Paramount Gold Discovers a New High-Grade Gold and Silver Zone Across 16 Meters at Their San Miguel Project in Mexico
Monday January 30, 7:00 am ET
CHIHUAHUA, Mexico--(BUSINESS WIRE)--Jan. 30, 2006--Paramount Gold Mining Corp. (OTC:PGDP - News; FWB:P6G) is pleased to announce further assay results from its continuing sampling program at its San Miguel project located near Temoris, Chihuahua, Mexico. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of American Stellar Energy Inc., to acquire a 70% interest in the San Miguel project. The highlight of these latest assays results is the discovery of a new gold and silver zone in the La Union area that is reporting higher gold grades than the previous sampling reported on December 8th, 2005.
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Commenting on the results, Bill Reed, Manager of Exploration, Mexico stated, " Both the La Union and San Jose zones at San Miguel are showing very high grades of silver at substantial widths, and we are now finding very attractive gold grades at La Union making this a significant discovery. There is also ample evidence in the way of numerous old mines, workings and prospects between La Union and San Jose to suggest that these two zones may connect together which would amount to approximately 2000 meters strike."
The gold and silver assays are from rock chip samples collected during December 2005 and clearly identify a NNE bearing silver-gold zone in the La Union area. This new zone, near the old La Union Mine, is located approximately 900 meters to the SSE of the San Jose silver anomaly (100 meters by 250 meters, averaging 225 g/t Ag) that Paramount reported in a December 8th, 2005, news release and is along the same belt of quartz and stockwork quartz veins and veinlets. Numerous old mines and prospects between the two mineralized areas at San Jose and La Union follow this trend and are currently being sampled and mapped. Thin soil cover sometimes requires shallow pits or trenches to expose bedrock.
Two detailed sample lines with samples collected every meter were cut across this zone, and 16 one meter long rock chip samples from the west line ran between 0.05 and 3.87 g/tonne gold and 5 to 700 g/tonne silver over a zone greater than 16 meters wide, and a strike length yet to be determined, pending further assay results. The average of the samples reported are 1.24 g/tonne (0.04 ounce/ton) gold and 203 g/tonne (6.53 ounce/ton) silver. This new zone is open to the west and detailed sampling is currently underway to extend this sample line to the west and cut more lines to the north and south along the strike of the vein system.
Detailed geologic mapping and sampling are continuing between La Union and San Jose and are also underway north of the San Jose silver anomaly on the Carmen concession where the Carmen and other old mines and prospects are located.
The assaying of samples was conducted by ALS Chemex labs in Vancouver. The qualified person in charge of the San Miguel project and the person who prepared the technical data in this release is Charles W. Reed, BSc, Mineralogy (Utah).
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 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).
Monday January 30, 7:00 am ET
CHIHUAHUA, Mexico--(BUSINESS WIRE)--Jan. 30, 2006--Paramount Gold Mining Corp. (OTC:PGDP - News; FWB:P6G) is pleased to announce further assay results from its continuing sampling program at its San Miguel project located near Temoris, Chihuahua, Mexico. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of American Stellar Energy Inc., to acquire a 70% interest in the San Miguel project. The highlight of these latest assays results is the discovery of a new gold and silver zone in the La Union area that is reporting higher gold grades than the previous sampling reported on December 8th, 2005.
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Commenting on the results, Bill Reed, Manager of Exploration, Mexico stated, " Both the La Union and San Jose zones at San Miguel are showing very high grades of silver at substantial widths, and we are now finding very attractive gold grades at La Union making this a significant discovery. There is also ample evidence in the way of numerous old mines, workings and prospects between La Union and San Jose to suggest that these two zones may connect together which would amount to approximately 2000 meters strike."
The gold and silver assays are from rock chip samples collected during December 2005 and clearly identify a NNE bearing silver-gold zone in the La Union area. This new zone, near the old La Union Mine, is located approximately 900 meters to the SSE of the San Jose silver anomaly (100 meters by 250 meters, averaging 225 g/t Ag) that Paramount reported in a December 8th, 2005, news release and is along the same belt of quartz and stockwork quartz veins and veinlets. Numerous old mines and prospects between the two mineralized areas at San Jose and La Union follow this trend and are currently being sampled and mapped. Thin soil cover sometimes requires shallow pits or trenches to expose bedrock.
Two detailed sample lines with samples collected every meter were cut across this zone, and 16 one meter long rock chip samples from the west line ran between 0.05 and 3.87 g/tonne gold and 5 to 700 g/tonne silver over a zone greater than 16 meters wide, and a strike length yet to be determined, pending further assay results. The average of the samples reported are 1.24 g/tonne (0.04 ounce/ton) gold and 203 g/tonne (6.53 ounce/ton) silver. This new zone is open to the west and detailed sampling is currently underway to extend this sample line to the west and cut more lines to the north and south along the strike of the vein system.
Detailed geologic mapping and sampling are continuing between La Union and San Jose and are also underway north of the San Jose silver anomaly on the Carmen concession where the Carmen and other old mines and prospects are located.
The assaying of samples was conducted by ALS Chemex labs in Vancouver. The qualified person in charge of the San Miguel project and the person who prepared the technical data in this release is Charles W. Reed, BSc, Mineralogy (Utah).
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 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).
