Paragon Minerals Corporation

Paragon Minerals Corporation

February 21, 2008 09:13 ET

Paragon Minerals and Sprott Resource Corp. Begin Drilling on the JBP-Appleton Linear Project

Drilling Also Underway at the South Tally Pond VMS Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2008) - Paragon Minerals Corporation ("Paragon") (TSX VENTURE:PGR) and partner Sprott Resource Corp. ("Sprott") (TSX:SCP) are pleased to announce that they have commenced a 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, NL, Canada.

On the JBP Linear property, Sprott will fund a drill program aimed at testing gold targets along a favorable IP geophysical trend that extends between the H-Pond and Pocket Pond gold prospects (located three kilometres apart) and along a parallel IP geophysical trend, the West Pocket Pond Linear, located 500 metres to the west. Significant drill intercepts from the H-Pond gold prospect include 11.70 g/t gold over 3.40 metres (HP-04-03), 8.73 g/t gold over 2.10 metres (HP-04-04) and 9.79 g/t gold over 1.15 metres (HP-05-15). Prospecting along the West Pocket Pond Linear trend has returned quartz float grab samples of up to 252.0 g/t gold. The drill program is targeting the highest priority targets along these two trends.

On the Appleton Linear property, drilling will focus on testing the extension and down-plunge potential at 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 1.1 metres, 18.62 g/t gold over 8.60 metres, 21.25 g/t gold over 2.70 metres and 16.3 g/t gold over 2.3 metres. The previous drilling tested the mineralization over relatively short strike lengths (up to 200 metres) and shallow depths (up to 50 metres). The mineralization 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. Paragon is currently also carrying out a planned 10,000 metre drill program on its 100%-owned South Tally Pond Project, where it made a significant precious metal-rich massive sulphide discovery in 2007. Further details on the properties can be found on the Company website at


Michael J. Vande Guchte, President & CEO

The JBP Appleton Linear project work is being carried out and supervised by Qualified Person Steve House, B.Sc., P.Geo. 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 current and 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: 1-866-365-4706