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

Paramount Gold and Silver Corp.

March 18, 2008 09:15 ET

Paramount Gold and Silver Corp. Finds New High Grade Veins and Expands Bulk-Tonnage Gold-Silver Target in its San Miguel Project

CHIHUAHUA, MEXICO--(Marketwire - March 18, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX: PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) is pleased to announce that it has received the assay results from eleven drill holes (SC-01 to SC-11) in the Montecristo Zone. This Zone is located in the north eastern part of the San Miguel project in the Guazapares Mining District, Mexico. The Montecristo Zone lies 2.7 kilometers east of the newly discovered 'Clavo 99' in the San Miguel Zone (see press release dated February 29, 2008).

Highlights of the results from Montecristo include: 31.71 meters of 1.38 g/t Au eq., 1.81 meters of 9.07 g/t Au eq., 0.77 meters of 10.72 g/t Au eq.

These drill holes are located inside the Montecristo Zone which contains bulk-tonnage gold-silver targets associated with a rhyodacite dome complex. Gold and silver occur there largely as veinlets and disseminations in the silicified and brecciated margins of the intrusive bodies of the dome complex. This silicified breccia mineralization is cut by higher grade veins, some of which have old mine workings on them (see map of Montecristo Zone at www.paramountgold.com).

Initial rock chip sampling indicated that precious metal values extend tens of meters into the breccias away from the veins. Drilling was designed to test some of the veins and the wide breccia zones enclosing them. The eleven diamond drill holes cut a total of eight vein intercepts with an average grade of 7.83 grams per ton of gold equivalent, and an average true width of 1.0 meter; these intercepts ranged from a grade of 4.14 to 10.72 g/t of gold equivalent and from a true width of 0.8 to 1.8 meters. Some of these intercepts are from veins that were unknown before this drilling took place. The drill holes also cut five intercepts of silicified breccia with an average grade of 1.15 grams per ton of gold equivalent, and an average true width of 27.6 meters; these intercepts ranged from a grade of 0.92 to 1.38 g/t of gold equivalent and from a true width of 26 to 32 meters.

Highlights of these assay results are seen in the table below (visit www.paramountgold.com for more assay details and maps):



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True Gold
Hole From To Interval Width Gold Silver Equiv.
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Numb (m) (m) (m) (m) (g/t) (g/t) (g/t)
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SC-01 24.50 41.90 17.40 15.76 0.15 7.80 0.28
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SC-02 15.00 44.70 29.70 25.72 0.05 61.78 1.08
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92.50 93.50 1.00 0.77 0.43 326.00 5.86
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SC-03 27.20 58.70 31.50 27.28 0.06 51.00 0.92
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SC-04 27.40 57.00 29.60 25.63 0.11 57.00 1.06
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including: 1.65 0.16 155.00 2.75
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53.70 70.00 16.30 14.77 0.09 46.00 0.86
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SC-05 70.00 105.00 35.00 31.71 0.12 75.51 1.38
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including: 0.91 0.18 424.00 7.25
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1.81 0.49 515.00 9.07
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SC-06 8.60 22.00 13.40 11.60 0.14 43.00 0.86
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132.50 134.30 1.80 1.27 0.37 226.00 4.14
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SC-07 0.00 38.80 38.80 31.78 0.20 10.00 0.36
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including: 12.61 0.29 13.00 0.51
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SC-08 8.30 26.83 18.53 14.19 0.41 16.00 0.68
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44.50 46.50 2.00 1.53 0.15 79.00 1.46
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SC-09 0.00 18.50 18.50 14.17 0.24 19.67 0.57
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18.50 54.65 36.15 27.69 0.16 64.03 1.23
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0.77 0.39 389.00 6.87
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including: 1.69 0.04 14.30 0.27
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24.36 0.17 43.73 0.90
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0.88 0.00 438.00 7.30
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90.50 91.50 1.00 0.77 10.65 3.90 10.72
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SC-10 0.00 7.20 7.20 5.09 0.18 24.00 0.58
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7.20 8.40 1.20 0.85 0.13 412.00 7.00
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17.00 21.00 4.00 2.83 0.05 44.00 0.78
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SC-11 47.00 52.00 5.00 2.87 0.03 39.00 0.63
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56.80 65.00 8.20 4.71 0.03 30.00 0.55
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Preliminary results of ongoing, field-based, structural and geophysical studies have identified a number of targets with the potential for larger vein and silicified breccia bodies in the Montecristo Zone. Drilling will commence next month to evaluate these targets.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "These drill results, combined with those from our structural and geophysical studies, suggest that there is significant potential for more and larger bodies of vein and breccia mineralization in the Montecristo Zone."

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 (7000 m 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
    613-226-9881
    or
    Paramount Gold and Silver Corp.
    Chris Halkai, Corporate Relations
    866-481-2233
    613-226-9881