Good intersect can’t rally Paramount

A strong intercept for Paramount Gold (PZG-T, PZG-X) couldn’t rally the company’s shares on another down day on the market.

While Paramount reported one drill hole with an intersection of 3.52 metres (true width) of 11.35 grams gold per tonne, the news failed to save its falling share price.

Paramount shares have been falling in step with much of the junior mining circuit and the broader commodity complex as traders brace for the lower demand that a possible global recession would bring.

In Toronto on Oct. 10, Paramount shares were off 27% or 16 to 44 on roughly 78,000 shares traded.

The hole came from the heart of the Clavo 66 deposit and intersected the main mineralized structure at a dept of roughly 80 metres from surface.

Paramount says it confirms the continuity of thick high gold mineralization at Clavo 66 and backs up its decision to push through on a prefeasibility study there.

Clavo 66 is part of Paramount’s San Miguel project in Mexico’s Sierra Madre. At the beginning of the month it announced it had acquired a 100% interest in the project by giving Tara Gold Resources roughly $8.7 million worth of its shares.

The deal increase Paramount’s silver and gold inferred resource by 32.6 million equivalent silver ounces to a total 108.5 million equivalent silver ounces. The paid Tara in shares worth roughly $8.7 million.