Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

September 17, 2008 07:41 ET

Paragon Minerals and Metals Creek Resources Sign JV Option Agreement on the Long Pond Gold Project

Metals Creek to earn a 60% interest by funding $500,000 in exploration over four years

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2008) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to announce the signing of a Joint Venture option agreement with Metals Creek Resources Corp. ("Metals Creek") (TSX VENTURE:MEK) on Paragon's Long Pond gold project. The property is located in the Baie Verte Peninsula area of Newfoundland and consists of 2 mineral licenses (63 claims) covering 1,575 hectares.

Exploration work by Paragon has documented a mesothermal gold vein environment with strong similarities to the mafic-ultramafic hosted gold deposits of other greenstone belts in Canada. Rock grab samples from six gold occurrences on the property have returned grades of up to 75.9 g/t gold. Limited historic diamond drilling completed on the Long Pond property has drill intercepts of 21.5 g/t gold over 1.19 metres.

"We are pleased to welcome Metals Creek as a new partner" said Michael Vande Guchte, President and CEO of Paragon. "Metals Creek management has assembled a good land package in the Baie Verte area and we look forward to continuing exploration on the Long Pond property with them". Paragon continues to focus on its 100%-owned South Tally Pond project, where a 5,800 metre drill program is underway on its massive sulphide discovery at the Lemarchant prospect.

The option agreement gives Metals Creek the right to earn a 60% interest in Long Pond gold project by spending $500,000 on exploration over four years with a firm $50,000 exploration expenditure commitment in the first year. The agreement also calls for Metals Creek to make share payments totaling 300,000 shares over the first three years of the option agreement including 50,000 shares on signing of this agreement. The Long Pond property is subject to a 0.5% NSR which is purchasable by Paragon for $500,000. This agreement is subject to any applicable regulatory approvals.

The partnering of the Long Pond property is an important part of Paragon's business plan to advance its exploration projects through partner-funded exploration while it continues to focus on the South Tally Pond project.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. Paragon is focused on base and precious metal exploration in the Province of Newfoundland and Labrador.

PARAGON MINERALS CORPORATION

Michael Vande Guchte, President & CEO

Exploration work conducted by Paragon Minerals on the Long Pond property was carried out under the supervision of David A. Copeland, M.Sc. P.Geo., Qualified Person as defined under National Instrument 43-101. Bruce Mitton, P.Geo., V.P. Exploration for Paragon, is the Qualified Person that has reviewed and approved the contents of this release. Historical results and information contained herein were obtained from reports filed with the Government of Newfoundland and 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 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
    Website: www.paragonminerals.com