Paramount Mining Corporation (ASX: PCP) has gained a new substantial shareholder in Gale 3 Spl Ltd, which is an Asian emerging market equity sub-fund.

The fund now holds an 8.73% stake, or just over 27.7 million shares.

Paramount Mining has been progressing the brownfields Gunung Rosa gold-silver-base metals project in Indonesia at speed, and recently delivered a new total Inferred Resource of 634,000 gold ounces with significant silver and base metals credits.

Metallurgical studies have indicated overall gold recovery at 86%, with 82% reporting to bullion.

Paramount Mining has already outlined a development plan for Gunung Rosa, which includes refurbishing the mine to operate under the existing valid Mining License – in the style of Kingsrose Mining’s (ASX: KRM) successful Way Linggo project.

The plan is to initially produce 30-35,000 ounces of gold from existing development drives by mid to late 2014 with access from declines at a cash cost of under US$500 a gold ounce – placing Paramount Mining in the lowest quartile of producers.

Following this Phase I production it is expected that the mine will be expanded to at least double this production rate from 2015-2016 onwards given the ongoing exploration program is identifying further potential resources at surface.