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1 10 July 2012 Encouraging New Gold Results from Gunung Rosa Drilling Highlights Assay results from three drill holes at depth under the Cap Palu section confirm significantly wider intercepts of gold-copper-base metal mineralisation than previously determined from historic estimated exploration activities. The fourth hole confirms the high grades previously intersected in the central Cisudi section of the 900 metre long vein system, also over a wider zone. The drilling supports conclusions drawn from the recent airborne magnetic survey that the wider mineralised intersections, associated with pervasive claysilica alteration of the host rocks, relate to faults bounding and cutting extensive intrusive breccias and porphyry bodies that characterise the host setting. The new intersections include: GRD014 Including Including 1.19 g/t Au, 4.10 g/t Ag, 0.18% Cu 7.25 g/t Au, 17.2 g/t Ag, 0.75% Cu 3.37 g/t Au, 19.1 g/t Ag, 0.36% Cu GRD g/t Au, 5.5 g/t Ag, 0.88% Zn Including 5.26 g/t Au, 19.1 g/t Ag, 2.44% Cu Including 7.05 g/t Au, 10.9 g/t Ag Including 3.39 g/t Au, 42.2 g/t Ag, 3.22% Cu GRD % Zn (width of mineralised envelope) Including 2.84 g/t Au with g/t Au Including 4.69 g/t Au Including 1.76 g/t Au GRD % Pb, 0.23% Zn (width of mineralised envelope) Including 2.09 g/t Au, 2.6 g/t Ag With 5.91 g/t Au, 4.6 g/t Ag Including g/t Au, 7.2 g/t Ag And with 13.3 g/t Au, 20.8 g/t Ag
2 Paramount Mining Corporation Limited (ASX:PCP, Paramount, Company ) is pleased to release assay results from four additional diamond drill-holes GRD0014, GRD015, GRD016 and GRD017 from its ongoing due diligence program at its Gunung Rosa gold-silver-base metal project in West Java Province, Indonesia. The results continue to build on the very encouraging results from its previous thirteen diamond drill-holes (GRD001 to GRD013) disclosed in the Company s previous announcements (summarised in Figure 8). The four holes infill between drilled vein mineralisation to further assess changes in vein widths and grades within the main mineralised ore zone. This follows recognition of the potential for much wider mineralised intersection widths in a number of the later drilled holes. Holes GRD0014 to GRD016 tested beneath Cap Palu where a more pervasive clay-silica host rock alteration and mesothermal silica-pyrite-copper stockwork veins have been recognised (Refer Figure 2 for hole locations). Results from these holes demonstrate that significantly wider envelopes of mineralisation are occurring below Cap Palu. Hole GRD017 tested a broader section of the base metalrich Cisudi vein closely beneath historic development drives supporting wider intercepts in that section. Paramount s Chairman, Mr. Mo Munshi commented, These results are a valuable addition to our knowledge of the extent and controls on distribution of mineralisation in that they are likely to result in an increase in the inferred mineable resources of gold, silver and base metal mineralisation recognised at Gunung Rosa and point to potential to add significantly to inferred resources at depth. The variation in grade and intersection widths seen is not unusual in mesothermal and epithermal systems but it is the persistence of wide mineralised intersection widths that is encouraging. Our program of bulk metallurgical and beneficiation testing currently being undertaken in Perth will assist in defining the mineable extent of economic mineralisation now being drilled in these zones. About Paramount and the Gunung Rosa Gold-Silver-Base Metal Project Paramount 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 Paramount s flagship project and the company will hold 72.25% interest in the project. The 2,475 hectare Gunung Rosa exploitation licence (IUP) is located 125 kilometres south east of Jakarta, in West Java Province, Indonesia (Figure 1). It is accessible by sealed road and serviced by State grid electricity. 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. There are numerous other occurrences of vein mineralisation of similar style recognised within the IUP licence within a 2-3 kilometre radius about Cap Palu, the original mine site, (Refer Figure 3). Figure 1: Map showing location of Gunung Rosa in West Java in relation to major cities.
3 Figure 2: Plan showing location of drill holes GRD014, GRD015, GRD016 and GRD017in relation to other drilled holes and named zones. (Refer to Company s 12 September 2011, 13 October 2011, 8 February 2012 and 20 February 2012 announcements for earlier drill results). The relationship of the drilling completed to date to gold rock chip geochemistry and geology is shown in Figure 3. A new program of detailed geological mapping and sampling is being initiated to follow up significant features interpreted from Paramount s detailed helicopter borne magnetic survey of the IUP licence and to define new zones that merit drill testing to define additional resources along the strike of the main vein and associated recognised veins in the IUP. (Refer company ASX release 18 th April 2012 for details of heli-mag survey).
4 Drill Hole Locations, Gold Rock Chip Results & Relation of Veins and Prospects Figure 3: Relationship of current drilling program to rock chip geochemistry and recognised veins in IUP Licence. Significant intersection results from holes GRD014 to GRD017 are summarised in Figures 4-7 below. Figures 8 & 9 show long section summaries for all holes released to date and relation to historic drill data results.
5 Figure 4: Geological cross section for diamond drill-hole GRD014, showing significant assay results. While the mineralised zone and the veins within it effectively extend to the surface and its approximate location can be inferred its actual position is hidden by 2-5 metres of soil cover and not exposed. Figure 5: Geological cross section for diamond drill-hole GRD015, showing significant assay results.
6 Figure 6: Geological cross section for diamond drill-hole GRD016, including significant assay results. Figure 7: Geological cross section for diamond drill-hole GRD017 giving significant assay results.
7 Figure 8: Summary of significant Paramount drill hole intersections from all holes in current program. The magenta coloured development was used by Century for bulk assessment of resources and reserves. Figure 9: Relationship of Paramount drilling to Century drilling, resource blocks and assigned gold grade. (Refer: Paramount ASX release 8th September 2011 for details).
8 For further information please contact the undersigned on (08) Mo Munshi Terry Holohan Chairman CEO and MD Gold assay were undertaken by Intertek, Jakarta using 50g fire assay (Method FA50, Aqua regia finish); low base metals by ICP-OES (Method IC01); high base metals (>1%, Method GA50). All Grid Coordinates Use Datum: WGS 84 Zone 48 South Competent Person Statement The exploration activities and results contained in this report have been reviewed by Dr. Neil F. Rutherford. Dr Rutherford is a Fellow of the Australian Institute of Geoscientists and is a full time employee of Rutherford Mineral Resource Consultants, mineral industry consultants. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). This review and comments by Dr Rutherford incorporated in the release text are based upon field inspection of the Gunung Rosa Project area, West Java, including the drill core during 2011and 2012 along with input from his associates who have worked on the property. All of the significant information reported herein was available to Dr Rutherford and was reviewed for this release. Dr. Neil Rutherford has consented to the inclusion in this report of the matters based on this information in the form and context in which it appears.
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