Paragon Minerals Corporation

Paragon Minerals Corporation

June 10, 2008 09:01 ET

Paragon Minerals Corporation and Yamana Gold Inc. Plan 2,000 Metre Drill Program at Huxter Lane Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2008) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to report that Yamana Gold Inc. ("Yamana") (TSX:YRI)(NYSE:AUY)(LSE:YAU) will fund a 2,000 metre drill program at the Huxter Lane Project in Newfoundland. Yamana has earned a 55% interest in the project by spending $1.0 million on exploration and can earn an additional 10% interest by completing an industry standard "bankable feasibility study" based on a minimum 500,000 oz gold resource and spending a minimum $250,000 per year on exploration.

The Huxter Lane Project is a bulk-mineable gold target located 90 kilometres south of Grand Falls - Windsor in central Newfoundland. Two drill programs, totaling 25 holes (4,144 metres) have outlined a significant gold-bearing, porphyritic intrusion over a strike length of 750 metres and to a shallow vertical depth of 125 metres. The mineralized porphyry dips gently to the south and typically contains up to 15% disseminated and vein-hosted arsenopyrite-pyrite mineralization. The porphyry remains open along strike and to depth. Significant drill intercepts include 2.21 g/t gold over 35 metres (HX06-16), 1.07 g/t gold over 28.6 metres (HX06-01), 2.00 g/t gold over 16.85 metres (HX07-24) and 0.67 g/t gold over 103.35 metres (HX07-20). Initial metallurgical tests completed by Yamana on several drill core samples indicate favourable gold recoveries.

"We are very pleased to have Yamana continue as a partner on this exciting bulk tonnage gold project," said Michael Vande Guchte, President and CEO of Paragon. "The work to date on this near surface, gold-bearing system is demonstrating robust gold mineralization, and we look forward to continued exploration success on this project with Yamana."

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 the Province of Newfoundland and Labrador. Further details can be found on the Company website at


Michael J. Vande Guchte, President & CEO

The Huxter Lane Project work is being supervised by Qualified Person David Copeland, M.Sc., P.Geo. Exploration Manager for Paragon Minerals Corporation.

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. Except as required under securities laws, 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