More News! Silver is good too! I'm glad this is finally making a little bit of a move.
(Thanks for all your info. too Clinton.)
Press Release Source: Paramount Gold Mining Corp.
Paramount Gold Drills Multiple High-Grade Intercepts, Including 874 Grams Per Tonne (28 Ounces) Silver Over 5.2 Meters and 553 Grams Per Tonne (17.8 Ounces) Silver Over 6.5 Meters at Their San Miguel Project, Mexico
Wednesday September 13, 4:15 pm ET
CHIHUAHUA, Mexico--(BUSINESS WIRE)--Sept. 13, 2006--Paramount Gold Mining Corp. (OTC:PGDP - News; FWB:P6G) (WKN:A0HGKQ), is pleased to report multiple high-grade silver intercepts from nine drill holes on its ongoing drill program at the San Miguel project located near Temoris, Chihuahua, Mexico. Ten silver intercepts ranged from 105 grams per tonne silver to 874 grams per tonne (g/t) across lengths ranging between 2 and 47 meters. The results from four of these drill holes represent the initial testing on the San Jose zone which is located immediately adjacent to the south side of the San Luis Mine zone where Paramount previously reported 35.5 g/t gold with 17 g/t silver over 4.0 meters in drill hole SL-02 (see news release dated August 2, 2006).
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Paramount's Manager of Exploration, Mexico, Bill Reed, commented "I am gaining increased confidence in the potential at San Miguel as we have intersected significant silver in all nine of the drill holes reported today. We have encountered some very high grades over significant widths of 29 and 47 meters at the San Jose zone and have only tested 150 meters of strike thus far. The stockworks around the high grade veins are carrying good values that increase the widths, and the mineralization starts at surface which greatly enhances the economics of the project. Our surface sampling and trenching indicate that this zone may continue for another 150 meters to the South and join our La Union zone that has now been identified over 250 meters with seven trenches. We have also identified a silver zone further south of La Union, called Santa Clara and another silver zone, San Antonio to the North of the San Luis mine zone. I suspect this is one continuous zone that is interrupted on surface by overburden. As we learn more on the orientation of these zones, we will drill test for continuity through the overburden."
The results below are the first four drill holes on the San Jose zone and the remaining five drill holes at the San Luis Mine zone
San Jose zone
Most significant intercepts in the San Jose area are drill holes SJ-03, SJ-04 and SJ-01. While SJ-02, SJ-03 and SJ-04 are preliminary, they are not expected to change significantly when lead and zinc values are reported. Turn around time at Chemex Labs has been delayed up to 30 days or more due to increased volume.
SJ-03 cut 29.0 meters from surface averaging 192.3 grams per tonne silver, including 5.2 meters from 9.2 to 14.4 meters of 874 grams per tonne silver
SJ-04 cut 47.0 meters from surface averaging 104.8 grams per tonne silver, including 6.5 meters from 10.75 to 17.25 meters of 553 grams per tonne silver.
SJ-01 cut 13.0 meters from surface averaging 121.5 grams per tonne silver, including 5.0 meters from 0.0 to 5.0 meters of 264 grams per tonne silver.
SJ-02 cut 24.65 meters starting from surface averaging 36.0 grams per tonne silver with the best intersect being 113 grams silver across 3.45 meters from 21.20 to 24.65 meters. SJ-01 reported low lead and zinc with the best interval being 5.0 meters from surface of 0.46% lead and 0.73% zinc, SJ-02, SJ-03 and SJ-04 results are waiting lead and zinc assays. Paramount believes that the drill intersects across San Jose are perpendicular to the zone, but true widths cannot be verified at this time.
San Jose, SJ-01 was drilled at 80 degrees and collared approximately 300 meters south of the San Luis (SL) zone, drill hole SL-02 (35.5g Au). San Jose, SJ-02 was drilled at 50 degrees and collared 25 meters SW of SJ-01. SJ-03 drilled at 50 degrees was collared 75 meters along strike to the South/Southeast from SJ-02 and drill hole SJ-04 drilled at 50 degrees was collared 50 meters further down strike from SJ-03 to the South/Southeast. Paramount Gold is awaiting assay results from seven more drill holes on the San Jose zone that continue to step out on strike to the South East and North West.
