Palmarejo Silver and Gold Corporation

Palmarejo Silver and Gold Corporation

March 19, 2007 09:22 ET

Palmarejo Silver and Gold Announces Latest Results from the La Patria Project

MONTREAL, QUEBEC--(CCNMatthews - March 19, 2007) - Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) is pleased to announce results from the drill program at the La Patria Project in the Temoris District, Chihuahua, Mexico. The project located within the Trogan concessions is held by the Company's 100%-owned subsidiary, Planet Gold SA de CV.

The La Patria project is a 1.7 kilometre long part (La Patria-La Virginia-Maclovia) of the greater than 4 kilometre Todos Santos to Maclovia mineralized corridor located 6.5 kilometres south-southeast of the Palmarejo project. Recent diamond core and reverse circulation (RC) drilling has focused on extending areas of known mineralization at the La Virginia and La Patria prospects.

A total of 68 reverse circulation (RC) holes and 26 diamond core holes have been drilled for 11,354 metres and 7,000 metres respectively since drilling began at the La Patria project early in 2006.

The continuing expansion of the La Virginia ore shoot (clavo) in width and depth is very encouraging.

Impressive down hole assay intercepts (using a 1.0 g/t AuEq lower cut off) from the recent drilling at the La Virginia section of the La Patria project prospect are as follows. Where there is a difference between down hole and true width intercepts, these are noted in the table of full assay results below.

- LPDH073D 8.50 metres @ 2.29 g/t Au and 81 g/t Ag (3.6 g/t AuEq)
- LPDH075 13.72 metres @ 3.29 g/t Au and 7 g/t Ag (3.4 g/t AuEq)
- LPDH077 13.71 metres @ 3.14 g/t Au and 87 g/t Ag (4.6 g/t AuEq)
- LPDH078 35.06 metres @ 1.98 g/t Au and 25 g/t Ag (2.4 g/t AuEq)
and 10.67 metres @ 4.86 g/t Au and 48 g/t Ag (5.7 g/t AuEq)
- LPDH081 6.10 metres @ 1.30 g/t Au and 20 g/t Ag (1.6 g/t AuEq)
- LPDH085 4.57 metres @ 3.26 g/t Au and 93 g/t Ag (4.8 g/t AuEq)
- LPDH086 9.15 metres @ 3.24 g/t Au and 42 g/t Ag (3.9 g/t AuEq)
- LPDH087 4.57 metres @ 4.72 g/t Au and 40 g/t Ag (5.4 g/t AuEq)
- LPDH090 9.14 metres @ 1.97 g/t Au and 5 g/t Ag (2.1 g/t AuEq)

A map is available at the following address:

Details of the drill hole locations are available at the following address:

Assay results are 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 LPDH083D, LPDH88D, LPDH089, LPDH091D and LPDH093 to LPDH097.

RC drilling (e.g. holes LPDH077 and LPDH078) has yielded further high grade, gold-rich (relative to silver) mineralization at the La Virginia clavo. These holes extend the mineralized zone 100 metres down dip of holes LPDH048 (9.14 metres @ 4.19 g/t Au and 93 g/t Ag) and LPDH063D (24.00 metres @ 3.57 g/t Au and 43 g/t Ag). The clavo is exposed at surface and has now been defined to a vertical depth of 250 metres.

La Virginia remains open down dip and along strike towards Maclovia in the south.

Several core holes were completed north of the La Patria clavo to test for continuity of mineralization along strike. Hole LPDH073D returned similar widths and grades to hole LPDH067D (8.00 metres @ 2.18 g/t Au and 27 g/t Ag). Results are awaited for the remaining holes drilled at La Patria North which include LPDH083D, LPDH088D, LPDH091D and LPDH095D.

The following long section of the La Patria-La Virginia-Maclovia trend shows the distribution of the holes reported above and emphasises the emerging and open nature of the clavos defined by the drilling to date. In this long section, the clavo boundaries are defined by 20 gram AuEq metre accumulation contours (using a gold to silver price ratio of 1:60). The dashed line represents the lower limit of the January 2007 resource model.

A map is available at the following address:

Drilling continues at La Patria with a BLY38 core rig and a Prospector W750 RC rig. Both rigs are drilling deeper targets at La Virginia down plunge and to the south of the high grade results described above (e.g. LPDH077 and LPDH078). Further drilling is scheduled at Maclovia to follow up high grade intercepts in holes LPDH046 (13.72 metres @ 5.13 g/t Au and 120 g/t Ag), LPDH056D (7.50 metres @ 7.14 g/t Au and 78 g/t Ag) and LPDH057D (2.00 metres @ 23.13 g/t Au and 1329 g/t Ag). This drilling will commence as soon as the drill pads are ready.

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