Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

January 17, 2007 09:56 ET

Palmarejo Announces Progress Results From the La Patria-La Virginia-Maclovia Project

LONGUEUIL, QUEBEC--(CCNMatthews - Jan. 17, 2007) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to announce results from the drill program at the La Patria -La Virginia-Maclovia ("La Patria") project located in the Temoris District, Chihuahua, Mexico.

The La Patria structure is a 1.7 kilometre section of the 4 kilometre long Todos Santos to Maclovia mineralized corridor located 6.5 kilometres south-southeast of the Palmarejo project and 4 kilometres southwest of the Guadalupe project in the Company's highly prospective Trogan tenements some 265 kilometres southwest of Chihuahua in the Chinipas/Temoris district. The Trogan tenements are held by the Company's subsidiary, Planet Gold SA de CV.

Fifty five reverse circulation ('RC') holes and 19 diamond core holes, for a total of 8,767 metres and 4,917 metres respectively, have been completed since drilling began at La Patria in the beginning of 2006.

Results for drill holes reported below (except LPDH061D) were received after the October 2006 cut-off for completion of the initial inferred resource estimate at La Patria announced on January 15, 2007 and are thus excluded from that estimate.

Impressive down hole assay intercepts from the recent drilling are as follows (1.0 g/t AuEq lower cut-off):

- 9.50 metres @ 1.11 g/t Au and 12 g/t Ag (1.3 g/t AuEq) LPDH060D (La Virginia)

- 8.80 metres @ 1.13 g/t Au and 5 g/t Ag (1.2 g/t AuEq) LPDH062D (La Virginia)

- 24.00 metres @ 3.57 g/t Au and 43 g/t Ag (4.3 g/t AuEq) including
2.00 metres @ 13.55 g/t Au and 9 g/t Ag (13.7 g/t AuEq) LPDH063D (La Virginia)

- 5.00 metres @ 1.59 g/t Au and 64 g/t Ag (2.7 g/t AuEq) LPDH065D (La Virginia)

- 1.00 metre @ 15.50 g/t Au and 85 g/t Ag (16.9 g/t AuEq) and
8.00 metres @ 2.18 g/t Au and 27 g/t Ag (2.6 g/t AuEq) LPDH067D (La Patria)

- 4.57 metres @ 3.53 g/t Au and 117 g/t Ag (5.5 g/t AuEq) LPDH069 (La Virginia)

- 6.10 metres @ 3.06 g/t Au and 76 g/t Ag (4.3 g/t AuEq) LPDH070 (La Virginia)

- 16.76 metres @ 3.62 g/t Au and 152 g/t Ag (6.2 g/t AuEq) LPDH071 (La Virginia)

- 10.67 metres @ 2.23 g/t Au and 122 g/t Ag (4.3 g/t AuEq) LPDH072 (La Virginia)

- 7.62 metres @ 0.70 g/t Au and 84 g/t Ag (2.1 g/t AuEq) and
27.43 metres @ 2.85 g/t Au and 66 g/t Ag (3.9 g/t AuEq) LPDH074 (La Virginia)



Details of the drill hole locations are as follows:

-------------------------------------------------------------------------
Eleva- Total
Hole Northing Easting tion Azimuth Dip RC Core Depth
(m) (degrees) (Degrees) (m) (m) (m)
-------------------------------------------------------------------------
LPDH060D 3026060 759381 1396 245 -70 0.00 292.00 292.00
-------------------------------------------------------------------------
LPDH062D# 3026204 759308 1424 0 -90 0.00 303.75 303.75
-----------------------------------------------------------------------
LPDH063D# 3025989 759418 1377 245 -70 0.00 218.20 218.20
-------------------------------------------------------------------------
LPDH064D# 3025989 759229 1409 245 -60 0.00 132.70 132.70
-------------------------------------------------------------------------
LPDH065D# 3025989 759230 1409 0 -90 0.00 141.20 141.20
-------------------------------------------------------------------------
LPDH066D 3026700 759060 1315 225 -60 0.00 479.35 479.35
-------------------------------------------------------------------------
LPDH067D 3026700 759060 1315 225 -75 0.00 431.85 431.85
-------------------------------------------------------------------------
LPDH068D 3026615 759040 1295 225 -60 0.00 299.95 299.95
-------------------------------------------------------------------------
LPDH069 3025916 729258 1400 0 -90 146.30 0.00 146.30
-------------------------------------------------------------------------
LPDH070 3026032 759196 1390 245 -60 118.87 0.00 118.87
-------------------------------------------------------------------------
LPDH071 3026032 759196 1390 0 -90 94.49 0.00 94.49
-------------------------------------------------------------------------
LPDH072 3026138 759165 1410 245 -68 91.44 0.00 91.44
-------------------------------------------------------------------------
LPDH073D 3026615 759040 1295 225 -75 0.00 303.55 303.55
-------------------------------------------------------------------------
LPDH074 3026138 759165 1410 0 -90 134.11 0.00 134.11
-------------------------------------------------------------------------

