Paramount Gold began assembling its Sierra Madre property package in 2005, starting with the San Miguel groupings of past-producing mines, including the high-grade, former-producing San Luis Mine. The company then staked the adjacent Andrea concession, strategically located between the San Miguel project and Goldcorp’s El Sauzal gold mine. Paramount also acquired key concessions from Mexoro Minerals.
       The company’s Sierra Madre land holdings were further expanded with the acquisition of a 100% interest in the 54,000-hectare nearby Temoris Project from Garibaldi Resources, as well as title to the underlying concessions of the Morelos gold and silver project optioned to Garibaldi. The Morelos property encompasses a historic mining area about 25 kilometers southeast of Goldcorp’s El Sauzal Mine. The practical result of these land expansions is that Paramount now controls most of the ground surrounding Palmarejo.
       Paramount Gold’s huge land position clearly qualifies as a district on its own. Within the boundaries of this Guazapares Mining District are three distinct projects – the San Miguel project, the Andrea project, and the new Temoris project, as well as numerous new targets, prospective areas and regional fault systems.
       “Our goal from the beginning was to accumulate a large project capable of hosting a 5-10 million ounce gold reserve,” says Paramount Gold CEO Christopher Crupi.

       The company is well on its way to reaching that goal. Since Paramount Gold first began exploring its San Miguel property in 2006, it has drilled more than 200 holes totaling 50,000 meters, dug 3,743 meters of exploration trenches, and increased its resource base by over 250%.
       Just two sub-parallel, high-grade mineralized zones –Clavo 66 (4.87 gpt gold equivalent) and Clavo 99 (4.24 gpt gold equivalent) zones account for a 1.512 million ounce resource of gold and gold equivalents – more than half of Paramount’s total resource estimate.
       “This resource demonstrates the strength of the San Miguel mineral system, which is open at depth and on strike,” says Crupi. “There is significant potential to increase the size and grade of the high grade deposits which become gold-rich at depth.”
       The San Miguel project encompasses four distinct zones with very different geological characteristics: the San Antonio Zone, the San Luis Mine Zone, the Montecristo Zone and the San Miguel Zone. The area is characterized by gold and silver mineralization occurring in quartz veins and breccias within west-northwest and north-northwest striking faults.
       During the balance of 2009 and into 2010, the company will continue exploring San Miguel to gather data for a scoping study that will precede a full pre-feasibility study. The company’s goal is to increase both the size and confidence of the San Miguel resource base with a particular focus on gold.
       Reconnaissance exploration on the nearby Andrea project already has identified 25 targets, including multiple porphyry gold, silver and copper targets. Further development of an identified copper system in the southern portion of the property is the topic of current discussions with potential joint venture partners.
       Paramount Gold also plans to strategically enhance its overall land position throughout the region through either direct acquisitions or joint ventures.

       Paramount Gold’s management team reads like a who’s who of the mining world. Led by Crupi, the company’s leaders have more than 500 years of accumulated mining sector experience. Crupi, a former VP at PricewaterhouseCoopers and a specialist in mergers, acquisitions, divestitures and business evaluations, has participated in deals totaling more than $1 billion.
       The company’s COO, Lawrence Segerstrom, is a professional geologist who was born and raised in Latin America and has extensive experience in Mexico and Chile. He was a geologic services manager for Freeport-McMoRan, and a geologist for Newmont, Noranda and Phelps Dodge.
       Charles Reed, Paramount Gold’s Manager of Exploration in Mexico, was chief geologist for Minera Hecla and regional geologist for Echo Bay Exploration, discovering the Delores mining district.
       The company’s Board of Directors includes a broad mix of mining executives and professionals with extensive experience in Mexico, as well as in mining exploration, mine development and production, and mine financing. Most recently, Rudi Fronk, President and CEO of Seabridge Gold Inc., and Eliseo Gonzalez-Urien, a Seabridge director, a former Senior VP of Placer Dome and renowned exploration geologist, joined the Paramount board.

       Paramount Gold’s ability to raise money in an exceptionally difficult market is a strong indication that the San Miguel Project in Mexico is a potential company-maker. Once the company was confident it understood the project’s geologic structure, Paramount Gold moved quickly to purchase additional land surrounding its project and now is preparing to drill new targets that will prove up a larger resource estimate. Once that is accomplished, it would not be major surprise to see the company become an intriguing takeover target.
       To date, Paramount Gold has raised some C$50 million and has more than enough cash on hand to finance operations for the next three years.
       Just this past October, Paramount closed a US$23 million financing and earlier this spring, the company closed a C$9 million financing with FCMI Financial. Other groups investing in Paramount Gold include Fondi Anima, Barclays Bank, State Street, Sprott Asset Management, US Global Investors, Macquarie Bank of Australia, Canaccord Capital Corp., and Raymond James Ltd. Paramount Gold will use its capital to fund ongoing drilling and exploration programs, as well as continuing to build its land portfolio and form strategic corporate initiatives with other companies active in Mexico.
“We are very pleased with how the market has received us. This is a clear validation of the quality of our people and the potential of our project in Mexico,” says Crupi. “Our efforts during the past year have focused on understanding the different target styles within our very large property position and identifying the controls governing gold concentrations. With these questions largely answered, we can now focus on resource expansion at the highest priority targets. We are most excited about a new, gold-rich bulk deposit style which could rapidly expand the size and quality of our project. San Miguel is moving quickly toward becoming a world class precious metals deposit.”