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Author Topic: Paramount Gold (PGDP) JV WITH BARRICK
Silverrado
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Here is the latest on PGDP.
I was caught up in the emotion that the stock market can sometimes inflict on a person this past week, THEN THIS!!

The #2 gold producer in the world, with a market cap in excess of $15 Billion, just signed a deal with Paramount Gold!! This is HUGE news as major companies like Barrick have their pick of what companies they want to do business with, and they chose Paramount. This will really put Paramount on the map. I guess this explains the Alain Vachon appointment.

Stay tuned for more updates - Paramount is on the move. They have top mining people, 3 advanced-stage properties in proven gold districts that are surrounded by producing mines

Paramount Gold Signs Deal with Minera ABX Exploraciones S.A.


Lima, Peru - (BUSINESS WIRE) - October 11, 2005 - Paramount Gold Mining Corp. (PGDP:OTC) and its newly formed Peruvian subsidiary, Compania Minera Paramount SAC, are pleased to announce that they have signed a Letter of Intent with Minera ABX Exploraciones S.A. ("Minera ABX"), a subsidiary of Barrick Gold Corporation (NYSE:ABX), in order to acquire a minimum 51% interest in the Linda property, located in the Department of Ayacucho, South Peru.

This acquisition represents Paramount Gold's first South American venture since their trading as a public company commenced only four weeks ago.

Mr. Alain Vachon, newly appointed Manager of Exploration for Paramount Gold, South American division, comments: "The Linda property partnership represents a golden opportunity for Paramount to gain a very attractive property with substantial potential. I recognize the great potential this holds and look forward to the commencement of a work program that will start shortly, including the first 2000 meters of drilling."

Paramount's President and CFO, Mr. Chris Crupi (former VP of Pricewaterhouse Cooper) also commented, "This is a major milestone for Paramount as we position the company to become a significant player in the mining industry. We are very pleased that Minera ABX has agreed on the terms of our proposal".

The agreement calls for a two-year work commitment including a total of 6000 meters of drilling, of which 2000 meters is a firm commitment during the first year of the deal. Once Paramount has completed the above requirements, they will have acquired a 51% interest in the Property and will remain the operator of the project as long as they maintain a majority interest.

Minera ABX has been granted a back-in right to reach a 65% interest, exercisable at any time after Paramount acquires its 51% interest in the Property, if exploration work uncovers a gold resource greater than 2 million ounces. To earn its 65% interest, Minera ABX will reimburse Paramount an amount equal to two times all exploration expenditures incurred by Paramount. At this point, Minera ABX will be deemed to have a 65% interest and Paramount a 35% interest, respectively, in the Property and Minera ABX will become the operator of the project.

The Linda property is comprised of six mining concessions totaling 45,000 hectares. It is located within a mining district which is currently being explored by several junior and major companies including Newmont Mining (NYSE:NEM) and Southern Peru, some of the most important exploration companies and mining operators in Peru.

Previous work carried out on the Property led to the discovery of a kilometric low grade gold system within Cretaceous sedimentary rocks. In Paramount's view, the system may be suitable for hosting a low grade large volume heap leached deposit. As of today, the genetic model of such mineralization has not been clearly identified but it presents several similarities with porphyry, skarn or Carlin type. Mineralization and alteration (silicification and decarbonitization) are spatially associated and controlled by NW and NE trending faults and hydrothermal breccias.

Detailed sampling (chip and channel) have been completed over an area covering approximately 1.5 km x 1.0 km. Outside of this zone, the sediments are covered by young unaltered volcanic rocks. A total of 928 surface samples has been collected, of which 263 (28%) have returned gold values greater than 300 ppb (0.3 g/t) Au, including 169 with values greater than 500 (0.5 g/t) and, 59 with values greater than 1000 ppb (1 g/t) Au. Of note, the arithmetic average of these 263 samples stands at 0.93 g/t Au. Paramount believes that this value compares very well with head grades of several small and large gold mines in Peru. In 1996, a junior company drilled 8 holes on the property: 4 holes cut oxide gold mineralization with a high value of 1.5 g/t Au over 26 m in hole 4.

About Paramount Gold
Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the San Miguel project in Mexico, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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usaa112
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Beautiful news, this one is going to run tomorrow.
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rayraypico
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This is going to run for a few days off this news. Sure their will be a couple of shakes but overall I am looking for some big increase wed thur and friday.

nice find silverado

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rayraypico
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Just got off the phone with John from PGDP I like what he had to say about the company. The potential for stock growth is excellent. This is a fairly new compnay that IMO has good things to come. He is sending me some information through email I will share with you in a few
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usaa112
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I'm speechless this hasn't moved up more. To be down for the day after that kind of news points to a few things that I don't like to see.
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usaa112
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wow....what a joke
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rayraypico
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i really dont understand what happened with this stock, It seemed like after the news it could do nothing but go up and then nothing????

I am pissed

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usaa112
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I bet a lot of people are. I really don't understand it either. Incredible release after incredible release, and its down for the day.
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Silverrado
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Like you guys I was really disapointed in the market yesterday especially for PGDP. Having said that it gave me the opportunity to pick up some more cheap shares of PGDP. I could not help myself after reading the news that they signed a JV with Barrick and the stock pulled back.

Today they announced that they have secured financing to start working the properties they have in Mexico and now in Peru. I did some more research on the Mexican property and found a company in the area (Palmarejo Gold Corp TSX:PJO) which has a property adjacent to Paramount; they started trading last Dec at .50 and are now trading in the 2.80 range with a 260MM market cap. They are reporting great results on their property.
Word is Paramount has even better grades. I also like the geologist Paramount has on board to work the Mexican properties (Bill Reed). He is the former chief geologist for Hecla and has 30 plus years experience in Mexico. This guy has hit some major finds in the past; I think he sees potential here to be on board.

