Adelaide, Dec 4, 2006 (ABN Newswire) - Field results from Paramount Mining Corporation's Ochinso Project, southern Ghana, from prospecting pits distributed over the entire project area, show that diamonds are widespread over the tenement. The project area is located within the Birim Diamond Field, which has historically produced over 100 million carats of diamonds.

Paramount (ASX: PCP) completed a total of 20 prospecting pits during its Phase 1 operations, each measuring 1.5 x 1.5 metres at surface, excavated to bedrock. Diamonds recovered in the field were 53 in total, all of commercial size in excess of 1 mm diameter. "As this initial programme focused on assessing the spread of diamonds and gold in the main river systems in the project area, the results have proved very encouraging. It is clear that several of the major drainage systems warrant detailed assessment in the next phase of work," Paramount's Chief Executive Officer, Ms Maureen Muggeridge, said today.

"Prospective gravels in the Ochinso alluvial deposits are readily accessible, being consistently located at shallow depths. This adds to the attraction of the alluvial targets. Aside from the possible presence of economically viable alluvial diamond deposits, we also believe the area has both hard rock gold and diamond potential. This will also be an important aspect of our future exploration effort".

The sample concentrates are now undergoing laboratory analysis in Perth. Additional diamonds may be recovered, and accurate weights for diamonds and gold will be determined. These results will assist in deciding priorities for the next phase of exploration, which will include more pitting work and mapping.

The Ochinso Project, 37 square kilometre in size, is located around 110 kilometres northwest of the capital city of Accra.