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Wed, February 25, 2009 Paragon Minerals Corporation: Paragon Minerals Options the Huxter Lane Gold Property to Golden Dory
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2009) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to announce the signing of a Joint Venture option agreement with Golden Dory Resources Corp. ("Golden Dory") (TSX VENTURE:GDR) on Paragon's 100%-owned Huxter Lane gold property. Under terms of the option agreement, Golden Dory may earn a 60% interest in the property by funding $2,000,000 in exploration expenditures over a four year period and making cash and share payments of $50,000 and 350,000 shares to Paragon. Golden Dory may then elect to earn an additional 10% interest by issuing an additional 150,000 shares to Paragon and completing a bankable feasibility study. The terms of the option agreement are subject to regulatory approval.
The Huxter Lane gold property is a near surface, bulk-mineable gold target located 90 kilometers south of Grand Falls - Windsor in central Newfoundland. Previous drilling (31 holes, 5,265.3 m) at the Mosquito Hill prospect has outlined a significant gold-bearing, porphyritic intrusion over a strike length of 1000 metres and to a vertical depth of 225 metres. The mineralized porphyry dips gently to the south and remains open along strike and to depth. Significant drill intercepts include:
- 35.00 metres of 2.21 g/t gold from 115.00 to 150.00 metres in HX06-16;
- 16.85 metres of 2.00 g/t gold from 141.30 to 158.15 metres in HX07-24;
- 28.60 metres of 1.07 g/t gold from 5.90 to 34.50 metres in HX06-01; and
- 103.35 metres of 0.67 g/t gold from 87.85 to 191.20 metres in HX07-20.
"We are very pleased to have Golden Dory as a new exploration partner on this exciting bulk-tonnage gold project," stated Michael Vande Guchte, President and CEO of Paragon. "Our work to date has demonstrated a robust gold mineralizing system that remains open down-dip and along strike. We look forward to an aggressive drilling campaign on the property with Golden Dory with a near term objective of defining a gold resource."
Gold mineralization at the Huxter Lane property has many geological similarities to bulk-tonnage gold deposits in the Yukon and Alaska, including the Donlin Creek deposit (393.8 Mt at 2.50 g/t Au for 31.67M oz Au; NovaGold Resources Inc. website), the Fort Knox deposit (240.9 Mt at 0.5 g/t Au for 3.85M oz Au; Kinross Gold Corporation website) and the past-producing Brewery Creek Mine (13.3 Mt at 1.44 g/t Au for 0.613M oz Au; Diment and Craig, 1999). The style of gold mineralization represents a new exploration target in Newfoundland and highlights the potential of the area to host large mineralizing systems with multi-million ounce gold potential.
Paragon has seven other gold projects including the 100%-owned JBP Linear project located near Gander, NL. Drilling to date at the JBP Linear project (54 holes, 9,879 metres) has identified high-grade gold mineralization at the H-Pond and Pocket Pond prospects. The prospects are located along a 3 kilometre quartz-vein zone that forms part of a larger, 7 kilometre long "linear break" that extends across the property. Surface float samples of up to 798 g/t gold (25.6 oz/t gold) are located along this linear. Significant drill assay results have included:
- 11.70 g/t gold over 3.40 metres including 16.27 g/t gold over 2.40 metres (HP04-03);
- 12.43 g/t gold over 3.40 metres including 84.77 g/t gold over 0.50 metres (HP08-44); and
- 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres (HP08-48).
Paragon is looking to advance the JBP-Linear project with additional surface trenching and drilling. Two of the gold projects (Golden Promise and Long Pond) are under option to JV partners with work plans being determined.
Update on the South Tally Pond VMS project - Data from the South Tally Pond project was further compiled and assessed in advance of any upcoming programs. At the Lemarchant base metal discovery, a review of the geology, airborne geophysics, borehole EM, Titan 24 and lithogeochemical data was completed by Peter Manojlovic, P.Geo, an independent consultant to the Company.
The data review indicates that there is considerable room to develop increased tonnages at the Lemarchant prospect, not only within the confines of the known intersected mineralization, but also along strike to the north and at depth, where both airborne and borehole EM anomalies remain to be tested. Drilling to-date on this prospect has been completed to a preliminary fashion and the mineralization intersected is intimately associated with strong hydrothermally altered rhyolite breccias.
From a regional perspective, at least 54 short strike length untested airborne EM anomalies have been identified, many of which have strong associated alteration zones in favourable felsic volcanic stratigraphy. Five areas in particular have been identified as priority targets: Beaver Lake, Spencers Pond, Rogerson Lake, Bindons Pond and the Lake Douglas prospect.
Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. Paragon and its exploration 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 or were supervised by Qualified Person David Copeland, M.Sc., P.Geo. Mr. Copeland also reviewed and approved the technical contents of this news release. Historical results and other deposit information contained herein were obtained from websites and published papers 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 the Company 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 the Company 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 the Company's management on the date the statements are made. The Company 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.