Assay Results

Assay results for these drill holes not previously reported follow.
Intercepts are generally perpendicular to the mineralized structures
and therefore represent true widths. Calculated true widths are
indicated where intercepts are oblique to structures.


-------------------------------------------------------------------------
From To Interval Au Ag AuEq
Hole (m) (m) (m) (g/t) (g/t) (g/t) Comments
-------------------------------------------------------------------------
LPDH060D 134.00 135.00 1.00 1.22 64 2.3 La Virginia QVBX
and 188.00 189.00 1.00 1.06 8 1.2 La Virginia QVBX
and 189.50 190.00 0.50 1.16 6 1.3 La Virginia QVBX
and 191.50 192.00 0.50 1.06 5 1.1 La Virginia QVBX
and 193.00 194.00 1.00 2.63 27 3.1 La Virginia QVBX
and 195.50 196.00 0.50 3.99 68 5.1 La Virginia QVBX
and 196.50 197.50 1.00 1.76 9 1.9 La Virginia QVBX
Bulked 188.00 197.50 9.50 1.11 12 1.3 La Virginia QVBX
-------------------------------------------------------------------------
LPDH062D 230.50 232.50 2.00 1.14 3 1.2 La Virginia QVBX
(approx. 1.41 m
true width)
and 239.70 241.00 1.30 1.14 8 1.3 La Virginia QVBX
(approx. 0.92 m
true width)
and 242.50 243.00 0.50 0.91 15 1.2 La Virginia QVBX
(approx. 0.35 m
true width)
and 244.00 244.50 0.50 3.63 5 3.7 La Virginia QVBX
(approx. 0.35 m
true width)
and 245.50 246.50 1.00 2.17 8 2.3 La Virginia QVBX
(approx. 0.71 m
true width)
and 248.00 248.50 0.50 1.91 23 2.3 La Virginia QVBX
(approx. 0.35 m
true width)
Bulked 239.70 248.50 8.80 1.13 5 1.2 La Virginia QVBX
(approx. 6.22 m
true width)
and 251.50 252.00 0.50 0.35 69 1.5 La Virginia QVBX
(approx. 0.35 m
true width)
-------------------------------------------------------------------------
LPDH063D 163.00 164.00 1.00 0.72 18 1.0 La Virginia stockwork
and 167.00 169.00 2.00 1.63 58 2.6 La Virginia stockwork
and 170.00 182.00 12.00 3.90 74 5.1 La Virginia stockwork
and 183.00 185.00 2.00 13.55 9 13.7 La Virginia stockwork
and 187.00 188.00 1.00 1.07 0 1.1 La Virginia stockwork
and 190.00 191.00 1.00 5.23 0 5.2 La Virginia stockwork
Bulked 167.00 191.00 24.00 3.57 43 4.3 La Virginia stockwork
-------------------------------------------------------------------------
LPDH064D 64.00 65.00 1.00 0.58 53 1.5 La Virginia stockwork
and 66.00 67.00 1.00 0.81 75 2.1 La Virginia stockwork
-------------------------------------------------------------------------
and 68.00 68.50 0.50 2.47 96 4.1 La Virginia stockwork
Bulked 64.00 68.50 4.50 0.70 48 1.5 La Virginia stockwork
-------------------------------------------------------------------------
LPDH065D 76.00 77.00 1.00 1.61 49 2.4 La Virginia stockwork
and 78.00 81.00 3.00 2.07 91 3.6 La Virginia stockwork
Bulked 76.00 81.00 5.00 1.59 64 2.7 La Virginia stockwork
-------------------------------------------------------------------------
LPDH066D 112.00 113.00 1.00 2.27 59 3.3 La Patria QVBX
and 117.00 118.00 1.00 2.85 123 4.9 La Patria stockwork
and 119.00 120.00 1.00 0.86 44 1.6 La Patria stockwork
Bulked 117.00 120.00 3.00 1.33 58 2.3 La Patria stockwork
and 124.00 126.00 2.00 1.15 53 2.0 La Patria stockwork
and 174.00 175.00 1.00 1.64 0 1.6 La Patria stockwork
and 177.00 179.00 2.00 1.40 6 1.5 La Patria stockwork
