Paragon Minerals Corporation

Paragon Minerals Corporation

March 26, 2007 09:46 ET

Paragon Minerals Expands the Huxter Lane Gold Project

Meridian Gold elects to include property in Huxter Lane JV Option

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 26, 2007) - Paragon Minerals Corporation (TSX VENTURE:PGR) is pleased to announce that Paragon has entered into an option agreement with prospectors, Roland and Eddie Quinlan to acquire a 100% interest in the Huxter Lane SW Property. The optioned property, which consists of two mineral licenses (37 claims, 925 hectares) is located immediately south and adjacent to the 100% owned Huxter Lane Property in central Newfoundland.

The Huxter Lane Property is currently under option to Meridian Gold Inc. Meridian can earn a 55% interest in the property by spending $1.0 million over three years. A Phase 2 drill program, funded by Meridian is currently underway on the Huxter Lane project (see News Release dated February 27, 2007). The target is a bulk tonnage intrusive-related gold deposit.

Results from a high resolution magnetic and electromagnetic survey completed on the Huxter Lane property in May 2006, suggests that the intrusive body which hosts the Mosquito Hill Gold Zone on the Huxter Lane property extends onto the newly optioned property. Drilling at the Mosquito Hill Zone in October, 2006 outlined a mineralized gold-bearing porphyritic intrusion over a strike length of 450 metres and is open in all directions. Assays include 2.2 g/t gold over 35 metres.

To acquire a 100% interest in the property, subject to regulatory approval, Paragon must make cash and share payments to the property vendors over three years, totaling $80,000 ($7,500 on signing and approval) and 75,000 Paragon shares (7,500 shares on signing and approval). The vendors would retain a 2.5% net smelter return ("NSR") royalty subject to Paragon's right to purchase 1.5% for $1.5 million. Paragon retains a right of first refusal on the remaining NSR royalty. Annual advanced royalty payments of $10,000 to the vendors would begin in 2011.

Paragon is also pleased to report that the property has been accepted by Meridian for inclusion into the Huxter Lane JV Agreement, which consists of the Huxter Lane gold project. Under the terms of the land offer to Meridian, Meridian must make all cash payments plus provide cash compensation for any share payments made by Paragon to acquire and maintain the option on the Huxter Lane SW property.

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.


Michael J. Vande Guchte, President & CEO

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

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 exploration results, 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: 1-877-533-6353
    Paragon Minerals Corporation
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    Vancouver BC CANADA V6C 2V6