This is a great Junior with a former producing group of properities in Mexico. Read press release below.
Paramount Gold Acquires Interest in Former Producing Gold-Silver Mine in Mexico
2005-09-07 08:30 ET - News Release
CHIHUAHUA, Mexico -- (Business Wire) -- Sept. 7, 2005
Company Website: paramountgold...
Paramount Gold Mining Corp. (OTC:PGDP)
announces that it
has signed an agreement to acquire up to a 70% interest in the San
Miguel Groupings, located in Chihuahua, Mexico, from Amermin S.A. de
CV. The San Miguel Groupings include several concessions and past
producing mines, including the high grade former producing San Luis
mine. The agreement also includes access to 50% of the processing
capacity at the La Currita Mill located about three kilometers away.
The agreement calls for a payment of US$400,000
to acquire a 35%
interest in the San Miguel Groupings. Paramount can increase its
interest to 55% by spending US$1 million on exploration and
development within the first 18 months from the date of the agreement;
and to 70% by spending an additional US$1.5 million within the first
30 months from the date of the agreement.
The immediate area has numerous mines and recent
substantial
discoveries. About 20 miles to the SE is the 170,000 ounce/year El
Sauzal mine, Glamis Gold's (NYSE:GLG) newest and largest gold mine.
Gammon Lake Resource's (AMEX:GRS) Ocampo Gold-Silver Project is
approx. 40 miles to the North, projecting annual production of 270,000
ounces gold-equivalent ounces. Palmarejo (TSXV:PJO) is developing the
nearby Palmarejo mine and has acquired ground around San Miguel.
Palmarejo has announced an inferred resource of 3.1 million ounce gold
equivalent on their property. Industrias Penoles the world's largest
silver producer with proven and probable reserves of more than 430
million ounces of silver also holds ground around San Miguel.
The San Miguel Groupings concessions are known
as Santa Clara, Las
Tres S.S.S., San Luis, El Carmen, Swanick, Sangre De Cristo, Las Tres
B.B.B., Guadalupe De Los Reyes, San Juan, El Rosario, San Miguel (Head
of group) and Empalme. The property lies in the Temoris mining
district, part of the prolific gold-silver belt of the Sierra Madre
Occidental, just a few kilometers northwest of the town of Temoris. It
can be accessed by vehicle and railway and has well-developed
infrastructure with a recently constructed 33,000 volt power line. The
project covers approximately 800 acres with an estimated 6 kilometers
of strike in the historic gold/silver mining district.
The San Miguel Groupings covers portions of
three mineralized,
subparallel fault zones respectively known as Guazapares, Sangre de
Cristo and Batocegachic. All three structures have been historically
mined for gold and silver on those portions covered by the San Miguel
Groupings by both underground and open pit methods.
The six-kilometer long Guazapares zone generally
strikes
N25degreesW and dips steeply to the northeast. The southern half of
the Guazapares structure is characterized by more silver-rich
mineralization and the northern half is more gold-enriched. The
fractured hanging wall of the main structure and fault intersections
contain zones of stockwork veining that provides potential for
defining bulk-tonnage deposits such as the silver deposit at the San
Jose mine that was the site of a small heap-leaching operation in the
mid-1980's. The San Luis mine is the site of a bonanza-grade,
gold-rich breccia body that was mined to the inclined depth of 815
feet by the Alaska-Juneau Mining Company from 1958 to 1963. Company
reports from the period indicate that the gold mineralization
continues at depth and that high-grade blocks of ore likely remain
intact. The mine was flooded by groundwater in 1963 and has not been
worked since.
Paramount Gold Mining Corp. is a precious metals
exploration and
development company. It is management's objective to grow Paramount
into a significant gold and precious metals producer by developing the
San Miguel project in Mexico, and by acquiring other advanced-stage
projects and/or producing mines in the most prolific precious metal
districts in the world.
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 market acceptance of new technologies or products, delays
in testing and evaluation of products, and other risks detailed from
time to time in the Company's filings with the Securities and Exchange
Commission.
Contacts:
Paramount Gold Mining Corp.
Chris Crupi, CA
ccrupi@paramountgold.com
www.paramountgold.com
or
Investor Relations:
Skyline Communications, 613-226-9881
toll-free: 1-866-481-2233
www.skylinecommunicationsinc.com
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