Proactiveinvestors recommends

Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	PCP
Latest Price:	0.06 (12.28% )
52-week High:	0.08
52-week Low:	0.04
Market Cap:	18.58M

1 year chart

1 day chart

Paramount Mining Corporation Full Paramount Mining Corporation profile here

Paramount Mining Corporation (ASX: PCP) is an Australian mineral resource exploration and development company focussing on precious and base metal deposits in Asia, and in particular Indonesia. The Gunung Rosa project is the flagship project for Paramount and the company will hold 72.25% interest in the project.

Paramount Mining Corporation unearths more high grade gold at Gunung Rosa in Indonesia

Wednesday, February 08, 2012 by Angela Kean

Paramount Mining Corporation (ASX: PCP) has uncovered more high grade gold mineralisation at the Gunung Rosa gold project in Indonesia and has extended its initial 6-hole drilling program to 13 holes as a result of the new assays.

Highlight intersections include:

- 1.4 metres at 4.22 grams per tonne (g/t) gold, 6.9g/t silver and 0.51% zinc;
- 4.6 metres at 9.95g/t gold, 16.8g/t silver, 3.49% zinc and 1.4% lead;
- 3.4 metres at 2.25g/t gold, 4.22g/t silver and 0.4% zinc; and
- 9.8 metres at 7.43g/t gold, 18.2g/t silver, 0.62% copper and 4.43% zinc.

Further adding to Gunung Rosa’s potential is the much wider than anticipated intersection widths achieved in some sections of the vein system giving scope for increased resources.

Previous high grade intersections at the project include 2.55 metres at 1.42g/t gold, 1.4g/t silver and 0.35% zinc, 3 metres at 26.55g/t gold, 29.6g/t silver, 0.29% zinc and 0.68% copper, and 17.1 metres at 5.82g/t gold, 23.36g/t silver, 5.5% zinc and 0.49% copper.

Paramount is confident, with the latest results, it can begin an early initiation of trial mining to firm up full scale mining options and installation of a pilot plant for large scale beneficiation testing of ores, following satisfactory results from metallurgical testing of bulk samples being collected from existing underground development.

The work is being undertaken as part of Paramount’s first stage due diligence validation program.

In a positive move for the economics of the Gunung Rosa Project, Paramount recently reached a revised agreement with Cikondang Kancana Prima to reduce the price of the 72.25% stake in the project from US$7 million to US$5 million.

The 2,475 hectare Gunung Rosa project is located 125 kilometres south east of Jakarta, in West Java Province. It is accessible by sealed road and serviced by State grid electricity.

The project has historic proved and probable reserves of 400,000 tonnes at 11.4g/t gold for 146,690 ounces and 3.03% zinc for 12,130 tonnes.

It has total resources of 799,348 tonnes at 13.96g/t gold for 358,832 ounces and 3.38% zinc for 26,998 tonnes.

The most prominent mineralised vein zone contained within the licence is a steeply dipping high grade gold-silver and base metal mesothermal vein system in excess of 900 metres in strike length which is open along strike and to depth.

Importantly, the Gunung Rosa Project compares favourably to Kingsrose Mining’s (ASX: KRM) Way Linggo Project in South Sumatra, which had a starting base of less than 200,000 ounces of gold resources.

The Way Linggo Project is now producing gold at cash costs of around $145 per ounce and Kingrose Mining’s market capitalisation is nearing A$400 million.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.