Adelaide, June 29, 2006 (ABN Newswire) - The potential for part of its key diamond acreage in Ghana to also yield gold mineralisation is to be tested by ASX-listed diamond explorer, Paramount Mining Corporation Limited (ASX: PCP).

The move is Paramount's first foray into gold exploration.

The Company stressed today however that its primary focus remained diamond exploration and development - the gold opportunity being pursued only because the diamond ground concerned covered part of one of Ghana's rich gold belts.

Paramount has commissioned a geochemical survey from next month to investigate potential gold mineralisation within the eastern part of the Osenase Project. The survey is positioned to cover the lower part of the Winneba-Kibi greenstone belt. Also known as the "Kibi Gold Belt", it is the most easterly greenstone belt in Ghana and has many features similar to the main gold belt of Ghana, the Ashanti.

"The extension of the tenement over the southern margin of the Kibi Gold Belt adds substantial extra potential for this concession area, which has already yielded exciting diamond results," Paramount's Chief Executive Officer, Ms Maureren Muggeridge, said today.

"Extensive alluvial gold is found throughout the Kibi Gold Belt, pointing to the probable presence of bedrock gold occurrences," Ms Muggeridge said.

"The gold investigations will commence with a grid survey over the main gold prospective zone and some flanking areas to detect signs of gold mineralisation, with later fill in sampling as required. It is expected that over 1,500 geochemical samples will be collected with results due later this year."

Samples of a minimum 2 kilogram size will be collected from a depth of around 30 centimetres.

The geochemical survey, which will involve around 90 kilometres in grid lines, will also test part of the ultramafic belt in the western part of the project area, which hosts diamondiferous hard rock sources.