Paramount Gold and Silver (PZG-T) Oct 23, '14 announced today that the second drill hole on the newly discovered Dana structure at its 100%-owned San Miguel Project in northern Mexico has intersected high gold grades in addition to the significant silver grades found in the discovery hole released last week.
The first hole drilled into Dana, DN-001, returned multiple intercepts of high grade silver with lower grades of gold including 3.6 meters of 157.1 grams per tonne of silver (g/T) and 0.40 g/T of gold containing assays up to 659 g/T of silver (21 ozs per ton) and 1.18 g/T gold (see news release of October 15, 2014). Paramount geologists believed that gold grades would increase at lower elevations similar to the nearby, high grade, Don Ese deposit which it resembles. DN-002 was drilled along strike 100 meters northwest of DN-001 to intersect the Dana structure 50 meters deeper. DN-002 cut a stock work zone with internal silicified breccia totaling 5.4 meters and grading an average of 3.79 g/T gold and 183 g/T silver, which amounts to a 6.84 g/T gold equivalent grade using a gold-to-silver ratio of 1 to 60.
The new Dana discovery runs 400 to 500 meters southwest of the Don Ese structure and parallel to it, and has a strike length potential on Paramount ground of about one kilometer. Don Ese is the highest grade and most valuable gold/silver deposit at San Miguel. The location of Dana favors early development from underground in parallel with Don Ese. Paramount has made Dana a top priority for resource expansion by immediately moving a second core rig onto this target. Dana is just 800 meters northeast of Coeur Mining's Guadalupe underground mine currently under development at its flagship Palmarejo Project. Guadalupe is expected to become the main source of ore for the Palmarejo operation. See the map below.
Commenting on the results, Paramount CEO, Christopher Crupi said, "The Dana structure represents a significant discovery. We think the Dana-Don Ese-Guadalupe area is likely to be the future of the Palmarejo district."
Paramount has completed a third hole located to intersect the structure to the southeast about 120 meters from DN-001 or 220 meters from DN-002. Core is now being assayed. A fourth hole is now in progress to intersect the structure a further 120 meters to the southeast. See the map below.
The results from DN-002 are as follows:
| Hole # | Area | Total Length (m) | From (m) | To (m) | Width (m) | Au g/T | Ag g/T | | DN-002 | DANA | 519.90 | 468.30 | 473.70 | 5.40 | 3.79 | 182.6 | | | Including | 470.80 | 472.20 | 1.40 | 14.20 | 657.0 | | | | 498.05 | 501.65 | 3.60 | 0.17 | 55.2 |
A definitive true width estimate requires additional drilling but is expected to be approximately 90% of the reported intercept.
To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/141022_PZG_Map.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.
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 100,000 hectares (over 247,000 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 second Preliminary Economic Assessment (PEA) for San Miguel was completed and announced on August 25, 2014.
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.
Paramount Gold and Silver Corp.
Glen Van Treek, VP Exploration
Chris Theodossiou, Investor Relations
866-481-2233
_____________________________________________________________________________________
Oct 21, '14 - NR
Paramount Gold and Silver Corp. (PZG-T)announced today that new drilling at its 100%-owned San Miguel Project in northern Mexico is likely expanding the bulk minable resource in the San Francisco deposit. The first two holes have intersected wide zones of high silver values very close to surface.
The San Miguel Preliminary Economic Assessment (PEA) released on August 25, 2014 proposed adding a heap leaching operation to what had previously been a mill-only development scenario, based on successful heap leach metallurgical tests. Adding a heap leach operation to the front end of the production scenario brought down initial capital costs while helping to fund underground mining and related mill construction from cash flow. The new PEA also featured a very substantial increase in resources compared to the 2013 PEA by including relatively lower grade material from bulk minable deposits like San Francisco.
Paramount therefore initiated new drilling at San Francisco to add resources which would likely not have been economic previously. Holes SF-14-057 and 058 were drilled into the eastern portion of the San Francisco area to see if discontinuous mineralized zones found in limited drilling in 2011 could be connected into a larger body which could be mined more efficiently. SF-14-057 intersected better than expected silver grades of up to 749 g/T (24 opt silver) and 0.57 g/T of gold within an outstanding intercept of 89.95 meters grading 66.8 g/T of silver (2 opt of silver) and 0.08 g/T of gold (a gold equivalent grade of 1.2 g/T) starting less than 12 meters below surface (see table below). SF-14-058 intercepted grades up to 814 g/T Ag (26 opt of silver) with 1.8 g/T of gold within a large intercept of 40 meters grading 56 g/T of silver and 0.084 g/T of gold. Significant assays and a drill hole location map are found below.
Hole #AreaTotal Length (m)From (m)To (m)Width (m)True Width (m)Au g/TAg g/T | SF-14-057 | SAN FRANCISCO | 220.70 | 12.65 | 102.60 | 89.95 | | 0.084 | 66.82 | | | | | | | | | Including | 68.25 | 81.35 | 13.10 | | 0.186 | 218.57 | | SF-14-058 | SAN FRANCISCO | 250.65 | 37.30 | 49.00 | 11.70 | | 0.039 | 38.42 | | 55.35 | 95.35 | 40.00 | | 0.084 | 55.90 | | Including | 65.80 | 68.95 | 3.15 | | 0.599 | 372.67 | | Including | 78.10 | 81.95 | 3.85 | | 0.060 | 43.45 | | 213.15 | 216.55 | 3.40 | | 0.038 | 39.27 |
These holes were drilled to intersect the mineralized zones at right angles. Additional drilling is required to model and confirm true width of mineralized zones.
The current drill program at San Miguel has three objectives ( see news release of September 2, 2014):
Test new, recently identified targets like Dana. Convert inferred resources within the proposed underground mine plan to measured and indicated. About 18% of the underground minable material in our PEA is inferred. The aim is to have 100% of the resource as measured and indicated so that it will qualify as reserves in a Preliminary Feasibility Study.Acquire material for metallurgical testing and geotechnical studies.
Paramount is continuing its drill program with four core rigs on San Francisco, the new discovery on Dana (see news release of October 15, 2014) and the Don Ese deposit.
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 100,000 hectares (over 247,000 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 second Preliminary Economic Assessment (PEA) for San Miguel was completed and announced on August 25, 2014.
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.
- See more at: paramountgold.com |
