Blackmont Capital analyst Craig Stanley placed Paramount Gold and Silver Corp. (PZG) under review Tuesday, after the company released a revised plan for its resource estimate.
Paramount said it will prepare an updated compliant resource estimated on the San Miguel and La Union targets at its wholly-owned San Miguel gold and silver exploration projects in Mexico.
Mr. Stanley said in a research note:
This estimate will differ from the June 2008 resource (416,000 oz gold and 66.3 million oz silver) in having a higher cut-of grade and focusing on only two zones versus eight zones.
Mr. Stanley said that his resource forecast was for increases to San Miguel, San Antonio, San Luis and San Jose zones to produce 534,000 ounce of gold and 84.7 million ounces of silver on a 100% basis.
The analyst added that Paramount management says it has $3-million in working capital plus $1.37-million in convertible debentures.