A new inferred resource of 640,000 ounces of gold with significant silver and base metal credits has been established at Paramount Mining’s Gunung Rosa project in West Java.

The drilling which led to the new estimate has also improved the company’s understanding of the geological controls and distribution of the mineralization.

At a cut-off of 1.5 grams/tonne gold, the added inferred resource is 2.467 million tonnes contained 436,000 ounces of gold, more than 1.045 million ounces of silver, 8230 tonnes of copper, 13,020 tonnes of lead and 43,800 tonnes of zinc. The drill program has also highlighted much wider zones of mineralization than previously determined and enabled assessment of changes in vein and breccia host width, alteration types and grades within the main mineralized zone.

Paramount’s CEO and managing director Terry Holohan says, “We are particularly pleased with the increase in inferred resources and note that the gold grade does not fall away with depth. This further underpins our immediate plans to refurbish the shafts, adits and drives in the Gunung Rosa mine and commence with the construction of a gold recovery plant in the first half of next year.”

Chairman Mo Munshi adds, “It is clear from our ongoing field exploration that the full potential of the mineral resources beneath soil cover elsewhere in the mining licence has not yet been appreciated. The strike of the main vein system has been delineated over approximately 2.5km and we have also located and sampled several parallel veins within the license area during follow up of our recent aeromagnetic program. It will be interesting to confirm if the grade further improves with underground sampling as noted by predecessors.”

Paramount has announced interim results from phase 1 of the metallurgical test-work being conducted by SGS Perth on a 600kg Gunung Rosa underground bulk sample. Total recovery combining CIL to bullion and flotation concentrates methods was 86% for gold, 94% for silver, 96% for zinc, 87% for lead and 92% for copper. This program will now continue into a second phase where the flow-sheet will be further optimized.

Paramount has also released results of newly acquired high resolution ground magnetic data crossing areas of known mineralization and alteration within the mining licence. This complements helicopter-borne data previously collected and shows the influence of physical and alteration characteristics of the mineralized mesothermal vein, breccia and fault systems enabling their reliable delineation under soil cover.

An infill ground magnetics survey and a soil geochemical sampling program has commenced to define more precisely traces of recognized mineralization and to detect new mineralization under soil cover. Drilling will now be planned to follow up promising zones.

www.paramountmining.com

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