    438.7    343.50    351.30      7.80     0.597     93.68                                                                                                            359.05    360.95      1.90     1.238    165.00                               371.95    373.20      1.25     0.875    191.00                               382.00    382.60      0.60     0.500    144.00                               418.05    421.60      3.55     0.696    119.12 ----------------------------------------------------------------------------  True widths range from 60% to 95 % of reported intercept; for more details visit www.paramountgold.com   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 Mine Development Associates (www.mda.com). The PEA confirms that the San Miguel Project represents an unusually robust economic opportunity to develop a low cost mine in the prolific Sierra 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.  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