Paragon Minerals Corporation

Paragon Minerals Corporation

May 18, 2010 09:30 ET

Paragon and Crosshair Continue to Intersect High-Grade Gold at Jaclyn Main Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) - Paragon Minerals Corporation (TSX VENTURE:PGR) ("Paragon") reports additional 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) ("Crosshair") has completed the planned 36-hole (7,220 metre) diamond drill program. Highlights from the program include:

  • Near surface vein zone continuity demonstrated in the central portion of the Jaclyn Main Deposit with high-grade gold assays up to 129.1 grams per tonne (g/t) gold (3.76 oz/ton) over 0.3 metres;
  • Jaclyn Main Deposit extended 150 metres east of the current NI43-101compliant resource estimate.

Jaclyn Main Deposit – Central Zone

Twelve shallow infill drillholes (641.1 metres, all NQ-size drillholes) were completed at approximately 25-metre spacing over a 300-metre strike length in the central portion of the Jaclyn Main Deposit. Each drillhole intersected the gold-bearing vein zone over widths of 0.16 to 8.45 metres, with ten of the twelve drillholes containing visible gold (3 to 86 gold grains). Assay highlights include:

Drillhole From (m) To  (m) Interval (m) Grade (g/t)
GP10-102 12.70 13.20 0.50 19.9
GP10-114 28.00 28.85 0.85 11.1
Including 28.00 28.40 0.40 18.9
And 52.85 53.45 0.60 78.1
Including 53.15 53.45 0.30 129.1
GP10-115 23.60 25.88 2.28 6.1
Including 25.08 25.88 0.80 16.7
Including 25.08 25.38 0.30 34.2
GP10-116 31.42 36.00 4.58 3.9
Including 35.00 36.00 1.00 12.9
Including 35.70 36.00 0.30 32.7
GP10-126 29.27 29.73 0.46 20.8

The infill drilling has demonstrated the quartz-vein zone continuity in the upper portion of the Jaclyn Main Deposit and the variable nature of the gold grade between drillholes. Two of the infill drillholes (GP10-116 and GP10-117) intersected the quartz vein zone within 10 metres of two, previously completed, larger diameter (HQ) drillholes (GP02-01 and GP02-05). Comparison of the assay results between the two-infill drillholes and the two larger diameter drillholes provides evidence that the larger sample size yields a higher assay grade.

Drill core samples from the 12 infill drillholes and from 6 previously completed drillholes (GP02-01, 05, 06, 11, 17 and GP03-24) have been submitted to SGS Lakefield Research Limited for preliminary metallurgical testing including gravity separation, flotation and determination of the cyanide leaching characteristics. Metallurgical results are pending.

Jaclyn Main Deposit – East Extension

A total of 15 drillholes (4,577 metres) were completed on the eastern extension of the Jaclyn Main zone. The drilling has extended the gold-bearing quartz vein zone 150 metres to the east of the currently defined NI43-101 compliant resource. Significant assays from the drilling include 19.9 g/t gold over 1.6 metres (GP10-121) (see news release dated April 8, 2010) and 5.77 g/t Au gold over 1.15 metres (GP10-131). The Jaclyn Main Deposit now extends over a 950-metre strike length and to a depth of 415 metres (GP10-130). The zone remains open along strike and to depth.

Assays, drill plans and sections for the Golden Promise JV Project are available on the Paragon website.

Following the drill program and after detailed review of the exploration data and metallurgical results, Crosshair and Paragon plan to conduct a surface bulk sampling program. The bulk sample is aimed at providing a more representative gold grade, testing structural and grade continuity and mining/milling characteristics for the Jaclyn Main Deposit. 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.

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 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 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.

Shares Issued: 32,902,181

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