Paramount Gold and Silver (AMEX:PZG) Soars on San Miguel Discovery

Among small cap stocks, Paramount Gold and Silver Corp. (AMEX:PZG) was among the top three performers in the segment last week, soaring almost 44 percent on the discovery of significant new resources at San Miguel.

It is located in one of the hottest mining spots in the world: Sierra Madre Occidental, which is loaded with gold and silver.

What's impressive about this isn't only the discovery, but the fact Paramount stuck with their strategy of working in the areas of proven reserves discovered by other miners.

In this case it appears their new "discovery" is in fact an extension of the Palmarejo geological structure which Coeur d'Alene Mines' (NYSE:CDE) works.

So far there has been positive identification of 550 meters strike length, and is estimated to probably have another 200 meters more to it.

When contrasted with Palmarejo, gold and silver yields in some parts are reportedly far higher than the 1.86 grams a ton there. One drill hole has produced 590.4 grams of silver a ton and 6.53 grams of gold a ton.

Paramount closed Friday at $2.59, up $0.75, or 40.76 percent. Volume was over double the 3-month daily average.