PARAMOUNT MINING CORPORATION LTD - ASX: PCP

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Description

The Company is committed to exploration and development of mining projects, and aims to become a significant producer. Paramount’s projects have been selected for their high potential to host deposits of commercial value. The Company's major focus is Indonesia - on metals projects including gold, and on developing a portfolio of coal exploration and infrastructure projects. The Company also has diamond and gold interests in Ghana, South Africa and Western Australia.

Gunung Julang Project - Indonesia

Paramount has signed an agreement to acquire the Gunung Julang high grade gold-silver project in West Java, Indonesia. The project, located near the world class Pongkor gold-silver mine, has drill-ready targets and excellent potential to develop a mineable high grade gold-silver resource. There are five individual, steeply dipping quartz veins at Gunung Julang with up to 3 kilometres total strike length and individual veins up to 3 metres wide. There is also high potential for discovery of further veins within the license.

Australian Projects

Paramount’s Australian projects are all located in the state of Western Australia, where Australian diamond production has been greatest to date. Diamonds have been found throughout Australia, but by comparison to the rest of the country, Western Australia has a large number of known diamond-bearing deposits and hosts the largest producing diamond mine in the world, the Argyle Mine.

One of the Company’s projects lies in the Pilbara Region. One of the principal hard rock sources of diamonds, kimberlite, has been discovered in scattered locations around the Pilbara, in the form of dykes, some of which are diamondiferous. There are no records to date of kimberlite pipes (small volcanic vents) in the Pilbara. Pipes (also known as diatremes) are usually volumetrically larger than dykes with higher diamond grades, making them the most important hard-rock target.

Paramount’s most advanced Pilbara project, Ullawarra, comprises a number of tenements which contain known kimberlite bodies and host a number of unresolved indicator mineral anomalies, including occurrences of G10 garnets. The presence of G10 garnets increases the likelihood of the source containing economic concentrations of diamond. Microdiamonds have been recovered from two kimberlites in the area. The Company believes the Ullawarra Project has strong potential to host kimberlite pipes.

The other six projects are all located in the Kimberley Region in the far north of the state. The Kimberley has to date produced three diamond mines, the Bow River alluvial mine (closed), and the Argyle and Ellendale lamproite mines (producing), located in the east and west Kimberley respectively. Lamproite is the second main hard rock source of diamonds. Other significantly diamondiferous hard-rock sources have been found in various other parts of the Kimberley, such as the Aries kimberlite in central Kimberley and the Seppelt kimberlites in the north.

Paramount has two projects, Ellendale and Napier, in the West Kimberley Lamproite Province, an important area for diamond exploration and mining, where the Ellendale Diamond Mine was commissioned in 2002 by Kimberley Diamond Company NL. The Ellendale Project contains lamproite bodies for testing, as well as possible palaeochannels that may contain diamonds. The Napier Project, comprises a large tract of underexplored ground along strike and to the northwest of the Ellendale lamproite field. It contains a number of anomalous features for investigation.

In the east Kimberley, at Paramount’s Tunganary Project, a source zone has been narrowed down, leading from a trail of alluvial diamonds that occurs within a small valley.

Three large projects in the central Kimberley, Wood River, Escape Creek and Russ Creek, include catchments containing small tributaries with previous records of indicator minerals and diamonds indicative of a proximate kimberlite source.

Mine For

diamond, gold, uranium, silver

Location of operation(s)

South Africa, Ghana, Western Australia, Indonesia

Address

100 Parry Street
PERTH, WA, AUSTRALIA

Phone

(08) 9328 5600

Email

Website

http://www.paramountmining.com

Last Updated

21/02/2010