Welcome!

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,
    2014). 
--  Review of resource classification parameters based on drill confirmation
    of the predictability of the resource model, which has enhanced
    confidence. 

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.

Contacts:
Paramount Gold and Silver Corp.
Glen Van Treek
VP Exploration
866-481-2233

Paramount Gold and Silver Corp.
Chris Theodossiou
Investor Relations
866-481-2233

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
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...