Palmarejo Silver and Gold Corporation
TSX VENTURE : PJO

Palmarejo Silver and Gold Corporation

November 17, 2006 09:41 ET

Palmarejo Announces Progress Results from the La Patria-La Virginia-Maclovia Project

MONTREAL, QUEBEC--(CCNMatthews - Nov. 17, 2006) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to announce latest drill results from the La Patria-La Virginia-Maclovia project in the Trogan tenements, located in the Temoris District, Chihuahua, Mexico.

La Patria is located along the greater than4 kilometre Todos Santos to Maclovia mineralized corridor, 6.5 kilometres south-southeast of the Palmarejo project. Recent diamond core and reverse circulation ('RC') drilling has been undertaken at the La Virginia and Maclovia prospects on a 1.2 kilometre segment of the trend.

A total of 50 RC holes and 15 diamond core holes have been drilled since the beginning of 2006 for a total of 8,181 metres and 3,403 metres respectively.

Recent drilling has returned some excellent intercepts including the following down hole intercept assay results (1.0 g/t AuEq lower cut off):

- 4.50 metres @ 5.26 g/t Au and 107 g/t Ag (7.0 g/t AuEq) LPDH052D (Virginia)
- 7.50 metres @ 7.14 g/t Au and 78 g/t Ag (8.4 g/t AuEq) LPDH056D (Maclovia)
- 2.00 metres @ 23.13 g/t Au and 1329 g/t Ag (45.3 g/t AuEq) LPDH057D (Maclovia)
- 4.57 metres @ 4.97 g/t Au and 99 g/t Ag (6.6 g/t AuEq) LPDH058 (Virginia)
- 6.09 metres @ 1.67 g/t Au and 54 g/t Ag (2.6 g/t AuEq) LPDH059D (Maclovia)
- 16.00 metres @ 1.99 g/t Au and 30 g/t Ag (2. 5 g/t AuEq) including
- 3.00 metres @ 5.71 g/t Au and 70 g/t Ag (6.9 g/t AuEq) LPDH061D (Virginia)

Details of the drill hole locations are as follows:




Eleva- Total
Hole Northing Easting tion Azimuth Dip RC Core Depth
(m) (degrees) (Degrees) (m) (m) (m)
------------------------------------------------------------------------
------------------------------------------------------------------------
LPDH052D 3026130 759343 1408 255 -70 0.00 221.25 221.25
------------------------------------------------------------------------
LPDH056D 3025367 759765 1258 255 -60 0.00 205.65 205.65
------------------------------------------------------------------------
LPDH057D 3025367 759766 1258 255 -70 0.00 271.00 271.00
------------------------------------------------------------------------
LPDH058 3026159 759218 1430 360 -90 179.83 0.00 179.83
------------------------------------------------------------------------
LPDH059D 3025412 759558 1248 245 -55 0.00 281.90 281.90
------------------------------------------------------------------------
LPDH061D 3026203 759313 1430 245 -75 0.00 274.50 274.50
------------------------------------------------------------------------
LPDH062D 3026203 759313 1430 360 -90 0.00 102.40 102.40
------------------------------------------------------------------------
LPDH063D 3025986 759415 1380 245 -70 0.00 218.00 218.00
------------------------------------------------------------------------
LPDH064D 3025986 759225 1410 245 -60 0.00 132.70 132.70
------------------------------------------------------------------------
LPDH065D 3025986 759225 1410 0 -90 0.00 141.20 141.20
------------------------------------------------------------------------


A map of Palmarejo-Trogan Project Tenement Boundary is available at the following address: http://www.ccnmatthews.com/docs/carte_pjo.pdf

Assay Results

Assay results for these drill holes 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.



