Paramount Gold and Silver Expects Results From Preliminary Economic Assesment of its Nevada Sleeper Gold Project in July
WINNEMUCCA, NEVADA -- (Marketwire) -- 06/25/12 -- Paramount Gold and Silver Corp. (NYSE MKT: PZG)(NYSE Amex: PZG)(TSX: PZG)(FRANKFURT: P6G)(WKN: A0HGKQ) ("Paramount") reported today that it expects results from the NI 43-101-compliant Preliminary Economic Assessment (PEA) of its 100%-owned Sleeper Gold Project to be released in July, 2012. In accordance with NI 43-101, Paramount will file a technical report supporting the disclosure of the PEA within 45 days after the results are released.
The Sleeper Gold Project is located off a main highway about 25 miles from the town of Winnemucca, Nevada. Acquired by Paramount in 2010, the project area includes the original Sleeper high-grade open pit mine operated by Amax Gold from 1986 to 1996 as well as staked and purchased claims stretching south down trend to Newmont's Sandman project.
The PEA is being prepared by Scott E. Wilson Consulting Inc. of Denver, Colorado (www.wilsonmining.com). Scott E. Wilson recently engineered the successful re-start of the Hycroft Gold Mine in Nevada, a project with similarities to Sleeper, owned by Allied Nevada Gold Corp. Scott E. Wilson will provide overall design and estimates of capital and operating costs as well as project economics. The PEA will incorporate the mineral resource estimate prepared by SRK Consulting (www.SRK.com) and released on September 13, 2011. This resource estimate will be updated by Scott E. Wilson to include the addition of a mineral resource estimate for the large dumps and some of the tailings remaining on the property after closure of the original Sleeper Mine as well as the results from drilling completed after the SRK estimate. The PEA will also incorporate metallurgical test work and process alternatives prepared by Tetra Tech (www.tetratech.com) of Elko, Nevada as well as geotechnical and water management consulting by BGC Engineering (www.bgcengineering.com) of Vancouver, Canada.
SRK estimated that the Sleeper Gold Project contains an in situ measured and indicated resource of 2.6 million ounces of gold and 25.3 million ounces of silver and an additional inferred resource of 1.1 million ounces of gold and 8.2 million ounces of silver using a cut-off grade of 0.20 grams of gold per tonne (g/T) for oxide and alluvial material and 0.25 grams per tonne (g/T) for sulfide material. (See tables below for details.) Subsequent drilling in 2011 discovered the new PAD zone beneath the old heap leach pads and extended both the Facilities zone and the Wood Vein zone, returning intercepts comparable to the high grades exploited in the historical Sleeper vein. These results are expected to increase the project's mineral resource estimate. Reports from Amax Gold, the Sleeper Mine's original operator, state that about 66 million tonnes of waste rock were extracted during mining of which an estimated 54 million tonnes were placed on three dumps. Systematic drilling and metallurgical testing of this material and some of the property's historic tailings are expected to make a further addition to the project's mineral resources in the PEA.
About Paramount Gold
Paramount is a U.S. based exploration and development Company with two wholly-owned multi-million ounce advanced stage precious metals projects-the Sleeper Gold Project in Nevada and the San Miguel Project in northern Mexico. The current work programs at Sleeper and San Miguel express Paramount's strategy of expanding and upgrading known, large-scale precious metal occurrences in established mining camps, defining their economic potential and then partnering them with nearby producers. The Sleeper Gold Project is moving towards its first Preliminary Economic Assessment expected to be announced in July, 2012 and an updated mineral resource estimate for the San Miguel Project is expected to be released in August, 2012.
SUMMARY OF ALL PZG NI 43-101 COMPLIANT RESOURCE ESTIMATES
MEASURED AND INDICATED RESOURCES
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PROJECT Tonnes Au g/T Au Ounces Ag g/T Ag Ounces
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San Miguel 8,005,000 0.38 98,800 62.00 15,759,000
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Sleeper 172,763,453 0.47 2,625,399 4.56 25,337,575
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Total 2,724,199 41,096,575
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INFERRED RESOURCES
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PROJECT Tonnes Au g/T Au Ounces Ag g/T Ag Ounces
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San Miguel 45,890,000 0.60 877,700 38.00 56,848,000
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Sleeper 81,754,167 0.43 1,120,410 3.12 8,202,962
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Total 1,998,110 65,050,962
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For a detailed report on these resource estimates, their QPs and methodologies please see the following news releases: April 11, 2011 San Miguel; September 13 2011, Sleeper; December 28 2011, San Miguel.
Cautionary Note to U.S. Investors Concerning Estimates of Measured &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 accuracy and completeness of mineral resource estimates and expectations regarding the completion of Preliminary Economic Assessments and updated mineral resource estimates and their expected results. 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, 2011 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
