- Published: 06 October 2008
- Written by Editor
Paramount Gold and Silver Corp. Reports 7.97 g/t Gold Equivalent Across 5.97 meters at its San Miguel Project (incl. 18.76 g/t Gold Equivalent over 2.32 meters)
Paramount Gold and Silver Corp. (TSX: PZG)(AMEX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) reports assay results from SA-61, a deeper drill hole in the northern part of its San Antonio resource area, approximately 2 kilometers north of Clavo 66 at the La Union resource area. This hole was drilled as a step-out from hole SA-55 which was described in a press release dated July16, 2008. Results from both holes are tabulated below.
Holes SA-55 and now SA-61 were drilled from west to east across the north-central part of the San Antonio vein system. Both were drilled to test the San Antonio system 150 to 200 meters below the earlier shallow drilling, as shown on the longitudinal section. The geology and mineral intercepts in both holes were quite similar.
Both showed several intercepts closer to the surface with their metal values almost entirely in silver (and some Pb and Zn, not shown in the table below). The deeper intercepts contained much higher grades overall with very significant amounts of gold contributing to their value. The best intercepts in SA-55 (3.96m @10.08 AuEq) and SA-61 (2.32m @ 18.76 g/t AuEq) were very similar and both contained higher grade zones, as noted below.
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Grade
Thickness
Hole From To Interval True Gold Silver Gold Gold
Width Equiv.(i) Equiv.(i)
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Number (Meters)(Meters) (Meters)(Meters)(grams/ (grams/ (grams/ (grams
ton) ton) ton) x meters)
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SA-55 3.20 11.00 7.80 5.52 0.01 210.0 4.21 23.24
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Prior 110.30 112.90 2.60 1.84 0.01 212.0 4.25 7.82
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Release 182.00 187.00 5.00 3.54 0.01 54.0 1.09 3.86
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447.40 453.00 5.60 3.96 2.30 389.0 10.08 39.92
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incl. 448.30 451.00 2.70 1.91 3.95 695.0 17.85 34.09
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SA-61 20.00 24.00 4.00 3.32 0.01 90.3 1.82 6.04
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35.00 37.00 2.00 1.66 0.01 74.7 1.49 2.47
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219.20 224.00 4.80 3.98 0.01 120.0 2.41 9.59
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375.15 378.40 3.25 2.69 2.26 17.0 2.61 7.01
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381.80 389.00 7.20 5.97 3.89 204.0 7.97 47.58
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incl. 382.90 385.70 2.80 2.32 8.64 504.0 18.76 43.52
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391.00 394.10 3.10 2.57 1.88 5.8 2.00 5.13
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(i) Calculated at Ag/Au = 50
These deeper holes at San Antonio show that there is a dramatic change in the character and grade of the mineralization with increasing depth. The nearer surface material is in a swarm of smaller veins and vein breccias, with good silver values but very little gold. In the deeper holes, mineralization is consolidated into much fewer veins with excellent gold grades in addition to silver. If the San Antonio system follows the pattern seen at the San Miguel vein (Clavo 99), at La Union (Clavo 66), and elsewhere on the property, the gold to silver ratio should continue to increase with depth and the mineralization will be focused into a few stronger veins rather than the myriad of smaller veins seen at the surface.
Larry Segerstrom, COO of Paramount Gold and Silver Corp., commented, "the results of this deeper drilling at San Antonio confirm our interpretation that the mineralization exposed at the surface and exploited by miners 100 years ago is in the upper silver-rich portion of the vein systems at the San Miguel project. We are just now getting into the deeper gold-rich portions with our drilling at San Antonio and La Union. The most recent holes in both areas are very encouraging regarding the increasing gold potential at greater drilling depths."
Quality Control
Paramount takes detailed digital photos of the entire core before it is cut by saw to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QA/QC), Paramount has put into place a detailed program of periodically introducing certified standards, blanks and duplicates into the sample stream. Half-core samples are being retained on site for verification and reference purposes.
The qualified person who has reviewed this news release is Dana C. Durgin, M. Sc. Economic Geology. He is a Certified Professional Geologist (CPG #10364) with the American Institute of Professional Geologists, and a Registered Professional Geologist in Wyoming (PG-2886).
Contacts: Paramount Gold and Silver Corp. Larry Segerstrom, COO Chris Halkai, Investor Relations 866-481-2233 / 613-226-9881
SOURCE: Paramount Gold and Silver Corp.