Bulked 174.00 179.00 5.00 1.04 2 1.1 La Patria stockwork
and 229.00 230.00 1.00 1.00 0 1.0 La Patria stockwork
and 235.50 236.00 0.50 0.85 25 1.3 La Patria stockwork
and 239.50 240.00 0.50 1.52 31 2.0 La Patria stockwork
and 242.00 242.50 0.50 0.41 43 1.1 La Patria stockwork
Bulked 239.50 242.50 3.00 0.42 15 0.7 La Patria stockwork
and 249.00 249.50 0.50 0.07 81 1.4 La Patria stockwork
-------------------------------------------------------------------------
LPDH067D 125.00 127.00 2.00 0.68 33 1.2 La Patria QVBX
(approx. 1.73 m
true width)
and 130.00 132.00 2.00 1.24 39 1.9 La Patria QVBX
(approx. 1.73 m
true width)
and 144.00 145.00 1.00 15.50 85 16.9 La Patria QVBX
(approx. 0.87 m
true width)
and 159.00 162.00 3.00 1.75 35 2.3 La Patria QVBX
(approx. 2.60 m
true width)
and 163.00 167.00 4.00 2.93 25 3.4 La Patria QVBX
(approx. 3.46 m
true width)
Bulked 159.00 167.00 8.00 2.18 27 2.6 La Patria QVBX
(approx. 6.93 m
true width)
and 305.50 306.00 0.50 0.87 32 1.4 La Patria QVBX
(approx. 0.43 m
true width)
and 307.50 309.50 2.00 0.87 58 1.8 La Patria QVBX
(approx. 1.73 m
true width)
Bulked 305.50 309.50 4.00 0.67 35 1.3 La Patria QVBX
(approx. 3.46 m
true width)
and 347.00 348.00 1.00 0.91 6 1.0 La Patria QVBX
(approx. 0.87 m
true width)
and 352.00 353.00 1.00 1.23 0 1.2 La Patria QVBX
(approx. 0.87 m
true width)
and 401.00 402.00 1.00 1.63 0 1.6 La Patria QVBX
(approx. 0.87 m
true width)
-------------------------------------------------------------------------
LPDH069 68.58 71.63 3.05 0.80 24 1.2 La Virginia QVBX
and 76.20 80.77 4.57 3.53 117 5.5 La Virginia QVBX
and 108.20 109.73 1.53 1.01 0 1.0 La Virginia QVBX
-------------------------------------------------------------------------
LPDH070 1.52 3.05 1.53 0.80 31 1.3 La Virginia QVBX
and 57.91 64.01 6.10 3.06 76 4.3 La Virginia QVBX
-------------------------------------------------------------------------
LPDH071 60.96 64.01 3.05 0.87 42 1.6 La Virginia stockwork
(approx. 2.16 m
true width)
and 68.58 85.34 16.76 3.62 152 6.2 La Virginia stockwork
(approx. 11.85 m
true width)
-------------------------------------------------------------------------
LPDH072 9.14 10.67 1.53 0.44 96 2.0 La Virginia QVBX
(approx. 1.41 m
true width)
and 19.81 24.38 4.57 1.41 160 4.1 La Virginia stockwork
(approx. 4.21 m
true width)
and 41.15 44.2 3.05 0.91 53 1.8 La Virginia QVBX
(approx. 2.81 m
true width)
and 56.39 67.06 10.67 2.23 122 4.3 La Virginia stockwork
(approx. 9.82 m
true width)
and 89.92 91.44 1.52 2.98 33 3.5 La Virginia QVBX
(approx. 1.40 m
true width)
-------------------------------------------------------------------------
LPDH074 27.43 32.00 4.57 0.63 105 2.4 La Virginia QVBX
(approx. 3.23 m
true width)
and 33.53 35.05 1.52 1.38 84 2.8 La Virginia QVBX
(approx. 1.07 m
true width)
Bulked 27.43 35.05 7.62 0.70 84 2.1 La Virginia QVBX
(approx. 5.39 m
true width)
and 39.62 44.20 4.58 0.83 60 1.8 La Virginia QVBX
(approx. 3.24 m
true width)
and 64.01 91.44 27.43 2.85 66 3.9 La Virginia QVBX
(approx. 19.40 m
true width)
and 112.78 114.30 1.52 5.46 27 5.9 La Virginia QVBX
(approx. 1.07 m
true width)
-------------------------------------------------------------------------


