Paramount Gold and Silver Corp.
TSX : PZG
NYSE Amex : PZG
FRANKFURT : P6G

Paramount Gold and Silver Corp.

January 11, 2011 12:14 ET

New Drill Results Expand Paramount Gold's San Francisco Target

CHIHUAHUA, MEXICO--(Marketwire - Jan. 11, 2011) - Paramount Gold (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ)

Results from the remaining 28 drill holes (18 reverse circulation and 10 core) from Paramount Gold's San Francisco target on its 100%-owned San Miguel project continue to confirm the potential for near-surface, bulk-minable gold and silver deposits. Paramount discovered the San Francisco target in late 2009 and subsequent drill campaigns have expanded the areas of known mineralization (see news releases dated January 7, March 8, June 17 and October 6, 2010 and click here (http://paramountgold.com/_docs/SanFranciscoZone.jpg) to view a map of drill hole locations).

The San Miguel project consists of 188,000 hectares (465,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. In late 2010, Paramount reported discovering a high-grade gold and silver vein called Don Ese. Additional drilling should begin in February to test for the southeast extension of the Don Ese vein following the receipt of drill permits. In addition, four more new exploration targets are expected to be drilled at San Miguel in the first quarter of 2011.

Meanwhile, results from the 2009/2010 resource delineation drilling at the San Francisco, Veronica, Monte Cristo and San Miguel Vein targets will be incorporated into a new National Instrument 43-101 compliant resource estimate expected in the first quarter of 2011.

The San Francisco target is comprised of a number of strong N-NW trending regional faults which controlled the distribution of volcanic rocks in the area and tapped into the gold-bearing fluid system. These N-NW trending faults are intersected by smaller and less intense NE trending structures that may have served to accommodate some of the displacement on the N-NW faults. All of these faults are in close proximity to an eruptive/collapse volcanic center which probably provided some of the energy for fault movement and created multiple reactivations of the faults. The multiple reactivations produced a relatively broad zone of fracturing in the surrounding rock, resulting in an ideal environment for bulk-minable deposits.

Gold and silver are superimposed in the same locations at San Francisco target unlike the vertical zonation exhibited by the Palmarejo and San Miguel vein systems. This feature may be a result of the proximity to the volcanic center. Superimposition helps to increase metal value per unit of rock.

Results from the last 18 holes of the 2010 drill program at San Francisco are as follows:

Drill Hole ID Total Length From (m) To (m) Interval (m) Au g/t Ag g/t
REVERSE CIRCULATION HOLES
RCSF-10-25 256.0 73.2 76.2 3.0 0.37 187.5
    91.4 96.0 4.6 0.71 454.4
    102.1 111.3 9.2 0.80 7.6
             
RCSF-10-26 201.2 0.0 6.1 6.1 0.32 9.0
             
RCSF-10-27 201.2 24.4 45.7 21.3 0.29 103.0
  including 24.4 32.0 7.6 0.46 150.5
             
RCSF-10-28 225.6 24.4 29.0 4.6 0.87 115.8
    62.5 65.5 3.0 0.45 60.5
    71.6 76.2 4.6 0.35 41.8
             
RCSF-10-29 216.4 29.0 35.1 6.1 1.94 5.8
             
RCSF-10-30 207.3 16.8 24.4 7.6 1.11 9.3
    38.1 53.3 15.2 1.80 11.5
    67.1 74.7 7.6 0.47 19.1
             
RCSF-10-32 193.6 6.1 9.1 3.0 0.92 2.9
    36.6 39.6 3.0 0.58 2.9
    50.3 56.4 6.1 1.19 28.8
    164.6 167.6 3.0 0.70 8.2
             
RCSF-10-33 249.9 15.2 18.3 3.1 0.59 3.0
    39.6 45.7 6.1 2.42 8.3
    54.9 62.5 7.6 8.98 11.7
  including 59.4 61.0 1.6 38.20 35.0
    64.0 73.2 9.2 3.81 19.6
  including 67.1 70.1 3.0 10.59 36.4
    76.2 79.3 3.1 0.50 14.7
             
RCSF-10-34 231.7 61.0 64.0 3.0 0.48 6.7
             
RCSF-10-35 201.2 77.7 82.3 4.6 0.53 2.8
    86.9 94.5 7.6 0.59 4.2
CORE HOLES          
Drill Hole ID Total Length From (m) To (m) Interval (m) Au g/t Ag g/t
SF-10-18 341.2 57.0 60.7 3.7 0.60 0.6
    136.0 150.8 14.8 0.79 26.6
    188.2 191.7 3.5 0.77 46.9
             
SF-10-19 298.7 28.4 34.3 5.9 0.56 1.0
    41.0 47.3 6.3 0.75 7.7
    74.1 85.5 11.4 0.52 3.9
    135.0 142.8 7.8 0.39 11.7
             
SF-10-20 285.5 134.0 138.6 4.6 0.29 4.1
             
SF-10-21 341.3 0.0 78.5 78.5 0.53 19.0
  including 0.0 13.4 13.4 0.91 9.2
  including 38.8 42.2 3.4 1.38 153.0
  including 47.0 58.6 11.6 0.97 27.5
    99.9 103.3 3.5 0.86 6.3
             
SF-10-22 326.2 90.3 120.5 30.2 0.63 18.9
  including 113.4 120.5 7.1 1.58 2.3
    155.2 172.1 16.9 0.84 6.0
             
SF-10-23 377.8 129.9 135.0 5.1 0.68 3.3
    147.1 171.1 24.0 1.62 7.5
  including 165.3 171.1 5.9 3.70 17.6
    182.3 186.0 3.7 0.64 7.9
             
SF-10-24 353.6 160.3 188.9 28.6 0.30 5.1
    203.6 217.7 14.1 0.54 3.5
    244.2 247.2 3.0 0.96 17.1
             
SF-10-26 256.0 31.0 46.7 15.7 1.11 15.7
    77.8 87.2 9.4 0.60 24.2
    132.8 143.1 10.3 0.32 11.2

The orientation of these drill holes were designed to intercept the structural features and provide a true width on those structures. In general, the intersections are believed to be the true width of the mineralized feature, however additional drilling is required to fully confirm this assertion.

A total of 70 holes (35 core and 35 reverse circulation) have now been drilled at San Francisco, all of which have intersected gold and silver mineralization. For a complete assay table, click here (http://paramountgold.com/_docs/Assay_Summary_01_07_11-2.xls).

Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V 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 is a U.S. domiciled exploration and development company with multi-million ounce advanced stage projects in Nevada [Sleeper] and northern Mexico [San Miguel]. Fully funded programs are now in progress at our two main projects to substantially expand resources over the next two years. Plans are also underway to exploit a large, surface inventory of gold in tailings and leach pad heaps on our Sleeper property for potential near-term cash flow. For more information visit the Company's website at www.paramountgold.com.

Safe Harbor for Forward-Looking Statements: 

This release and related documents may include "forward-looking statements" including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the San Miguel Project and the expected results of this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. 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 other applicable securities laws. Words such as "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, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount's Annual Report on Form 10-K for the year ended June 30, 2010 and its most recent quarterly reports 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 document.

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