Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

July 08, 2009 10:59 ET

Paragon Minerals and Golden Dory Complete Phase 1 Drill Program at Huxter Lane Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2009) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to report that joint venture partner Golden Dory Resources Corp. (TSX VENTURE:GDR) has completed a 15 hole, 2,024-metre Phase 1 diamond drill program on the Huxter Lane Gold Project in central Newfoundland, Canada. Highlights of the drill program include:

- Mineralized porphyry intersected in all completed drillholes over widths of up to 98 metres;

- Significant drill intercepts of 0.38 g/t gold over 77.5 metres, 0.57 g/t gold over 38.7 metres, and 0.51 g/t gold over 33.8 metres;

- Gold-bearing porphyry remains open along strike and to depth.

The Huxter Lane project is a near surface, bulk-mineable gold target where wide-spaced drilling at the Mosquito Hill prospect has outlined a near surface, gold-bearing porphyry intrusion over a strike length of 1000 metres and to a vertical depth of 225 metres. The mineralized porphyry is exposed at surface, dips gently to the south and remains open along strike and to depth. The 2009 drill program focused on a specific area of the Mosquito Hill prospect where previous drill results have include 2.21 g/t over 35.0 metres (HX06-16) and 1.68 g/t gold over 20.2 metres (HX07-24). Drillholes HX09-32 to HX09-46 were completed in a grid pattern at 50-metre centers covering an area of approximately 100 by 300 metres. The gold-bearing porphyry was intersected in all of the completed drillholes over thicknesses of up to 98 metres (core length). Significant drill assay results are provided in the following table with drillhole locations shown on the accompanying map.



Length From To Interval Gold
Hole No. Azimuth Dip (m) (m) (m) (m) (g/t)
-------------------------------------------------------------------------
HX09-32 340 -44 187.5 146.48 164.00 17.52 0.38
includes 146.48 155.30 8.82 0.70
151.50 155.30 3.80 1.06
-------------------------------------------------------------------------
HX09-33 340 -45 172.1 122.72 161.40 38.68 0.57
includes 123.72 126.70 2.98 2.10
123.72 137.27 13.55 1.00
123.72 140.77 17.05 0.93
152.46 161.40 8.94 0.55
-------------------------------------------------------------------------
HX09-34 340 -45 156.1 123.44 133.62 10.18 0.52
includes 126.97 128.37 1.40 1.83
-------------------------------------------------------------------------
HX09-35 345 -45 158.2 139.54 153.04 13.50 0.64
includes 145.83 153.04 7.21 1.14
-------------------------------------------------------------------------
HX09-36 345 -45 84.1 Hole abandoned, target not reached
-------------------------------------------------------------------------
HX09-37 340 -45 160.6 122.05 155.85 33.80 0.51
includes 127.22 133.70 6.48 0.70
146.82 155.85 9.03 0.99
149.40 155.85 6.45 1.27
-------------------------------------------------------------------------
HX09-38 340 -45 161.8 77.12 154.61 77.49 0.38
includes 77.12 105.18 28.06 0.55
77.12 82.14 5.02 1.03
113.29 119.46 6.17 0.70
140.61 154.61 14.00 0.57
140.61 142.62 2.01 3.24
-------------------------------------------------------------------------
HX09-39 340 -45 141.7 37.82 81.87 44.05 0.21
includes 65.05 71.45 6.40 0.56
and 96.04 97.16 1.12 2.20
112.31 115.63 3.32 1.24
-------------------------------------------------------------------------
HX09-40 340 -45 141.7 31.91 45.83 13.92 0.51
And 68.72 71.25 2.53 0.58
110.41 113.92 3.51 0.30
-------------------------------------------------------------------------
HX09-41 335 -45 91.4 16.46 51.00 34.54 0.31
includes 36.86 38.98 2.12 0.87
48.42 51.00 2.58 1.37
-------------------------------------------------------------------------
HX09-42 340 -45 86.9 41.85 56.88 15.03 0.43
includes 54.72 56.88 2.16 1.15
-------------------------------------------------------------------------
HX09-43 340 -45 93 51.30 58.04 6.74 0.54
And 74.89 76.92 2.03 0.75
-------------------------------------------------------------------------
HX09-44 340 -45 117.4 59.96 95.39 35.43 0.42
includes 61.02 69.79 8.77 0.57
83.16 95.39 12.23 0.50
and 97.46 99.48 2.02 1.61
103.69 110.58 6.89 0.57
-------------------------------------------------------------------------
HX09-45 340 -45 118.9 47.87 89.80 41.93 0.30
includes 50.54 55.84 5.30 0.54
82.43 87.63 5.20 0.75
-------------------------------------------------------------------------
HX09-46 340 -45 152.4 51.11 105.88 54.77 0.29
includes 74.32 82.04 7.72 0.56
-------------------------------------------------------------------------
(Note: All intervals are core length with true thickness estimated to be
90% of core length)


"We are pleased that the drill program completed by Golden Dory at the Huxter Lane project intersected gold mineralization in every completed drillhole," said Michael Vande Guchte, President and CEO of Paragon Minerals Corporation. "The mineralized porphyry intrusion remains open in all directions and has excellent potential to host a significant near surface, bulk tonnage gold deposit." Paragon and Golden Dory plan to review the results of the drilling to date to further understand the alteration and structural controls focusing the gold mineralization. Golden Dory can earn a 60% interest in the Huxter Lane gold property by spending $2.0 million in exploration over four years, and an additional 10% (to 70% interest) by delivering a bankable feasibility study.

Paragon and Golden Dory are pleased to acknowledge the financial support provided under the Junior Company Exploration Assistance Program (JCEAP) as administered by the Newfoundland and Labrador Department of Mines & Energy.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. The company 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

Qualified Person - The contents of this news release have been reviewed and approved by Qualified Person David Copeland, M.Sc., P.Geo., Exploration Manager for Paragon Minerals Corporation. David Evans, M.Sc., P.Geo., Qualified Person for Golden Dory Resources supervised the drilling and sampling. Drill core samples were analysed for Au (30 g fire assay with Atomic Absorption finish) at Accurassay Laboratories in Thunder Bay, Ontario from sawn NQ-sized half core sections. Data quality was monitored through the insertion of control samples consisting of one prepared analytical standard inserted into the sample stream for every 20 drill core samples and a natural blank sample was inserted into the sample stream for every 50 drill core samples. Assay batches where results for the standards fell outside the 2 standard deviation of the accepted grade were re-assayed until acceptable values were obtained.

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 the Company 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 the Company 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 the Company's management on the date the statements are made. The Company 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.

To view the map accompanying this release please click on the following link: http://media3.marketwire.com/docs/0708pgr.jpg

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.

Contact Information

  • Paragon Minerals Corporation
    Bill Cavalluzzo
    VP Investor Relations
    (604) 629-2353
    or
    Paragon Minerals Corporation
    Michael Vande Guchte
    President & CEO
    (604) 629-2353
    www.paragonminerals.com