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

Paramount Gold and Silver Corp.

October 01, 2009 08:30 ET

Paramount Gold and Silver Reports Positive Drilling Results at San Miguel Deposit

Resource Expansion Likely from Higher Grade Gold Zones

CHIHUAHUA, MEXICO--(Marketwire - Oct. 1, 2009) - New diamond drilling by Paramount Gold and Silver Corp. ("Paramount Gold") (TSX:PZG)(NYSE:PZG) (FRANKFURT:P6G)(WKN:A0HGKQ) on its San Miguel (Clavo 99) deposit in the Palmarejo District of North Central Mexico confirms: (1) gold grades increase with depth; (2) gold is concentrated in southwest plunging zones; and (3) a significant strike extension which should lead to resource expansion.

"These are the best drill results obtained to date from San Miguel and they demonstrate that we are beginning to understand the distribution of high-grade gold in this very large system," Paramount Gold CEO Chris Crupi said. "We are now certain that a number of gold occurrences previously explored in shallow holes could represent much richer deposits at depth."

Paramount Gold owns 188,461 hectares (approximately 466,000 acres) of mining claims in the Palmarejo District, making it the largest land owner in this rapidly emerging precious metals mining camp. The San Miguel deposit is a north-northwest trending quartz vein containing about 50% of Paramount's current reported mineral resource. Results of the most recent drilling are:



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Hole No. From (m) To (m) Interval (m) Au g/t Ag g/t
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SM-09-62 211.6 216.5 4.9 1.72 193.4
235.9 241.5 5.6 1.25 14.5
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SM-09-63 287.4 307.8 20.4 4.03 103.4
Includes 288.7 295.7 7.0 10.56 267.1
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SM-09-64 199.4 227.0 27.6 1.5 146.2
Includes 215.7 224.5 8.8 12.7 369.0
344.0 347.6 3.6 5.6 1.4
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The above reported drill holes were designed to intersect the structures at right angles. Although the above reported intervals are believed to be close to true widths, additional drilling will be required to confirm this.

A map of CLAVO 99 SAN MIGUEL VEIN is available on the Marketwire website at the following address: http://media3.marketwire.com/docs/SECCLONGSM_21.JPG.

Paramount Gold's current drilling program is evaluating three different types of potentially gold-rich targets: (1) north-northwest trending epithermal veins like San Miguel, of which three trends are known to date with typical widths of around 10 meters and strike lengths of one kilometer or more; (2) volcanic basin prospects of which the best known is Monte Cristo; and (3) northwest trending vein swarms ranging from 100 to 600 meters wide and one to two kilometers long such as the Temoris prospect where surface sampling is in progress.

"Our aim in this first pass drilling program is to identify targets for further definition drilling so that we can add to gold resources early next year. We will be following up the San Miguel results with additional work in this area and evaluating the potential of other similar targets that have only been tested with shallow drill holes. Results from the Monte Cristo target also appear to be promising and we expect to release them shortly," Mr. Crupi said.

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 several North American gold projects. The Corporation's principal asset is the San Miguel property in Chihuahua State, Mexico.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

Statements in this press release regarding Paramount's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements as described in Paramount's Annual Report and Annual Information Form on Form 10-K for the year ended June 30, 2009 filed with the SEC available on www.sec.gov and applicable Canadian securities regulators available on www.sedar.com. Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

Contact Information

  • Paramount Gold and Silver Corp.
    Christopher Crupi, CEO
    Larry Segerstrom, COO
    Chris Theodossiou, Investor Relations
    866-481-2233 / 613-226-9881
    www.paramountgold.com