Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

April 11, 2006 09:58 ET

Important Deep Intersection in Rosario Clavo Palmarejo/Trogan Mexico

LONGUEUIL, QUEBEC--(CCNMatthews - April 11, 2006) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to report important deep intersection in the Rosario clavo of the Palmarejo project. Hole PMDH522D, being one of the diamond holes designed to test the deep plunge extension of the Rosario clavo in the Palmarejo deposit, has intercepted significant mineralization as follows:



24.4 metres @ 2.3 g/t Au and 196 g/t Ag (5.3 g/t AuEq) (i)

including 6.0 metres @ 3.8 g/t Au and 297 g/t Ag (8.4 g/t AuEq(i))
and 3.0 metres @ 8.0 g/t Au and 699 g/t Ag (18.8 g/t AuEq(i))

(i) AuEq equals Au + Ag/65 based on a gold price of US$375 per
ounce and a silver price of US$5.77 per ounce


Reported widths approximate to true width. Hole PMDH522D is located 230 metres down plunge and northwest of the deepest holes on the Rosario clavo. The hole pierces the La Blanca structure a considerable distance northwest of the deepest holes on the Rosario clavo and extends the precious metal window down to RL 850 metres, well below the historically accepted base.

The intercept significantly extends the zone of deep mineralization at Rosario and, after further infill drilling, should have considerable positive impact on future resource estimation in this area.

The clavo is still open down plunge and along strike.

The deep drilling program was initiated in January to test the concept that the Rosario structural intersection is the main feeder structure at Palmarejo. The wide mineralized interval in PMDH522D, localized in a stockwork zone above the main La Blanca fault, is consistent with the mineralization style in drill holes located up-plunge.

The results of PMDH522D confirm the model of drilling deep feeder structures beneath the main clavos. Moreover, deep drilling will also test areas within the precious metals window for new, blind clavos (e.g., the Tucson and 108 clavos). Silver to gold ratios, which show pronounced reverse zonation (i.e., silver-rich at the top, gold-rich at the bottom) continue to be used to guide exploration on the La Blanca and La Prieta structures.



Details of PMDH522D are as follows:

---------------------------------------------------------------------
Hole Easting Northing Elevation Declination Azimuth Depth
(m) (degrees) (degrees) (m)
---------------------------------------------------------------------
PMDH522D 755905 3032206 1,013 -53.6 142.79 499.57
---------------------------------------------------------------------


Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/AC program consistent with National Instrument 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 Australasian 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 Canadian Securities Administrators National Instrument 43-101 ("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 completion of work program and studies, potential mineralization, exploration results 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 filing statement dated March 14, 2005, and particularly in the section entitled "Risk Factors".

For more information about the Company's projects, please refer to the NI 43-101 Technical Report dated October 20, 2005 available on SEDAR (www.sedar.com) or via the Company's website at (www.palmarejogold.com).

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information