Tuesday, May 31, 2011

Paramount Gold and Silver Updates Progress on San Miguel and Sleeper Projects

Source: Paramount Gold and Silver Corp.

Paramount Gold and Silver Corp. (AMEX:PZG - News)(TSX:PZG - News)(Frankfurt:P6G - News)(WKN: A0HGKQ) ("Paramount Gold") announced today work to complete Preliminary Economic Assessments on its two main projects is progressing on schedule and on budget.

San Miguel Project - Chihuahua, Mexico
The Company has filed a National Instrument 43-101 technical report on SEDAR containing the previously announced resource estimations on five of the San Miguel's nine deposits known to date. As stated in our April 11, 2011 news release, Mine Development Associates ("MDA") of Reno, Nevada updated resource estimates for a portion of the project and produced three-dimensional models of these mineral inventories.
MDA stated in its final report filed Thursday May 26, 2011:"The San Miguel project continues to generate new zones of gold and silver mineralization, and the strike and down-dip extents of many of the existing deposits remain open. Although particularly true for San Francisco and Don Ese, all of the target areas with resources estimated in this study have the potential for additional gold and/or silver mineralization. Significant additional drilling is clearly warranted".

Paramount Gold intends to conduct a drill program and other geologic work to expand and upgrade the categories of these mineral resources. Additional work is also currently underway on the mineralized areas not included in the April MDA resource estimation and a further update is expected to be completed later this year, resulting in comprehensive resource estimation for the San Miguel project. Paramount will mobilize a second core drill to the project to ensure timely data acquisition.

Paramount Gold will also expand its metallurgical testing program to define an economically viable process for gold and silver recovery of oxide and sulfide-bearing mineralization. As stated on April 27, 2011, recent testing conducted by McClelland Laboratories Inc in Reno returned very positives results for the recovery of precious metals.

Paramount Gold expects to complete a Preliminary Economic Assessment on San Miguel during the first half of 2012

Sleeper Project - Nevada, USA

The Company has recently commissioned SRK, an international consulting firm, to update the National Instrument 43-101 compliant resource estimation of in situ mineralization at the Sleeper Gold Mine project near Winnemucca, Nevada. The resource estimation will include results from historical drill holes, a 2010 program by Paramount Gold, and a drilling campaign that will start in the coming month. Planned drilling will initially focus on the northern part of the Facilities and the West Wood areas to upgrade resource categories and acquire material for metallurgical testing. Mineralized material from the perimeter of the historical deposits will also be incorporated in the project resource inventory.

The Company recently completed a drilling program on the property's three waste dump areas using Boart Longyear sonic drilling technology. This work is part of an ongoing program to test gold and silver mineralization remaining in the waste dumps, and tailings. Materials collected during this drilling program are being assayed and prepared for recovery testing at McClelland Laboratories Inc.

Geophysical and geochemical surveys are being employed on other targets identified on the Sleeper property. This information will be compiled with existing exploration data and incorporated into a three-dimensional geological interpretation, which is currently under construction. Drill testing of these new outlaying targets will proceed after completion of the resource definition drilling at Facilities and West Wood. Paramount Gold intends to complete a Preliminary Economic Assessment for Sleeper in early 2012.

Wednesday, May 4, 2011

Paramount Gold Announces New Positive Metallurgical Results from Its San Miguel Project in Mexico

Source: Paramount Gold and Silver Corp.
Paramount Gold and Silver Corp. (AMEX:PZG - News)(TSX:PZG - News)(Frankfurt:P6G - News)(WKN: A0HGKQ) ("Paramount") announces new positive metallurgical results for its 100% owned San Miguel project in Mexico. The new study, conducted by McClelland Laboratories Inc., is based on eleven composite samples from 256 drill hole intercepts in the San Francisco Area of the San Miguel project. Direct agitated cyanidation tests (bottle roll) returned average recoveries of 90.1% for gold and 76.5% for silver, with low cyanide and lime consumption.

In 2010 Paramount Gold and Silver prepared a number of samples from an ongoing drilling campaign to test metallurgical recoveries on various ore types. A total of eleven composite samples of various gold and silver grades were prepared from 256 drill holes intercepts. Composites were prepared by crushing to P8075um (80% passing 75 microns). Bottle roll and flotation tests were conducted on all composites to evaluate likely recovery scenarios.

Bottle roll tests returned the best recoveries and proved to be the most cost efficient, with gold recoveries ranged from 83.3% to 95.9% and silver recoveries from 60.0 % to 89.2%. Metal recovery was very rapid through the first six hours and slower thereafter. Tests were terminated after 48 hours of leaching. Reagent consumption was low, with average sodium cyanide (NaCN) consumption of 0.13 kg per tonne of material and lime consumption of 1.35 kg per tonne of material processed.
Sulfide flotation tests on the same materials showed much lower recoveries, demonstrating that direct cyanide leaching is a more efficient and cost effective recovery process for both gold and silver.
Details of results are tabulated below and full McClelland Report can viewed at www.paramountgold.com.

        Summary results, Agitated Cyanidation test (Bottle Roll)
ID(i)          Au g/t  Ag g/t       Recovery%        Reagent consumption
                 Head    Head                                 Lime Kg/mt
                Grade   Grade      Au      Ag NaCN kg/mt ore         ore
SF-09-01        1.475   25.09    90.3    84.1           0.15         1.4
SF-09-02        0.936    9.29    93.8    89.2 less than 0.05         1.3
RCSF-10-001     0.848   13.51    90.7    87.6           0.15         1.6
RCSF-10-002     0.474    4.16    85.0    76.0           0.08         1.1
RCSF-10-004     0.924    5.00    90.4    60.0           0.07         1.5
RCSF-10-005     2.086   52.15    94.4    75.1           0.13         1.5
RCSF-10-006     0.808    8.77    87.1    65.8           0.07         1.5
RCSF-10-007     1.276   24.90    93.5    73.2           0.08         1.3
RCSF-10-008     1.611    9.67    95.9    75.9           0.07         1.4
Hi Au           3.233   40.80    95.9    77.9           0.30         1.0
Hi Ag, Low Au   0.162   35.20    83.3    76.4           0.23         1.3
Average         1.258   20.78    90.9    76.5           0.13        1.35
(i) All composite samples, except RCSF-10-007 are sulfide bearing ore.
These results indicate that even at low gold and silver grades, recoveries of sulfide bearing material are excellent with low reagent consumptions.

Christopher Crupi, CEO Paramount Gold and Silver commented: "These results are an important step towards demonstrating the economics of the San Francisco target. Having these results now should also help us to define a larger resource. Knowing that recoveries are likely to be high even on lower grade material will encourage us to lower the cut-off grade and expand the mineralized envelope that we drill and include in our resource model".

Paramount Gold and Silver continues its drilling program at San Miguel to improve the resource quality and to update resources on several of the zones. Paramount Gold also continues to test other unexplored targets within its large property position at San Miguel Project.

Bill Threlkeld, a Qualified Person under NI43-101 has reviewed the contents of this release. For more information visit www.paramountgold.com