News Feed Item

Paramount Gold and Silver Reports Positive New Resource Estimate for Its San Miguel Project, Mexico

Measured and indicated (M&I) gold resource ounces increase 76%; M&I silver resource ounces rise 44%; new model includes resources for prospective lower cost heap leach scenario in forthcoming PEA

WINNEMUCCA, NEVADA -- (Marketwired) -- 07/08/14 -- Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) ("Paramount") today released the results of a new resource estimate prepared by Mine Development Associates of Reno Nevada ("MDA") (www.mda.com) for Paramount's 100%-owned San Miguel Project in northern Mexico. The new resource model on which the estimate is based "represents a major step forward in the evolution of San Miguel from a raw exploration prospect to what is now a mature, high quality economic opportunity," said Paramount CEO Christopher Crupi.

In the new model, estimated global measured and indicated (M&I) contained ounces of gold increased a robust 76%, from 638,000 to 1,123,000. Estimated M&I contained ounces of silver rose 44%, from 53.6 million to 77.1 million. Inferred resources of gold and silver fell slightly as a portion of the inferred was converted to higher categories but the size of the total resource increased substantially. At a silver-to-gold ratio of 60, estimated M&I gold equivalent ounces total 2,408,000 at an estimated average gold equivalent grade of 1.71 g/T. For a detailed breakdown of tonnes and grade by category, please see the tables below.

The new resource estimate has incorporated the following:

--  Data from new core drilling completed within the resource areas since
    the last update. 
--  Geological re-modeling and re-estimation of the San Francisco bulk
    tonnage gold-silver deposit reflecting the recent success of heap leach
    metallurgical testing on this material. (See news release of May 27,
--  Review of resource classification parameters based on drill confirmation
    of the predictability of the resource model, which has enhanced

The new estimate will be incorporated into an updated Preliminary Economic Assessment (PEA) expected next month, to be prepared by Metal Mining Consultants ("MMC") (www.metalminingconsultants.com) of Denver, Colorado. The first PEA for San Miguel was also completed by MMC and released on February 28, 2013. A PEA is a complete, integrated project design which estimates mining and processing methods and rates of production, capital and operating costs, cash flows at specified metal prices, rates of return, mine life and net present values at a proposed discount rate.

Resources at the high grade Don Ese underground deposit have increased substantially in the new estimate. Don Ese is located several hundred meters east of the Guadalupe deposit, which it closely resembles, and they probably sit within the same structure. Guadalupe is Coeur d'Alene's key development project at its neighboring Palmarejo mine complex.

The large, bulk-mineable San Francisco gold-silver deposit was re-modeled following successful metallurgical testing of its heap leach potential; measured plus indicated contained metal now stands at 126,000 ounces of gold and 3.4 million ounces of silver, plus a further 566,000 ounces of gold and 14.7 million ounces of silver in the inferred category. For a detailed breakdown of tonnes and grade by category, please see the tables below. The updated PEA is expected to include a heap leach component for San Francisco.

Crupi commented that the new resource model "represents a substantial achievement. We believe the quality of the San Miguel resource is now sufficient for a feasibility study and supports a strong, reliable valuation by potential partners. The next step is to revise the PEA from 2013 to include the larger resource and the heap leach scenario for lower grade material. We expect the results of this work to be highly encouraging for the project."

Detailed resource tables effective as at May 1, 2014 are as follows:

                Cut off                                                     
Area            Ageq g/t                                            Measured
                                Tonnes  Au g/T  Ag g/T     Au Oz       Ag Oz
Don Ese         90             599,000    2.88     254    55,000   4,898,000
La Union        25           1,175,000    2.08      18    78,000     691,000
San Miguel      25           3,271,000    1.11      66   117,000   6,933,000
San Antonio     25           1,209,000    0.04      60     1,000   2,319,000
San Francisco   9                    -       -       -         -           -
La Veronica     25                   -       -       -         -           -
MT/SC           25                   -       -       -         -           -
Total                        6,254,000    1.25      74   251,000  14,841,000
                Cut off                                                     
Area            Ageq g/t                                           Indicated
                                Tonnes  Au g/T  Ag g/T     Au Oz       Ag Oz
Don Ese         90           2,807,000    2.81     206   253,000  18,546,000
La Union        25           6,903,000    1.06      42   236,000   9,204,000
San Miguel      25           9,943,000    0.79      50   252,000  15,962,000
San Antonio     25           6,180,000    0.02      72     4,000  14,215,000
San Francisco   9           10,551,000    0.37      10   126,000   3,429,000
La Veronica     25             476,000    0.08      61     1,000     930,000
MT/SC           25                   -       -       -         -           -
Total                       36,860,000    0.74      53   872,000  62,286,000
                Cut off                                                     
Area            Ageq g/t                             Measured plus Indicated
                                Tonnes  Au g/T  Ag g/T     Au Oz       Ag Oz
Don Ese         90           3,406,000    2.82     214   308,000  23,444,000
La Union        25           8,078,000    1.21      38   314,000   9,895,000
San Miguel      25          13,214,000    0.87      54   369,000  22,895,000
San Antonio     25           7,389,000    0.02      70     5,000  16,534,000
San Francisco   9           10,551,000    0.37      10   126,000   3,429,000
La Veronica     25             476,000    0.08      61     1,000     930,000
MT/SC           25                   -       -       -         -           -
Total                       43,114,000    0.81      56 1,123,000  77,127,000
                Cut off                                                     
Area            Ageq g/t                                            Inferred
                                Tonnes  Au g/T  Ag g/T     Au Oz       Ag Oz
Don Ese         90           2,020,000    2.07     131   135,000   8,514,000
La Union        25           1,476,000    0.90      38    43,000   1,785,000
San Miguel      25           3,350,000    0.54      21    58,000   2,282,000
San Antonio     25           2,109,000    0.08      73     5,000   4,977,000
San Francisco   9           43,229,000    0.32       8   440,000  11,269,000
La Veronica     25           3,104,000    0.09      47     9,000   4,658,000
MT/SC           25           3,520,000    0.13      40    14,000   4,503,000
Total                       58,808,000    0.38      20   704,000  37,988,000

