WINNEMUCCA, NEVADA, Nov 06, 2013 (Menafn – Marketwired via COMTEX) –Paramount Gold and Silver Corp. (nyse mkt:PZG)(frankfurt:P6G)(wkn:A0HGKQ) (“Paramount”) today announced that newmetallurgical tests on its 100%-owned San Miguel Project by theMcClelland metallurgical laboratory in Reno, Nevada confirm thepotential for an economic recovery of precious metals at two of SanMiguel’s open pit deposits using inexpensive heap leach technologies.
In a Preliminary Economic Assessment (PEA) completed earlier thisyear, Metal Mining Consultants (“MMC”) of Denver, Colorado determinedthat the most efficient recovery process for the abundant high-gradegold and silver material at San Miguel is a mill circuit followed bywhole rock cyanide leach and a Merrill Crowe gold and silver recoveryplant. A 200 mesh particle size (mill scenario) optimizes recoveriesfor the high-grade compared to a 3/4 inch crush size/heap leachscenario. However, the higher cost milling scenario requires a highercut-off grade which excludes mid-to-lower-grade open pit materialwhich can be mined inexpensively. As a result, the PEA does notinclude a significant portion of the project’s global resource,particularly from the bulk-mineable San Francisco and San Antoniodeposits (For PEA details see Feb 28th news release).
To address this issue of the mid-to-lower-grade, open pit material,Paramount commissioned McClelland to conduct additional met tests ondifferent crush sizes–3/4, 1/2 and 1/4 inch and 1.7 mm– to evaluatethe heap leach potential for material from the San Miguel Vein, SanFrancisco, San Antonio and La Union deposits. A total of 24 cyanideleach bottle roll tests were conducted on six composited samples fromnear-surface oxide and mixed material that are amenable to beextracted by open pit mining. Gold recoveries up to 83.8 % wereachieved from 1/4 inch crush after 96 hours of cyanide leach time forSan Francisco, a gold deposit with lower silver grades. Silverrecoveries up to 50.4% were achieved from 1/4 inch crush after 96hours of leach time for San Antonio, a silver-rich deposit. Bothdeposits are to be mined by open pit method only according to thePEA. These results support the potential for an economic heap leachscenario. Even higher recoveries were achieved for the 1.7 mm crushsize.
Figures are available at the following address:http://media3.marketwire.com/docs/paramap.pdf
A viable heap leach process for San Francisco and San Antonio wouldincrease mineable material significantly, reduce the ore-to-waste andstrip ratios and substantially increase total contained ounces withinthe mine plan. The current PEA mine plan includes a total of 18.5million tonnes containing 859,000 ounces of gold and 62 millionounces of silver as follows:
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—–
Total ProductionGradeContained metal
TonnesAu g/TAg g/TAuEqAu OzAg OzAuEq Oz
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Open
pit9,637,3580.381012.07118,25931,423,370641,982
Under
ground 8,855,0542.61084.4741,06330,643,3801,251,786
Total18,492,4121.451043.19859,32262,066,7501,893,768
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Current resource within the PEA Mine Plan
In the PEA, the San Francisco and San Antonio open pits contribute just4.2 million tonnes to the mine plan, containing 27,570 ounces of goldand 13.9 million ounces of silver. Resources estimated by MineDevelopment Associates (“MDA”) of Reno, Nevada indicate that at alower cut-off grade, which could be expected in a heap leachscenario, contributed tonnes from San Francisco and San Antonio couldincrease almost ten times to nearly 42 million tonnes or about396,000 ounces of gold and 32 million ounces of silver, as follows.(For resource estimate details, see news release of September 5,2012).
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Cut OffTonnes
Ag EqAu Eq
Depositg/Tg/T
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San
Francisco100.17–
San Antonio250.427,389,000
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Total7,389,000
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Measured & Indicated
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GradeContained metal
DepositAu g/TAg g/TAuEqAu OzAg OzAuEq Oz
—————————————————————————-
San
Francisco––––––
San Antonio0.02701.195,00016,533,000280,550
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Total0.02701.185,00016,533,000280,550
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Cut OffTonnes
DepositAg Eq g/TAuEq g/T
———————————————————-
San Francisco100.1732,033,000
San Antonio250.422,110,000
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Total34,143,000
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Inferred
—————————————————————————-
GradeContained metal
DepositAu g/TAg g/TAuEqAu OzAg OzAuEq Oz
—————————————————————————-
San Francisco0.38100.55386,00010,277,000557,283
San Antonio0.08731.305,0004,978,00087,967
—————————————————————————-
Total0.36140.59391,00015,255,000645,250
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MDA resource estimate at lower cut off for the two open pit only deposits.
Note: the PEA and related estimates of resources included in the PEAmine plan incorporate inferred mineral resources which are consideredto be too geologically speculative to have the economicconsiderations applied to them that would enable them to becategorized as mineral reserves and, as such, do not havedemonstrated economic viability. There can be no certainty that theestimates contained in the PEA will be realized.
Paramount will now start selecting a larger set of representativesamples for a more comprehensive test of the 1/4 inch crush size toconfirm the viability of a heap leach scenario and then update thecurrent PEA. Details of the new and previous met tests can bedownloaded from the Paramount web site (www.paramountgold.com)
Paramount CEO Christopher Crupi commented: “Step by step, we aremaking major improvements to the economics of San Miguel, a projectthat is already robust at current metal prices. I am very proud ofthe cost-effective way in which our technical team has developed SanMiguel into such an outstanding opportunity. We are rapidlyapproaching the point at which we can expect to realize value fromour investment in San Miguel, given better precious metal prices.Fortunately, we are in no need of funds and we can continue toimprove the project while we wait for markets to improve.”
