Champion Iron Limited press release
Paramount Gold Extends Zone 500 Meters with Polymetallic Intersects, Including 105 Meters Averaging 1.45% Zinc, 0.52% Lead, 28 g/t Silver and 0.26 g/t Gold at Their San Miguel Project, Mexico
TSX - Toronto Stock Exchange · Iron · Aluminium · Manganese · Copper · Zinc · Australia
CHIHUAHUA, MEXICO, November 8 /CNW/ - Paramount Gold Mining Corp. (OTC:PGDP)(Frankfurt: P6G, WKN: A0HGKQ), is pleased to release the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The following results include a further eight drill holes completed on the La Union zone (San Jose extension) and one more hole from the San Jose zone. The eight drill holes at La Union are step outs to the South and extend the zone approximately 500 meters in that direction.
Drill hole LU-09 and LU-11 intersected 100 meters plus of polymetallics while other drill holes continue to intersect high grade silver of 1,235 g/t across 0.40 meters in drill hole LU-12 and 189 g/t silver across 17.5 meters in hole LU-07. The best gold intersect was 2.84 g/t across 14.6 meters in hole LU-06, while drill hole LU-11 cut 13.5 meters from 105.0 to 118.5 of 7.07% zinc, 2.38% lead, 36 g/t silver with 0.36 g/t gold.
Bill Reed, Exploration Manager for Mexico, said, "The preliminary conclusions from the long polymetallic intercepts in drill hole LU-09 and LU-11 suggest the intersection of a chimney. The increased base metal values in most of these drill holes to the south may also indicate we are lower in the mineralized system in that direction. It is also noteworthy that drill hole LU-09 and LU-11 had long intersects of over 100 meters and they bottomed in mineralization, indicating this zone is open to depth. Also important is the 14.6 meter intercept of 2.84 g/t gold in drill hole LU-06. Drilling at La Union has extended the strike length another 500 meters to the South and we are now drilling North of the San Jose zone in the San Antonio area where we have confirmed the zone with trenches. With our drill and trench results at La Union, San Jose, San Luis and San Antonio, we have now identified a continuous zone over a considerable length of approximately 2.4 kilometers (2400 meters) and it remains open in all directions."
Chris Crupi, President & CFO, explained, "I am very excited on how quickly our exploration team is increasing the size potential of our discovery at San Miguel. The value of the high grade intersects of gold and silver in previous drill holes and trenches is quite evident and we are now finding good base metal values too. The 105 meters of polymetallic mineralization intersected in drill hole LU-09 has considerable value of approximately $82 per ton at today's metal prices (Zinc US$1.80/lb, Lead $0.75/lb, Silver $12.25/oz and gold $600/oz)."
La Union zone Highlights
LU-06 cut 16.3 meters from 42.1 to 58.4 meters of 2.44% zinc, 1,26% lead with 13.0 g/t silver and 14.6 meters from 58.4 to 73.0 meters of 2.84 g/t gold with 0.56% zinc and 0.29% lead;
LU-07 cut 17.5 meters from 31.0 to 48.5 meters of 189 g/t silver with 0.87% zinc and 0.26% lead;
LU-09 cut 105.35 meters from 22.15 to 127.50 meters averaging 1.45% zinc, 0.52% lead, 28 g/t silver and 0.26 g/t gold;
LU-11 cut 101.5 meters from 29.50 to 130.55 meters averaging 1.93% zinc, 0,66% lead, 13 g/t silver with 0.08 g/t gold including 13.5 meters from 105.0 to 118.5 meters of 7.07% zinc, 2.38% lead, 36 g/t silver with 0,36 g/t gold;
LU-12 cut 0.40 meters from 24.00 to 24.40 meters of 1,235 g/t silver with 0.49% zinc and 0.19% lead.
San Jose zone Highlights
SJ-12 cut 51.9 meters from 40.60 meters to 92.50 meters averaging 0.74% zinc, 0.35 % lead and 0.27 g/t gold.
Drill Hole locations
A drill hole and trench location map can be found at Paramount's web site www.paramountgold.com
LU-06 is a step out of approximately 50 meters to the south of LU-01 (59.0 meters averaging 2.25 g/t gold equivalent) see Oct 12, 2006 news release:
-- LU-07 steps out a further 45 meters south of LU-06
-- LU-12 steps out a further 150 meters south of LU-07
-- LU-13 steps out a further 80 meters south of LU-12
-- LU-08 steps out a further 80 meters south of LU-13
-- LU-11 steps out a further 25 meters south of LU-08 on the second fence line
-- LU-09 steps out a further 25 meters south of LU-11
-- LU-10 steps out a further 40 meters south of LU-09 and is the southern most hole thus far.
