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

Paramount Gold and Silver Corp.

June 10, 2008 11:45 ET

Paramount Gold and Silver Corp. Extends San Miguel Clavo 99 to a 400m Depth and 550m Width, and it Remains Open

CHIHUAHUA, MEXICO--(Marketwire - June 10, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(A0HGKQ:WKN) reports assay results from three drill holes in the southeastern part of the San Miguel Vein. Several high grade veins were cut in SM-39 with gold values of 11.75g/t Au, 19.5g/t Au and 20.0 g/t Au and up to 1,360 g/t of silver. There was also an 8.83 meter intercept of 2.0 g/t Au and 14.8 g/t Ag. Hole SM-40 had generally wider intercepts such as 4.14 meters grading 4.92 g/t Au and 100 g/t Ag, and 5.32 meters grading 2.58 g/t Au and 24.4 g/t Ag. Hole SM-41 appears to have pierced a narrow spot in the vein system, with a best intercept of 1.05 meters grading 6.72 g/t Au and 10.9 g/t Ag.

Drill hole SM-39 intersected the main structure 50 meters below and 75 meters southeast of recently reported SM-38, in the southeast portion of the Clavo 99 zone. Hole SM-40 is 80 meters below and 70 meters southeast of SM-39, and is the deepest and furthest southeast drill intercept in the Clavo 99 zone. SM-41 cut the vein 100 meters directly below SM-38.

These three holes, SM-39, 40 and 41, demonstrate that the Clavo 99 zone continues to expand down dip and to the southeast. Drilling indicates that the strong gold and silver mineralization is present for at least 400 meters below the surface exposures, and is at least 550 meters wide at this depth. It also shows increasing gold values relative to silver, and it remains open to the southeast and at depth.

Highlights of these assay results are seen in the table below (visit www.paramountgold.com for further assay details, map of project showing the location of the San Miguel Zone, map of the southern part of the Zone itself, and a longitudinal section of the vein structure):



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True Gold Gold
Hole From To Interval Width Gold Silver Equiv. Equiv.
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(grams
Number (Meters) (Meters) (Meters) (Meters) (grams/ (grams/ (grams/ x
ton) ton) ton) meters)
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SM-39 202.4 203.5 1.1 0.46 1.12 1360.00 28.32 13.03
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268.1 289.0 20.9 8.83 2.00 14.80 2.30 20.27
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incl. 271.8 275.0 3.2 1.35 3.26 26.00 3.78 5.10
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299.7 300.2 0.5 0.21 11.75 41.00 12.57 2.64
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303.1 303.5 0.4 0.15 19.50 201.00 23.50 3.53
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345.0 346.0 1.0 0.42 20.00 206.00 24.12 10.13
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SM-40 241.0 250.8 9.8 4.14 4.92 100.10 6.92 28.65
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incl. 247.0 250.8 3.8 1.61 7.28 180.00 10.88 17.52
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280.0 292.6 12.6 5.32 2.58 24.40 3.07 16.33
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incl. 280.0 284.0 4.0 1.69 3.90 37.50 4.65 7.86
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300.0 301.0 1.0 0.42 16.80 36.00 17.62 7.40
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SM-41 122.7 123.2 0.5 0.25 0.32 571.00 11.74 2.94
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245.2 247.3 2.1 1.05 6.72 10.90 6.94 7.28
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279.3 280.9 1.6 0.80 2.57 7.00 2.71 2.17
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Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "The Clavo 99 zone continues to expand as drilling proceeds to the southeast and northwest along strike. Hole SM-40 is the deepest and furthest to the southeast of them all and has some of the better intercepts. The zone is now 400 meters by 550 meters in size, with excellent precious metal intercepts in nearly all of the 20 holes completed within the clavo. I am eagerly awaiting the next group of assay results"

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. Paramount recently signed an LOI announcing a Strategic Alliance with Mexoro Minerals (OTC:MXOM.OB).

"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
    866-481-2233
    613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Halkai, Corporate Relations
    866-481-2233
    613-226-9881