Paramount Gold & Silver Mobilizes Four Rigs To The San Miguel Project

WINNEMUCCA - Paramount Gold and Silver Corp. reported that it is mobilizing four core rigs to its 100%-owned San Miguel project in northern Mexico as part of a program to increase and upgrade resources and advance the gold-silver project to the pre-feasibility stage.

Paramount CEO Christopher Crupi said, "We have decided to continue the process of moving San Miguel towards a production decision. This work will further de-risk our project and add substantial value during a period when we also expect gold and silver prices to be on the rise. The low initial capital cost estimates for a combined heap leach and milling scenario in our new PEA have encouraged us to proceed to the next step".

Last month's new PEA estimated an Initial Capital requirement of $69 million and low operating costs, resulting in exceptional economics including payback of Initial Capital in the third year of production. The PEA estimated average annual production of 55,000 ounces of gold and 2.8 million ounces of silver for 17 years. Base Case Pre-Tax NPV was estimated at US$472.6 million with an IRR of 23.2% at a 5% Discount Rate and current metal prices. The PEA, was prepared by Metal Mining Consultants Inc. ("MMC") of Denver, Colorado incorporating a resource model developed by Mine Development Associates ("MDA") of Reno, Nevada. Note that the PEA incorporates inferred mineral resources which are considered to be too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and, as such, do not have demonstrated economic viability. There can be no certainty that the estimates contained in the PEA will be realized.

"San Miguel is the right size of project for Paramount to take further. Our personnel have the necessary experience, the projected costs for a PFS are relatively low and we see some juicy opportunities to further improve economics," Crupi noted.