Paragon Minerals Corporation

Paragon Minerals Corporation

April 08, 2010 09:15 ET

Paragon and Crosshair Extend Jaclyn Main Gold Zone

-Assays up to 19.9 g/t gold over 1.6 metres-

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to announce results from its partner-funded diamond drill program at the Golden Promise JV Gold Project, located in central Newfoundland, Canada. Paragon's joint venture partner, Crosshair Exploration & Mining Corp. (NYSE Amex: CXZ; TSX: CXX) has completed 31 drillholes (5,089 metres) of a planned 36 drillhole (6,500 metres) diamond drill program. Highlights of the current program include:

- Jaclyn Main gold zone extended 100 metres east of the current 43-101 compliant resource estimate;

- Significant assays include 19.9 g/t gold over 1.60 metres in the eastern extension;

- Coarse visible gold intersected in 17 of the 31 drillholes completed in this program;

- Metallurgical test drillholes (12 holes, 641.1 metres) completed in central portion of Jaclyn Main Zone;

- Jaclyn North Zone extended 200 metres east - extends strike-length to 450 metres on wide-spaced drilling.

Jaclyn Main Gold Zone

Eight drillholes (2,126 metres) were completed on the eastern extension of the Jaclyn Main zone and has extended the gold-bearing quartz vein zone a further 100 metres to the east of the currently defined 43-101 compliant resource. Significant assays from the drilling include 19.9 g/t gold over 1.6 metres (GP10-121) and 5.18 g/t over 0.3 metres (GP10-108). The Jaclyn Main zone now extends over a 900 metres strike length and to a depth of 275 metres. The zone remains open along strike and to depth. An additional 1400 metres will be completed on the eastern extension.

Three drillholes (702 metres) tested the down-dip extension of the Jaclyn Main vein zone in the west-central portion of the vein zone at vertical depths ranging from 150-210 metres. Three of the drillholes intersected the gold-bearing quartz vein zone with assays of 2.52 g/t gold over 0.54 metres (GP10-122) in the lower most drillhole. The zone remains open to depth.

Twelve shallow infill drillholes (641.1 metres) designed for metallurgical testing was completed at approximately 25 metres spacing within the central portion of the Jaclyn Main Zone. Each drill hole intersected the gold-bearing vein zone over widths of 0.16 to 8.45 metres, with ten of the drillholes containing coarse visible gold. Assays results for these drillholes are pending. Preliminary metallurgical testing including gravity separation, flotation and determination of the cyanide leaching characteristics will be completed by SGS Lakefield Research Limited.

On completion of the drill program, Crosshair and Paragon also plan to conduct a surface bulk sampling program at the Jaclyn Main Zone. The bulk sample is aimed at providing a more representative gold grade for the Jaclyn Main Zone resource.

Jaclyn North Zone

Three drillholes (645 metres) tested the eastern strike and down-dip potential of Jaclyn North Zone; a parallel gold-bearing quartz vein zone located 500 metres north of the Jaclyn Main Zone. The drilling extended the zone a further 200 metres to the east and to a depth of 175 metres on wide spaced drilling. Each drillhole intersected gold-bearing quartz veins with assays of 6.19 g/t over 0.35 metres (GP10-103) and 4.68 g/t over 0.3 metres (GP10-99).

"We are pleased with the progress that JV partner Crosshair is making in extending the Jaclyn Main Zone and the Jaclyn North Zone" said Michael Vande Guchte, President and CEO of Paragon. "Results from the metallurgical testing and the planned bulk sample will be important milestones and should go a long way to further evaluating the gold potential of the project". Drilling is continuing at Golden Promise JV gold project with approximately 1400 metres of drilling to be completed.

The 2010 exploration programs are being funded by Crosshair as part of the 2009 Joint Venture Agreement (see Paragon News Release dated April 9, 2009). Paragon retains a 40% interest in the Golden Promise JV Gold Project. Assay highlights, drill plans and sections for the Golden Promise JV project will be made available on the Paragon website at

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 projects in the province of Newfoundland & Labrador. Further details on Paragon and its properties can be found on the Company website at


Michael J. Vande Guchte, President & CEO

Qualified Person and QA/QC Exploration work on the Golden Promise JV Project is being carried out by Barry Sparkes, Consulting Geologist to Crosshair and supervised by Stewart Wallis, P.Geo., a member of the Professional Engineers and Geoscientists of BC, the President and CEO of Crosshair and a Qualified Person as defined by NI 43-101. Mr. Wallis has verified that the assay results presented above have been accurately summarized from the official assay certificates provided to Crosshair.

True widths of the reported intercepts vary depending on the angle of the individual drill holes and are estimated to be between 50% and 85% of the core interval as reported. Assay composites are reported uncut. All assay samples were prepared from sawn NQ-sized half-core sections on site in Newfoundland. Samples were shipped to Accurassay Laboratories prep facility in Gambo, Newfoundland and assayed at their Thunder Bay, Ontario laboratory using standard fire assay methods on a 50-gram sample with an AA finish. Samples that contain visible gold are automatically assayed using the metallic screen method. All samples that assay over 1g/t gold are also rerun using the metallic screen method. Standards, blanks and duplicate assays are included at regular intervals in each sample batch submitted from the field as part of an ongoing QA/QC program. Gold standards were prepared by CDN Resource Laboratories Ltd., of Delta, BC and certified by Licensed Assayer Duncan Sanderson.

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 regulatory approvals, 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. 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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