Paramount Gold and Silver Corp.

Paramount Gold and Silver Corp.

June 25, 2008 03:30 ET

Paramount Gold & Silver Corp. Reports Substantial Resource Increase at its San Miguel Project in Mexico

OTTAWA, CANADA--(Marketwire - June 25, 2008) - Paramount Gold and Silver Corp. (TSX:PZG)(AMEX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) has completed an updated National Instrument 43-101 compliant mineral resource estimate for its San Miguel Project, located in the Guazapares mining district Chihuahua, Mexico, within the Sierra Madre Occidental gold/silver belt.

For the full NI 43-101 Technical Report, please go to the following link:

ACA Howe International Ltd. has prepared the technical report and resource estimate. The Company plans to file a report on the resources in accordance with Canadian National Instrument 43-101 on SEDAR later today. National Instrument 43-101 is a rule developed by the Canadian Securities Administrators which established standards for certain public disclosure of scientific and technical information concerning mineral projects. The requirements of National Instrument 43-101 are not the same as those of the SEC.

Resource Estimation Detail

To carry out the resource estimate, ACA Howe carefully verified and then imported Paramount's drilling database into Micromine modeling software. Mineralized zones were outlined on cross sections to provide geologic boundaries. A 25 g/t silver equivalent cut-off was used in the outlining process. Assay data were treated statistically using variography and ordinary point kriging. A single block model was created using wire frames to provide geologic control to the modeling.

Paramount initiated diamond core drilling in April 2006. As of April 30th, 2008, 176 HQ size diamond drill holes have been completed totaling 34,926 meters in various exploration areas. 132 of the holes have been drilled in mineralized areas along the Guazapares Fault structure and 44 holes have targeted the San Miguel vein in the Batosegachic Fault. Paramount has also completed 69 trenches totaling 3,899 meters. Paramount's exploration efforts to date have focused on the diamond drilling of segments of the Guazapares Fault structure over a seven-kilometer strike-length between the La Union and Montecristo zones and most recently, on the San Miguel Vein hosted by the sub-parallel Batosegachic Fault structure approximately 3 kilometers west of the Guazapares structure. Drilling to date along the Guazapares structure has been largely preliminary in nature. Drilling on the San Miguel vein began in August 2007 and has been the focus of drilling since November 2007 through to the time of ACA Howe's visit at the end of April 2008. Drilling at the San Miguel vein has generally been more intensive than that completed along the Guazapares structure in an effort to delineate the higher grade mineralized shoot referred to as "Clavo 99". Ground magnetic and IP geophysical surveys were conducted over the Project area from September 2007 to March 2008. At the time of ACA Howe's site visit, Paramount was integrating the geophysical data with surface geologic mapping, drilling and trenching data into a Vulcan™-based model. Integration and interpretation of the multi-disciplinary data has generated additional drill targets. Drilling continues at the San Miguel project with two diamond drill rigs.

Qualified Person

Mineral resources for the San Miguel Deposit have been estimated by Mr. Wm Douglas Roy, M.A.Sc., P. Eng. (Nova Scotia Registered Professional Engineer #7472), with assay quality control reviewed by Mr. Gary Lustig, MSc., P.Geo. Mr. Ian D. Trinder, M.Sc., P. Geo. (APGO#452), authored the remainder of the report. All three are the qualified persons for the purpose of National Instrument 43-101.

Information Concerning Estimates of Mineral Resources

This news release uses the term 'Inferred Resources'. Paramount advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under Canadian National Instrument 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

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 manager of the San Miguel project, which is a joint venture with Tara Gold Resources Corp. (TRGD.PK) (30%). Paramount recently signed a Strategic Alliance with Mexoro Minerals Ltd. (MXOM.OB). Paramount has signed an agreement with Garibaldi Resources Inc. (the new JV ground surrounds the San Miguel project) (TSX VENTURE:GGI) to form a joint venture agreement, and acquire an interest in 17,208 hectares of property.

The Toronto Stock Exchange has not reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.

"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.
    Christopher Crupi
    Paramount Gold and Silver Corp.
    Chris Halkai
    Investor Relations