From To Interval Au Ag AuEq
Hole (m) (m) (m) (g/t) (g/t) (g/t) Comments
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LPDH052D 166.20 167.70 1.50 1.40 13 1.6 QVBX (approx. 1.36 m true
width)
and 170.70 171.20 0.50 5.57 16 5.8 QVBX (approx. 0.45 m true
width)
and 172.20 172.70 0.50 3.27 27 3.7 QVBX (approx. 0.45 m true
width)
Bulked 170.70 172.70 2.00 2.44 12 2.6 QVBX (approx. 1.81 m true
width)
and 184.20 184.70 0.50 0.44 85 1.9 QVBX (approx. 0.45 m true
width)
and 186.70 187.20 0.50 1.38 42 2.0 QVBX (approx. 0.45 m true
width)
and 190.20 194.70 4.50 5.26 107 7.0 QVBX (approx. 4.08 m true
width)
-------------------------------------------------------------------------
LPDH056D 74.50 76.50 2.00 1.10 24 1.5 Maclovia QVBX
and 77.50 78.50 1.00 0.83 38 1.5 Maclovia QVBX
Bulked 74.50 78.50 4.00 0.82 24 1.2 Maclovia QVBX
and 85.50 87.50 2.00 14.05 135 16.3 Maclovia QVBX
and 88.00 90.00 2.00 11.64 149 14.1 Maclovia QVBX
and 92.00 93.00 1.00 1.48 13 1.7 Maclovia QVBX
Bulked 85.50 93.00 7.50 7.14 78 8.4 Maclovia QVBX
and 143.50 144.50 1.00 1.61 0 1.6 Maclovia QVBX
and 152.70 153.70 1.00 1.36 0 1.4 Maclovia QVBX
and 165.70 166.70 1.00 2.10 5 2.2 Maclovia QVBX
and 167.70 168.20 0.50 1.26 0 1.3 Maclovia QVBX
Bulked 165.70 168.20 2.50 1.26 2 1.3 Maclovia QVBX
and 174.20 174.70 0.50 1.60 0 1.6 Maclovia QVBX
and 175.70 176.20 0.50 1.02 19 1.3 Maclovia QVBX
and 174.20 176.20 2.00 0.87 9 1.0 Maclovia QVBX
-------------------------------------------------------------------------
LPDH057D 63.50 64.50 1.00 1.14 12 1.3 QVBX (approx. 0.90 m true
width)
and 74.60 75.60 1.00 1.28 0 1.3 QVBX (approx. 0.90 m true
width)
and 103.00 104.00 1.00 1.84 0 1.8 QVBX (approx. 0.90 m true
width)
and 108.00 110.00 2.00 23.13 1329 45.3 QVBX (approx. 1.8 m true
width)
and 142.00 143.00 1.00 3.49 9 3.6 QVBX (approx. 0.90 m true
width)
and 144.00 146.00 2.00 0.97 3 1.0 QVBX (approx. 1.8 m true
width)
Bulked 142.00 146.00 4.00 1.44 3 1.5 QVBX (approx. 3.6 m true
width)
and 165.00 166.00 1.00 1.09 0 1.1 QVBX (approx. 0.90 m true
width)
and 168.00 169.00 1.00 1.25 0 1.2 QVBX (approx. 0.90 m true
width)
Bulked 165.00 169.00 4.00 0.73 1 0.8 QVBX (approx. 3.6 m true
width)
and 176.00 176.50 0.50 1.08 0 1.1 QVBX (approx. 0.45 m true
width)
and 177.00 177.50 0.50 4.34 5 4.4 QVBX (approx. 0.45 m true
width)
and 179.00 180.00 1.00 1.72 0 1.7 QVBX (approx. 0.90 m true
width)
Bulked 176.00 180.00 4.00 1.34 2 1.4 QVBX (approx. 3.6 m true
width)
and 191.00 192.00 1.00 2.09 0 2.1 QVBX (approx. 0.90 m true
width)
-------------------------------------------------------------------------
LPDH058 114.30 118.87 4.57 4.97 99 6.6 QVBX (approx. 3.23 m true
width)
and 129.54 132.59 3.05 0.86 38 1.5 QVBX (approx. 2.16 m true
width)
and 138.68 140.21 1.53 0.73 23 1.1 QVBX (approx. 1.08 m true
width)
and 143.26 146.30 3.04 0.91 24 1.3 QVBX (approx. 2.16 m true
width)
and 150.88 156.97 6.09 1.67 54 2.6 QVBX (approx. 4.31 m true
width)
-------------------------------------------------------------------------
LPDH059D 9.00 11.00 2.00 0.86 27 1.3 Maclovia QVBX
and 81.60 82.60 1.00 6.09 39 6.7 Maclovia QVBX
and 84.60 85.60 1.00 3.19 65 4.3 Maclovia QVBX
Bulked 81.60 85.60 4.00 2.34 26 2.8 Maclovia QVBX
and 119.95 120.95 1.00 1.28 0 1.3 Maclovia QVBX
and 139.45 140.45 1.00 1.1 0 1.1 Maclovia QVBX
and 152.00 155.00 3.00 1.57 5 1.7 Maclovia QVBX
-------------------------------------------------------------------------
LPDH061D 183.00 185.00 2.00 2.58 79 3.9 QVBX (approx. 1.73 m true
width)
and 187.00 188.00 1.00 1.05 23 1.4 QVBX (approx. 0.87 m true
width)
and 192.00 193.00 1.00 1.55 55 2.5 QVBX (approx. 0.87 m true
width
and 195.00 198.00 3.00 5.71 70 6.9 QVBX (approx. 2.60 m true
width)
and 198.50 200.00 1.50 2.30 28 2.8 QVBX (approx. 1.30 m true
width)
and 202.00 205.00 3.00 2.11 49 2.9 QVBX (approx. 2.60 m true
width)
and 206.50 207.00 0.50 1.13 8 1.3 QVBX (approx. 0.43 m true
width)
and 207.50 208.00 0.50 0.86 14 1.1 QVBX (approx. 0.43 m true
width)
Bulked 192.00 208.00 16.00 1.99 30 2.5 QVBX (approx. 13.86 m true
width)
-------------------------------------------------------------------------


