Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

August 23, 2007 09:23 ET

Paragon Commences Drilling on South Tally Pond VMS Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to announce that the Company has started a diamond drill program on the South Tally Pond base metal project located in the Victoria Lake Volcanic Belt in central Newfoundland. The property is under option from Altius Resources Inc., whereby Paragon can earn a 100% interest in the property.

This initial 1,000-metre drill program is aimed at testing the Lemarchant prospect, a significant base metal occurrence in the Victoria Lake Volcanic Belt where previous drilling by Noranda intersected massive sulphides assaying 1.53% zinc, 59.8 g/t silver, 6.1 g/t gold over 3.8 metres (LM93-08) and 7.4% zinc, 6.3% lead, 0.6% copper, 11.4 g/t gold, 1,515 g/t silver over 0.6 metres (LM92-01). The mineralization is interpreted to be open along strike and to depth where potential folding of the stratigraphy presents new untested targets. The Lemarchant prospect occurs within rocks that are the same age and have the same alteration characteristics as the Duck Pond Mine, located 15 kilometres to the northeast. The proposed drill program is designed to test the mineralized horizon below the previously drilled depth of 160 vertical metres.

The Victoria Lake Volcanic Belt in central Newfoundland is highly prospective for zinc-rich base metal VMS deposits and currently hosts Aur Resource's producing zinc-copper mine at Duck Pond and Messina's Boomerang and Domino deposits. The region also is home to the former producing, world-class base metal deposits at Buchans. Paragon has a dominant land position covering 28,700 hectares (1,148 claims) immediately southwest of Aur Resource's Duck Pond Mine.

On the adjacent Lake Douglas VMS Project, the Company has completed geological mapping, prospecting and airborne EM surveys (see News Release dated July 30, 2007) and is currently prioritizing drill targets. A 2,000-metre diamond drill program is scheduled to begin at Lake Douglas on completion of the South Tally Pond drill program.

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. Further details can be found on the Company website at www.paragonminerals.com.

PARAGON MINERALS CORPORATION

Michael J. Vande Guchte, President & CEO

Work on Paragon's base metal projects is supervised by Qualified Person David Copeland, M.Sc., P.Geo. Historical results and information contained herein were obtained from reports filed with the Government of Newfoundland & Labrador.

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 activities. 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 ability of the Company and other relevant parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company'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