Paragon Minerals Corporation
TSX VENTURE : PGR

Paragon Minerals Corporation

May 07, 2008 11:33 ET

Paragon Minerals Provides Drilling Update on the JBP-Appleton Linear Project

255 g/t gold (7.4 oz/t gold) intersected over 0.5 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2008) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) and partner Sprott Resource Corp. ("Sprott") (TSX:SCP) are pleased to announce that they have completed the first 2,135 metres of a planned 2,750 metre drill program on the JBP Linear property and Appleton Linear property, collectively the "JBP-Appleton Linear Project". The contiguous properties are located approximately 15 kilometres northwest of Gander, Newfoundland. Drilling is scheduled to resume in late May after the spring thaw.

As part of this first drill program, thirteen drill holes were completed on the JBP Linear property. Drilling was aimed at testing a favorable IP geophysical trend that extends between the H-Pond and Pocket Pond gold prospects (located 3 kilometres apart) and a parallel IP geophysical trend (West Pocket Pond Trend) located 500 metres to the west.

Drilling at the Pocket Pond gold prospect (8 holes, 1,323.7 metres) further outlined a significant gold-bearing quartz zone that now extends over a 950 metres strike length. The multiple quartz vein zones, measuring up to 19.5 metres in thickness are enveloped within a broader zone of moderate to intense sericite-carbonate alteration. The Pocket Pond zone is open along strike and to depth and is interpreted to be in the same structural/alteration corridor as H-Pond gold prospect which has a 700-metre strike length. Significant assays from the Pocket Pond zone include:

- 1.89 g/t gold over 12.6 metres including 14.36 g/t gold over 0.50 metres (HP07-39)

- 12.43 g/t gold over 3.4 metres including 84.77 g/t gold over 0.50 metres (HP08-44)

- 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres (HP08-48)

(Note: True thickness interpreted to be 90-100% of core length; HP07-39 previously reported)

"The recent drilling continues to demonstrate the robust nature of this gold-bearing quartz vein system on the JBP Linear property, particularly at the Pocket Pond gold prospect. The new drilling has extended this gold prospect significantly and we are seeing some local zones of high-grade gold mineralization along this trend," said Michael Vande Guchte, President and CEO of Paragon. "Given the coarse and high grade nature of the gold in these types of systems we need to expose these vein zones at surface and collect larger samples to better determine the gold distribution."

Two drill holes (351.6 metres) tested the West Pocket Pond Trend where prospecting has returned quartz float grab samples of up to 252.0 g/t gold. The two drillholes intersect significant quartz vein zones measuring up to 10 metres in thickness over broad intervals up to 90 metres wide. No significant gold assays were reported.

Paragon and partner Sprott will review the result of the drilling at the JBP Linear property and prepare plans for continued exploration on the property. Drilling will resume later this month on the adjacent Appleton Linear property to target the extension and down-plunge potential of four known gold prospects on the property. Historical drilling at these prospects intersected high-grade, gold-bearing quartz vein systems with significant gold intercepts of 27.25 g/t gold over 1.10 metres, 18.62 g/t gold over 8.60 metres, 21.25 g/t gold over 2.70 metres and 16.30 g/t gold over 2.3 metres (core length). The previous drilling tested the mineralization over short strike lengths and shallow depths and remains open in all directions.

The JBP-Appleton Linear Project is being explored under the terms of an option agreement between Paragon and Sprott, whereby Sprott can earn a 55% interest in the project by spending $2.375 million over four years. The agreement also gives Sprott the right, subject to certain conditions, to increase its interest to 70% by completing a feasibility study and providing a positive production decision.

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. 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

The JBP Appleton Linear project work is supervised by Qualified Person David Copeland, M.Sc., P.Geo. Historical results and information contained herein were obtained from reports filed with the Government of Newfoundland and Labrador. 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, NL for gold analysis. Gold assays were carried out by metallic screen fire assay method and 1 A.T. fire assay at Eastern Analytical Limited. Sample pulps were shipped to ALS Chemex in North Vancouver, BC for analysis for 27-element ICP analysis on all samples and check assays of significant gold bearing samples. Data quality is monitored through the insertion of control samples comprising one prepared gold standard and one blank sample for every 20 samples of natural diamond drill core. All control samples conformed to the accepted contained grades of gold. Check assays are pending for each of the holes in the drill program.

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 current and future exploration programs and activities, results 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