Paramount Gold and Silver (TSX: PZG, Stock Forum) significantly advanced exploration at its 100%-owned San Miguel Project located in Northern Mexico when the company announced today that it had intersected high gold grades in the second drill hole on the newly discovered Dana structure.
According to the news release, the first hole, announced October 15, 2014, already encountered multiple intercepts of high grade silver and lower grade gold including an intersection of 157.1 g/t silver and 0.40 g/t gold over 3.6 metres containing assays of up to 659 g/t silver and 1.18 g/t gold. This led Paramount geologists to believe that higher gold grades would be discovered at lower elevations similar to the nearby, high grade, Don Ese Deposit.
DN-002 was drilled along strike 100 metres northwest of DN-001 to intersect the Dana structure 50 metres deeper, cutting a stock work zone with internal silicified breccia with an average grade of 3.79 g/t gold and 183 g/t silver over 5.4 metres. This amounts to a 6.84 g/t gold equivalent grade based on a gold-to-silver ratio of 1 to 60.
The new Dana structure runs 400 to 500 metres southwest of the Don Ese structure and parallel to it, and has a strike length potential of approximately one kilometre.
The company has made Dana a top priority for resource expansion by immediately moving a second core rig onto the target.
Company CEO, Christopher Crupi, commented on the returned assays, “The Dana structure represents a significant discovery. We think the Dana-Don Ese-Guadalupe area is likely to be the future of the Palmarejo district.”
Paramount was in the news recently when the Nevada-based company announced significantly expanding San Francisco bulk tonnage potential two days ago.
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