Paramount Mining mulls over trial mining at Gunung Rosa gold project

ASX-listed Paramount Mining Corporation Ltd said it is considering to start trial mining before moving to full scale mining options following high-grade intersections at its Gunung Rosa gold and silver project in West Java province.

"The results determined so far give the expectation for an early initiation of trial mining to firm up full scale mining options and installation of a pilot plant for large scale beneficiation testing of ores," it said in a statement to the Australian bourse.

The trial mining plan is subject to satisfactory results from our metallurgical testing of bulk samples due to commence shortly, it said.

?What we continue to see in these results is confirmation of the recognised gold mineralization at Cap Palu, the original mine site and in the high-grade gold-silver and base metal-rich Cisudi and Cibitung extensions of the recognised 900 meter vein to the south,? Paramount ?s Chairman Mo Munshi said.

The company on September 8, 2011 disclosed assay results from diamond drill-holes GRD003, GRD004 and GRD005 from the first stage of its due diligence drilling. The results build on the very encouraging results from the first two diamond drill-holes (GRD001 and GRD002) disclosed earlier.

Hole GRD003 further tested the vein system at Cap Palu and holes GRD004 and GRD005 tested southward into the base metal-rich Cisudi section of the vein, the company said.

The drilling program has been extended from an initial 6 holes to a 12-hole program. Holes GRD006, GRD007 and GRD008 have been completed but assay results have not yet been received. Currently hole GRD009, the first of a series to test the vein system persistence to greater depth, is in progress. (romel/roffie)