Options Winterhill Property to GFE Capital Corp.
posted on May 25, 2009 05:54AM
Edit this title from the Fast Facts Section
|May 25, 2009|
|Paragon Minerals Options Winterhill Property to GFE Capital Corp.|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2009) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to announce the signing of a option agreement with GFE Capital Corp. ("GFE Capital") on its 100%-owned Winterhill VMS Property. The Winterhill property is located 17 kilometres northeast of Harbour Breton on the south coast of Newfoundland, Canada.
"We are pleased to have GFE Capital as a new exploration partner," said Michael Vande Guchte, President and CEO of Paragon. "The Winterhill property has a number of priority targets for us to follow-up on including a sizeable untested airborne electromagnetic (EM) conductor immediately along strike from drill indicated massive sulphides."
The Neoproterozoic-aged volcanic rocks underlying the Winterhill property are similar to that of the Arabian-Nubian Shield that hosts numerous large tonnage and high-grade VMS deposits. 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 by Noranda at these prospects (18 holes, 3,872 metres) intersected massive sulphide mineralization with assays of 1.41% copper over 6.0 metres and 10.1% zinc over 4.0 metres.
A recent airborne survey completed by Paragon has identified a least four priority short strike length airborne EM conductors that require follow-up prospecting and drill testing. One of the priority conductors is located below a small lake and coincides with a conductive trend that continues on surface through the Winterhill East prospect. A single historic drill hole at the Winterhill East prospect intersected 9.6 metres of semi-massive to massive pyrite mineralization (no assays were reported). The best section of this airborne EM conductor occurs over about a 700 metres strike length making it a potentially large target. Other priority target areas include the Olive Cove prospect that is underlain by mineralized felsic volcanic rocks assaying up to 6.4% zinc. The prospect has not been drill tested and is associated with a short strike length airborne EM conductor (approximately 200 metres long) and a 900-metre long multi-element soil anomaly.
Under terms of the option agreement, GFE Capital 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 option earn-in period. The terms of the option agreement are subject to regulatory approvals.
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 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 were obtained from published reports available in the public domain.