Today, Paramount Gold and Silver, strongly positioned in North American precious metals development via their 100%-owned Sleeper (Nevada) and San Miguel (Mexico) projects (in addition to their other sites in Nevada at Spring Valley, Reese River, and the 100%-owned Mill Creek Gold Project), reported high-grade assay results from new drilling during exploration of a 1km gap in the San Miguel's Veronica-Santa Clara mega structure.
Two drill holes (LU-12-026 and -027), targeting right angle vectors for true width intercepts, discovered a new high-grade gold zone on the La Union deposit's southern edge, extending into the untested gap. The 027 hole, 8.65m intercept yielded a 13.02 g/t Au, 19.27 g/t Ag return and is nestled in a larger mineralization area containing a 79m wide zone (observed true width of no less than 60m) of huge veins/stockworks grading, on average 3.70 g/t Au and 17.34 g/t Ag.
The La Union also has great news and may well prove to be the highest grade deposit in the entire Palmarejo District, as another hole, 025, in the center of the La Union intersected 7.75m at 29.51 g/t Au and 19.11 g/t Ag, including 1.35m at 156.83 g/t Au and 77.82 g/t Ag. These results confirm the exceptional grades of the La Union core and should lead to a nice increase in the size of the defined core area.
Mine Development Associates out of Reno should be bringing in a new resource estimate by the second quarter covering the entire San Miguel project and this estimate will contain extant results from 2011-2012 drilling. This report will then be used for a preliminary economic assessment slated for later in 2012 that will evaluate projections for a preliminary feasibility study, resulting in a reserve report. Exploration will also continue on the massive property and a series of potential targets are scheduled for pursuit according to arrived at priorities.
CEO of PZG, Christopher Crupi, offered some choice words on the excellent assay results, underscoring the importance of the new high-grade zone discovered as a potential "game-changer" for the San Miguel Project. Crupi then delineated the validity of his statement:
First - this is a major step towards proving the some 4.35 mile Veronica-Santa Clara corridor has a continuous mineralization structure, for which the deposits are salient nodes and that the roughly 1.7 miles of undrilled gaps throughout the corridor are much more exciting as a result.
Second - expanded width potential evidenced by hole 027 results indicate potential for an even more lucrative open pit operation.
Third - Crupi indicated that the discoveries of gold-rich zones at depth below the already identified silver mineralization was a very strong indicator of the potential at San Miguel.
Confidence is high at PZG and there are numerous untested targets to be looked at as extension to known deposits, the Mexican properties are looking great and the company also has its Nevada positions. Exploration at San Miguel is being carried out under PZG's VP of Exploration, Glen van Treek, by Gold de Mexico S.A de C.V personnel. Bill Threlkeld is serving the Qualified Person role as per NI 43-101 definitions and both men have approved today's report.
Paramount is clearly excited and is rapidly pursuing quality control/assurance protocols as per assay batching standards. Secondary lab work is being conducted for cross-checking analysis at an external lab across 10% of samples and things are really shaping up at San Miguel to make PZG's operations in Mexico a very sturdy second leg to the rapidly emerging Sleeper Project in NV. The company is on very solid footing with this report and investors will be keen to hear additional reports out of PZG as activity at San Miguel heats up.
For more information on the report, or to stay up to date on the latest developments at Paramount Gold and Silver Corp., please visit the company's website at: www.ParamountGold.com
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