Notes:

- Assays have been calculated using a 1.0 g/t AuEq cut off, no top cut and a gold to silver price ratio of 1:60; Metallurgical recovery and net smelter returns are assumed to be 100%

- QVBX equals quartz vein breccia.

- # equals previously reported and included here for completeness.

- Bulked intercepts are calculated by weight averaging the grades between the given depths and incorporating

a maximum dilution of 2 metres internal waste at less than the 1.0 g/t AuEq cut off.

- Results are awaited for drill holes LPDH068D and LPDH073D.

The recent RC drilling at La Virginia has encountered wide zones of moderate to high grade mineralization close to surface in holes LPDH071, LPDH072 and LPDH074 (e.g. 19.40 metres true width @ 2.85 g/t Au and 66 g/t Ag intersected in LPDH074). Core drilling (LPDH060D, LPDH062D and LPDH063D) completed beneath these RC holes has extended the La Virginia clavo by about 50 metres from the nearest previous drill holes. The RC and diamond core drilling results further confirm continuity of moderate to high grades at La Virginia extending from near surface to vertical depths of greater than200 metres. The clavo is still open down dip and along strike.

Holes LPDH066D to LPDH068D and LPDH073D were drilled northwest along strike of the La Patria workings and indicate the structure remains open and well mineralized in this direction (e.g. 6.93 metres true width @ 2.18 g/t Au and 27 g/t Ag intersected in LPDH067D).

The long section below of the La Patria -La Virginia-Maclovia trend shows the distribution of the holes reported above and emphasises the emerging and open nature of the clavos defined by the drilling. In this long section the clavo boundaries are defined by 20 gram AuEq metre accumulation contours (using a gold to silver price ratio of 1:60).

A map of La Patria Longitudinal Section is available at the following address: http://www.ccnmatthews.com/docs/patria.pdf

Drilling has resumed at La Patria with a BLY38 core rig and a Prospector W750 RC rig following a three week break over the Christmas and New Year period.

Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") and using best industry practice. The QA/QC program is independently supervised by Keith Blair, Msc, PGeo of Applied Geoscience of Reno, Nevada.

Elements of the program include chain of custody of samples, standard and blank samples submitted to ALS Chemex, with each batch of samples, and a check assay program on a proportion of sample pulps with a second laboratory. Results from the QA/QC program have to date been satisfactory.

Qualified Person

The technical information contained in this release was compiled in accordance with the Listing Rules of the Australian Stock Exchange Limited, by a competent person who is a corporate member of the Australa sian Institute of Mining and Metallurgy and who has consented to the inclusion of such technical information in the form in which it appears in this release. The competent person is Kenneth M. Phillips, geologist of VOP Mining Services Pty Ltd who is also a director of Bolnisi Gold NL, the Company's majority shareholder. Mr. Phillips is a qualified person under NI 43-101.

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including statements regarding resource estimate, potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed throughout the Company's Annual Information Form dated October 12, 2006 and particularly in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the NI 43-101 Technical Report dated October 1, 2006 and other documents available on SEDAR (www.sedar.com) or via the Company's website at (www.palmarejogold.com).

Contact Information

  • PALMAREJO SILVER AND GOLD CORPORATION
    James Crombie
    President & CEO
    450-677-2253
    450-677-2601 (FAX)
    jcrombie@pjogold.com
    or
    PALMAREJO SILVER AND GOLD CORPORATION
    Gerri Paxton
    Manager, Investor Relations
    450- 677-2054
    450-677-2601 (FAX)
    gpaxton@pjogold.com