Granada Gold Mine Inc. press release
Paramount Gold Completes the Purchase of the San Miguel Concession Group and Discovers the Montecristo II zone
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CHIHUAHUA, Mexico, June 9 /CNW Telbec/ - Paramount Gold Mining Corp. (OTC:PGDP, Frankfurt:P6G) ("Paramount") is pleased to announce that payments of US$400,000 have been made ahead of schedule to complete the purchase of the San Miguel concession group located in the Guazapares Mining District, Chihuahua, Mexico. These 12 concessions cover old mines dating back to the 1620's, and more recent mine workings including the San Luis mine where the Alaska Juneau Gold Mining Company mined high grade gold and silver ore between 1958 and 1962, the San Jose silver zone and other bulk tonnage silver targets located along a 6 kilometer NNW trending zone of quartz and stockwork quartz veining. Chris Crupi, President of Paramount Gold stated, "Given the results to-date of our work program at San Miguel, including surface, underground, trenching and rock chip sample results, we chose to accelerate the payment schedule for the San Miguel concessions in order to expedite our earn-in equity interest in the project." Paramount has just completed the twining of 3 old War Eagle drill holes on the La Blanca concession and 3 drill holes on the recently discovered Montecristo II breccia zone. These first set of drill results are expected in approximately three weeks. The La Blanca and Montecristo II are additional concessions that are adjacent to the original 12 San Miguel concessions. The Montecristo breccia zone was discovered while constructing drill roads and returned surface assays that include 7 metres averaging 259 g/t Ag with 0.21 gpt Au, 14 metres averaging 224 g/t silver and 7.4 meters averaging 163 g/t silver with 0.10 g/t gold. Paramount has also completed 12 drill pads at the San Luis mine (where a 43-101 technical report listed a channel sample that assayed 85.2 g/t gold and 339 g/t silver across 15 meters) and the core drill rig will move to the first of these drill sites within the next week to begin drilling. "We have high expectations for the holes planned into the San Luis pipe or chimney, as these holes will intersect this high grade pipe beneath the old stopes developed above the water table. These holes will provide answers regarding size, shape, structural components and controls, as well as to determine the grade and size of the orebody that remains un-mined" commented Bill Reed, Paramount's Exploration Manager in Mexico.
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 Teck Cominco 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.