1Paramount Mining Corporation LtdABN 73 102 426 175170 Railway...

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Paramount Mining Corporation Ltd
ABN 73 102 426 175
170 Railway Parade, West Leederville, Perth, Western Australia 6007
Business: TEL (618) 93824822 FAX (618) 93824899
Email: [email protected]
24th October 2006 Report to the Australian Stock Exchange
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DIAMOND PROGRAMME CONFIRMS LARGE LAMPROITE BODY
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A major drilling programme at Paramount Mining Corporation Limited’s Ellendale
Project in the north of Western Australia has confirmed the presence of lamproite, a
rock type which can host diamonds, over a large surface area.
The ASX listed diamond explorer (“PCP”) said today that, according to field
interpretation, lamproite has been intersected in at least 25 holes of the 44-hole drilling
programme completed this month. The body is estimated to be at least 15 hectares in
surface area and, in two directions, is not closed off by the drilling.
The target area lies within Prospecting Licence P 04/ 198 (being converted to P 04/ 219),
located on the southern margin of the Napier Range, near Carpenter Gap. The tenement is
around 19 kilometres northeast of Kimberley Diamond Corporation’s Ellendale Diamond Mine
in the west Kimberley Province.
“The field results suggest one large body is present, as opposed to several smaller ones,”
Ms Maureen Muggeridge, Paramount’s Chief Executive Officer said today. “This
supports data from our 2005 high-resolution aerial magnetometry survey, which
indicated the lamproite target may be larger than was interpreted from earlier work”.
A number of drill samples were collected for analysis. Tests will include microscopic
examination of drill chips, geochemical assaying and mineralogical analysis in order to
determine the various lamproite phases present. Microdiamond analysis will be carried out on
selected samples from the more diamond prospective phases such as tuffaceous (“fragmental”)
lamproite and material from certain marginal zones.
“Tuffaceous lamproite has already been identified in four holes from field observations,”
Ms Muggeridge said. “In each case several tens of metres of this material were
intersected in the drill holes. In three cases the bottom of the hole was still in tuffaceous
lamproite.”
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Prepared by:
Maureen Muggeridge
Chairman / Chief Executive Officer
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Maureen Muggeridge, BSc, FAIG, Chairman and Chief Executive Officer
of Paramount Mining Corporation Ltd. Ms Muggeridge is a full-time employee of the company. She has
sufficient experience relevant to the style of mineralisation and type of deposits under consideration, and to
the activity undertaken, to qualify as a competent person as defined in the 2004 Edition of the “Australasian
Code for Reporting of Mineral Resources and Ore Reserves”. Maureen Muggeridge consents to the
inclusion in the report of the matters based on her information in the form and context in which it appears.