(MENAFN - ProactiveInvestors - Australia) Paramount Gold and Silver Corp. (NYSE MKT:PZG)(AMEX:PZG)(TSE:PZG) shares advanced Wednesday after reporting results from additional holes at its La Bavisa target on its San Miguel project in Mexico.
The company said Wednesday that it has extended the mineralized strike on the new San Miguel target to 1.5 kilometres, from eight holes.
The La Bavisa target, located 700 metres north of the high-grade Don Ese resource, has been traced on surface for over 2.8 kilometres.
The mineralized zone contains intercepts of up to 12.2 metres wide, grading 1.22 grams per tonne (g/t) gold and 255.8 g/t silver, or around 5.5 g/t gold equivalent.
La Bavisa has not yet been included into San Miguel's resource estimates and is therefore not part of the project's first preliminary economic assessment slated to wrap up by the end of the year, Paramount said.
"The Don Ese resource area has emerged as a major target, potentially the most important of the four main mineralized zones on San Miguel," said CEO Christopher Crupi.
"A swarm of higher-grade structures has now been identified at Don Ese and are likely to be exploited together. The reality is that San Miguel continues to grow quickly and we are far from exhausting our list of excellent opportunities for resource expansion.
"Our challenge is to develop current engineering and economic projections while at the same time undergoing rapid resource expansion."
Indeed, the company also reported what it called "promising" results from the first holes drilled at another new target known as Barranca Blanca - also located in the Don Ese ara.
Barranca Blanca has an on-surface strike length of at least 1.2 kilometres, and three preliminary holes returned up to 0.7 g/t of gold and 31.2 g/t of silver.
US-based Paramount has multi-million ounce advanced stage precious metals projects in Nevada and northern Mexico. Its Sleeper gold project in Nevada is located off a main highway about 25 miles from the town of Winnemucca.
The San Miguel project consists of over 142,000 hectares in the Palmarejo District of northwest Mexico, making Paramount the largest claim holder in this precious metals mining camp.
Shares in the gold and silver company rose 4 cents to 2.33 on the TSX on Wednesday.