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

Paramount Gold and Silver Corp.

November 16, 2011 14:52 ET

Paramount Gold and Silver Continues to Expand its Sleeper Gold Project in Nevada

WINNEMUCCA, NEVADA--(Marketwire - Nov. 16, 2011) - Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURt:P6G)(WKN:A0HGKQ) ("Paramount") announced today assay results from the final four holes drilled during the recently completed program at its 100%-owned Sleeper Gold Project in Nevada. These core holes targeted the Facilities zone, the newly discovered PAD zone, an extension to the West Wood vein zone and a new exploration target approximately 1 km southeast of the Sleeper pit.

Hole PGC-11-012 drilled into the Facilities zone intersected 17.3 meters grading 0.925 g/T of gold and 6.2 g/T of silver. This intercept is likely to increase and upgrade resources in the Facilities zone. Hole PGC-11-014 drilled into an extension of the Wood Vein on the western edge of the Sleeper Pit intersected 17.4 meters grading 2.73 g/T of gold and 4.3 g/T of silver. This excellent high-grade intercept extends the Wood Vein zone towards the west which is expected to increase resources in this area. Hole PGC-11-013 into the PAD zone returned eight intercepts above the resource cut-off grade.

These drill holes were not incorporated in the new updated resource estimates completed by SRK Consulting (www.SRK.com) and recently filed on SEDAR (see below).

Assays for these four drill holes are as follow:

Hole ID Area From
(m)
To
(m)
Interval
(m)
Au
g/T
Ag
g/T
PGC-11-012 Facilities zone 45.20 46.40 1.20 0.585 5.3
54.50 57.60 3.10 0.276 3.2
67.00 69.00 2.00 0.269 6.4
72.55 74.00 1.45 0.810 5.0
96.50 101.00 4.50 0.249 0.9
106.50 108.30 1.80 0.826 2.9
129.00 131.70 2.70 0.670 1.3
138.50 155.80 17.30 0.925 6.2
158.70 162.00 3.30 0.497 6.3
168.30 175.50 7.20 0.488 1.6
218.30 220.00 1.70 0.282 3.4
PGC-11-013 PAD discovery zone 126.00 130.00 4.00 0.282 0.6
153.50 155.75 2.25 1.230 1.8
162.15 166.00 3.85 0.437 0.8
166.00 168.00 2.00 0.502 1.2
177.30 179.40 2.10 0.290 1.2
200.00 202.00 2.00 0.255 1.2
206.00 208.00 2.00 0.261 1.5
212.00 214.00 2.00 0.253 1.5
PGC-11-014 Wood Vein Extension 47.24 56.39 9.14 1.242 0.7
including 50.29 51.82 1.52 5.320 0.3
81.50 82.90 1.40 0.255 0.3
134.40 136.00 1.60 0.384 0.3
139.00 141.00 2.00 0.309 0.6
145.00 162.40 17.40 2.725 4.3
including 146.50 152.70 6.20 6.794 7.5
169.00 171.00 2.00 0.258 0.3
179.00 183.00 4.00 0.466 0.3
187.00 189.00 2.00 0.377 0.3
210.00 216.00 6.00 0.268 1.0
224.00 226.00 2.00 0.423 0.7
242.20 246.00 3.80 0.304 1.0
327.20 332.23 5.03 0.368 7.8
PGC-11-015 Southeast Exploration Target no significant results

The orientation of these drill holes was designed to intercept the structural features at right angles so as to provide a close approximation of true width.

Paramount Gold will now start refining an exploration program for 2012. The objectives of this program are: (1) infill drilling to upgrade inferred resources: (2) resource delineation for the newly recognized PAD zone, and; (3) exploring new targets.

Christopher Crupi, Paramount`s CEO, commented that "drilling the Sleeper project continues to be highly rewarding. We have had considerable success expanding resources in the immediate area of the old pit and we will continue with this focus. We have also learned a great deal from our first drill programs and we now intend to take this knowledge further afield to explore a number of new targets in 2012."

The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca, Nevada. Acquired by Paramount in 2010, the 49.6 square mile project area includes the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as newly purchased claims stretching south down trend to Newmont`s Sandman project.

The current work program at Sleeper is consistent with Paramount's strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. As a former high-grade gold producer, Sleeper is ideally located near established, low cost production in Nevada, where the infrastructure already exists for early, cost-effective exploitation. Tetra Tech (www.TetraTech.com), a leading international mining consulting firm, has been engaged to prepare an NI 43-101 compliant Preliminary Economic Assessment (PEA) of the Sleeper gold project for completion in early 2012.

The Sleeper property is emerging as one of Nevada's largest new undeveloped gold projects, containing an in situ measured and indicated resource of 2.6 million ounces of gold and 25.3 million ounces of silver and an additional inferred resource of 1.1 million ounces of gold and 8.2 million ounces of silver (see table below and Paramount news release of September 13, 2011).

Sleeper Resource Table

MEASURED AND INDICATED
Material Cut-off Au g/T Tonnes Au g/T Ag g/T Au Oz Ag Oz
Oxide 0.20 42,789,940 0.37 4.20 511,872 5,781,121
Sulfide 0.25 129,973,513 0.51 4.68 2,113,527 19,556,454
Total 172,763,453 0.47 4.56 2,625,399 25,337,575
INFERRED
Material Cut-off Au g/T Tonnes Au g/T Ag g/T Au Oz Ag Oz
Alluvial 0.20 151,675 2.03 - 9,890 -
Oxide 0.20 13,191,635 0.32 3.42 136,145 1,450,516
Sulfide 0.25 68,410,857 0.44 3.07 974,376 6,752,446
Total 81,754,167 0.43 3.12 1,120,410 8,202,962

Exploration activities at Sleeper are being conducted by Paramount Gold under the supervision of Glen van Treek, Exploration Vice President of the Company, and Bill Threlkeld, a Qualified Person as defined by National Instrument 43-101, both of whom have reviewed and approved this press release. An ongoing quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Samples are being assayed at ALS Chemex, Reno, Nevada while multi-element analysis is being performed in Vancouver, Canada. External check samples are also being conducted at Inspectorate Lab in Reno, Nevada.

Paramount also owns 100% of the San Miguel Project which 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. Drilling continues at San Miguel with the aim of upgrading and expanding its multi-million ounce gold and silver resource in the coming months to be followed by completion of a PEA in 2012.

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms "measured and indicated resources" and "inferred resources". We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves", as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

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 Sleeper Gold Project and the Dunes 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, 2011 and its most recent quarterly reports filed with the SEC. 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.
    Glen Van Treek, VP Exploration
    Chris Theodossiou, Investor Relations
    866-481-2233