Paramount Gold Acquires 100,000 Hectares Concession in Prolific Sierra Madre Gold-Silver Belt, Between the Guazapares and El Sauzel Mining Districts in Southwestern Chihuahua, Mexico
Ticker Symbol: UGDP X:FWB6G
CHIHUAHUA, Mexico -- (Business Wire) -- May 3, 2006
Paramount Gold Mining Corp. (OTCGDP)(FWB6G) is
pleased to announce the acquisition of Andrea, a new mining concession
located in Chihuahua between its exiting San Miguel project and Glamis
Gold\'s (GLG:NYSE) El Sauzel gold mine. The Andrea consists of
approximately 100,000 hectares which has been recently claimed by
Paramount in its own name. The Andrea is in the vicinity of other
concessions belonging to Palmarejo (PJO:TSX.V) and Panoles.
¶ Commenting on the claim, Bill Reed, Exploration Manager and
Director, Mexico stated, "I have worked this area for a number of
years and was very pleased to learn recently that the area covered by
the new Andrea concession had become open to mineral entry and that
Paramount expressed a strong interest in aggressively pursuing new
opportunities in this prolific gold-silver belt."
¶ There are a number of old mines in the area that were significant
producers prior to the Mexican revolution. Paramount plans to set a
reconnaissance and exploration program to evaluate the new Andrea
concession. Detailed reconnaissance will be conducted in areas
previously identified as prospective which have potential for
discovery of bulk tonnage gold and silver deposits.
¶ Christopher Crupi, President of Paramount Gold stated, "I am very
pleased with the location of the Andrea concession given the recent
discoveries in the region and its historic and current production. The
Andrea concession provides a major target for exploration in one of
the World\'s most active gold-silver regions."
¶ At San Miguel, the drill program is currently completed on first
hole to a depth of 250 meters and is about to commence the 2nd hole.
Paramount plans to release drill assay results after every three to
six completed drill holes.
¶ 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
current projects in Mexico and Peru, 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.
Contacts:
Skyline Communications
Investor Relations, 613-226-9881