newie and goodieTara Gold's Partner Completes the Purchase of San Miguel Groupings and Discovers Montecristo II Zone
Friday June 9, 10:30 am ET
CHICAGO, IL--(MARKET WIRE)--Jun 9, 2006 -- Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (Frankfurt:T8N.F - News) is pleased to announce that due to encouraging results on Tara Gold's San Miguel Groupings project, payments of US$400,000 have been made by Paramount Gold ahead of schedule to complete the purchase of the San Miguel Groupings from the underlying concession owners. The project is located near Temoris, Chihuahua Mexico. In August, 2005, Tara Gold signed an agreement with Paramount Gold Mining Corp. giving Paramount the right to earn up to a 70% interest in the project by spending US$2.5 million, delivering 700,000 shares, and making various payments.
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These 12 concessions cover old mines dating to 1620s, and more recent mine workings including the San Luis mine where the Alaska Juneau Gold Mining Company mined high grade gold and silver ore between 1958 and 1962, and the San Jose and other bulk tonnage silver targets located along a 6 kilometer NNW trending zone of quartz and stockwork quartz veining.
Chris Crupi, President of Paramount Gold stated, "Given the results to-date of our work program at San Miguel, including surface, underground and trench rock chip sample assay results, we chose to accelerate the payment schedule for the San Miguel concessions in order to expedite our earn-in equity interest in the project."
Paramount has just completed the twining of 3 old War Eagle drill holes on the La Blanca concession and 3 drill holes on the recently discovered Montecristo II breccia zone. These first set of drill results are expected in approximately three weeks. The La Blanca and Montecristo II are additional concessions that are adjacent to the original 12 San Miguel concessions. The Montecristo breccia zone was discovered while constructing drill roads and returned surface assays that include 7 metres averaging 259 g/t Ag with 0.21 gpt Au, 14 metres averaging 224 g/t silver and 7.4 meters averaging 163 g/t silver with 0.10 g/t gold. Paramount has also completed 12 drill pads at the San Luis mine (where a 43-101 technical report listed a channel sample that assayed 85.2 g/t gold and 339 g/t silver across 15 meters) and the core drill rig will move to the first of these drill sites within the next week to begin drilling.
"We have high expectations for the holes planned into the San Luis pipe or chimney, as these holes will intersect this high grade pipe beneath the old stopes developed above the water table. These holes will provide answers regarding size, shape, structural components and controls, as well as to determine the grade and size of the ore body that remains un-mined," commented Bill Reed, Paramount's Exploration Manager in Mexico.