Thursday morning, PZG announced discovery on its 466,000 acre San Miguel property in Chihuahua's Palmarejo District of an extension of the vein which motivated Coeur D'Alene's $1.1B purchase, and gave the district its name. Now, CDE, GG and several other producers have operating mines there. PZG had established 3M AU-equivalent ounce inferred resource, and plans to issue a new 43-101 in early 2011.
Recently, PZG acquired Nevada's "Sleeper Mine" which produced 1.7M oz.of gold from 1986 to 1996 when gold was under $500/oz. Many resources not economic then should prove so today. The company is studying above-ground heaps and tailings comprising 714K oz. inferred. Their current $3M drill program also aims to enlarge underground resources now at 750K oz. indicated and 390K oz inferred, as well as to probe several additional new targets on the 30 sq. mi. property.
PZG's largest shareholder is Albert Friedberg, a major backer of Seabridge Gold, which over 10 years was the biggest gainer in Morningstar's database of US listed gold stocks. With favorable experience in one company which made its way by proving up ever more ounces, Friedberg will likely be a "strong hand" as Paramount moves ahead. Like Seabridge, PZG has the advantage of trading much higher volume on AMEX than in Toronto. (Toronto offers 10 times as many listed gold stocks to a population about 1/10 of the US').
PZG shares are up 50% since August 31 -- more than much-followed Fronteer Gold. Yet, looking back 18 months PZG has been confined to a trading range between 1.15 and 1.95. Today, PZG has broken out of this trading range, and now bears watching. With momentum, PZG could do some serious "catching up" vis-a-vis other juniors which have been on fire for much longer.
At this point in the rally, there just aren't many juniors still within a technical buying range. Ultimately, of course, PZG's fortunes will depend upon sustained progress in proving up resources and economical reserves on their two major properties in 2 mining-friendly jurisdictions.
Disclosure: small position, no financial relationship; PZG did pay (modest) travel costs to visit Sleeper last summer.