Paramount Mining Corporation has commenced the development phase of its Gunung Rosa high grade gold-silver-base metals underground mine in West Java. Key areas recognized by the management team as critical path items to bring the project to account are permitting, estimation of mineral resources and ore reserves, mine dewatering and rehabilitation, engineering studies, and construction.  1

Following meetings with interested and affected parties on the project it is anticipated that the AMDAL/EIA update program will be completed for submission to authorities in November. Following this submission, and approval thereof, it is expected that all subsequent mine dewatering and construction permitting will be approved by the end of 2013. Based on these timelines, Paramount’s management team is in advanced discussions with engineering contractors to commence the mine development phase over the next four weeks.

An infill diamond drilling program is being carried out with the aim of increasing confidence in resource estimates in the shallow levels of the ore body less than 100 metres from surface that will be available for early mining. This program is expected to be completed in early 2014.

Paramount is also continuing a metallurgical test-work program to complete the final design of the flow-sheet. It will shortly appoint engineering contractors for major items such as the mine dewatering, mine refurbishment, detailed mine planning and tailings dam design while it will also appoint an engineering-study manager for the preliminary, and subsequently definitive, feasibility studies, which are scheduled to be complete by early and mid-2014 respectively.

Paramount’s CEO and managing director Terry Holohan says, “We have been delighted by the support we are receiving from both the community and regional authorities as key stakeholders. Based upon this positive response the Board has given the go-ahead for the development phase of the mine project which, building on meetings held with the engineers over the last two months, we expect to commence within the next month. This will put us in position to be able to start the construction phase in parallel with the completion of the definitive feasibility study in early 2014.”

Gunung Rosa is a high-grade gold, silver and base metals sulphide mine 125km south of Jakarta. It is the flagship project for Paramount, in which the company holds a controlling 72.25% equity interest. The project has a 20 year operation/production IUP, which was issued in 2010, and a current inferred resource estimate of 634,000 ounces of gold. It remains geologically open to the north, south and to depth beyond the present limit of drilling.

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