Feb 2 2011
Paramount Gold (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) has recommenced on the Don Ese Corridor which hosts the high-grade Don Ese gold-silver vein discovered by Paramount in December, 2010 on its 100% owned San Miguel Project in northwestern Mexico.
This phase of the drill program will include 19 core drill holes totaling 6,000 meters over a 3 month timeframe.
Paramount`s initial drill testing of the Don Ese area discovered the north-northwest trending Don Ese vein within a strike extension of the main structural corridor (named the Don Ese Corridor) which hosts the neighboring Palmarejo Mine (see news release of December 9, 2010). The Don Ese vein is not exposed at the surface but was initially located by surface features including fractured and broken rocks indicative of a fault zone, anomalous silver and gold geochemistry and distinctive clay mineralogy. Surface exploration for these markers was conducted along strike to the south of the Don Ese discovery, successfully identifying the favorable geology, geochemistry and clay mineralogy as well as vein exposures within the Don Ese Corridor which has to date been traced for 7,500 meters along strike, with a width of 2,500 meters, on Paramount`s San Miguel concessions (see news release of December 21, 2010).
Work in the Don Ese Corridor to date has identified a continuation of the Don Ese vein (Don Ese Sur) as well as three other parallel north-northwest trending veins (El Cura, La Verde and Temoris) where drill testing is indicated from surface work. A 7,500 meter core drilling program has been designed to test these targets starting immediately. The surface expressions of these veins identified to date range from 800 meters to 1500 meters but they remain open along strike.
Final results were received for drill hole DS-10-07 which confirmed the continuity of the north-northwest trending structure but contained no significant gold or silver intersections. High-grade vein deposits typically do not return significant values in every hole. The complete record of the seven holes on the Don Ese vein are as follows:
Although these initial results are believed to approximate true width, additional drilling will be required to fully establish true widths in all intervals.
The San Miguel project consists of 188,000 hectares (465,000 acres) in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this rapidly growing precious metals mining camp. Exploration activities at San Miguel are being conducted by Paramount Gold de Mexico S.A de C.V personnel under the supervision of Bill Threlkeld a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol is being employed during the program including blank, duplicate and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are assayed at ALS Chemex, Vancouver, B.C., using fire assay atomic absorption methods for gold and aqua regia digestion ICP methods for other elements.
Source: Paramount Gold