Second Bulk-Mineable Gold Target at San Miguel Project

 

CHIHUAHUA, MEXICO - Paramount Gold and Silver Corp. reported resource definition drilling is progressing successfully on a bulk-mineable gold target discovered by Paramount last December in the south San Francisco area of the San Miguel Project. A second bulk-mineable target has also been discovered in the north San Francisco area, generating some unusually high assay results.

Christopher Crupi, CEO of Paramount said; "we are on track to develop new resources at San Miguel with results exceeding our expectations. As the complexities of this mineral system are unraveled we become more and more impressed with the quality of our asset." Paramount owns a 100% interest in the 188,461 hectare (approximately 466,000 acre) San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in this rapidly emerging precious metals mining camp

The South Target of the San Francisco area has been the focus of initial definition drilling. This target consists of two stacked flat-lying disseminated gold zones hosted by tuffaceous rocks, with true thicknesses of about 5.0 meters in the upper zone and 35.0 meters in the lower zone. Flat-lying (sill-like) dacite intrusions found immediately above the gold zones seem to have provided a cap forcing gold-bearing fluids to spread into the receptive stratigraphy beneath. In addition, higher grade gold and silver concentrations are found in north-northwest and east-west trending structures, within a wider envelope of lower grade gold. These envelopes have an overall true thickness of about 30 meters while the true thickness of the mineralized structures is up to 8 meters wide.

The South Target has been defined over 200 meters in an east-west direction and 250 meters north-south. The zone remains open east-west and to the north where drilling is continuing to extend the zone towards another east-west structure.

The companys address is 346 Waverley Street, Suite 110, Ottawa, ON K2P 0W5, (613) 226-9881.