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We were impressed at our visit to
Paramount Gold and Silver in Chihuahua, whose land position surrounds and
is 15 times larger than Coeur d'Alene Mines nearby Palmerejo gold-silver
mine. Paramount defined eight zones of vein-type gold-silver
mineralization through a 2008 43-101 study, but now is drilling a
disseminated gold deposit known as "San Francisco" that appears larger.
There appears to be good potential for
Paramount to double or more in value as drilling progresses. Further, its
drill results and large land position has attracted interest from
surrounding larger companies. A local geologist of a $10 billion company
expressed his very optimistic opinions about Paramount to us inadvertantly
without too much prompting. Paramount was one of the "Exploration
Cocktails" companies at our last conference on March 24th.
We have no earnings estimates, financial models or target price for Paramount Gold and Silver, which we are not adding to our regular research coverage. We debate the value of a “price target” for new discoveries, where uncertainties about the size of the asset base exist, and for which a “price target” may cause a premature sale of a success. We visited its property on April 15th in the course of visits to three regional companies, and we were very impressed. We visited Paramount partly because they offered us air transportation out of a “no man’s land” portion of Chihuahua. We characterize this research report as an “incomplete” first study of a highly promising emerging company. |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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