Paramount Gold and Silver Corp.

Paramount Gold and Silver Corp.

March 17, 2008 11:30 ET

Paramount Gold and Silver Corp. Extends Southern Limit of 'Clavo 99' Within the High Grade San Miguel Vein

CHIHUAHUA, MEXICO--(Marketwire - March 17, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX: PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce assay results from two additional drill holes in the San Miguel Zone of its San Miguel project in the Guazapares Mining District, Mexico. Drill hole SM-19 was drilled at the southern end of the drill pattern, and SM-20 was drilled below mineralized SM-08 and SM-09, designed to test the vein approximately 50 meters below these two holes (see attached longitudinal section below for drill hole locations available at the following address:

Hole SM-20 had two excellent gold and silver intercepts as shown in the table below: 2.65m of 1.23 g/t Au and 834 g/t Ag, and 6.26m of 2.41 g/t Au and 20 g/t Ag. It extends the southern limit of the high grade body called 'Clavo 99' an additional 50 meters horizontally, to a total width of at least 350 meters. 'Clavo 99' is also now shown to be mineralized for 200 meters down dip and it remains open down dip and to the north, as indicated on the attached longitudinal section.

Highlights of these assay results are seen in the table below (visit 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):

Hole From To Interval True Gold Silver Gold Gold
Number (m) (m) (m) Width (g/t) (g/t) Equiv. Equiv.
(m) (g/t) (g/m)
SM-19 53.00 54.10 1.10 0.95 1.10 5.00 1.18 1.12

SM-20 117.55 121.30 3.75 2.65 1.23 834.00 15.12 40.09
Including: 0.92 2.51 1615.00 29.43 27.05
129.50 138.35 8.85 6.26 2.41 20.00 2.75 17.21

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Hole SM-20 was a pleasant surprise. The excellent grades in this hole suggest that the southern boundary of 'Clavo 99' rakes to the south and that this high grade body may be much larger than previously thought. In appearance, grade and mineralogy, this body of mineralization remains very similar to that at nearby Palmarejo."

Paramount's 'Clavo 99' is now at least 350 m wide and persists to a depth of at least 200 m. Assays are expected shortly on holes SM-21 to SM-24 to the north and south of the clavo. As noted in the previous news release (February 29, 2008) holes SM- 34 and 35 were recently completed below SM-15 and SM-18 with the objective of extending the Clavo an additional 50 meters down dip. Assay results should be available in April. Drilling continues at depth with the intention of extending the Clavo down dip.

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 listed on the AMEX and TSX under the symbol PZG and trades on the Frankfurt Stock Exchange under the symbol P6G (WKN: A0HGKQ). 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 has completed over 30,000 meters of core drilling (7,000m before April 2007), totaling 165 drill holes on the project, with results pending on approximately 31 holes. In April 2007, Paramount began a 50,000 meter drill program, of which 23,000 meters have been completed to date. In 2007, Paramount completed $25 million in financing which is being utilized to develop their San Miguel and Andrea projects and other opportunities.

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%). Tara Gold is required to contribute 30% of exploration costs to maintain their interest.

"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
    Paramount Gold and Silver Corp.
    Chris Halkai
    Corporate Relations