Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

February 27, 2007 11:17 ET

Paragon and Meridian to Begin Phase 2 Drill Program at Huxter Lane Gold Project

Drilling Planned to Expand Mosquito Hill Zone-2.21 g/t gold over 35 metres Additional Geophysical Targets to be tested

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 27, 2007) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) and partner Meridian Gold Inc. ("Meridian") (TSX:MNG)(NYSE:MDG) are pleased to announce that a Phase 2 drilling program (5 holes; 1,600 metre) on the Huxter Lane gold project is scheduled to begin in early March, 2007. The project is located 60 kilometres south of Grand Falls-Windsor in central Newfoundland.

The Huxter Lane Project is being explored under the terms of an option agreement between Paragon and Meridian, whereby Meridian can earn a 55% interest by spending $1.0 million over three years. The partner-funded, Phase 2 drill program is aimed at further testing and expanding the Mosquito Hill Zone and testing of geophysical and geochemical targets within the Mosquito Hill area. The target is a bulk tonnage intrusive-related gold deposit.

Mosquito Hill Zone

In October 2006, Meridian completed a Phase 1 drill program (18-hole 2,239 metres) that outlined the mineralized porphyry at Mosquito Hill over a strike length of 450 metres and to a vertical depth of 186 metres (see Rubicon Minerals Corporation news release dated November 2, 2006). Fourteen of the eighteen drill holes targeted and intersected the shallow to moderate-dipping mineralized porphyry sill over widths of 20 to 66 metres (estimate 35-40 metres true thickness). The porphyry contains up to 15% arsenopyrite-pyrite mineralization throughout and is open along strike and at depth. Highlights from the Phase 1 program include 2.21 g/t gold over 35.0 metres (HX06-16) and 1.07 g/t gold over 28.60 metres (HX06-01).

The Huxter Lane project work is being carried out and supervised by Qualified Person Steve House, B.Sc., P.Geo.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. The company is focused on gold and base-metal exploration in Eastern Canada, specifically within the Province of Newfoundland and Labrador. Paragon was listed on the TSX Venture Exchange on December 15, 2006 following completion of the Plan of Arrangement by Rubicon Minerals Corporation.

PARAGON MINERALS CORPORATION

Michael Vande Guchte, President & CEO

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: 1-866-365-4706