San Luis Mine zone
The results from the remaining five out of eight drill holes at San Luis also intersected significant silver. SL-04, SL-05, SL-06, SL-07 and SL-08 all reported significant widths of silver, varying from 29 grams per tonne to 252.5 grams per tonne. SL-04 also reported high zinc assays.
Most significant results were from SL-04 that cut four significant intercepts:
0.44 meters from 54.55 to 54.90 meters of 0.44 grams per tonne (g/t) gold, 29 g/t silver, 7.8% lead and 30% zinc,
2.0 meters from 89.0 to 91.0 meters of 253 g/t silver, 0.48% lead and 1.26% zinc,
Above this was a 7 meter intercept from 82 to 89 meters of 3.2% zinc with 8 g/t silver, and
4 meters from 116 to 120 meters of 0.41 g/t gold, 146 g/t silver, 0.64% lead and 0.60% zinc.
SL-06 best intersect was 9 meters from 68.0 to 77.0 meters of 161 g/t silver.
SL-08 also cut numerous intervals of silver with lead and zinc, including 8.5 meters from 82.0 to 90.5 meters of 89 g/t silver with 0.44% lead and 0.24% zinc.
SL-04 is located approx. 35.0 meters west of discovery drill hole SL-02 (35.5g Au). SL-06 is located approx. 150 metres to the NorthWest of SL-02 and SL-07 is located approximately 40 meters further NW of SL-06. SL-08 is approximately 75 meters north of discovery hole SL-02 and SL-05 is approximately 80 meters NorthWest of SL-02
SAN LUIS DRILL HOLES
Drill Hole Depth In Meters Interval Gold Silver Lead Zinc
Number From To In Meters gr/t gr/t % %
SL - 04 54.55 54.90 0.44 0.44 29.00 7.81 30.00
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57.65 76.00 18.35 0.00 0.00 0.15 0.71
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82.00 89.00 7.00 0.00 8.00 0.98 3.20
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89.00 91.00 2.00 0.12 252.50 0.48 1.26
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97.00 116.00 19.00 0.03 37.16 0.10 0.33
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116.00 120.00 4.00 0.41 145.75 0.64 0.60
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SL - 05 76.00 79.00 3.00 0.00 45.00 nvs nvs
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85.00 118.00 34.00 0.00 24.00 nvs nvs
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SL - 06 58.00 68.00 10.00 0.00 33.81 nvs nvs
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68.00 77.00 9.00 0.00 161.44 nvs nvs
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77.00 86.30 9.30 0.00 49.32 nvs nvs
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----------------------------------------------------------------------
SL - 07 56 81.5 22.5 0 0 0.09 0.43
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81.50 86.70 5.20 0.00 38.65 0.12 0.56
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SL - 08 25.10 31.90 6.80 0.00 0.00 0.22 0.42
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42.70 44.50 1.80 0.04 78.11 0.06 0.15
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50.15 54.15 4.00 0.00 33.76 0.51 0.69
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56.60 58.00 1.40 0.17 102.00 0.35 0.70
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62.90 70.50 7.60 0.00 78.62 0.08 0.32
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70.50 82.00 11.50 0.05 12.11 0.07 0.17
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82.00 90.50 8.50 0.04 88.66 0.44 0.24
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90.50 92.50 2.00 0.00 0.00 0.19 1.51
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SAN JOSE DRILL HOLES
SJ - 01 0.00 5.00 5.00 0.00 263.60 0.46 0.73
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5.00 13.00 8.00 0.00 32.75 0.06 0.18
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17.00 30.25 13.25 0.00 27.16 0.12 0.33
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PRELIMINARY RESULTS
NO LEAD OR ZINC VALUES
SJ - 02 0.00 9.40 9.40 0.00 17.46
---------------------------------------------
9.40 20.20 10.80 0.00 31.02
---------------------------------------------
21.20 24.65 3.45 0.00 112.77
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------------------------------------------------------
SJ - 03 0.00 9.20 9.20 0.01 48.33
---------------------------------------------
9.20 14.40 5.20 0.10 873.62
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14.40 16.20 2.60 0.11 21.81
---------------------------------------------
20.10 29.00 8.90 0.01 59.67
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------------------------------------------------------
SJ - 04 0.00 10.75 10.75 0.08 49.33
---------------------------------------------
10.75 17.25 6.50 0.00 552.93
---------------------------------------------
17.25 34.00 16.75 0.02 8.70
---------------------------------------------
34.00 47.00 13.00 0.00 50.46
---------------------------------------------
47.00 59.00 12.00 0.00 30.42
---------------------------------------------
59.00 69.00 10.00 0.02 19.00
---------------------------------------------
87.40 94.00 6.60 0.27 7.20
---------------------------------------------
99.00 101.00 2.00 0.43 0.00
------------------------------------------------------
Exploration Update
The drill rig has now been moved to the La Union Mine area immediately south of the San Jose area where 4 holes are programmed to test a silver bearing zone with old mine workings and an adjacent sub-parallel zone discovered during trenching with significant gold values. Five drill pads have been prepared immediately north of the San Luis Mine in the San Antonio area where rock chip samples from several widely outcrops ran nearly 900 g/t silver. When drill holes in the La Union Mine area are completed, the drill will be moved to test the San Antonio zone. Trenching is continuing to the north of San Antonio in the Carmen area where there are numerous old mine workings, but few outcrops.
