Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

May 25, 2009 09:15 ET

Paragon Minerals Options Winterhill Property to GFE Capital Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2009) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) is pleased to announce the signing of a option agreement with GFE Capital Corp. ("GFE Capital") on its 100%-owned Winterhill VMS Property. The Winterhill property is located 17 kilometres northeast of Harbour Breton on the south coast of Newfoundland, Canada.

"We are pleased to have GFE Capital as a new exploration partner," said Michael Vande Guchte, President and CEO of Paragon. "The Winterhill property has a number of priority targets for us to follow-up on including a sizeable untested airborne electromagnetic (EM) conductor immediately along strike from drill indicated massive sulphides."

The Neoproterozoic-aged volcanic rocks underlying the Winterhill property are similar to that of the Arabian-Nubian Shield that hosts numerous large tonnage and high-grade VMS deposits. The property covers a 3.5 kilometre long zone of altered felsic volcanic and calcareous sedimentary rocks that host a number of base metal prospects including Winterhill, Winterhill East and Winterhill West. Previous drilling by Noranda at these prospects (18 holes, 3,872 metres) intersected massive sulphide mineralization with assays of 1.41% copper over 6.0 metres and 10.1% zinc over 4.0 metres.

A recent airborne survey completed by Paragon has identified a least four priority short strike length airborne EM conductors that require follow-up prospecting and drill testing. One of the priority conductors is located below a small lake and coincides with a conductive trend that continues on surface through the Winterhill East prospect. A single historic drill hole at the Winterhill East prospect intersected 9.6 metres of semi-massive to massive pyrite mineralization (no assays were reported). The best section of this airborne EM conductor occurs over about a 700 metres strike length making it a potentially large target. Other priority target areas include the Olive Cove prospect that is underlain by mineralized felsic volcanic rocks assaying up to 6.4% zinc. The prospect has not been drill tested and is associated with a short strike length airborne EM conductor (approximately 200 metres long) and a 900-metre long multi-element soil anomaly.

Under terms of the option agreement, GFE Capital may earn a 70% interest in the property by funding $700,000 in exploration expenditures over a four year period ($100,000 firm in first year) and making cash payments of $60,000 to Paragon. Paragon will be the operator during the option earn-in period. The terms of the option agreement are subject to regulatory approvals.

Paragon Minerals Corporation is a Canadian-based mineral exploration company listed on the TSX Venture Exchange. Paragon and its joint venture partners are focused on gold and base metal exploration in Eastern Canada, specifically within the Province of Newfoundland and Labrador. Further details on the properties can be found on the Company website at www.paragonminerals.com.

PARAGON MINERALS CORPORATION

Michael J. Vande Guchte, President & CEO

Qualified Person - All Paragon projects are or were supervised by Qualified Person David Copeland, M.Sc., P.Geo. Mr. Copeland also reviewed and approved the technical contents of this news release. Historical results were obtained from published reports available in the public domain.

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 regulatory approvals, current and future exploration programs, activities and results. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Paragon Minerals Corporation
    Bill Cavalluzzo
    VP Investor Relations
    (604) 629-2353
    or
    Paragon Minerals Corporation
    Michael Vande Guchte
    President & CEO
    (604) 629-2353
    www.paragonminerals.com