Paramount Gold Mining Corp. (PZG)

Paramount Gold & Silver (PZG). Paramount’s business model is based on having the best, most experienced geologists. They evaluate properties and then acquire the ones that appear to be drastically undervalued compared to the amount of gold that is present. At the time of acquisition, they pay a price based on apparent reserves. They then go in and do exploratory drilling where the geologists think there is much more gold, and if they are correct they can multiply the reserves dramatically. Then, rather than developing a mine themselves, they partner the project to a company that wants to mine it for cash plus royalties. If the project is big enough, they might sell the whole company, and then the management team and geologists start a new company and do it again.

Paramount does not expect to generate revenues from the San Miguel project in the next year. Further, it is not Paramount's objective to enter the mine management business. Rather, the Company hopes to identify a resource that will enable it to attract a larger company to partner with this company who has experience developing and managing a mine.