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Thursday, 28th September 2006 (3344 views)

Paramount Gold has announced the results from preliminary exploration carried out at one of its sites in South America.

The Santos project is located in the department of Ayacucho, 400 kilometres south-east of the Peruvian capital Lima. It comprises of 21 mining concessions over an area of 9,300 hectares.

It is situated on the Antapite-Ares gold-silver belt's western edge. Santos can be found on a north-west trending linear structure very close to the lineament of several other mines, including the Chipmo, the Ares and the Explorador.

A total of 13 veins have so far been tapped up on the property, some of them having strike lengths which reach 450 metres. Gold is associated with iron oxides in these areas and can be recovered through heap leaching processes.

Mining can be very profitable under such cheap extraction conditions, with production costs often under $100 per ounce while ore value tops the $300 mark.

Manager of exploration at Paramount Alain Vachon commented: "We are very impressed with the results of our preliminary investigation on the Santos project. In this case, it's as important to look for the right analogies with the known mines, than just posting high grade gold/silver values."

"Having said that, some of the values obtained so far are very substantial. The property lies in the right area and has the right ingredients, which is what we need."

 

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