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

Paramount Gold and Silver Corp.

December 01, 2008 09:07 ET

Paramount Gold and Silver Corp.'s San Miguel Project Hosts 2.645 Million Ounces Inferred Resources (Gold eq.)

OTTAWA, ONTARIO, CANADA--(Marketwire - Dec. 1, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(NYSE-A:PZG)(AMEX:PZG)(FRANKFURT:P6G) is pleased to announce the resource estimate for its two Clavos 66 and 99 has established inferred resources of 1.512 million ounces gold and gold equivalents at the 100% owned San Miguel Project in Chihuahua, Mexico. A total of 2.645 million ounces of gold and gold equivalent in situ inferred resources and 0.055 million ounces of indicated resources at the San Miguel Project has been identified in drilling to date. This resource estimate demonstrates the strength of the mineral system which is open at depth and on strike. The purpose of the technical report is to estimate high grade gold-silver resources which could be mined in the near term at Clavos 66 and 99.

The resource estimate for Clavos 66 and 99 incorporates results from 81 drill holes completed to end of August 2008. A summary of the in situ mineral resource for Clavos 66 and 99 at various cut-off grades is tabulated below:

Clavo 66 and 99 In Situ Inferred Resource Summary above Cut-off Grades



Cut-off Grade Ounces Average Grade
Zone Tonnes Grams/Tonne Au Au-Eq. Grams/Tonne Au-Eq.
--------------------------------------------------------------------

Clavo 99
6,536,196 1.0(1) 891,094 4.24
3,575,519 2.0(2) 573,000 4.98
1,297,452 4.5(2) 449,667 10.78

Clavo 66

3,971,270 1.0(1) 621,726 4.87
2,585,669 2.0(2) 411,123 4.95
456,852 4.5(2) 216,683 14.75

Notes :
1. As reported by Douglas Wood II, P.Geo., on November 20, 2008 using
a polygonal inferred resource estimation.
2. As reported by Douglas Wood II, P.Geo., on November 20, 2008 using
a 50 meter search radius.


A summary of the overall in situ mineral inferred and indicated resources for the San Miguel Project is tabulated below:



San Miguel Project In Situ Inferred and Indicated Resource Summary

Inferred
Resources
Indicated Inferred Indicated Inferred Ave. Grade
Ounces Ounces Ounces Ounces above Cut-Off
Zone Ag-Eq. Ag-Eq. Au-Eq. Au-Eq. Ag-Eq Au-Eq.
(1) (1) (3) (3)
--------------------------------------------------------------------
Clavo 99 891,094 4.24 g/t
(2)
Clavo 66 621,726 4.87 g/t
(2)
Sangre
de Cristo 128,000 3,100,000 2,415 58,491 65 g/t
La Veronica 609,000 9,800,000 11,490 184,906 71 g/t
San Antonio 1,667,000 29,700,000 31,452 560,377 107 g/t
San Luis 81,000 6,600,000 1,528 124,528 162 g/t
San Jose 410,000 9,100,000 7,735 171,698 129 g/t
Monte Cristo nil 1,700,000 32,075 63 g/t

Notes:
1. As reported by ACA Howe International Limited on June 13, 2008
with a 25 g/t Ag cut-off grade.
2. As reported by Douglas Wood II, P.Geo., on November 20, 2008 with
a 1g/t Au cut-off grade.
3. Expressed in units of gold equivalents considering gold, silver,
lead and zinc but does not consider possible differences in smelter
return values.


Further details of the resource estimate may be found at www.paramountgold.com. A copy of the report may be found on www.sedar.com.

The purpose of this resource estimate is to delineate the two most significant high grade mineralized bodies for purposes of moving to near term precious metals production. Within Clavos 66 and 99 are two high grade zones containing 216,683 gold-equivalent recoverable ounces at 14.75 g/t AuEq and 449,667 gold-equivalent recoverable ounces at 10.78 g/t AuEq respectively both measured at a 4.5 gram/tonne Au cut-off grade.

"This resource estimate indicates that there is significant potential to increase the size and grade of the high grade deposits (Clavos 66 and 99) which becomes gold rich at depth. The mineralized bodies appear in discrete pods and are conducive to underground mining operations which are easily processed," commented Charles William Reed, Vice President of Exploration. "We have defined more than 500,000 ounces of gold equivalent recoverable ounces at average grades ranging between 10 and 14 gold grams per tonne. These two coherent bodies of greater thickness and higher grade will greatly improve the economics of underground mining. We are quite excited with the addition of Clavo 66 and 99 as we have defined a resource in excess of 2.7 million ounces of gold and gold-equivalents in the various project areas, moving San Miguel towards being a world class precious metals deposit. Including Clavos 66 and 99, Paramount now has 4 mineable areas including the San Luis Mine and the San Antonio zone."

The San Miguel Clavo 66 and 99 resource estimate was prepared by Douglas R. Wood II, P.Geo, an Independent Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. The estimate was based on 27,431 assays from 81 diamond drill holes totaling 24,028 meters. A density of 2.47 and 2.43 grams/cc for each of Clavos 66 and 99 respectively was used as specific gravity in the resource estimates. Preliminary metallurgical testing was conducted at McClelland Laboratories in Nevada followed by petrographic work at the Instituto de Metalurgia and University of Sonora.

In addition to Clavos 66 and 99, the San Miguel Project includes the bonanza grade San Luis Mine, the San Antonio silver resource and an additional 100,000 hectare contiguous land package in the prolific Sierra Madres gold-silver belt.

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

Cautionary note to U.S. investors concerning disclosure of estimates of mineral resources and contained ounces of gold and silver: The term "inferred resource" used in this news release is a Canadian geological and mining term as defined in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves. We advise U.S. investors that while such terms are recognized and permitted under Canadian regulations, the SEC does not recognize them and are cautioned not to assume that any part or all of an inferred mineral resource is economically mineable or will ever be converted to reserves.

Contact Information

  • Paramount Gold and Silver Corp.
    Charles William Reed, VP Exploration
    Chris Halkai, Investor Relations
    613-226-9881