OTTAWA, March 16 /CNW/ - Paramount Gold Mining Corp. ("Paramount")
(OTC:PGDP) (Frankfurt:P6G) (WKN:A0HGKQ) is pleased to announce that they have
retained the services of Bradley - MDH to conduct its exploratory drilling
program at the Santos property in Peru. This project is under option by
Paramount Gold Mining Corp.'s Peruvian subsidiary Cia. Minera Paramount SAC
("CMP") from Teck Cominco Peru S.A. and is part of the Andean Gold Alliance
agreement (AGA) signed with Teck Cominco Limited ("Teck Cominco") (TSX:TCK.B)
in May 2006, for certain exploration properties in Chile, Argentina and Peru.
The 1,500 meter drill program is scheduled to commence on March 19th,,
2007 and should be completed in May 2007. The program will be comprised of 6
holes that will test for gold and silver targeted deposits at 100 to 200
meters below the surface.
Alain Vachon, exploration manager, stated, "We are quite anxious to drill
the first holes into this mineralized system as no drilling has ever been done
on the property. The property is in close proximity to existing mining
operations. The objective of the program is to find the boiling zone which has
the potential for deposits of gold and silver."
The Santos project is comprised of 12 mining concessions totalling 9,300
hectares located in the Department of Ayacucho, which is 400 km SSE of the
city of Lima and 60 km NE of the city of Nasca.
Under the terms of the AGA, Paramount and/or its subsidiaries must incur
minimum expenditures of US$3,000,000 on the properties over 3 years, with
US$1,000,000 in expenditures (including a minimum of 3,000 metres of drilling
on 3 properties) per year. In addition, Paramount must issue Teck Cominco
50,000 units a year over the three years. Each unit will include a common
share and a 2 year stock purchase warrant that shall be priced at a 30%
premium to the 20 day trading average prior to issue.
Upon Paramount vesting in the AGA, CMP may earn a 100% interest in the
Santos Property, subject to a retained 2% NSR Royalty and back-in right (as
outlined below) to Teck Cominco, by incurring an aggregate expenditure of
US$250,000 (including a US$50,000 minimum annual commitment) with respect to
Teck Cominco may exercise its back-in right on the Santos property at any
time up to 60 days after CMP delivers notice that CMP has spent US$3,000,000
on Santos. Teck Cominco may earn a 60% interest by incurring 2 times the
expenditures incurred by CMP to a maximum requirement of US$6,000,000. Upon
earning back a 60% interest, Teck Cominco shall extinguish the retained NSR
Royalty and may elect to earn an additional 10% interest by completing, at its
sole cost, a feasibility study on Santos.
About Teck Cominco Limited
Teck Cominco Limited (TSX:TCK.B) is an $18 billion diversified mining
company, headquartered in Vancouver, Canada. The company is a leader in the
production of zinc and metallurgical coal and is also a significant producer
of copper, gold and specialty metals.
About Paramount Gold
Paramount Gold is a precious metals exploration company trading on the
OTCBB under the symbol PGDP and listed on the Frankfurt stock exchange under
the symbol P6G (WKN: A0HGKQ). The Company's objectives are to explore and
develop the San Miguel project, located in Chihuahua, Mexico within the Sierra
Madre Occidental gold/silver belt and fully develop the potential of the
strategic alliance with Teck Cominco for gold exploration in South America.
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).
Quality Control Person
Alain Vachon, P.Eng., Manager of Exploration, South America, is acting as
the qualified person and has prepared the content of this news release.
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 commencement of drilling
operations, concentration in mineral deposits, delays in testing and
evaluation of ore samples, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
For further information:
For further information: For Paramount Gold Mining Corp. Alain Vachon,
011 511 446 9062 (From Canada or US) Manager of Exploration, South America or
Chris Halkai, 613-226-9881 Corporate Relations Toll-free: 1-866-481-2233