Paramount Gold and Silver Corp. (NYSE:PZG, AMEX:PZG,TSX:PZG) announced it has been granted permanent rights to 995,000 cubic meters of water per year for its San Miguel Project.

As quoted in the press release:

Paramount believes that these new water rights should be sufficient to support the processing required for either a milling/flotation or milling/cyanide leaching scenario of up to 5,500 tonnes of ore per day which is comparable in size to the neighboring Palmarejo mine owned by Coeur d`Alene Mines Corporation. Recent metallurgical test work conducted by McClelland Laboratories of Reno, Nevada proposed that milling/flotation and milling/cyanide leaching processes were likely the most economic alternatives for San Miguel mineralization.

Paramount CEO, Christopher Crupi, said:

We are continuing to de-risk San Miguel step-by-step to ensure that we can answer all the key questions which would be asked by a prospective partner or acquirer. Water rights are a very important asset required for an eventual production decision and we have acted preemptively to ensure that these rights are available to the project in sufficient quantities for a sizeable operation.

To view the whole press release, click here.