Asian equity sub-fund Gale 3 Spl has become a major shareholder in Paramount Mining Corporation, purchasing 8.73% of the company which is equal to 27.7 million shares.
Paramount says the proceeds will go towards progressing its brownfields Gunung Rosa gold-silver-base metals project in Indonesia. The project recently delivered an inferred resource of 634,000 gold ounces with significant silver and base metals credits.
Gunung Rosa is about 125 kilometres southeast of Jakarta within a 1000 hectare exploration licence which was granted in 2010. Metallurgical studies have indicated overall gold recovery at 86%, with 82% reporting to bullion.
Paramount has outlined a development plan for the flagship project, which includes refurbishing the mine to operate under the existing valid mining licence – in the style of Kingsrose Mining’s successful Way Linggo project.
“The plan is to initially produce 30,000-35,000 ounces of gold from existing development drives by mid to late 2014,” says Paramount’s chairman Mo Munshi. It is expected that the mine will be expanded to at least double this production rate from 2015-2016 onwards given the ongoing exploration program is identifying further potential resources at surface.
Mo Munshi says the company’s technical management has an outstanding record for discovery and development of commercial deposits with all directors having mining industry backgrounds spanning several decades.