Adelaide, Mar 21, 2007 AEST (ABN Newswire) - Further testing has lifted by 36% the number of diamonds recovered by listed Australian explorer, Paramount Mining Corporation Limited (ASX code "PCP") from its Ochinso Project in Ghana, West Africa. The project area is located within the Birim Diamond Field, which has historically produced over 100 million carats of diamonds.
In view of these encouraging results, the Company has elected to continue to Phase 2 under its agreement with Aurion Resources Limited, the terms of which were outlined in an ASX release dated 12 th September 2006.
Paramount announced today that the higher recoveries, including gold, had come from samples from the 20 prospecting pits completed at Ochinso in November 2006 as part of its Phase 1 operations, investigating alluvial systems throughout the project area.
Diamonds recovered then in the field were 53 in total, all of commercial size and in excess of 1 mm diameter.
Field sample concentrates have yielded 36% more diamonds following laboratory processing in Perth, bringing the total of diamonds recovered from Ochinso to 72. Gold was noted in all samples - 325 small grains (mainly in the form of flakes, and some tiny nuggets) were recovered. Mineral weights and other data are provided in the table below. "The laboratory results are highly rewarding for this initial stage of the programme," Paramount's Chief Executive Officer, Ms Maureen Muggeridge, said today. "Firstly, they significantly add to the number of diamonds and free gold grains recorded in the field, and secondly they highlight the potential for economically viable alluvial deposits in some of the catchments at Ochinso".
"The pits were sited in a number of different river systems throughout the project area. The results demonstrate a regional spread of both diamonds and gold," Ms Muggeridge said. "The next stage of work, which is imminent, will focus on the areas with the most promising recoveries of diamonds and/or gold, targeting in particular the larger river systems with the best potential to host substantial alluvial deposits. In this phase larger volumes of gravel will be treated to assess the commercial grade potential".
"We will also be excavating more prospecting pits throughout the project area, to complete the comprehensive reconnaissance survey commenced last year".
Each 2006 prospecting pit at Ochinso measured 1.5 x 1.5 metres at surface. The pits, usually less than 2 metres deep, were excavated to bedrock. Prospective gravel material was removed from the pits and treated in the field to extract the heavy mineral component.
The following table provides counts and weights of gold grains and diamonds over 0.4 mm in diameter (and less than 8 mm, the upper size cut off in the field).
Pit Overburden Depth of Sample Field Final Weight of Field Final Weight ofNumber Thickness Pit Volume Diamonds Diamonds Diamonds Gold Gold Gold m m m 3 count count carats count count gmsAFI-0001 1.3 2.2 2.025 5 5 0.316 4 49 0.0687BUB-0002 0.5 1.2 1.575 0 1 0.020 0 2 0.0032BUB-0003 0.8 1.3 1.125 1 6 0.098 0 6 0.0063BOM-0004 0.7 1.2 1.125 0 0 0.000 0 12 0.0136AFI-0005 0.4 1.1 1.575 5 6 0.198 1 12 0.0523FAU-0006 0.6 1.3 1.575 0 0 0.000 0 13 0.0081AHO-0007 0.1 0.8 1.575 0 0 0.000 0 5 0.0053APU-0008 1.0 1.5 1.125 1 1 0.019 0 10 0.0309KWA-0009 0.0 1.0 2.250 8 9 0.369 1 107 0.2055AFI-0010 0.6 1.3 1.575 1 2 0.086 0 20 0.0345BOO-0011 0.4 0.9 1.125 7 7 0.225 0 4 0.0052ABE-0012 0.5 1.0 1.125 0 1 0.002 0 3 0.0044SUK-0013 1.0 1.5 1.125 1 1 0.023 0 4 0.0438MER-0014 2.1 2.2 0.225 0 0 0.000 0 1 0.0008EPO-0015 0.1 0.8 1.575 0 1 0.022 0 7 0.0101EPO-0016 1.0 2.1 2.475 17 19 0.656 1 58 0.1808ASU-0017 0.7 1.4 1.575 3 5 0.209 0 8 0.0732ASU-0018 1.3 1.6 0.675 2 4 0.216 0 1 0.0011ASU-0019 0.6 1.0 0.900 2 2 0.057 0 2 0.0072ASU-0020 0.7 1.4 1.575 0 2 0.053 0 1 0.0018 TOTAL 27.900 53 72 2.569 7 325 0.7568
Only 8 diamonds were less than 1 mm in diameter, most falling in the size range 1-2 mm. The average stone size is 0.036 carats. For each pit, a 10 cm sample of the weathered clay bedrock was sampled. Only 4 diamonds in total were recovered from this horizon.
A total of 23 gold grains were greater than 1 mm in diameter, mostly in flakey form, and some small nuggets.
The Ochinso Project, located around 110 kilometres northwest of the capital city of Accra, covers an area of 37 square kilometres. The Prospecting Licence has recently been renewed by the Minerals Commission of Ghana for a further 12 months. Paramount is also exploring a 330 square kilometre area south of Ochinso, known as the Osenase Project, which has also yielded diamonds and gold in the Company's initial work programme. Both projects target alluvial and hard rock deposits for gold and diamonds within the highly prospective Birim River catchment.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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