Palmarejo Silver and Gold Corporation

Palmarejo Silver and Gold Corporation

April 16, 2007 09:40 ET

Palmarejo Announces Additional Drill Results From the Guadalupe Project

MONTREAL, QUEBEC--(CCNMatthews - April 16, 2007) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to announce the latest results from the diamond drill program at the Guadalupe Project in the Temoris District, Chihuahua, Mexico. The project is held by the Company's 100%-owned subsidiary, Planet Gold SA de CV.

The Guadalupe project consists of a series of northeast dipping quartz veins that have been traced for more than 1,500 metres along strike. There are three main prospects located along the Guadalupe structure known from north to south as Guadalupe Norte, Guadalupe and Las Animas.

Holes TGDH114D and TGDH115D confirm the emergence at Guadalupe Norte of three high grade silver-gold zones having a combined structural strike length of 700 metres. Drilling continues to explore these clavos down plunge and along strike.

A total of 57 reverse circulation (RC) holes (including 7 holes for diamond core precollars) and 70 diamond core holes have been drilled for 12,055 RC metres and 20,973 core metres since drilling began at Guadalupe early in 2006.

Recent diamond core drilling has focused on extending zones of high grade mineralization encountered at Guadalupe Norte. Some of the more impressive assay results from this program are reported below and include the following intervals which are reported here as down hole intercepts. Where there is a difference between down hole and true width intercepts these are noted in the table of full assay results below.

- TGDH114D 19.50 metres @ 3.21 g/t Au and 142 g/t Ag (5.6 g/t AuEq)
6.00 metres @ 8.18 g/t Au and 302 g/t Ag (13.2 g/t AuEq)
- TGDH115D 16.50 metres @ 1.83 g/t Au and 156 g/t Ag (4.4 g/t AuEq)
9.00 metres @ 1.69 g/t Au and 85 g/t Ag (3.1 g/t AuEq)
- TGDH116D 13.00 metres @ 1.10 g/t Au and 84 g/t Ag (2.5 g/t AuEq)
7.00 metres @ 2.57 g/t Au and 16 g/t Ag (2.8 g/t AuEq)
- TGDH117D 9.50 metres @ 0.50 g/t Au and 77 g/t Ag (1.8 g/t AuEq)

Details of the drill hole locations are as follows:

Eleva- Azi- Total
Hole Northing Easting tion muth Dip RC Core Depth
(m) (degrees) (Degrees) (m) (m) (m)
TGDH113D# 3027954 760756 1592 225 -75 0.00 323.60 323.60
TGDH114D# 3027953 760759 1580 225 -83 0.00 416.70 416.70
TGDH115D# 3028342 760642 1542 228 -65 0.00 456.05 456.05
TGDH116D# 3027674 760937 1466 0 -90 0.00 408.10 408.10
TGDH117D# 3027953 760759 1580 0 -90 0.00 471.30 471.30
TGDH118D 3027598 760975 1448 0 -90 0.00 339.65 339.65
TGDH119D 3028132 760652 1467 0 -90 0.00 587.55 587.55
TGDH120D 3027597 760974 1448 225 -55 0.00 324.30 324.30

Assay Results

Assay results for these drill holes not previously reported follow. Intercepts are generally perpendicular to the mineralized structures and therefore represent true widths. Calculated true widths are indicated where intercepts are oblique to structures.

A table of the Assay Results is available at the following address:


- Assays have been calculated using a 1.0 g/t AuEq cut off, no top cut and a gold to silver price ratio of 1:60.

- Metallurgical recoveries and smelter returns are assumed to be 100%.

- QVBX equals quartz vein breccia.

- # equals previously reported and included here for completeness.

- Bulked intercepts are calculated by weight averaging the grades between the given depths and incorporating a maximum dilution of 2 metres internal waste at less than the 1.0 g/t AuEq cut off.

- Results are awaited for drill holes TGDH102D and TGDH118D to TGDH120D.

Follow-up drilling has been programmed at Las Animas at the south end of the Guadalupe structure to test for extensions to the wide, well mineralized intercepts encountered in holes TGDH035D (29.50 metres @ 2.99 g/t Au and 196 g/t Ag) and TGDH046D (16.50 metres @ 2.76 g/t Au and 92 g/t Ag). Work at Las Animas was deferred while the LY44 and UDR200 core rigs focused on defining the extent of high grade mineralization at Guadalupe Norte. However, recent acquisition of a deep penetration Major 50 core rig will allow the Company to start testing some of the deep targets at Guadalupe Norte and to release one of the other core rigs to drill the program at Las Animas.

The following long section of the Guadalupe structure, which shows the reported drill hole locations, demonstrates continuity of silver and gold mineralization between the Guadalupe and Guadalupe Norte prospects. The clavo boundaries are defined by the 20 gram metre AuEq accumulation contours (using a gold to silver price ratio of 1:60). Assays and hole number are only shown for drill holes greater than 50 gram metres AuEq accumulation. The dashed line represents the lower limit of the October 2006 resource model.

A map of the Guadalupe Longitudinal Section is available at the following address:

Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 ("NI 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 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 resource estimate, potential mineralization, exploration results, completion of work program and studies, 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 Annual Information Form dated October 12, 2006 and particularly in the section entitled "Risk Factors".

For more information about the Company and its projects, please refer to the NI 43-101 Technical Report dated October 1, 2006 and other documents available on SEDAR ( or via the Company's website at (

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

Contact Information

  • Palmarejo Silver and Gold Corporation
    James Crombie
    President & CEO
    450-677-2601 (FAX)
    Palmarejo Silver and Gold Corporation
    Gerri Paxton
    Manager, Investor Relations
    450-677-2601 (FAX)