Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

June 23, 2010 09:58 ET

Paragon Minerals and Golden Dory Expand Mosquito Hill Gold Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") and exploration partner, Golden Dory Resources Corp. (TSX VENTURE:GDR) ("Golden Dory") are pleased to announce the completion of a 14 hole, 2,816-metre drill program on the Huxter Lane project in central Newfoundland, Canada. The drill program succeeded in extending the Mosquito Hill gold mineralization along strike and down/up dip of the existing NI 43-101 compliant gold resource. Assay results have been received for 7 of the 14 drillholes.

The Mosquito Hill Deposit is a large, near surface bulk tonnage gold target that has now been tested by 60 broad-spaced drillholes. The deposit has a NI 43-101 compliant resource which includes 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). 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 for expansion along strike and dip. The Huxter Lane project has excellent road access and is located near existing infrastructure including power and skilled labour.

Highlights of the current drill program include:

  • Drilling returned broad mineralized zones with up to 110 metres grading 0.5 g/t gold.
  • Assay results to date contain higher grade gold mineralization than those used in the initial resource calculation.
  • Ten of the drillholes were oriented perpendicular to previous drilling and show increased gold mineralization.
  • Mosquito Hill Gold Deposit remains open for expansion in all directions.
Hole Number Azimuth (degrees) Dip (degrees) Hole Length (metres) From (m) To (m) Core Length (m) Gold (g/t)
HX10-47   340 -55 181.5 77.00 145.00 68.00 0.78
  including       78.00 108.00 30.00 1.02
  and       83.00 87.00 4.00 2.18
HX10-48   340 -45 214.5 97.41 128.00 30.59 0.64
  including       121.87 128.00 6.13 1.16
HX10-49   340 -45 192.1 92.00 124.00 32.00 0.54
  including       118.00 124.00 6.00 1.03
HX10-50   070 -45 276.0 68.58 80.00 11.42 0.56
  including       75.32 80.00 4.68 1.02
          91.00 201.00 110.00 0.50
  including       91.00 101.00 10.00 1.52
  and       120.00 130.87 10.87 1.13
HX10-51   340 -45 111.3 34.75 42.47 7.72 1.16
  including       39.00 42.00 3.00 2.54
HX10-52   074 -45 208.2 72.50 155.00 82.50 0.56
  including       102.00 148.00 46.00 0.70
  and       102.00 120.00 18.00 1.01
HX10-53   070 -45 228.7 54.30 65.20 10.90 0.60
          149.10 209.70 60.60 0.74
  including       165.50 191.35 25.85 1.05

"Paragon is very pleased with the thickness and grade of mineralization from this latest round of drilling," stated Michael Vande Guchte, President and CEO of Paragon Minerals Corporation. "The drilling continues to confirm a very large system at Huxter Lane. The discovery of what might prove to be a more optimized orientation of drilling on the Mosquito Hill Deposit is very encouraging for better understanding the geometry of gold mineralization."

The Huxter Lane project 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 project operator.

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 company and partner-funded exploration. For more information on Paragon and its properties, please visit the 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. Assaying for this program was carried out by Accurassay Laboratories of Thunder Bay, Ontario. NQ drill core was sawn in half and placed in sealed bags and then delivered by Golden Dory personnel to the Accurassay prep facility in Gambo, Newfoundland. The core was assayed by Fire Assay methods with AA finish. Industry certified standards and blanks were also inserted into the sample stream as part of QA/QC. Reported core widths are interpreted to represent at least 95% of 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 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.

Shares Issued: 32,942,181

"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