Paragon Minerals Corporation (TSX VENTURE: PGR) ("Paragon") is
pleased to report that its exploration partner, Golden Dory
Resources Corp. (TSX VENTURE: GDR) ("Golden Dory") has completed
the first NI 43-101 compliant gold resource estimate on the Huxter
Lane property in central Newfoundland. The 100%-owned Huxter Lane
property is under option to Golden Dory, whereby Golden Dory can
earn a 70% interest in the property by completing a bankable
feasibility study.
The resource estimate, prepared by independent consultant Mr.
Gary Giroux, P.Eng of Giroux Consultants Limited, estimates the
Mosquito Hill Zone to contain an indicated resource of 4.47 million
tonnes averaging 0.526 g/t gold for 75,600 ounces gold and an
inferred resource of 32.9 million tonnes averaging 0.461 g/t gold
for 488,800 ounces gold at a cutoff of 0.30 grams per tonne gold.
It should be noted that this resource estimate is not an economic
assessment of the Mosquito Hill Zone, therefore a range of cutoff
grades are listed below. Highlights include:
-- Resources estimated at a 0.30g/t gold cutoff: 75,600 ounces gold
indicated and 488,800 ounces gold inferred.
-- Resource remains open to depth and along strike with near surface open
pit potential.
-- Resource modeling identifies high grade corridor in center of resource
with little previous drilling.
-- Spring 2010 work program to include drilling, metallurgical testing and
environmental studies.
The Mosquito Hill Zone is a large, robust intrusion-hosted
system that has been tested by 46 holes over a strike length of 900
metres and width of 500 metres. Over 90% of the resource estimate
occurs at depths shallower than 200 metres. The mineralized
intrusion is exposed along its northern edge and dips gently to the
southwest at about 10 degrees (nearly flat lying). At the
southwestern limits of the current resource, the zone remains open
along strike and down-dip. The Huxter Lane property has good road
access and is located near existing infrastructure including power
and labour.
Mosquito Hill Zone - Indicated Resource within the mineralized
solid
-------------------------------------------------------------------------
Grade greater
Au Cut-off Tonnes greater than Cut-off Contained Ounces
(g/t Au) than Cut-off (g/t Au) Au
-------------------------------------------------------------------------
0.10 7,880,000 0.393 99,600
-------------------------------------------------------------------------
0.20 6,800,000 0.431 94,200
-------------------------------------------------------------------------
0.30 4,470,000 0.526 75,600
-------------------------------------------------------------------------
0.40 2,470,000 0.670 53,200
-------------------------------------------------------------------------
Mosquito Hill Zone - Inferred Resource within the mineralized
solid
-------------------------------------------------------------------------
Grade greater
Au Cut-off Tonnes greater than Cut-off Contained Ounces
(g/t Au) than Cut-off (g/t Au) Au
-------------------------------------------------------------------------
0.10 47,860,000 0.392 603,200
-------------------------------------------------------------------------
0.20 44,890,000 0.408 589,000
-------------------------------------------------------------------------
0.30 32,980,000 0.461 488,800
-------------------------------------------------------------------------
0.40 18,210,000 0.553 323,800
-------------------------------------------------------------------------
"We are extremely pleased with the progress that our partner
Golden Dory and its technical team have made on the Huxter Lane
project in their first year. This initial resource estimate
establishes the Mosquito Hill zone as a significant zone of gold
mineralization with excellent potential to increase the resource
along strike and down dip" said Michael Vande Guchte, President and
CEO of Paragon. "The 2010 plans are to continue to drill
aggressively to expand the resource, begin metallurgical testing
and continue with environmental baseline studies."
Resource Estimate
The independent mineral resource estimate prepared by Giroux
Consultant Limited was produced from a database consisting of 46
diamond drill holes (NQ size core) totaling 7,289 metres from which
3,777 samples were assayed for gold. Assays within the mineralized
solid were capped at 4.5 grams per tonne gold and uniform downhole
composites measuring 5 metres in length were created to honour the
boundaries of the solid. A block model was created with blocks
measuring 20 x 20 x 5 metres that were superimposed over the
geologic solid. A specific gravity of 2.78 was applied to all
blocks, which was measured by the weight in air / weight in water
method. Gold grades were interpolated into the block model by
ordinary kriging. The resource estimates can be classified as
indicated and inferred mineral resources based on definitions from
National Instrument 43-101and from CIM 2005. The completed NI
43-101 Technical Report will be posted by Golden Dory on SEDAR
within 45 days of this news release.
About Paragon Minerals Corporation
Paragon Minerals Corporation is a Canadian-based mineral
exploration company focused on gold, copper, lead, zinc, and silver
exploration in eastern Canada. Paragon's flagship base metal
project is the 100%-owned South Tally Pond VMS project where it has
made a significant precious metal-rich massive sulphide discovery
in a proven mining district in central Newfoundland. Paragon is
also exploring an exceptional portfolio of gold properties through
both company and partner-funded exploration. For more information
on Paragon and its properties, please visit the website at
www.paragonminerals.com.
PARAGON MINERALS CORPORATION
Michael Vande Guchte, President & CEO
Qualified Person - David A. Copeland, M.Sc., P.Geo., Exploration
Manager for Paragon Minerals Corporation is a Qualified Person as
defined by NI43-101 and has reviewed and approved this news
release. Gary Giroux, P. Eng. of Giroux Consultants Limited is the
Qualified Person as defined by NI 43-101 for the resource estimate
discussed above and has reviewed and approved the 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 Paragon 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 use of
proceeds, current and future exploration programs, activities and
results. Although Paragon 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
Paragon's management on the date the statements are made. Except as
required by securities laws, Paragon 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.
Shares Issued: 32,802,181
Contacts: Paragon Minerals Corporation Michael Vande Guchte
President & CEO (604) 629-2353 Paragon Minerals Corporation
Bill Cavalluzzo VP Investor Relations (604) 629-2353
www.paragonminerals.com
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