Paramount due diligence result on Gunung Rosa gold project encouraging

Australian-listed Paramount Mining Corporation Limited (PCP) said its first stage due diligence on the Gunung Rosa gold, silver and based metals deposit project has confirmed encouraging results.

?Paramount?s due diligence activities have already returned encouraging results,? the company?s chairman, Mo Munshi said. The project, located 125 kilometers south of Jakarta, provides the opportunity to develop a high-grade gold, silver and base metal project in Indonesia.

The assessment focuses primarily on historic information related to the various estimates of tonnages and grades of gold, silver and base metals made from previous exploration and development activities.

?The historical data support our view that the Gunung Rosa project compares favorably to Kingsrose Mining Ltd (KRM) Way Linggo project in South Sumatra, which had a starting base of less than 200,000 ozs of gold resources.

The Way Linggo project is now producing gold at cash costs of US$ 145 per ounce and KRM?s market capitalization is in excess of A$350 million. (romel)