Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

January 17, 2008 09:19 ET

Paragon and Crosshair Intersect 10.41 g/t Gold Over 4.70 Metres at Golden Promise

Jaclyn Main Zone extended to 800 metres strike length

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to provide an update on its partner-funded, Phase III drill program at the Golden Promise project in central Newfoundland. The drilling continued to outline high-grade gold mineralization at the Jaclyn Main Zone, a significant gold-bearing quartz vein system on the Golden Promise property. The Jaclyn Main Zone has been extended by an additional 50 metres along strike and is now defined over a strike length of 800 metres and to a vertical depth of 275 metres. The gold-bearing vein system remains open along strike and to depth.

In December, Paragon and Crosshair completed the remaining eight drill holes (1,311.4 metres) of its Phase III drill program which consisted of 3,926 metres in 23 drillholes. Visible gold was observed in 18 of the 23 drill holes. The recent drill program included infill drilling and testing the down plunge and along strike extensions of mineralization on the Jaclyn Main Zone. Significant results include 10.41 g/t gold over 4.70 metres including 64.49 g/t gold over 0.50 metres (GP07-92) and 43.83 g/t gold over 1.45 metres including 141.21 g/t gold over 0.45 metres (GP07-91) at the Jaclyn Main Zone.

The Golden Promise project is being explored under the terms of an option agreement between Paragon and Crosshair Exploration & Mining Ltd. (AMEX:CXZ)(TSX:CXX), whereby Crosshair can earn a 60% interest in the project by spending $4.0 million over four years.

Jaclyn Main Zone

Eight drill holes, totalling 1,311.4 metres were completed on the Jaclyn Main Zone during December. Six of the drill holes (GP07-91 to GP07-96) evaluated the central portion of the vein zone and two drill holes (GP07-97 and GP07-98) tested the eastern extent of the Jaclyn Main Zone to a vertical depth of 210 metres below surface. The drilling intersected quartz veining in all drill holes with all eight drill holes containing visible gold. Drill hole GP07-92 intersected multiple gold bearing quartz veins with abundant visible gold and represents the widest economic grade gold intersection to date along the Jaclyn Main Zone. Drill hole GP07-98, the easternmost drill hole completed to date intersected a thick, 1.70 metre wide gold-bearing quartz vein at a depth of 210 vertical metres and underscores the continuation and potential of the Jaclyn Main Zone to the east. Assay results for the Jaclyn Main Zone include:

GP07-91: 43.83 g/t gold over 1.45 metres including 141.21 g/t gold over 0.45 metres;

GP07-92: 10.41 g/t gold over 4.70 metres including 64.49 g/t gold over 0.50 metres;

GP07-93: 20.89 g/t gold over 1.90 metres including 44.74 g/t gold over 0.65 metres;

GP07-94: 0.41 g/t gold over 2.35 metres; including 1.49 g/t gold over 0.35 metres;

GP07-95: 0.61 g/t gold over 1.50 metres; including 2.28 g/t gold over 0.40 metres;

GP07-96: 0.52 g/t gold over 2.65 metres; including 1.34 g/t gold over 0.50 metres;

GP07-97: 1.90 g/t gold over 2.10 metres including 4.70 g/t gold over 0.50 metres;

GP07-98: 6.87 g/t gold over 1.70 metres including 18.59 g/t gold over 0.45 metres.

"Paragon and Crosshair continue to build on the size and extent of gold mineralization with each drill program at Jaclyn. The new drilling in the central portion of the Jaclyn Main Zone clearly demonstrates the very high grade gold potential that can be realized in this extensive gold zone" said Michael Vande Guchte, Paragon President and CEO. Paragon and Crosshair are reviewing the project data in anticipation of an aggressive drill program in 2008. Complete assay results and maps from the Phase III program are posted on the Company website at http://www.paragonminerals.com/s/GoldenPromise.asp.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. The Company is focused on base and precious metal exploration in the Province of Newfoundland and Labrador.

PARAGON MINERALS CORPORATION

Michael Vande Guchte, President & CEO

Qualified Person and Assay Procedures - The Golden Promise Project work is being carried out by David Mullen, Consulting Geologist to Paragon and supervised by Qualified Person David Copeland, M.Sc., P.Geo. Assay intervals in this news release are reported as core length. All drill holes were NQ size. Core samples were cut in half on site and half of each sample interval was shipped to Eastern Analytical Limited of Springdale, Newfoundland for gold analysis. Gold assays were carried out by metallic screen fire assay method and 1 A.T. fire assay at Eastern Analytical Limited. Blanks and gold standards were inserted into the sample stream once every 20 samples. ALS Chemex in North Vancouver, BC completed multi-element analyses and gold check assays on sample pulps. Gold standards were prepared by CDN Resource Laboratories Ltd., of Delta, BC and certified by Licensed Assayer Duncan Sanderson. Sample batches were reanalyzed if any aberrations in the data were observed. Check assays are pending for drill holes GP07-91 to GP07-98 inclusive.

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 future exploration programs and joint venture partner participation. 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Paragon Minerals Corporation
    Bill Cavalluzzo
    VP Investor Relations
    Toll Free: 1-877-533-6353
    Website: www.paragonminerals.com