| March 4, 2010 |
| Paragon Minerals and Partner Report Initial Inferred Resource Estimate of 488,800 Ounces of Gold at Huxter Lane Property |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") is pleased to report that its exploration partner, Golden Dory Resources Corp. (TSX VENTURE:GDR) ("Golden Dory") has completed the first NI 43-101 compliant gold resource estimate on the Huxter Lane property in central Newfoundland. The 100%-owned Huxter Lane property is under option to Golden Dory, whereby Golden Dory can earn a 70% interest in the property by completing a bankable feasibility study.
The resource estimate, prepared by independent consultant Mr. Gary Giroux, P.Eng of Giroux Consultants Limited, estimates the Mosquito Hill Zone to contain an indicated resource of 4.47 million tonnes averaging 0.526 g/t gold for 75,600 ounces gold and an inferred resource of 32.9 million tonnes averaging 0.461 g/t gold for 488,800 ounces gold at a cutoff of 0.30 grams per tonne gold. It should be noted that this resource estimate is not an economic assessment of the Mosquito Hill Zone, therefore a range of cutoff grades are listed below. Highlights include:
-- Resources estimated at a 0.30g/t gold cutoff: 75,600 ounces gold
indicated and 488,800 ounces gold inferred.
-- Resource remains open to depth and along strike with near surface open
pit potential.
-- Resource modeling identifies high grade corridor in center of resource
with little previous drilling.
-- Spring 2010 work program to include drilling, metallurgical testing and
environmental studies.
The Mosquito Hill Zone is a large, robust intrusion-hosted system that has been tested by 46 holes over a strike length of 900 metres and width of 500 metres. Over 90% of the resource estimate occurs at depths shallower than 200 metres. The mineralized intrusion is exposed along its northern edge and dips gently to the southwest at about 10 degrees (nearly flat lying). At the southwestern limits of the current resource, the zone remains open along strike and down-dip. The Huxter Lane property has good road access and is located near existing infrastructure including power and labour.
Mosquito Hill Zone - Indicated Resource within the mineralized solid
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Grade greater
Au Cut-off Tonnes greater than Cut-off Contained Ounces
(g/t Au) than Cut-off (g/t Au) Au
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0.10 7,880,000 0.393 99,600
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0.20 6,800,000 0.431 94,200
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0.30 4,470,000 0.526 75,600
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0.40 2,470,000 0.670 53,200
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Mosquito Hill Zone - Inferred Resource within the mineralized solid
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Grade greater
Au Cut-off Tonnes greater than Cut-off Contained Ounces
(g/t Au) than Cut-off (g/t Au) Au
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0.10 47,860,000 0.392 603,200
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0.20 44,890,000 0.408 589,000
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0.30 32,980,000 0.461 488,800
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0.40 18,210,000 0.553 323,800
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"We are extremely pleased with the progress that our partner Golden Dory and its technical team have made on the Huxter Lane project in their first year. This initial resource estimate establishes the Mosquito Hill zone as a significant zone of gold mineralization with excellent potential to increase the resource along strike and down dip" said Michael Vande Guchte, President and CEO of Paragon. "The 2010 plans are to continue to drill aggressively to expand the resource, begin metallurgical testing and continue with environmental baseline studies."
Resource Estimate
The independent mineral resource estimate prepared by Giroux Consultant Limited was produced from a database consisting of 46 Diamond drill holes (NQ size core) totaling 7,289 metres from which 3,777 samples were assayed for gold. Assays within the mineralized solid were capped at 4.5 grams per tonne gold and uniform downhole composites measuring 5 metres in length were created to honour the boundaries of the solid. A block model was created with blocks measuring 20 x 20 x 5 metres that were superimposed over the geologic solid. A specific gravity of 2.78 was applied to all blocks, which was measured by the weight in air / weight in water method. Gold grades were interpolated into the block model by ordinary kriging. The resource estimates can be classified as indicated and inferred mineral resources based on definitions from National Instrument 43-101and from CIM 2005. The completed NI 43-101 Technical Report will be posted by Golden Dory on SEDAR within 45 days of this news release.
About Paragon Minerals Corporation
Paragon Minerals Corporation is a Canadian-based mineral exploration company focused on gold, copper, lead, zinc, and silver exploration in eastern Canada. Paragon's flagship base metal project is the 100%-owned South Tally Pond VMS project where it has made a significant precious metal-rich massive sulphide discovery in a proven mining district in central Newfoundland. Paragon is also exploring an exceptional portfolio of gold properties through both company and partner-funded exploration. For more information on Paragon and its properties, please visit the website at www.paragonminerals.com.
PARAGON MINERALS CORPORATION
Michael Vande Guchte, President & CEO
Qualified Person - David A. Copeland, M.Sc., P.Geo., Exploration Manager for Paragon Minerals Corporation is a Qualified Person as defined by NI43-101 and has reviewed and approved this news release. Gary Giroux, P. Eng. of Giroux Consultants Limited is the Qualified Person as defined by NI 43-101 for the resource estimate discussed above and has reviewed and approved the news release. Historical results were obtained from published reports available in the public domain.
Forward-looking statements - This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Paragon expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding use of proceeds, current and future exploration programs, activities and results. Although Paragon believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Paragon's management on the date the statements are made. Except as required by securities laws, Paragon undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory and governmental approvals for the transactions described herein, the ability of Paragon and other relevant parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Paragon's proposed transactions and exploration and development programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.
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