Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

March 01, 2007 11:29 ET

Paragon and Crosshair Continue to Extend Gold Mineralization on Golden Promise Project

- Jaclyn Main Zone extended by 275 metres; assays up to 20.65 g/t gold over 1.60 metres -

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2007) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to report drill results from the partner-funded, Phase 2 drill program at the Golden Promise Project, located 35 kilometres west of Grand Falls-Windsor in central Newfoundland. The Golden Promise Project is being explored under the terms of an option agreement between Paragon and Crosshair Exploration & Mining Ltd. ("Crosshair"), whereby Crosshair can earn a 60% interest by spending $4.0 million over four years including $750,000 firm in the first year of the agreement. Previous drilling has identified a significant gold-bearing quartz vein system at the Jaclyn Main Zone with the current drill program continuing to extend the high-grade gold mineralization of this zone.

The Phase 2 drilling program (14 holes, 3,073 metres) has successfully extended gold mineralization of the Jaclyn Main Zone an additional 200 metres to the east and 75 metres to the west. The Jaclyn Main Zone, which is interpreted to have a moderate easterly plunge, now extends over a strike length of 750 metres and to a depth of 225 metres. The zone is open along strike and to depth. Thirteen of the fourteen drill holes intersected the gold-bearing quartz vein zone over widths of up to 6.85 metres (core length). Visible gold was recognized in ten of the fourteen drill intercepts. Significant results (over core length) of the Phase 2 drill program are outlined below:

GP06-62(a): 8.31 g/t gold over 1.20 metres including 21.50 g/t gold over 0.45 metres;

GP06-63(a): 5.76 g/t gold over 0.40 metres and 1.16 g/t gold over 0.40 metres and 3.02 g/t gold over 0.40 metres;

GP06-65(a): 20.65 g/t gold over 1.60 metres including 55.03 g/t gold over 0.60 metres;

GP06-66(a): 11.90 g/t gold over 1.05 metres including 21.87 g/t gold over 0.55 metres;

GP06-68(a): 4.74 g/t gold over 1.45 metres including 11.57 g/t gold over 0.55 metres

GP07-70: 3.41 g/t gold over 1.85 metres including 7.29 g/t gold over 0.85 metres and 15.49 g/t gold over 0.40 metres;

GP07-71: 1.33 g/t gold over 2.10 metres including 6.21 g/t gold over 0.40 metres;

GP07-74: 3.88 g/t gold over 1.35 metres including 5.16 g/t gold over 0.45 metres; and

GP07-75: 0.98 g/t gold over 1.45 metres including 2.49 g/t gold over 0.50 metres

((a) previously reported drill holes - see Paragon News Release dated January 22, 2007)

The Phase 2 drill program focused exclusively on the Jaclyn Main Zone, where the presence and width of the gold-bearing quartz vein zone remains very encouraging. Further drilling is required to better understand the distribution of gold in the recently drilled area and down plunge of currently interpreted gold zones (see website for drill section).

Paragon and partner Crosshair will review results from the 2006-2007 drilling programs and prepare plans for continued exploration at the Golden Promise Project. In order to further evaluate the "nugget effect" commonly associated with this style of gold mineralization, the Company and Crosshair are investigating the possibility of selecting suitable area(s) to expose the Jaclyn Main Zone and collecting a mini-bulk sample. The sample is aimed at evaluating the gold-grade continuity within the vein zone. Other targets areas on the property include the Jaclyn North zone, a paralleling gold-bearing quartz vein system that occurs 250 metres northwest of the Jaclyn Main. Four of six previous drillholes completed at Jaclyn North intersected visible gold-bearing quartz veins including GP06-51 which intersected 5.24 g/t gold over 1.70 metres.

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 GP06-68 and show acceptable correlation with the Eastern Analytical results. Check assays from holes GP06-69 to GP07-75 are pending.

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 Eastern Canada, specifically within the Province of Newfoundland and Labrador.

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