Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

October 02, 2007 09:30 ET

Paragon and Crosshair Outline Additional Gold Mineralization at Golden Promise

Assays up to 10.14 g/t gold over 1.40 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to provide an update on its partner-funded, Phase 3 drill program at the Golden Promise Project in central Newfoundland. The drill program continues 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 is now defined over a strike length of 750 metres and vertical depth of 270 metres. The gold-bearing vein system remains open along strike and to depth.

Fifteen drill holes (2,614 metres) of a 23-drillhole program (3,750 metres) on the Jaclyn Main Zone and Jaclyn North Zone have now been completed. The program includes infill drilling and testing the down plunge extensions of mineralization on the Jaclyn Main Zone and step-out drilling on the Jaclyn North Zone. Significant results include 10.14 g/t gold over 1.40 metres including 35.3 g/t gold over 0.40 metres at the Jaclyn Main Zone (GP07-90) and 11.3 g/t gold over 0.30 metres at the Jaclyn North Zone (GP07-76).

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

Jaclyn Main Zone

Eleven drill holes, totalling 1,824 metres were completed on the Jaclyn Main Zone. Three holes (GP07-80 to GP07-82) tested the eastern extent of the Main Zone to a vertical depth of 270 metres below surface, six drill holes (GP07-83 through GP07-87 and GP07-89 to 90) evaluated the near-surface central portions of the vein zone and one drill hole (GP07-88) successfully tested down plunge of higher grade mineralization in the western part of the zone. The drilling continues to intersect quartz veining in all drill holes with nine of the eleven holes containing visible gold. Significant assays results for the Jaclyn Main Zone include:



GP07-83: 6.51 g/t gold over 1.40 metres including 14.94 g/t gold over
0.45 metres;
GP07-84: 4.02 g/t gold over 1.30 metres including 7.12 g/t gold over
0.40 metres;
GP07-85: 7.23 g/t gold over 0.80 metres including 12.81 g/t gold over
0.40 metres;
GP07-86: 2.84 g/t gold over 0.60 metres;
GP07-87: 1.63 g/t gold over 0.80 metres and 1.40 g/t gold over 0.85
metres;
GP07-88: 4.37 g/t gold over 1.45 metres including 20.89 g/t gold over
0.30 metres;
GP07-89: 4.33 g/t gold over 1.05 metres including 9.07 g/t gold over
0.50 metres;
GP07-90: 10.14 g/t gold over 1.40 metres and a second interval of 6.35
g/t gold over 1.35 metres.


Jaclyn North Zone

Four drill holes, totalling 790 metres (GP07-76 to GP07-79) have extended the multiple quartz vein system that characterizes the Jaclyn North Zone by 100 metres along strike and to a depth of 175 metres. The zone now extends over 250 metres and is open in all directions. The two significant zones of quartz veining, the Upper and Middle Sub-zones are intersected in all drill holes. Visible gold was observed in one drill hole (GP07-76) and assayed 11.28 g/t gold over 0.30 metres within a broader zone assaying 2.63 g/t gold over 1.30 metres. Assays results for the Jaclyn North Zone include:



GP07-76: 2.63 g/t gold over 1.30 metres, including 11.28 g/t gold over
0.30 metres;
GP07-77: 0.54 g/t gold over 2.15 metres;
GP07-78: 1.13 g/t gold over 0.40 metres; and
GP07-79: 0.11 g/t gold over 0.30 metres.


"These results continue to demonstrate the continuity and distribution of gold within the Jaclyn Main Zone and the Phase 3 drill program represents another step toward building a NI43-101 compliant resource estimate on the Jaclyn Vein system" said Michael Vande Guchte, Paragon President and CEO. "Drilling at Jaclyn North continues to outline additional zones of gold mineralization to the immediate north of the Jaclyn Zone that may develop into significant gold-bearing structures that will contribute to the overall Jaclyn gold resource".

Paragon and partner Crosshair will review the initial results from the Phase 3 drill program. Additional drilling is anticipated to resume in November 2007. Drill results and maps of the program are available 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. 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 have been received for assays up to and including those from drillhole GP07-82 and show acceptable correlation with the Eastern Analytical results. Check assays from holes GP07-83 to GP07-90 are pending.

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
    or
    Paragon Minerals Corporation
    Suite 1540-800 West Pender Street
    Vancouver, BC CANADA V6C 2V6