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Message: Paragon Intersects More Massive Sulphides at South Tally Pond VMS Project
Mar. 28, 2011 (Canada NewsWire Group) --
- 8.09% zinc, 2.09% lead, 0.75% copper, 90.60 g/t silver, 2.59 g/t gold over 8.70 metres -
TSX Venture Exchange Symbol: PGR
Shares Issued: 52,939,254
VANCOUVER, March 28 /CNW/ - 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.
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.
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
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."
Investor Relations: Miranda McCarthy (604) 629-2353 or Wanda Cutler (416) 303-6460
Source: Canada Newswire (March 28, 2011 - 9:02 AM EDT
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