LIMA, PERU, April 19 /CNW/ - Paramount Gold Mining Corp.
(OTC:PGDP)(Frankfurt:P6G, WKN:A0HGKQ) and its Peruvian subsidiary, Compania
Minera Paramount SAC, have concluded their due diligence and are pleased to
announce the signing of a definitive agreement to acquire a 100% interest in
the Cotaruse property, located in the Department of Apurimac, Southern Peru.
The project consists of a 1,000 hectare mining concession with main
infrastructures in place, including highway, electricity and water, which are
readily accessible within 5 kms of the center of the property.
Alain Vachon, Manager of Exploration in South America, comments, "I am
very pleased to have come to an agreement to acquire the Cotaruse property,
which has the potential to host a bulk tonnage open pit Cu + Ag +/-Au skarn
deposit. We are about to commence our exploration program that will consist of
detailed mapping, sampling and geophysics (MAG + IP) which will provide us
with the technical information we require to drill the target."
As stated in a press release dated February 1st, 2007,
Paramount Gold has thus far identified four distinct mineralized areas on
the property that could be forming one single mineralized zone, taking into
account the effect of overburden cover and sparse sampling completed to date.
Copper mineralization is primarily composed of Cu-oxide, chalcopyrite,
malachite, chalcocite and azurite. The mineralization appears to be strongest
nearest the granite contact and weaker to the southwest closer to the core of
the fold. Based on a compilation of 129 samples taken in 2004 by the previous
owner and 24 samples collected by Paramount, the mineralized zones yielded the
following average grades:
Zone 1 - The Northeast Zone; 2.56% Cu, 20 g/t Ag and 0.12 g/t Au
Zone 2 - The Southern Zone; 1.15% Cu, 9.7 g/t Ag and 0.06 g/t Au
Zone 3 - The South Center Zone; 1.06% Cu, 5.7 g/t Ag and 0.095 g/t Au
Zone 4 - The West Zone; 0.35% Cu, 3.18 g/t Ag and 0.8 g/t Au
In order to acquire a 100% interest, Paramount will pay the owner, an
aggregate amount totaling US$3,000,000 and will incur exploration expenditures
of US$2,000,000 over a period of 4 years. The first year's payment is
US$150,000, followed by payments of US$750,000 in year two, US$800,000 at the
end of year three and US$1,300,000 at the end of year four. The owner will
also receive a 2.5% NSR of which 1.5% can be bought back at any time by
Paramount for a lump sum payment of US$ 2,000,000.
Quality Control Person
Alain Vachon, P.Eng., Manger of Exploration, South America, is acting as
the qualified person and has prepared the detail and review with respect to
this news release.
About Paramount Gold
Paramount Gold is a precious metals exploration company quoted 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).
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: Paramount Gold Mining Corp. Alain Vachon,
Manager of Exploration, South America 011 511 9871 0933 or Chris Halkai,
Corporate Relations Toll-free: 1-866-481-2233 613-226-9881