New Survey Results Define Prospective Hidden Structures

 

WINNEMUCCA, NV - Paramount Gold Nevada Corp. reported that a helicopter magnetic survey conducted by Vancouver based, Precision Geosurveys has successfully defined targets analogous to the original high grade Sleeper Mine operated by Amax Gold, which processed 6.015 million tons grading 0.203 opt of gold (6.95 g/T) through the mill.

The two day airborne survey was completed at a planned altitude of 25 meters flown on east-west lines spaced at 100 meters. For control purposes, north-south tie lines were flown every 1 kilometer. This survey, combined with an airborne magnetic survey completed by Placer Dome (a former major US gold producer) in the 1990s, covers an approximate area of 10 kilometers by 25 kilometers, which includes some of the most prospective ground around the Sleeper deposit.

Seven structurally complex zones with possible magnetite destruction due to hydrothermal alteration can be interpreted from the combined surveys as priority targets. These targets may represent large, favorable areas for gold deposition; each several kilometers in strike length. These targets require additional prioritization based on surface mapping and sampling, earlier geophysical survey data, and preliminary wide-spaced drilling performed in 2012. Paramount's Nevada staff and consultants will use the combined survey data to establish a drill plan which may call for additional detailed follow-up ground geophysical surveys before drilling begins.

Commenting on the results of the survey, Paramount's President and CEO, Glen van Treek said: "Our plan for Sleeper has always been twofold - to establish an economic project based on the bulk minable material left behind by the original operator, and to find another high grade gold deposit similar to the original Sleeper. Our own exploration work and meticulous re-interpretation of the work done by previous operators have taught us a great deal about why and how the original Sleeper deposit occurred where it did. The results of this magnetic survey support the model we have developed and take us one step closer to finding a new Sleeper."