Key Parameters for Resource Estimation

The gold and silver resources at the San Miguel project were modeled and estimated by:

--  Determining statistical and geological criteria to establish gold and
    silver mineral domains; 
--  Interpreting gold and silver mineral-domain polygons on sets of vertical
    cross sections orientated perpendicular to the strike of the
    mineralization for each deposit area; 
--  Rectifying the mineral-domain interpretations for each deposit on a set
    of level plans; 
--  Analyzing the modeled mineralization geostatistically in order to aid in
    the selection of estimation and classification parameters; 
--  Interpolating grades into three-dimensional block models, using the gold
    and silver mineral- domains to control the estimations; and 
--  Undertaking various checks and interpolation iterations until optimal
    results were generated. 

Additionally, MDA estimated resources at higher cut-off grades, resulting in a substantial increase in the San Miguel resource grade without a significant reduction in total contained metal. The estimates based on higher cut-off grades are contained in the tables below. Potentially mineable grades will be established in the updated PEA.

Cutoff                              Measured & Indicated                    
(Ag Eq g/T)             Tonnes  g Ag/t         oz Ag    g Au/t         oz Au
25                  38,574,000      63    78,014,000      0.90     1,109,000
50                  21,119,000      97    66,355,000      1.43       974,100
75                  14,445,000     127    58,900,000      1.90       881,500
90                  12,167,000     142    55,420,000      2.15       839,300
120                  9,239,000     167    49,693,000      2.60       772,800
150                  7,443,000     189    45,216,000      3.00       717,300
Cutoff                                    Inferred                          
(g Ag-equiv/t)          Tonnes  g Ag/t         oz Ag    g Au/t         oz Au
25                  32,833,000      34    35,986,000      0.57       597,000
50                  13,628,000      58    25,317,000      0.95       419,000
75                   7,381,000      83    19,674,000      1.30       308,800
90                   5,224,000     102    17,162,000      1.52       256,200
120                  3,258,000     133    13,934,000      1.93       202,500
150                  2,342,000     156    11,761,000      2.28       171,800

NI 43-101 Disclosure

The resource estimation disclosure in this news release has been reviewed and approved by Michael Gustin of MDA, a Qualified Person under the auspices of NI 43-101. Exploration activities at San Miguel were conducted by Paramount Gold de Mexico S.A de C.V 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 press release. An ongoing quality control/quality assurance protocol was employed for the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses were conducted at a second external laboratory on 10% of the samples. Samples were assayed at ALS Chemex and Acme Laboratories, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.

About Paramount

Paramount is a U.S.-based exploration and development company with multi-million ounce advanced stage precious metals projects in northern Mexico (San Miguel) and Nevada (Sleeper). Fully-funded exploration and engineering programs are now in progress at these two core projects which are expected to generate substantial additional value for our shareholders.

The San Miguel Project consists of over 142,000 hectares (over 353,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. The San Miguel Project is ideally situated near established, low cost production where the infrastructure already exists for early, cost-effective exploitation. A PEA for San Miguel was completed and announced on February 28, 2013.

The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca. In 2010, Paramount acquired a 100% interest in the project including the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as staked and purchased lands now totaling 2,570 claims and covering about 47,500 acres which stretch south down trend to Newmont's Sandman project. This acquisition is consistent with the Company's strategy of district-scale exploration near infrastructure in established mining camps. A PEA was completed for Sleeper and announced on July 30, 2012.

Cautionary Note to U.S. Investors Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms "measured and indicated resources" and "inferred resources". We advise U.S. investors that while these terms are defined in, and permitted by, Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and not normally permitted to be used in reports and registration statements filed with the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their 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 a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves", as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally minable.

Safe Harbor for Forward-Looking Statements:

This release and related documents may include "forward-looking statements" including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the San Miguel Project and the expected results of this work, estimates of resources including expected volumes and grades and the economic projections included in the project's PEA. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, inability to complete drill programs on time and on budget, and future financing ability. Paramount's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Words such as "believes," "plans," "anticipates," "expects," "estimates" and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Paramount's Annual Report on Form 10-K for the year ended June 30, 2013 and its most recent quarterly reports filed with the SEC.

Except as required by applicable law, Paramount disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration

Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
SYS-CON Events announced today that Sheng Liang to Keynote at SYS-CON's 19th Cloud Expo, which will take place on November 1-3, 2016 at the Santa Clara Convention Center in Santa Clara, California.
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...