Paramount Gold and Silver Corp.
FRANKFURT : WKN:A0HGK
TSX : PZG
NYSE Amex : PZG

Paramount Gold and Silver Corp.

July 14, 2009 08:01 ET

Paramount Gold and Silver Corp. Commences Drilling at their San Miguel Project Focusing on Gold-Rich Targets

CHIHUAHUA, MEXICO--(Marketwire - July 14, 2009) - Paramount Gold and Silver Corp. ("Paramount") (TSX:PZG)(NYSE:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce that the drilling campaign on the San Miguel project was restarted. This drilling program will be conducted in 2 distinct stages, target testing and follow-up resource delineation. Exploration drilling is focusing on the gold-rich parts of the San Miguel mineral system with the goal of defining 2 million gold ounces within the next 12 months. It is anticipated that a significant silver credit would accompany successfully attaining this goal. The initial target testing stage is utilizing 1 diamond core drill contracted from Layne de Mexico S.A. de C.V.

Ongoing surface exploration and compilation of past drilling have identified 7 target zones and additional work is expected to identify more zones. Three different geological concepts have been recognized among the identified target zones:

- Synvolcanic structural basins with gold concentrations along the basin margin in veins, breccias and as detritus within the basin (Monte Cristo Target).

- Quartz veins with localized high-grade gold concentrations in plunging shoots distributed along the strike of the vein (GdlR Target, San Francisco Target, La Tinaja Target, and San Miguel Target).

- Sheeted quartz vein zones where a broad zone of subparallel quartz veins provides potential for bulk minable targets (San Antonio Target, Alisitos Target).

It is anticipated that the ongoing surface exploration will identify additional target zones. These areas will be compared to existing opportunities and the best targets will be tested. The initial target testing is designed for 8,000 meters of drilling and is expected to be completed in October. The resource delineation stage of the program would begin upon completion of this first stage of drilling.

Exploration activities at San Miguel are being conducted by Paramount de Mexico personnel under the supervision of Bill Threlkeld a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at ALS Chemex., Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

Paramount Gold and Silver holds a 100% interest in several North American gold projects. The Corporation's principal asset is the San Miguel property in Chihuahua State, Mexico. For more information on the Corporation visit the Company's website at http://www.paramountgold.com.

Contact Information

  • Paramount Gold and Silver Corp.
    Christopher Crupi
    CEO
    866-481-2233 / 613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Theodossiou
    Investor Relations
    866-481-2233 / 613-226-9881