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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Aug. 25, 2009) - Paragon Minerals Corporation
(TSX VENTURE:PGR) ("Paragon") is pleased to provide updates
on two recently completed Joint Venture agreements and recent fieldwork
at its 100%-owned South Tally Pond Project.
The Winterhill Joint Venture Agreement (see news release dated May 25,
2009) with GFE Capital Inc. ("GFE") on the 100%-owned
Winterhill VMS project was completed on August 24, 2009. The property
covers a 3.5 kilometre long zone of altered felsic volcanic and
calcareous sedimentary rocks that host a number of base metal prospects
including Winterhill, Winterhill East and Winterhill West. Previous
drilling at these prospects (18 holes, 3,872 metres) intersected
massive sulphide mineralization with significant assays of 1.41% copper
over 6.0 metres and 10.1% zinc over 4.0 metres. Under terms of the
agreement, GFE may earn a 70% interest in the property by funding
$700,000 in exploration expenditures over a four year period ($100,000
firm in first year) and making cash payments of $60,000 to Paragon. Paragon
will be the operator during the earn-in period.
The Golden Promise Joint Venture Agreement with Crosshair Exploration
& Mining Ltd (CXZ.NYSE Alternext US; CXX.TSX;
"Crosshair") on the Golden Promise gold project (see news
release dated April 9, 2009) was completed on April 30, 2009. The
Golden Promise project is host to numerous gold-bearing quartz vein
zones highlighted by the Jaclyn Main Zone, which contains a preliminary
NI43-101 compliant resource of 89,500 ounces gold. The zones remain
open along strike and to depth. Under the terms of the joint venture
agreement, Crosshair has issued 2,655,000 of its common shares to
Paragon to earn a 60% interest in the Golden Promise gold project. Crosshair
will also provide Paragon with a $2.0 million carried interest in
exploration expenditure to be completed prior to May 2013. Crosshair
can extend this time frame by one year upon issuing a further 250,000
common shares to Paragon. On completion of the $2.0 million in exploration
expenditures, Crosshair can elect to earn an additional 10% interest
(to 70%) in the project by providing Paragon with an additional $1.0
million carried interest in exploration expenditures within a one year
period. Crosshair will be the operator.
"We look forward to continuing our exploration work with Crosshair
on the Golden Promise Gold Project and to begin exploring with GFE on
the Winterhill VMS Project," said Michael Vande Guchte, President
and CEO of Paragon. "Golden Promise is a significant gold project
with a preliminary gold resource that remains open for expansion. At
Winterhill, we are planning to drill test a strong airborne EM target
located along strike of previously intersected massive sulphides."
Paragon remains committed to advancing its 100%-owned South Tally Pond
VMS Project and JBP Linear Gold Project as well as evaluating new
exploration opportunities. At the South Tally Pond Project, where
Paragon has made a significant base metal discovery at the Lemarchant Prospect,
a recently completed field program focused on the follow-up of numerous
short strike-length, untested airborne EM anomalies located elsewhere
on the property (see news release dated February 25, 2009). Many of
these EM anomalies are located in favourable, altered felsic volcanic
stratigraphy. Highlights include:
- The Beaver Lake Prospect area, where a significant short
strike-length airborne EM conductor (1.2 km long) and coincident ground
gravity anomalies coincides with altered, proximal felsic volcanic
rocks and anomalous (200 ppm Cu, 24 ppm Pb, 1200 ppm Zn and 1.9 ppm Ag)
basal till samples. The area has strong geological similarities to that
observed at the nearby Lemarchant Prospect and the adjacent producing
Duck Pond Mine.
- The Bindon's Pond Prospect area, where rock sampling has returned
intense hydrothermal alteration signatures similar to massive
sulphide-bearing host rocks at the nearby Lemarchant Prospect and Duck
Pond Mine. Precious metal-rich, sulphide bearing mudstone float (assaying
264 ppb Au and 3.3 ppm Ag) was discovered near a priority airborne EM
target at Bindon's Pond. The nature of the sulphide-bearing mudstone is
very similar to the mudstone horizon overlying the polymetallic massive
sulphides at the Lemarchant Prospect.
At the 100%-owned JBP Linear Gold project, wide-spaced drilling
completed to date (54 holes, 9,879 metres) has identified high-grade
gold mineralization at the H-Pond and Pocket Pond prospects.
Significant drill intercepts include 255.0 g/t gold (7.45 oz/ton) over
0.5 metre at Pocket Pond and 52.37 g/t gold (1.53 oz/ton) over 0.35
metre at the H-Pond prospect. The two prospects are located along a
three kilometres quartz-vein zone that forms part of a larger, seven
kilometres long "linear" trend which extends across the
property. Gold-bearing quartz float samples assaying up to 798.87 g/t
gold (23.30 oz/ton) have been located along this trend approximately
2.5 kilometres northeast of the H-Pond prospect.
Paragon Minerals Corporation is a Canadian-based mineral exploration
company listed on the TSX Venture Exchange. Paragon and its joint
venture partners are focused on gold and base metal exploration in
Eastern Canada, specifically within the Province of Newfoundland and
Labrador. Further details on the properties can be found on the Company
website at www.paragonminerals.com
PARAGON MINERALS CORPORATION
Michael J. Vande Guchte, President & CEO
Qualified Person - All Paragon projects are supervised by Qualified
Person David Copeland, M.Sc., P.Geo. Mr. Copeland reviewed and approved
the technical contents of this 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 regulatory approvals, 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. 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."
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