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

Paramount Gold and Silver Corp.

March 20, 2008 12:48 ET

Paramount Gold and Silver Corp. Reports 10.4m of 4.5 g/t Gold and Extends Northern Limit of Clavo 99 within the High Grade San Miguel Vein

CHIHUAHUA, MEXICO--(Marketwire - March 20, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(Frankfurt:P6G)(WKN:A0HGKQ) is pleased to announce assay results from four additional drill holes in the San Miguel Zone of its San Miguel project in the Guazapares Mining District, Mexico. Drill holes SM-21, 22, and 23 were drilled 50 meters below the upper row of holes in the southern portion of the vein to test the depth extent of that mineralization. Hole SM-24 was drilled 50 meters north of well-mineralized SM-13, and was designed to extend the northern margin of the high grade 'Clavo 99' (see map below entitled "Longitudinal Section" for drill hole locations).

Holes SM-21, 22, and 23, are south of 'Clavo 99' and demonstrate that the mineralization present in the near-surface holes along the vein persist to as much as 150 meters below the surface and is open to greater depths; follow-up drilling in this area is planned.

As anticipated, hole number SM-24 intersected high grade mineralization, with the best intercept of 10.39 m of 3.52 g/t Au and 60 g/t Ag. This intercept is within 'Clavo 99' and extends 'Clavo 99' an additional 50 meters to the north, for a total length of approximately 400 meters and a depth of 200 meters down dip, as indicated on the attached longitudinal section.

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 Silver Gold Grade
Hole From To Interval Width Equiv. Thickness
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Number (meters) (meters) (meters) (meters) (grams (grams (grams (grams Au
/ton) /ton) /ton) Equiv.
x meters)
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SM-21 76.80 82.85 6.05 5.48 0.22 47.00 1.01 5.54
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including: 0.91 0.18 139.00 2.50 2.27
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SM-22 69.90 73.50 3.60 2.95 0.96 47.00 1.74 5.13
--------------------------------------------------------------------------
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SM-23 87.50 88.50 1.00 0.87 3.74 26.00 4.17 3.61
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SM-24 132.50 144.50 12.00 10.39 3.52 60.00 4.53 47.08
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including: 2.86 2.91 134.85 5.15 14.72
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0.87 12.65 190.00 15.82 13.70
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6.67 2.61 11.35 2.80 18.65
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146.60 147.80 1.20 1.04 4.13 16.00 4.40 4.57
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154.70 155.40 0.70 0.61 1.70 6.00 1.80 1.09
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Ave-
rage: 132.50 155.40 22.90 19.83 2.19 32.88 2.74 54.29
--------------------------------------------------------------------------


Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "As indicated in holes SM-21, 22, and 23, mineralization in the southern portion of the San Miguel vein continues to greater depth, but the best news comes from hole SM-24. A 10.4 m intercept of 4.5 grams gold-equivalent demonstrates the persistence and strength of mineralization in 'Clavo 99'. We are eagerly anticipating the assays from holes SM 34 and 35, which could potentially extend 'Clavo 99' to a depth of 250 m, and assays from SM 36 to 39 which could extend 'Clavo 99' deeper to 300 m."

SM-24 shows that 'Clavo 99' is now at least 400 m long and persists to a depth of at least 200m. The gold content appears to be increasing relative to silver with depth. Drilling continues with the intention of extending 'Clavo 99' along strike and to greater depths.

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 31,000 meters of core drilling (7000 m before April 2007), totaling 169 drill holes on the project, with results pending on approximately 28 holes. In April 2007, Paramount began a 50,000 meter drill program, of which 24,000 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.

A map entitled "Longitudinal Section of the southern part of the San Miguel vein structure" is available at the following address: http://media3.marketwire.com/docs/Map_0320.JPG

Note: AuEq60 is gold-equivalent calculated at 60:1 silver to gold ratio.

Contact Information

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