Several new geologists have recently been added to the San Miguel project team as Paramount Gold plans to add a second 12 hour drill shift that will double the meters drilled per day. This will allow much faster testing of the numerous target areas defined to date. Detailed reconnaissance geologic mapping and rock chip sampling programs continue along the + 6 kilometer mineralized trend controlled by Paramount Gold.
Paramount Gold has now completed more than 3,800 meters of core drilling at the San Miguel project including 3 holes at Montecristo, 3 holes at La Blanca, 8 holes at San Luis and 11 holes at San Jose. The depth of each hole is shown in the table below.
Quality Control Program
Paramount takes detail photos of all the core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile) sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.
C W Reed, B. Sc. Mineralogy, is acting as qualified person and has prepared the detail and review with respect to this news release.
Drill Hole Area Started Completed Total Depth
MC - 01 Montecristo 4/23/2006 5/2/2006 281.85
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MC - 02 Montecristo 5/3/2006 5/10/2006 218.85
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MC - 03 Montecristo 5/11/2006 5/24/2006 297.50
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LB - 01 La Blanca 5/26/2006 6/1/2006 200.50
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LB - 02 La Blanca 6/2/2006 6/6/2006 157.75
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LB - 03 La Blanca 6/7/2006 6/12/2006 173.00
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SL - 01 San Luis 6/15/2006 6/18/2006 160.80
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SL - 02 San Luis 6/19/2006 6/25/2006 179.10
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SL - 03 San Luis 6/26/2006 6/28/2006 126.85
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SL - 04 San Luis 6/29/2006 7/2/2006 151.45
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SL - 05 San Luis 7/2/2006 7/8/2006 148.40
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SL - 06 San Luis 7/9/2006 7/12/2006 161.30
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SL - 07 San Luis 7/13/2006 7/15/2006 130.30
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SL - 08 San Luis 7/16/2006 7/18/2006 127.75
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SJ - 01 San Jose 7/19/2006 7/21/2006 118.30
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SJ - 02 San Jose 7/22/2006 7/23/2006 44.70
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SJ - 03 San Jose 7/24/2006 7/25/2006 108.75
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SJ - 04 San Jose 7/26/2006 7/28/2006 130.10
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SJ - 05 San Jose 7/28/2006 7/31/2006 104.90
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SJ - 06 San Jose 8/1/2006 8/4/2006 114.85
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SJ - 07 San Jose 8/5/2006 8/7/2006 108.70
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SJ - 08 San Jose 8/8/2006 8/12/2006 111.40
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SJ - 09 San Jose 8/12/2006 8/15/2006 123.65
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SJ - 10 San Jose 8/15/2006 8/17/2006 105.10
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SJ - 11 San Jose 8/18/2006 8/22/2006 197.10
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About San Miguel
San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire a 70% interest in the San Miguel project.
About Paramount Gold
Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the San Miguel and Linda projects in Mexico and Peru, and the Andean Gold Alliance with TeckCominco in South America and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world. The Company trades on the OTC market under the symbol "PGDP" and on the Frankfurt Exchange under the symbol "P6G". For more information, please visit the Company's web site at: www.paramountgold.com (now available in the following languages: English, German, French, Spanish, and Mandarin).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact:
Investor Relations
Skyline Communications, 613-226-9881
Toll-free: 1-866-481-2233
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