Notes:

- 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 = quartz vein breccia

- 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 LPDH060D and LPDH062D to LPDH065D.

Holes LPDH056D and LPDH057D have confirmed continuity of high grade mineralization down-dip of LPDH046 (13.72 metres @ 6.9 g/t AuEq) at Maclovia. Further drilling has been programmed down-dip and along strike of this section and to test a series of structural intersections that seem to influence the distribution of high grade gold at Maclovia.

LPDH052, LPDH058 and LPDH061D were drilled beneath and to the north of the shallow mine workings at the La Virginia prospect. These holes define a steeply plunging, well mineralized gold-rich (relative to silver) shoot open at depth. There now appear to be two closely spaced, steep plunging shoots at La Virginia interpreted to coalesce below the mine. Further drilling is planned to extend the zone of high-grade down the plunge direction of the clavo.

The accompanying long section of the La Patria-La Virginia-Maclovia line of mineralization demonstrates the emerging nature of the clavos being defined by drilling. In this long section the clavo boundaries are defined by 20.0 grams AuEq per metre boundaries (using a gold to silver price ratio of 1:60). Assays and hole numbers are only shown for drill holes with greater than 50 grams AuEq per metre (except for LPDH061D).

A map of La Patria Longitudinal Section is available at the following address: http://www.ccnmatthews.com/docs/carte_2_pjo.pdf

Quality Assurance

Palmarejo Silver and Gold Corporation has put in place a rigorous QA/AC program 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").

Additional Information

The Trogan Tenements, including the La Patria-La Virginia-Maclovia project are held by the Company's 100% owned Mexican subsidiary company, Planet Gold SA de CV. For more information about the Company's projects, please refer to the NI 43-101 Technical Report dated May 1, 2006 available on SEDAR (www.sedar.com) or via the Company's website at www.palmarejogold.com.

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 Annual Information Form dated October 12, 2006, and particularly in the section entitled "Risk Factors".

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

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