Paramount Gold and Silver Corp.
AMEX : PZG
FRANKFURT : WKN:A0HGK
TSX : PZG

Paramount Gold and Silver Corp.

May 06, 2008 04:00 ET

Paramount Gold and Silver Corp. Announces Drill Results That Extend 'Clavo 99' 100 Meters Along Strike at a Depth of 250 Meters at its San Miguel Project

CHIHUAHUA, MEXICO--(Marketwire - May 6, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce assay results from drill hole SM-35 in the San Miguel Vein. Drill hole SM-35 was drilled 50 meters below hole SM-20 in the southern part of 'Clavo 99' to test the depth and lateral extent of that mineralization. SM-35 intersected 1.85 meters of 9.57 g/t Au and 26 g/t Ag. The entire mineralized zone in Hole SM-35 is 17.44 meters wide and averages 1.84 g/t Au and 76 g/t Ag. The assays from SM-35 establish that the high grade mineralization in 'Clavo 99' extends to a depth of at least 250 meters below the surface and that it extends for a 100 meters south along strike at this depth (from hole SM-34). Clavo 99 continues to remain open at depth and along strike.

Highlights of these assay results are seen in the table below. Visit www.paramountgold.com for assay details and location maps.



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True Gold Grade
Hole From To Interval Width Gold Silver Equiv(i)Thickness
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(grams Au
(grams/ grams/ grams/ Equiv. x
Number (meters)(meters) (meters)(meters) ton) ton) ton) meters)
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SM-35 145.10 155.00 9.90 6.10 0.19 103.00 2.25 13.72
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including: 2.53 0.08 49.00 1.06 2.68
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0.49 0.38 643.00 13.24 6.52
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3.08 0.25 61.00 1.47 4.53
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155.00 165.00 10.00 6.16 4.09 106.00 6.21 38.25
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including: 4.31 1.74 140.00 4.54 19.58
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1.85 9.57 26.00 10.09 18.65
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165.00 173.40 8.40 5.18 1.11 8.29 1.28 6.62
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including: 4.07 0.52 7.00 0.66 2.68
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1.11 3.28 13.00 3.54 3.93
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average: 145.10 173.40 28.30 17.44 1.84 75.95 3.36 58.60
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(i) Note: Ag/Au ratio equals 50 (used to calculate Gold Equivalent)


Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "As anticipated, the results from drill hole SM-35 extend the excellent mineralization seen in holes SM-18 and SM-20 for another 50 meters down dip, and that seen in hole SM-34 for at least 100 meters south along strike. 'Clavo 99' has now been shown to persist to a depth of at least 250 meters and it remains open down dip. Prior drilling indicated that 'Clavo 99' extends along strike for at least 400 meters. We anticipate that this unusually large high grade zone will continue to grow in size."

Quality Control

Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.

The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).

About Paramount

Paramount Gold is a precious metals mining exploration company presently in the early stages of an extensive exploration program at their San Miguel project in the Guazapares Mining District, part of the Sierra Madre Occidental gold-silver belt of Mexico. Paramount Gold and Silver Corp. is the operator of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (OTC:TRGD.PK) (30%) who is required to contribute 30% of exploration costs to maintain their interest.

The Toronto Stock Exchange has not reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.

"Safe-Harbor" Statement: This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company may not be realized. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially.

Contact Information

  • Paramount Gold and Silver Corp.
    Larry Segerstrom, COO
    613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Halkai, Corporate Relations
    866-481-2233
    613-226-9881