Paramount updates San Miguel project

Paramount Gold and Silver Corp. announces assay results from sampling of veins and breccias in the previously untested Guadalupe de Los Reyes area in its San Miguel project, in the Guazapares Mining District, Mexico.

The Guadalupe de Los Reyes area is inside the large rhyodacite dome complex that is exposed between the San Miguel and Montecristo Zones. The higher precious metals grades are associated with northeast and northwest trending fault zones, which is consistent with our project exploration model. In this area, gold and silver occur in quartz veins and hydrothermal breccias along the faults, as well as in adjacent quartz veinlet stockworks and breccias. The principal structure is exposed for approximately 100 meters along strike, and appears to continue under cover to the northeast. The Guadalupe de Los Reyes mine is found on this principal structure, and is the site of historic, small-scale, high-grade gold production.

Sampling and geologic mapping are ongoing, tracing these and parallel structures along strike, with the goal of defining drilling targets. These results are particularly exciting because they indicate that this is a gold dominant part of the system with excellent gold grades and high gold-to-silver ratios. The mineralization exposed on the surface is several meters wide with gold grades in the range of 3.7 to 6.6 g/t. Underground sampling of accessible portions of the old Guadalupe de Los Reyes mine, down to a depth of 20 meters from the surface, included intervals with gold grades of up to 20.7 g/t.

Larry Segerstrom, COO of Paramount Gold and Silver Corp., said, these analytical results confirm the presence of excellent gold grades across mineable widths in surface and near-surface exposures within the dacite dome complex. They also seem to be pointing us in the direction of a gold-dominant part of the system. These results further advance our objective of discovering and developing more gold rich, high-grade bodies, such as the ones in the San Miguel and San Luis Zones.