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

Paramount Gold and Silver Corp.

September 16, 2008 09:15 ET

Paramount Gold and Silver Corp. Reports 10.3 g/t Gold Across 10.3 meters at Clavo 66 (incl. 25.2 g/t Gold over 3.1 meters)

CHIHUAHUA, MEXICO--(Marketwire - Sept. 16, 2008) - Paramount Gold and Silver Corp. (AMEX:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) announces very high grade assay results from hole LU-21 in Clavo 66. A recent press release, dated September 2, 2008, announced the discovery of a new high-grade gold-bearing zone, Clavo 66, in the southern portion of its San Miguel Project.

LU-21 was drilled at the southeastern margin of Clavo 66, and intersected the vein 125 meters below the surface. LU-21 is 50 meters below LU-16 and 70 meters west of LU-15. The longitudinal section of Clavo 66 (http://www.paramountgold.com/projects/san_miguel_maps.asp) shows that Clavo 66 appears to plunge to the left on the section and LU-21 is the deepest and furthest down-plunge hole in the mineralized zone.

For assays and maps visit www.paramountgold.com



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Grade
Thickness
Hole From To Interval True Gold Silver Gold Gold
Width Equiv.(i) Equiv.(i)
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Number (Meters)(Meters) (Meters)(Meters)(grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
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LU-21 120.60 124.20 3.60 3.12 25.19 39.00 25.98 81.06
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124.20 132.50 8.30 7.19 3.82 7.00 3.96 28.47
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120.60 132.50 11.90 10.31 10.28 17.00 10.62 109.44
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(i) Calculated at Ag/Au equals 50


Clavo 66 has grown to dimensions of at least 250 meters along strike and 150 meters vertically. It remains open down plunge to the southeast and with depth. The deepest hole to date, LU-21, has the best combination of thickness and grade of the 13 holes in the Clavo.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "Similar to Clavo 99 at San Miguel and the deep drilling at San Antonio, Clavo 66 seems to improve with depth. Particularly encouraging at Clavo 66 is the 10.3 meter width of the mineralization. With good widths and high grades such as these, drilling can add very substantial tonnages to a resource in a relatively small area along strike and down dip. The next round of drilling at Clavo 66 will be very exciting."

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).

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 will attend the Silver Summit in Coeur D'Alene, Idaho on September 18th and 19th. Please feel free to visit us at booth # 30.

Contact Information

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