NI 43-101 Disclosure
Exploration activities at San Miguel are being conducted by ParamountGold de Mexico S.A de C.V personnel under the supervision of Glen vanTreek, Exploration Vice President of the Company and Bill Threlkeld,a QP as defined by National Instrument 43-101, who have both reviewedand approved this news release. Michael Gustin of MDA, a QualifiedPerson responsible for resource estimation, has also reviewed andapproved the portions of this news release that relate to the SanMiguel resource estimate. An ongoing quality control/qualityassurance protocol is being employed for the program including blank,duplicate and reference standards in every batch of assays.Cross-check analyses are being conducted at a second externallaboratory on 10% of the samples. Samples are being assayed at ALSChemex, Vancouver, B.C., using fire assay atomic absorption methodsfor gold and aqua regia digestion ICP methods for other elements.
About Paramount Gold
Paramount Gold is a U.S. based exploration and development companywith multi-million ounce advanced stage precious metals projects inNevada (Sleeper) and northern Mexico (San Miguel). Fully fundedexploration programs are now in progress at these two core projectswhich are expected to generate substantial additional value for ourshareholders. Engineering studies are scheduled for completion in2012 to define a development path and economic valuation for eachproject.
The 100% owned San Miguel Project consists of over 140,000 hectares(approximately 350,000 acres) in the Palmarejo District of northwestMexico, making Paramount the largest claim holder in this rapidlygrowing precious metals mining camp. The current work program at SanMiguel is part of Paramount’s strategy of expanding and upgradingknown, large-scale precious metal occurrences in established miningcamps, defining their economic potential and then partnering themwith nearby producers. The San Miguel Project is ideally situatednear established, low cost production where the infrastructurealready exists for early, cost-effective exploitation. Paramount alsoowns 100% of the Sleeper Gold Project which is emerging as one ofNevada’s largest new undeveloped gold resources.
SUMMARY OF ALL PZG NI 43-101 COMPLIANT RESOURCE ESTIMATES
MEASURED AND INDICATED RESOURCES
—————————————————————————-
PROJECTTonnesAu g/TAu OuncesAg g/TAg Ounces
—————————————————————————-
San Miguel23,918,0000.83639,00070.053,559,000
—————————————————————————-
Sleeper326,963,0000.333,479,0003.8640,606,000
—————————————————————————-
Total4,118,00094,165,000
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INFERRED RESOURCES
—————————————————————————-
PROJECTTonnesAu g/TAu OuncesAg g/TAg Ounces
—————————————————————————-
San Miguel37,470,0000.69830,00038.0046,243,000
—————————————————————————-
Sleeper223,624,0000.271,972,0002.8420,450,000
—————————————————————————-
Total2,802,00060,693,000
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Cautionary Note to U.S. Investors Concerning Estimates of Indicated andInferred Resources
This news release uses the terms “measured and indicated resources”and “inferred resources”. We advise U.S. investors that while theseterms are defined in, and permitted by, Canadian regulations, theseterms are not defined terms under SEC Industry Guide 7 and notnormally permitted to be used in reports and registration statementsfiled with the SEC. “Inferred resources” have a great amount ofuncertainty as to their existence, and great uncertainty as to theireconomic and legal feasibility. It cannot be assumed that all or anypart of an inferred mineral resource will ever be upgraded to ahigher category. Under Canadian rules, estimates of inferred mineralresources may not form the basis of a feasibility study orprefeasibility studies, except in rare cases. The SEC normally onlypermits issuers to report mineralization that does not constitute SECIndustry Guide 7 compliant “reserves”, as in-place tonnage and gradewithout reference to unit measures. U.S. investors are cautioned notto assume that any part or all of mineral deposits in this categorywill ever be converted into reserves. U.S. investors are cautionednot to assume that any part or all of an inferred resource exists oris economically or legally mineable.
Safe Harbor for Forward-Looking Statements:
This release and related documents may include “forward-lookingstatements” including, but not limited to, statements related to theinterpretation of metallurgical test results and the potential forheap leaching at San Miguel, future work at the San Miguel Projectand the expected results of this work, estimates of resourcesincluding expected volumes and grades, the results of the project’sPEA and the sufficiency of funding. Forward-looking statements arestatements that are not historical fact and are subject to a varietyof risks and uncertainties which could cause actual events to differmaterially from those reflected in the forward-looking statementsincluding fluctuations in the price of gold, inability to completedrill programs on time and on budget, and future financing ability.Paramount’s future expectations, beliefs, goals, plans or prospectsconstitute forward-looking statements within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andother applicable securities laws. Words such as “believes,” “plans,””anticipates,” “expects,” “estimates” and similar expressions shouldalso be considered to be forward-looking statements. There are anumber of important factors that could cause actual results or eventsto differ materially from those indicated by such forward-lookingstatements, including, but not limited to: uncertainties involvinginterpretation of drilling results, environmental matters, lack ofability to obtain required permitting, equipment breakdown ordisruptions, and the other factors described in Paramount’s AnnualReport on Form 10-K for the year ended June 30, 2013 and its mostrecent quarterly reports filed with the SEC.
Except as required by applicable law, Paramount disclaims anyintention or obligation to update any forward-looking statements as aresult 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
SOURCE: Paramount Gold and Silver Corp.
