Paragon Minerals Corporation

Paragon Minerals Corporation

May 05, 2010 09:15 ET

Paragon Minerals and Golden Dory Begin Drilling at Huxter Lane Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") reports that its exploration partner, Golden Dory Resources Corp. (TSX VENTURE:GDR) ("Golden Dory") has started a minimum 2,000-metre drill program on the Huxter Lane Gold Project in central Newfoundland, Canada. The property is under option to Golden Dory, whereby Golden Dory can earn a 70% interest in the project by funding a bankable feasibility study. Golden Dory is the operator.

The drill program will focus on expanding the recently announced NI 43-101 compliant resource at the Mosquito Hill Deposit, which has an indicated resource of 4.47 million tonnes averaging 0.526 g/t Au for 75,600 ounces gold and inferred resource of 32.9 million tonnes averaging 0.461 g/t Au for 488,800 ounces gold (see Paragon news release dated March 4, 2010). To date, no economic assessment or scoping study of the Mosquito Hill Deposit has been performed.

The Mosquito Hill Deposit is a large, near surface intrusion-hosted gold system that has been tested by 46 broad-spaced drillholes over a strike length of 900 metres and width of 500 metres. Over 90% of the resource estimate occurs at depths shallower than 200 metres below surface. The mineralized intrusion is exposed along its northern edge and dips gently to the southwest. The mineralization remains open along strike and down-dip. The Huxter Lane Gold Project is road accessible and located near existing infrastructure including power and skilled labour.

The gold mineralization at Huxter Lane has many geological similarities to bulk-tonnage gold deposits in the Yukon and Alaska including the Donlin Creek deposit (467.7 Mt at 2.23 g/t gold for 33.59M oz gold; NovaGold Resources Inc. news release dated March 22, 2010) and the Fort Knox deposit (253 Mt at 0.45 g/t Au for 3.69 M oz Au; Kinross Gold Corporation website). 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.

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 both company and partner-funded exploration. For more information on Paragon and its properties, please visit the website at


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. 

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" occurForward-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.

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