Paragon
Minerals Corporation (TSX-V: PGR; �Paragon�) is pleased to
provide an update on its exploration activities underway on the 100%-owned
South Tally Pond VMS project in central Newfoundland. The South Tally Pond
project is located adjacent to and is in the same volcanic belt as the
producing Duck Pond Cu-Zn Mine/Mill complex operated by Teck Resources.
Seven drillholes (2,500 metres) of a planned 9,000 metre drill program has
now been completed and 1,315 line kilometres of airborne EM/magnetic
geophysical survey was completed over two, un-surveyed areas of the
property. Highlights include:
- Drillhole LM11-52, located 50 metres up-dip of
LM10-43, 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
- Drillholes 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.
- Preliminary airborne geophysical results have
outlined a number of high priority target areas.
�We are
encouraged with the drilling to-date at the Lemarchant discovery. The thick
massive sulphide intersected in drillhole LM11-52, highlights the potential
of expanding the Lemarchant massive sulphide zone with additional
drilling,� said Michael Vande Guchte, President and CEO of Paragon �Our
drilling in the North Target area has intersected a similar, favourable
mafic to felsic volcanic stratigraphy and remains open for further drill
testing along strike, dip, and to depth. Given the geological endowment at
Lemarchant, we believe there is excellent potential for expanding and
delineating new zones of high-grade massive sulphide mineralization�
Drilling
is continuing at the Lemarchant prospect and aimed at further defining the
mineralization towards a NI 43-101 compliant resource. Further details of
the drilling are provided below and on the company website.
Lemarchant
Massive Sulphide Zone - Lemarchant Prospect
Drillhole
LM11-52 (Section
102+50N) intersected a thick sequence of semi-massive to massive
polymetallic sulphide mineralization over 19.60 metres grading 4.36% zinc, 0.93% lead, 0.40%
copper, 40.9 g/t silver, and 1.21 g/t gold and includes 8.70 metres grading 8.09% zinc,
2.09% lead, 0.75% copper, 90.60 g/t silver and 2.59 g/t gold.
The massive sulphide mineralization is located immediately below a mudstone
horizon located along the mafic to felsic volcanic rock transition, and is
further underlain by intensely altered and stringer mineralized felsic
volcanic rocks. The drillhole, the first 50-metre step out on the section,
extends the massive sulphides 50 metres up dip of the massive sulphides
intersected previously in drillhole LM10-43. The mineralization remains
open in all directions.
North
Target Area - Lemarchant Prospect
Four
drillholes (1,540 metres) were completed to continue testing the North Target area
of the Lemarchant Prospect. The favourable target horizon was intersected
in all of the four drillholes and consists of altered felsic volcanic rocks
containing disseminated to stringer sulphide mineralization.
Drillholes
LM11-49 and 50 (Section 108+00N), a 100 metre step-out to the north of any
previous drilling, intersected altered felsic volcanic rocks with abundant
stringer pyrite mineralization. The drilling targeted airborne EM and
downhole Pulse EM geophysical targets that appear to be related to a
pyrrhotite-rich mudstone horizon located at the top of the felsic volcanic
package. A similar mudstone horizon is associated with the Lemarchant
massive sulphide mineralization to the south and, based on the airborne EM
geophysics; the mudstone horizon is projected to continue a further 400
metres to the north of the two new drillholes.
Drillhole
LM11-51 (Section 104+50N) intersected a thick sequence of altered felsic
volcanic rocks with disseminated to stringer base metal sulphide
mineralization. The mineralization is located 50 metres �down-dip� of the
semi-massive base metal sulphide/barite horizon intersected in drillhole
LM08-19. Significant assay results include 3.03% zinc, 0.28% copper and 7.09 g/t silver over 1.9
metres at a downhole depth of 123.6 metres.
Drillhole
LM08-28ext (section 106+00N) was extended from a drilled depth of 300
metres to 515 metres. The drillhole extension intersected 142 metres of
altered felsic volcanic rocks with disseminated and stringer base metal
mineralization. Significant assay results include 2.29% zinc, 0.20% copper and 10.30
g/t silver over 2.0 metres at a downhole depth of 371
metres.
Regional
Exploration
Two assessment
drillholes (653 metres) were completed elsewhere on the South Tally Pond
property; one drillhole at the Duck West Prospect (443 metres) and one
drillhole at the Cookstown Prospect (210 metres). The initial drillhole at
the Duck West Prospect intersected no significant sulphide mineralization.
The Cookstown Prospect, located 3 km north of the Lemarchant prospect,
tested a moderate to strong airborne EM conductor. The drillhole
intersected a thick pyrrhotite-rich mudstone horizon (26 metres) explaining
the conductor with assays up to 2.48% zinc, 0.14% copper and 1.1 g/t silver
over 0.55 metres along the contact.
Preliminary
results from the 1,315 line kilometres airborne EM and magnetic geophysical
survey has outlined a number of high priority conductive trends on the
Gills Pond Block located southwest of the Duck Pond Mine. The conductive
zones occur adjacent to alteration zones and mineralized float containing
elevated base metals (see news release dated September 23, 2010).
Additional ground follow-up of these areas is planned for the summer.
Other
News
Paragon
has entered into an option agreement to acquire a 100% interest in the Seal
Bay VMS property located in north-central Newfoundland. The property
consists of 3 mineral licenses located in the same volcanic belt that hosts
the nearby Point Leamington Deposit (12,300,000 tonnes grading 1.92% zinc,
0.88 g/t gold, 0.28% copper and 16.94 g/t silver; Calibre Mining Corp.
NI43-101 report). To acquire a 100% interest in the Seal Bay property,
Paragon must make total cash payments of $122,500 and issue 230,000 common
shares of Paragon to the property vendor over a four year period. The
property vendor will retain a 2% net smelter royalty, of which 50% can be
purchased by Paragon at any time for $1,000,000. The option agreement is
subject to the approval of the TSX-Venture Exchange. Paragon is discussing
a potential joint venture with a third party.
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 has made a significant precious
metal-rich massive sulphide discovery 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 and its properties, 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 comprising 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. Historical results were obtained
from published reports and news releases 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 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.