In the San Jose area, SJ- 12 is located 50 meters south of SJ-11.
Quality Control Person
Paramount takes detail photos of all the core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile) sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.
C.W. (Bill) Reed, B. Sc. Mineralogy, is acting as qualified person and has prepared the detail and review with respect to this news release.
<< Drill Hole From To Width Gold Silver Gold Lead Zinc (m) (m) (m) (g/t) (g/t) equivalent (%) (%) LU - 06 0.00 7.00 7.00 0.00 31.00 0.52 42.10 58.40 16.30 0.00 13.00 0.23 1.26 2.44 58.40 73.00 14.60 2.84 7.00 2.96 0.29 0.56 73.00 83.70 10.70 0.20 0.00 0.20 115.00 118.50 3.50 2.41 0.00 2.41
LU - 07 31.00 48.50 17.50 0.03 189.00 3.18 0.26 0.87 58.00 71.00 13.00 0.86 0.00 0.86 87.00 91.50 4.50 0.64 3.00 0.68
LU - 08 0.00 8.00 8.00 0.04 50.00 0.88 8.00 21.20 13.20 0.04 19.00 0.35 78.00 85.20 7.20 0.44 4.00 0.50
LU - 09 22.15 57.00 34.85 0.13 60.00 1.12 0.49 1.26 57.00 67.75 10.75 0.01 10.00 0.18 0.47 1.14 67.75 72.00 4.25 0.27 26.00 0.71 0.88 1.91 72.00 86.70 14.70 0.01 4.00 0.07 0.13 0.41 86.70 121.05 34.85 0.59 12.00 0.80 0.46 1.69 121.05 127.50 6.45 0.19 15.00 0.45 1.08 2.10 127.50 141.30 14.00 0.00 4.00 0.06 0.25 0.71
Average 22.15 127.50 105.35 0.26 28.00 0.73 0.52 1.45
LU - 10 46.70 59.00 12.30 0.00 37.00 0.63 71.80 81.20 9.40 0.00 65.00 1.08 110.65 112.65 2.00 0.00 12.00 0.19 1.00 1.44 115.55 116.00 0.45 0.21 40.00 0.88 2.40 7.95
LU - 11 29.50 64.50 35.00 0.02 17.00 0.30 0.37 0.93 64.50 75.05 10.55 0.02 3.00 0.06 0.17 0.42 75.05 105.00 29.95 0.05 6.00 0.15 0.49 1.41 105.00 118.50 13.50 0.36 36.00 0.96 2.38 7.07 118.50 130.55 12.05 0.02 6.00 0.13 0.46 1.68
Average 29.50 130.55 101.50 0.08 13.50 0.30 0.66 1.93
LU - 12 24.00 24.40 0.40 0.20 1235.00 20.80 0.19 0.49 24.40 53.95 29.55 0.02 3.00 0.09 0.27
LU - 13 30.35 34.05 3.70 0.06 28.00 0.52 0.62 1.29 34.05 62.00 27.95 0.02 8.00 0.15 0.13 0.24 62.00 66.35 4.35 0.16 7.00 0.27 0.64 0.82
SJ - 12 0.00 9.00 9.00 0.00 21.00 0.34 28.15 30.30 2.15 0.04 70.00 1.20 40.60 45.30 4.70 0.12 7.00 0.24 0.76 1.59 56.00 72.00 16.00 0.11 4.00 0.11 0.35 0.71 72.00 92.50 20.50 0.58 2.00 0.58 0.43 0.96 97.35 105.20 7.85 0.34 0.00 0.34 >>
About San Miguel
San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August, 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire a 70% interest in the San Miguel project.
About Paramount Gold
Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the San Miguel and Linda projects in Mexico and Peru, and the Andean Gold Alliance with TeckCominco in South America, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world. The Company trades on the OTC market under the symbol "PGDP" and on the Frankfurt Exchange under the symbol "P6G." For more information, please visit the Company's web site at: www.paramountgold.com (now available in the following languages: English, German, French, Spanish, and Mandarin).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.