Mr. Christopher Crupi reports
PARAMOUNT GOLD AND SILVER ADDS 500 M. OF STRIKE TO HIGH-GRADE SOUTHERN EXTENSION OF SAN MIGUEL PROJECT'S LA UNION ZONE
Paramount Gold and Silver Corp. today released outstanding new assays from the southward extension of the high-grade La Union zone which could have major consequences for its 100-per-cent-owned San Miguel project in Mexico.
La Union lies within the 7.5-kilometre-long Guazapares megastructure, which hosts a series of precious metal zones with unexplored gaps between them. To the south of La Union is an unexplored 1.3-kilometre gap which stretches down to the Santa Clara zone. This gap is a key target for its potential to host a continuation of La Union's high grades. Core hole LU-12-046, grading 6.21 grams per tonne of gold and 53.71 grams per tonne of silver over 4.9 metres, is especially significant because it is the biggest step out yet, located 500 metres south of La Union and well into the unexplored gap in the Guazapares megastructure. New drilling also found significant widths: core hole LU-12-45 returned an exceptional 28.2-metre intercept grading 5.08 grams per tonne of gold and 11.0 grams per tonne of silver. To date, exploration drilling between La Union and Santa Clara has been preliminary and shallow in nature, successfully intersecting the principal structure, which is well mineralized with gold and silver. Paramount geologists are now evaluating these results to determine the optimum elevation within the structure where additional high-grade gold is likely to be found. This method has helped Paramount to substantially increase drilling success at other targets on its San Miguel project. Widths of the structure vary substantially over short distances. Paramount believes that it may be possible to anticipate these wider zones which appear to relate to inflections in the structure's dip.
Christopher Crupi, Paramount's chief executive officer, commented: "La Union is now joining Don Ese and the San Miguel vein as important sources of high-grade gold mineralization. These zones are expected to generate a substantial increase in gold resources in our next NI 43-101 estimate scheduled for later this quarter. More importantly, we believe that as we unravel the factors affecting gold deposition, we will be able to connect the high-grade occurrences into a much larger, continuous body. Two rigs continue to drill on the Guazapares megastructure where the unexplored gaps are proving to be highly productive."
Details of the intercepts from the most recent 12 holes drilled at La Union are shown in the table.
Total
length From To Width Au Ag
Hole ID (m) (m) (m) (m) (g/t) (g/t)
LU-12-024 225.35 103.20 106.40 3.20 0.01 20.48
120.80 148.25 27.45 3.29 5.02
including 120.80 126.45 5.65 11.04 19.53
including 122.15 125.10 2.95 16.00 9.26
183.20 184.20 1.00 1.18 0.80
LU-12-036 249.85 66.60 71.45 4.85 0.03 17.72
100.95 103.70 2.75 0.07 13.43
LU-12-037 262 224.75 228.45 3.70 1.98 7.05
including 227.2 228.45 1.25 5.29 18.92
LU-12-038 262.15 81.50 98.45 16.95 0.27 15.15
161.85 176.75 14.90 1.34 1.95
including 167.60 169.00 1.40 5.19 3.86
184.20 185.65 1.45 19.90 19.10
189.95 197.65 7.70 8.47 4.36
including 194.25 195.35 1.10 54.10 18.10
219.30 222.65 3.35 2.35 6.06
LU-12-039 210.20 85.90 90.65 4.75 0.12 39.63
No significant
LU-12-040 253.00 intervals
No significant
LU-12-041 254.00 intervals
LU-12-042 268.25 82.50 86.50 4.00 0.25 81.40
91.60 94.35 2.75 0.18 19.16
109.95 110.60 0.65 0.81 7.00
No significant
LU-12-043 387.20 intervals
LU-12-044 261.83 97.00 116.65 18.75 1.55 23.72
including 97.90 100.35 2.45 7.89 98.80
221.10 223.40 1.30 0.30 1.20
LU-12-045 231.65 102.30 130.50 28.20 5.08 10.98
including 109.95 117.65 7.70 17.06 23.99
including 111.65 112.55 0.90 15.30 23.30
including 113.05 113.55 0.50 63.00 45.20
including 114.05 115.20 1.15 12.90 20.90
including 115.20 115.75 0.55 77.10 73.30
including 115.75 116.25 0.50 19.80 25.40
137.85 144.30 6.45 0.49 2.08
165.55 172.25 6.70 0.27 1.45
LU-12-046 210.3 161.20 166.10 4.90 6.21 53.71
These holes were drilled to intercept the structure at right angles and the reported intercepts are therefore believed to approximate true width.
A new resource estimate by Mine Development Associates of Reno, Nev., is expected during the second quarter of 2012 for the entire San Miguel project and will include all 2011 and early 2012 drill results. To date, a total of 126 drill holes totalling 35,600 metres of new drilling are being incorporated into the updated resource estimation. The new resource estimate will be incorporated into a preliminary economic assessment planned for completion later this year which will evaluate mining scenarios, mining rates and process alternatives while defining a path to a preliminary feasibility study, which would report reserves. Paramount continues to explore the potential of its large San Miguel property position and is prioritizing numerous untested targets as well as extensions of known deposits, many of which remain open, as it pursues additional resource expansion. Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico SA de CV personnel under the supervision of Glen van Treek, exploration vice-president of the company, and Bill Threlkeld, a qualified person as defined by National Instrument 43-101, who have both reviewed and approved this news release. A continuing quality control/quality assurance protocol is being employed for the program, including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10 per cent of the samples. Samples are being assayed at ALS Chemex, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.
We seek Safe Harbor.
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