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Message: Options the Huxter Lane Gold Property to Golden Dory
| February 25, 2009 |
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Paragon Minerals Options the Huxter Lane Gold Property to Golden Dory
Provides update on the South Tally Pond VMS project; holds seven other gold projects |
| 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 |
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