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Don Ese



Proposed Mining Method (PEA)

Underground

Resource

MDA July 2014

Resource
Category
Cut-off Tonnes Au
g/t
Au
Ounces
Ag
g/t
Ag
Ounces
Measured 90 AgEq g/T 599,000 2.88 55,000 254 4,898,000
Indicated 90 AgEq g/T 2,807,000 2.81 253,000 206 18,546,000
Inferred 90 AgEq g/T 2,020,000 2.07 135,000 131 8,514,000

Geology

The Don Ese vein appears to be an extension of the structure which hosts the highly successful Palmarejo mine and its adjacent  satellite deposit, Guadalupe, owned by Coeur Mining (NYSE: CDE).  Guadalupe is Coeur Minings key development project at its neighbouring Palmarejo mine complex. Similar to its neighboring producers, Don Ese is a massive quartz vein with surrounding or internal quartz stockworks in volcanic rocks.  Spatially associated with felsic intrusives, Don Ese exhibits characteristics typical of low sulfidation, epithermal deposits containing high gold and silver grades.

Exploration Objectives

Recent exploration activities were successful in improving total resource and confidence level as seen in the recent resource update released on July 8, 2014. Resources at the high grade Don Ese underground deposit have increased substantially.

Future drill testing at the recently discovered, high grade La Bavisa structure,  Twhich is located just north of the initial Don Ese structure and has yet to be included in the Company’s resource estimate for the San Miguel Project.  This zone’s close proximity to the planned underground mine at Don Ese could prove highly lucrative in an already robust Preliminary Economic Assessment which was released on February 28, 2013.

Source: Technical Report – see Paramount Gold press release dated July 8, 2014