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

Paramount Gold and Silver Corp.

March 08, 2010 08:30 ET

Paramount Gold and Silver Corp. Discovers Second Bulk-Mineable Gold Target at San Miguel Project in new San Francisco Area as Resource Delineation Continues

CHIHUAHUA, MEXICO--(Marketwire - March 8, 2010) - Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G) -

Resource definition drilling is progressing successfully on a bulk-mineable gold target discovered by Paramount last December in the south San Francisco area of the San Miguel Project (see news release of January 7, 2010). A second bulk-mineable target has also been discovered in the north San Francisco area, generating some unusually high assay results.

Christopher Crupi, CEO of Paramount said; "we are on track to develop new resources at San Miguel with results exceeding our expectations. As the complexities of this mineral system are unraveled we become more and more impressed with the quality of our asset." Paramount owns a 100% interest in the 188,461 hectare (approximately 466,000 acre) San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in this rapidly emerging precious metals mining camp

The South Target of the San Francisco area has been the focus of initial definition drilling (San Francisco maps:http://www.paramountgold.com/projects/san_miguel_maps.asp). This target consists of two stacked flat-lying disseminated gold zones hosted by tuffaceous rocks, with true thicknesses of about 5.0 meters in the upper zone and 35.0 meters in the lower zone. Flat-lying (sill-like) dacite intrusions found immediately above the gold zones seem to have provided a cap forcing gold-bearing fluids to spread into the receptive stratigraphy beneath. In addition, higher grade gold and silver concentrations are found in north-northwest and east-west trending structures, within a wider envelope of lower grade gold. These envelopes have an overall true thickness of about 30 meters while the true thickness of the mineralized structures is up to 8 meters wide.

The South Target has been defined over 200 meters in an east-west direction and 250 meters north-south. The zone remains open east-west and to the north where drilling is continuing to extend the zone towards another east-west structure. Recent intersections include:



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Drill Hole From To Length Au g/t Ag g/t Target Style
(meters) (meters) (meters)
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RCSF-10-01 50.3 65.5 15.2 0.56 17.0 Flat-laying
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105.2 134.1 28.9 1.22 13.3 Flat-laying
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RCSF-10-02 13.7 21.3 7.6 0.62 3.4 Flat-laying
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140.2 160.0 19.8 0.57 2.2 Flat-laying
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179.8 224.0 44.2 0.51 7.0
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RCSF-10-04 179.8 185.9 6.1 0.70 59.0 disseminated
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199.6 242.3 42.7 1.09 5.6 disseminated
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including 225.6 237.7 12.1 2.40 7.1 Structural zone
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RCSF-10-05 12.2 18.3 6.1 0.62 90.7
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51.8 61.0 9.2 0.69 11.2 Flat-laying
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167.6 216.4 48.8 1.56 5.9 Flat-laying
---------------------------------------------------------------------------


Exploration drilling in the northern part of the San Francisco area has discovered a second bulk-mineable target. This North Target consists of at least one pyretic breccia pipe (hydrothermal breccia pipe) of unknown dimensions and disseminated gold concentration in the surrounding country rock. Core drilling is currently being used to better define the geometry of this target in advance of aggressive definition drilling. This blind target zone contains bonanza gold grades in the breccia pipe. Surrounding rock represents the collapsed upper part of a volcanic complex and disseminated gold concentrations have been encountered in these rocks. Results include:



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Drill Hole From To Length Au g/t Ag g/t Target tyle
(meters) (meters) (meters)
---------------------------------------------------------------------------
SF-10-05 125.4 146.1 20.7 6.26 813.6 Breccia pipe
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Including 132.5 139.7 7.2 17.22 2,256.3
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161.1 166.4 5.3 0.81 55.1 Disseminated
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184.8 192.0 7.2 0.61 28.8 disseminated
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471.9 483.2 11.3 1.17 7.5 NNE vein
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SF-10-06 109.0 127.3 18.3 1.31 16.7 disseminated
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Paramount continues to pursue its goal of defining 2 million ounces of new gold resource on the San Miguel Project. Achieving this goal would significantly increase the current NI 43-101 compliant resource the company has defined on the project. Current drilling will concentrate on 4 priority target areas, however, this program and detailed surface geology is providing insight into other new target areas that have never been tested.

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 adsorption methods for gold and aqua regia digestion ICP methods for other elements.

Paramount Gold and Silver holds a 100% interest in the San Miguel property in Chihuahua State, Mexico. For more information on the Corporation visit the Company's website at 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