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Paragon Provides Further Update On South Tally Pond VMS Project
May 4, 2011
Paragon Minerals Corporation (TSX-V: PGR; "Paragon") is pleased to provide a further update on its exploration activities on the 100%-owned South Tally Pond volcanogenic massive sulphide (VMS) project in central Newfoundland. The South Tally Pond project is located adjacent to and in the same volcanic belt as the producing Duck Pond Cu-Zn Mine operated by Teck Resources.
Paragon has made a significant copper-lead-zinc-silver-gold VMS discovery at the Lemarchant prospect, located approximately 20 kilometres from the Duck Pond mine site. The 2011 drill program is aimed at further defining the Lemarchant mineralization towards a NI 43-101 compliant resource and to test other high priority targets areas on the property. Ten drillholes (3,326 metres) of a planned 9,000 metre drill program have now been completed.
Highlights include:
- Drillhole LM11-52 (previously reported) intersected semi-massive to massive sulphides assaying 8.09% zinc, 2.09% lead, 0.75% copper, 90.60 g/t silver and 2.59 g/t gold over 8.70 metres;
- Drillhole LM11-54 intersected semi-massive to massive sulphides assaying 4.66% zinc, 2.21% lead, 0.18% copper, 65.63 g/t silver and 0.28 g/t gold over 2.20 metres including 16.40% zinc, 8.70% lead, 0.60% copper, 245.40 g/t silver and 0.48 g/t gold over 0.5 metres;
- Four drillholes (all previously reported) in the North Target area of the Lemarchant prospect intersected favourable felsic volcanic stratigraphy similar to that associated with massive sulphides to the immediate south;
- Downhole PEM geophysics indicates moderate/strong off-hole conductors in 2011 drillholes; and
- Final airborne EM geophysical results indicate high-priority conductors in previously un-surveyed areas.
"We remain encouraged with the drilling to-date at the Lemarchant massive sulphide discovery. Rapid changes in thickness of the massive sulphides can be expected in these types of environments and further step-out and infill drilling is required" said Michael Vande Guchte, President and CEO of Paragon. Drilling has been stopped during the spring break-up period and is scheduled to resume in mid-May. A summary of the winter drill program is provided below with further details, maps and sections available on the Paragon website.
Lemarchant Prospect � Drilling and Downhole PEM results
Four drill holes (1,473 metres) were completed on the North Target area (Section 104N-108N) and all intersected mineralized felsic volcanic stratigraphy similar to that associated with massive sulphides to the immediate south (see Paragon news release dated March 28, 2011). Downhole PEM geophysics has outlined a large (200 by 50 metre) and strong conductor that continues to the north of drillhole LM11-49. This area has not been drill tested.
Four drill holes (1,200 metres) were completed on the Lemarchant massive sulphide zone (Section 100N-104N) and intersected the semi-massive to massive sulphide horizon in two of the four drillholes.
Drillhole LM11-52 (Section 102+50N) tested the 50-metres "up-dip" continuation of the semi-massive to massive sulphides intersected in drillhole LM10-43. The drillhole intersected semi-massive to massive sulphides assaying 8.09% zinc, 2.09% lead, 0.75% copper, 90.60 g/t silver and 2.59 g/t gold over 8.70 metres (see Paragon news release dated March 28, 2011).
Drillhole LM11-53 (Section 101+50N), the first 50-metre infill drillhole between LM07-13 and LM07-14, intersected a fault zone at the projected depth of the massive sulphide horizon (200 metres). The mineralized horizon is partially preserved within the fault zone as highly altered, felsic volcanic breccias (footwall rock) containing barite and base metal sulphides.
Drillhole LM11-54 (Section 101+75N), located 25 metres north of LM11-53, intersected massive sulphides assaying 4.66% zinc, 2.21% lead, 0.18% copper, 65.63 g/t silver and 0.28 g/t gold over 2.20 metres at the projected target depth of 200 metres.
Drillhole LM11-55 (Section 102+50N) tested the 50-metre "down-dip" continuation of massive sulphides in drillhole LM10-43. The massive sulphide horizon was not intersected and west-dipping thrust fault is interpreted to have cut-off the mineralization. Evidence of this structure is also inferred on adjacent sections and suggests the massive sulphide mineralization may be preserved at depth to the west.
Downhole PEM geophysics has identified an off-hole conductor in drillhole LM10-43 and LM10-53 below the main massive sulphide zone. The conductor was intersected by drillhole LM07-14 (Section 102+00N) at the base of the mineralized felsic volcanic sequence. The conductor projects down dip from drillhole LM07-14, in an area that has not been drill tested.
Airborne Geophysical Survey
Final results from the 1,388 line kilometres airborne electromagnetic (EM) and magnetic geophysical survey have been received and outlined at least three high priority conductors located 5 to 15 kilometres southwest of the Duck Pond Mine. Ground follow-up of these areas is planned for the summer.
About Paragon Minerals Corporation
Paragon Minerals Corporation is a Canadian-based mineral exploration company focused on gold and base-metal exploration in Newfoundland and Ontario. The Company's flagship base metal project is the 100%-owned South Tally Pond VMS project where it actively exploring a precious metal-rich massive sulphide discovery and other priority VMS targets in a producing base metal mining district in central Newfoundland. The Company is also exploring an exceptional portfolio of gold properties through company-funded and partner-funded exploration programs. For more information on the Company, please visit the company website at www.paragonminerals.com
PARAGON MINERALS CORPORATION
"Michael J. Vande Guchte"
_______________________________
President & CEO
Investor Relations: Miranda McCarthy (604) 629-2353 or Wanda Cutler (416) 303-6460
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 the contents of this news release. Drillhole intervals are core length and estimated to be near true thickness. Samples were analyzed for Au (1 assay ton), Ag, Cu, Pb and Zn at Eastern Analytical Labs in Springdale, NL from sawn NQ-sized half core sections. Data quality is monitored through the insertion of control samples consisting of one prepared base and precious metal standard and one blank sample for every 20 samples of Diamond drill core. All control samples conformed to the accepted contained grades of base and precious metals. Sample pulps were shipped to ALS Chemex in North Vancouver, BC for analysis for 33-element ICP analysis on all samples and for further check assays of significant base and precious metal bearing samples.
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 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.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." |