Here is today’s news release:

Paramount Gold Announces Market Value Financing


Ottawa, Ontario - (BUSINESS WIRE) - October 13, 2005 - Paramount Gold Mining Corp. (OTC:PGDP) is pleased to announce that it has concluded arrangements for a US $750,000 private placement financing of 1-year restricted stock. The transaction is based on a per share price of US $1.26 with no warrants attached or finder fees. The price is calculated on the basis of the average closing price of Paramount's common stock over the past 10 trading days. Haynes Capital Corp., a global capital management company that enhances issuer access to the investment community, arranged the financing.

"Paramount Gold Mining Corp commenced trading only seven weeks ago, and in this short time period the Company has announced significant additions to their management team, and three advanced-stage property acquisitions, including the recent deal with Barrick Gold (NYSE:ABX). We have received overwhelming interest in this financing from sophisticated investors in North America and Europe who are confident the Company will become a producer in the near future," said Richard Gallo of Haynes Capital Corp.

Paramount's plans are to use the funds to commence comprehensive work programs, including drilling, at the San Miguel and Yoquivo properties located in the proven gold district of Chihuahua, Mexico and the Linda Property in Peru. The Company will also use a portion of the proceeds to fund additional property acquisitions presently being evaluated that meet the criteria of being either advanced-stage properties or current producing mines.

Commenting on the work program at San Miguel, former Hecla (NYSE:HL) Chief Geologist Bill Reed stated; "The San Luis mine had previous assays across a 13 meter zone that ran 2 gpt gold and 400 gpt silver. This zone can be traced on surface for about 200 metres and the mine was known for multi-ounce per tonne ore. From everything I have seen thus far, I believe this high grade ore is still in the mine and I am excited to start the process of what I believe will lead to the discovery of an economic, open-pit mine".

About Paramount Gold
Paramount Gold Mining Corp. is a precious metals exploration and development company. It is management's objective to grow Paramount into a significant gold and precious metals producer by developing the San Miguel project in Mexico, and by acquiring other advanced-stage projects and/or producing mines in the most prolific precious metal districts in the world.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

--------------------------------------------------------------------------------

Contact:
Investor Relations:
Skyline Communications
Tel: 1-613-226-9881
Toll-free: 1-866-481-2233
www.skylinecommunicationsinc.com

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Silverrado
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PGDP stabilized today!!

I read this Microcap Premium report today and thought I should share it. Although the report did not heal my wounds from last week’s market it definitely soothed them. There are some very good points here, for me as a long term investor in PGDP this gives me added confidence.

Read below:

Microcap Premium
_______________

The Lost Returns

Back from China in one piece so schedule will return to normal this week. It was more hectic than expected so my plans to issue updates every few days didn't materialize. To offset the missed emails, I will be adding a month to everyone's expiration date. This week I will elaborate on the opportunities we found.


Paramount Gold (PGDP / Pinks $0.86 ) www.paramountgold.com http://www.stockhouse.com/comp_info.asp?symbol=PGDP&table=LIST

Within a month we were able to double our money on Paramount but while I was gone, the stock gave up a large percentage of those gains. This past week in particular was very strange as two excellent news releases were issued that should have easily supported the stock above a dollar. Part of the problem right now is the Wild West Exchange known as the pink sheets. Pink sheet stocks typically see a lot of volatility so they tend to require a lot of patience.

Paramount listing on the pinks does not provide it with the credibility it deserves but it does provide them with a short term vehicle to get the stock into the hands of close supporters of the company (while the business model is put into play and while they wait for approval to move the listing to the OTCBB). I suspect we could see an OTC listing by year end.

In the interim, they have clearly demonstrated two things; 1) they are building a very strong mining play in Mexico and South America; 2) that this group (as discussed before), are very good promoters.

While I am disappointed to see the recent correction, I am pleased that this creates another opportunity for those who missed the last run. Its impossible to say for sure but I suspect the $0.80's will represent the new support level. It has come off hard enough that short term traders will have been cleaned out (or will be soon) and a stronger shareholder base will form for the next leg higher.

The two news releases from last week help support the theory that we are very close to the bottom of this correction. The first was a deal cut with Barrick Gold (ABX/NYSE) for a large land package in Southern Peru (don't forget a former senior geologist for Barrick just joined the
company) and the other very important news came in the form of a financing priced 50% above current levels.

I was extremely impressed with the financing as they could have easily done this at a large discount to market (par for the course with junior miners).
Instead, they not only managed to raise $3/4 million U.S. at $1.26, but did so without warrants or finders fees - a strong vote of confidence in the company's business plan and management. For a new exploration company (particularly trading on the pinks), I really have to pat them on the back for structuring a deal that didn't burn existing shareholders after such a strong run-up in share price. It also proves the promoters are not out to flog paper but are intent on building a strong mining company.

I heard targets well in excess of $2 for Q1/06 so the current level is very attractive again. I wish I had an explanation for the recent volatility but considering it came on the heals of two good releases, I suspect it involved cleaning out some weak players. As I mentioned early last month, Paramount should not only provide great exposure to the precious metals sector, but I believe this will be a text-book example of how to properly promote junior mining companies. Other than this recent correction, it moved as expected and I suspect the recent activity is part of the overall game-plan (for whatever the reason). If this is the case, I see little reason we will not hit those Q1/06 targets.

Recent News is available at their website:
www.paramountgold.com

and you can also get detailed pink sheet trades here:
http://www.pinksheets.com/quote/quote.jsp?symbol=pgdp

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