Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

April 13, 2010 09:18 ET

Paragon Intersects Massive Sulphides in North Target Area at South Tally Pond

- 6.0 metres of 6.60% Zinc, 0.68 % Lead, 0.61% Copper, 28.38 g/t Silver, 0.46 g/t Gold -

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") is pleased to provide an update on its recently completed winter diamond drilling program at the South Tally Pond volcanogenic massive sulphide (VMS) project in central Newfoundland. The project is located adjacent to Teck Resource's Duck Pond copper-zinc mine, where Paragon holds a significant land position covering 21,400 hectares in this highly prospective, producing volcanic belt.

The 2010 winter drilling program focused on the Lemarchant massive sulphide discovery and consisted of 10 diamond drillholes (3,489 metres; LM10-41 to 48 and extensions to LM93-11 and LM08-24). The program included four infill drillholes on sections 102+50N and 103+50N; and drill testing of down-hole geophysical PEM conductors to the north (section 105N to 106N) and south (section 100N) of previously drilled massive sulphides (see attached map). Highlights of the program include:

  • Infill drill hole LM10-43 intersected 30.10 metres of 9.30% zinc, 2.28% lead, 0.91% copper, 60.37 g/t silver and 1.41 g/t gold (core length) including 17.05 metres of 14.80% zinc, 3.56% lead, 1.40% copper, 80.90 g/t silver, 1.35 g/t gold (see news release dated March 8, 2010).
  • Down-hole geophysics outlined a strong off-hole conductor extending 200-300 metres north of previously completed drillhole LM08-19 (North Target area). Drilling intersected 6.0 metres of 6.60% zinc, 0.68% lead, 0.61% copper, 28.38 g/t silver and 0.46 g/t gold (core length) including 1.1 metres of massive sulphide of 30.54% zinc, 2.94% lead, 1.50% copper, 88.9 g/t silver and 0.72 g/t gold.
  • Intense hydrothermal alteration and proximal felsic volcanic rocks (rhyolite) intersected by drilling to date indicate a large, VMS mineralizing environment outlined over a 600-metre strike length.
  • Lemarchant massive sulphide mineralization remains open for expansion within the area of current drilling and along strike to the north and south.

"We continue to be very encouraged with the discovery of new massive sulphides intersections at the Lemarchant base metal project. The favourable host rocks, alteration and mineralization intersected by our drilling to date has outlined a significant VMS mineralizing system that extends over a 600-metre strike length and remains wide open for expansion" stated Michael Vande Guchte, President and CEO of Paragon Minerals Corporation. Results of the last six hole completed on the property are summarized below.

North Target area - Four drillholes (1,615 metres) targeted the down-hole geophysical PEM conductor interpreted to extend 200-300 metres north of previously completed drillhole LM08-19 (see news release dated March 8, 2010). The four drillholes, spaced 50 metres apart, intersected altered and mineralized felsic volcanic rocks below the mafic volcanic hanging wall rocks (basalt) at vertical depths of 240 to 325 metres below surface. 

Drillhole LM08-24 (Section 105+00N) was extended from 224 metres to a drilled depth of 490 metres. The drillhole intersected significant stringer to massive sulphide mineralization at 432 metres with 6.0 metres grading 6.60% zinc, 0.68% lead, 0.61% copper, 28.38 g/t silver and 0.46 g/t gold including 1.1 metres of massive sulphides grading 30.54% zinc, 2.94% lead, 1.50% copper, 88.9 g/t silver, 0.72 g/t gold (estimated true thickness is 70% of core length). The mineralized zone is located below a pyritic mudstone horizon and is underlain by intensely chlorite-silica altered felsic volcanic rocks containing stringer to disseminated sulphides including pyrite, sphalerite (zinc sulphide) and chalcopyrite (copper sulphide) over an 11 metres thickness. The mineralization coincides with the down-hole PEM conductor.

Drillhole LM10-48 (Section 105+00N) targeted the 50-metre down-dip extension to the massive sulphide mineralization intersected in drillhole LM08-24 and the associated down-hole PEM conductor. The drillhole intersected moderately to strongly silica-chlorite altered felsic volcanic rocks from 325.1 to 409.5 metres, with a thick, variably altered mafic intrusive unit intersected from 409.5 metres to the end of the drillhole at 541.3 metres. The mafic intrusive unit is interpreted to have cut through the projected down-dip extension of the massive sulphide stratigraphy.

Drillhole LM10-45 (Section 105+50N), located 50 metres north of LM08-24, intersected similar stratigraphy with moderate to strongly altered felsic volcanic rocks containing stringer to disseminated sulphides including pyrite, sphalerite and chalcopyrite from 391 metres to the end of the hole at 587.7 metres. The altered volcanic stratigraphy contains local pyritic mudstone horizons and is cut by numerous, altered mafic intrusive units that may have displaced any significant massive sulphide accumulations.

