Paramount says initial drilling results at Gunung Rosa encouraging

Australian mining firm Paramount Mining Corporation Limited said the assay results from the first two drill-holes completed and assayed of its initial six-hole diamond drilling program at its Gunung Rosa Gold-Silver Project in West Java province encouraging.

The company said three more holes have been completed, with assay results imminent.

This program is designed to confirm previous intersection grades determined at Gunung Rosa, as part of Paramount?s due diligence activities announced earlier.

?The results from the first two completed holes are very encouraging,? Paramount?s Chairman, Munshi said, ?What we see in these results is confirmation of high-grade mineralization at Cap Palu, not only in gold and silver, but also in key base metals?.

The 2,475 hectare Gunung Rosa production mining licence (Production Operation IUP) is located 125 kilometers south east of Jakarta, in West Java province.

The company has reached agreement to acquire a 12.25 percent interest in the Gunung Rosa Project, subject to satisfactory completion of a staged 5-month due diligence program. The program includes progress payments up to a total US$7 million as disclosed on August 4. (romel)