More high-grade drill results expand key zones at Paramount Gold and Silver’s San Miguel project in Mexico

Paramount Gold and Silver Corp. (NYSE Amex:PZG)(TSX:PZG)(FRANKFURT:P6G)(WKN:A0HGKQ) (“Paramount”) today reported more exceptional high-grade intercepts from ongoing in-fill and exploration drilling at its 100%-owned San Miguel Project in northwestern Mexico. The exciting new results are from the Don Ese North target and the San Antonio silver zone, two important discoveries made by Paramount in the past year.

Two new core holes drilled at Don Ese North have intersected significant widths (up to 38.9 meters) of strong gold and silver values including 5.55 meters grading 4.73 g/T of gold and 249.68 g/T of silver. This drilling, together with previously reported results, confirms the continuity of this wholly-owned high-grade zone first discovered last December (see Paramount news release of December 9, 2010).

The Don Ese North vein strikes north-northwest directly towards the nearby Palmarejo Mine owned by Couer d`Alene and appears to be an extension of the structure which hosts this highly successful gold-silver producer. True width of the Don Ese vein is typically in the range of 10 meters but is locally up to 19 meters wide. Don Ese is a massive quartz vein with textures characteristic of low sulfidation, epithermal deposits consistent with other vein deposits in the district. To date, the mineralized vein has been traced by core drilling along a strike length of nearly 1,000 meters and the feature remains open down dip. Paramount is also expecting to receive permits shortly to expand drilling along strike to the highly-prospective northern portion of its wholly-owned Don Ese South target area.

Assay results were also received for five new holes drilled on the fast-growing San Antonio bulk tonnage silver-rich zone. Drill holes into the near-surface San Antonio deposit continue to return multiple intercepts with high silver values, some of which are exceptional. Drill Hole number SA-11-78 intercepted 1,440 g/T of silver in one sample within a particularly wide and high-grade zone.

Christopher Crupi, Paramount`s CEO, commented that “results from Don Ese North continue to support a favorable comparison with the neighboring Palmarejo mine in terms of width and grade. Similar success on the southern extension would be highly significant. Meanwhile, the surprising San Antonio zone continues to generate impressive silver intercepts right from surface. San Antonio is emerging as a potentially high value open pit deposit with a very low strip ratio.”

Read the full news release