Paramount Gold and Silver Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Paramount Gold and Silver (ASE: PZG) climbed a whopping 23% today after the company announced a multimillion-ounce gold resource.
So what: SRK Consulting prepared a National Instrument 43-101 compliant resource estimate on Paramount's Sleeper Gold Project, and it was a doozy. The report shows 2.6 million ounces of measured and indicated gold and another 25.3 million ounces of silver. There are another 1.1 million ounces of gold and 8.2 million ounces of silver inferred in the project.
Now what: With gold currently at $1,840/ounce and silver more than $41/ounce, that's more bling than Jay-Z, Kanye West, and Puff Daddy could afford combined. Tetra Tech has been contracted to prepare an NI-43-101 compliant preliminary economic assessment of the project that should be completed early next year, which will give us even more information. The market is obviously ecstatic about the results today, and this could be a major catalyst to drive shares forward as long as gold and silver prices remain high.
Interested in more info on Paramount Gold and Silver? Add it to your watchlist byclicking here.
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