Paramount Gold and Silver Receives Permanent Water Rights for San Miguel

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 to aid in ore extraction.

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.