Paramount Gold and Silver Drilling Intersects New Mineralization at its Don Ese Deposit Adjacent to Coeur's Guadalupe Mine

WINNEMUCCA, NEVADA--(Marketwired - Jan. 20, 2015) - Paramount Gold and Silver Corp. (NYSE MKT:PZG)(TSX:PZG) ("Paramount") reported today that each of the last three core holes in its 2014 drill program have intercepted gold and silver mineralization. These holes targeted the higher grade Don Ese deposit, located on its 100%-owned San Miguel Project in northern Mexico immediately adjacent to Coeur Mining's (NYSE:CDE) Palmarejo Mine Complex. DS-052 and DS-053 were infill holes drilled to upgrade the mineralized material estimate while DS-051 successfully tested the Don Ese vein at depth, effectively expanding the length of the known mineralization.

The most recent program of infill and exploration drilling at Don Ese and the nearby Dana discovery totalled 4,364 meters in eight holes. The results are expected to increase the total mineralized material at each deposit (see cross-section below). Drilling at Dana has discovered a further mineralized occurrence which appears to be an offshoot of Don Ese, and these zones could be exploited in tandem (see January 6, 2015 news release).

Coeur has stated that it plans to develop Don Ese by a 1,000 meter decline adjacent to the existing Guadalupe surface infrastructure at an initial cost of approximately $15 million, and anticipates initial production from Don Ese by the end of 2015, ramping up to 2,500 tons per day by the end of 2017 (see Coeur press release dated December 17, 2014 for more development details). Coeur recently announced an initial resource at its Independencia deposit, which represents the northwest extension of Don Ese (see Coeur press release dated December 19, 2014).

Paramount CEO Christopher Crupi noted that drilling focused on the Dana discovery and other nearby targets will start up again shortly. "Our aim is to add further value to the proposed combination of Paramount and Coeur. Coeur's infrastructure at its Palmarejo project is ideally suited for low cost, efficient development of San Miguel's deposits. Further drilling should help to accelerate the realization of these synergies and potentially extend the mine life of Coeur's Palmarejo complex by adding to the inventory of mineralized material."

The results from the final three holes drilled in 2014 at Don Ese are:

Hole #

Area

Total Length (m)

From