Provides Update on Recent JV Agreements and Fieldwork
posted on Aug 25, 2009 10:05AM
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|August 25, 2009|
|Paragon Provides Update on Recent JV Agreements and Fieldwork|
|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.