Drillhole LM93-11 (Section 106+00N), located 100 metres north of LM08-24, was extended from 376.2 metres to a drilled depth of 597 metres. The drillhole intersected moderately to strongly silica-chlorite altered felsic volcanic rocks from 391 metres to the end of the hole. Mineralization includes broad zones of stringer to disseminated sulphides including pyrite, sphalerite and chalcopyrite and local massive to semi-massive pyrite zones over 2 metres drilled thickness.

South Target Area - Two drillholes (548 metres) tested the up-dip continuation of massive sulphide mineralization intersected in drillhole LM07-13 and a strong off-hole geophysical PEM conductor modeled to the south of LM07-13. Both drillholes intersected altered and base metal mineralized felsic volcanic rocks below the mafic volcanic hanging wall rocks indicating the continuity of the Lemarchant footwall alteration system to the south.

Drillhole LM10-46 (Section 101+00N) targeted the 50-metre up-dip extension to the massive sulphides in drillhole LM07-13. The drillhole intersected strongly altered felsic volcanic rock at a depth of 175.75 metres with a 0.5-metre interval of semi-massive base metal sulphides at 178.0 metres. The mineralization zone is further underlain by altered felsic volcanic rocks with stringer and disseminated base metal mineralization to the end of the hole at 265.8 metres. Significant assays include 8.4 metres grading 4.30% zinc, 0.16% lead, 0.30% copper, 36.3 g/t silver, 0.38 g/t gold (core length, estimated near true thickness).

Drillhole LM10-47 (Section 100+00N) tested the strong down-hole geophysical PEM conductor located 100 metres south of LM07-13. The drillhole intersected a 3-metre thick section of graphitic, iron-rich (pyrrhotite) mudstone at a drilled depth of 139.7 metres. The mudstone horizon is underlain by moderate to local intensely altered, felsic volcanic rocks containing disseminated to stringer base metal mineralization to the end of the drillhole at 236.4 metres. The mudstone horizon is consistent with the modeled location of the PEM conductor.

Paragon is reviewing the results of the drilling and down-hole PEM geophysical surveys completed to date with plans for continued drilling in 2010. Updated drill plan maps, sections and drill assays will be available on the company website at www.paragonminerals.com

About Paragon Minerals Corporation

Paragon Minerals Corporation is a Canadian-based mineral exploration company focused on gold and base metal exploration in eastern Canada. Paragon'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 proven mining district in central Newfoundland. Paragon is also exploring an exceptional portfolio of gold properties through partner-funded option and joint ventures agreements. For more information on Paragon and its properties, please visit the company website at www.paragonminerals.com

PARAGON MINERALS CORPORATION

Michael 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 technical contents of this news release. Historical information contained herein was obtained from reports filed with the Government of Newfoundland & Labrador. 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 check assays of significant base and precious metal bearing samples. Unless otherwise indicated, all reported sample intervals are core length intervals and interpreted to be near true width.

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 use of proceeds, 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.

Summary of Significant Assay Results from Drilling by Paragon at the Lemarchant Prospect

Hole Section From (m) To
(m)
Interval (m) Copper (%) Lead
(%)
Zinc
(%)
Silver
(g/t)
Gold
(g/t)
LM07-13 101+00N 164.50 169.55 5.05 0.77 0.07 7.49 40.29 1.21
LM10-46 101+00N 174.80 183.20 8.40 0.30 0.16 4.30 36.29 0.38
LM07-14 102+00N 203.50 208.90 5.40 1.06 1.52 5.26 92.56 0.85
LM10-43 102+50N 202.00 232.10 30.10 0.91 2.28 9.30 60.37 1.41
  including 210.30 227.35 17.05 1.41 3.56 14.80 80.90 1.35
LM07-15 103+00N 219.00 233.60 14.60 0.81 2.13 9.46 73.44 1.85
LM08-33 103+00N 219.20 246.00 26.80 0.48 0.93 4.98 37.70   0.83
LM10-41 103+50N 194.70 199.50 4.80 stringer sulphides - 0.55% combined Cu, Pb, Zn
LM10-42 103+50N 344.20 351.50 7.30 stringer sulphides - 1.27% combined Cu, Pb, Zn
LM10-44 103+50N 188.00 197.00 9.00 stringer sulphides - 0.61% combined Cu, Pb, Zn
LM07-17 104+00N 236.00 250.60 14.60 0.45 2.61 12.38 50.32 0.74
LM08-24-ext 105+00N 432.00 438.00 6.00 0.61 0.68 6.60 28.40   0.45
LM08-37 106+00N 296.2 299.2 3.0 0.97 0.45 9.32 16.10   0.26

(Note - Results for LM07-13, 14, 15, 17, 33, 37 and 41 have been reported previously and shown in italics – see News releases dated January 18, 2008, October 30, 2008 and March 8, 2010 for further details)

To view the Lemarchant Prospect, please visit the following link: http://media3.marketwire.com/docs/lemarchant.pdf

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