NR: Intersects More Massive Sulphides at South Talhttps://www.newswire.ca/en/releases/archive/March2011/28/c6931.html
Paragon Intersects More Massive Sulphides at South Tally Pond VMSProject
- 8.09% zinc, 2.09% lead, 0.75% copper, 90.60 g/tsilver, 2.59 g/t gold over 8.70 metres -
TSX Venture Exchange Symbol: PGR
Shares Issued:52,939,254
VANCOUVER, March28 /CNW/ - Paragon Minerals Corporation (TSX-V: PGR) ("Paragon")is pleased to provide an update on its exploration activities underway on the100%-owned South Tally Pond VMS project in central Newfoundland. The SouthTally Pond project is located adjacent to and is in the same volcanic belt asthe producing Duck Pond Cu-Zn Mine/Mill complex operated by Teck Resources.Seven drillholes (2,500 metres) of a planned 9,000 metre drill program has nowbeen completed and 1,315 line kilometres of airborne EM/magnetic geophysicalsurvey was completed over two, un-surveyed areas of the property. Highlightsinclude:
- Drillhole LM11-52, located 50 metres up-dip of LM10-43, intersected semi-massive to massive sulphides assaying 8.09% zinc, 2.09% lead, 0.75% copper, 90.60 g/t silver and 2.59 g/t gold over 8.70 metres
- Drillholes in the North Target area of the Lemarchant prospect intersected favourable felsic volcanic stratigraphy similar to that associated with massive sulphides to the immediate south.
- Preliminary airborne geophysical results have outlined a number of high priority target areas.
"We are encouraged with the drilling to-date at the Lemarchantdiscovery. The thick massive sulphide intersected in drillhole LM11-52,highlights the potential of expanding the Lemarchant massive sulphide zone withadditional drilling," said Michael Vande Guchte, President and CEO of Paragon"Our drilling in the North Target area has intersected a similar, favourablemafic to felsic volcanic stratigraphy and remains open for further drill testingalong strike, dip, and to depth. Given the geological endowment at Lemarchant,we believe there is excellent potential for expanding and delineating new zonesof high-grade massive sulphide mineralization"
Drilling is continuing at the Lemarchant prospect and aimed atfurther defining the mineralization towards a NI 43-101 compliant resource.Further details of the drilling are provided below and on the company website.
Lemarchant Massive Sulphide Zone - Lemarchant Prospect
Drillhole LM11-52(Section 102+50N) intersected a thicksequence of semi-massive to massive polymetallic sulphide mineralization over19.60 metres grading 4.36% zinc, 0.93% lead, 0.40% copper, 40.9 g/t silver,and 1.21 g/t gold and includes 8.70 metres grading 8.09% zinc, 2.09%lead, 0.75% copper, 90.60 g/t silver and 2.59 g/t gold. The massive sulphidemineralization is located immediately below a mudstone horizon located along themafic to felsic volcanic rock transition, and is further underlain by intenselyaltered and stringer mineralized felsic volcanic rocks. The drillhole, the first50-metre step out on the section, extends the massive sulphides 50 metres up dipof the massive sulphides intersected previously in drillhole LM10-43. Themineralization remains open in all directions.
North Target Area - Lemarchant Prospect
Four drillholes (1,540 metres) were completed to continue testingthe North Target area of the Lemarchant Prospect. The favourable targethorizon was intersected in all of the four drillholes and consists of alteredfelsic volcanic rocks containing disseminated to stringer sulphidemineralization.
Drillholes LM11-49 and 50 (Section 108+00N), a 100 metre step-outto the north of any previous drilling, intersected altered felsic volcanic rockswith abundant stringer pyrite mineralization. The drilling targeted airborne EMand downhole Pulse EM geophysical targets that appear to be related to apyrrhotite-rich mudstone horizon located at the top of the felsic volcanicpackage. A similar mudstone horizon is associated with the Lemarchant massivesulphide mineralization to the south and, based on the airborne EM geophysics;the mudstone horizon is projected to continue a further 400 metres to the northof the two new drillholes.
Drillhole LM11-51 (Section 104+50N) intersected a thick sequenceof altered felsic volcanic rocks with disseminated to stringer base metalsulphide mineralization. The mineralization is located 50 metres "down-dip" ofthe semi-massive base metal sulphide/barite horizon intersected in drillholeLM08-19. Significant assay results include 3.03% zinc, 0.28% copper and 7.09g/t silver over 1.9 metres at a downhole depth of 123.6 metres.
Drillhole LM08-28ext (section 106+00N) was extended from a drilleddepth of 300 metres to 515 metres. The drillhole extension intersected 142metres of altered felsic volcanic rocks with disseminated and stringer basemetal mineralization. Significant assay results include 2.29% zinc, 0.20%copper and 10.30 g/t silver over 2.0 metres at a downhole depth of 371metres.
Regional Exploration
Two assessment drillholes (653 metres) were completed elsewhere onthe South Tally Pond property; one drillhole at the Duck West Prospect (443metres) and one drillhole at the Cookstown Prospect (210 metres). The initialdrillhole at the Duck West Prospect intersected no significant sulphidemineralization. The Cookstown Prospect, located 3 km north of the Lemarchantprospect, tested a moderate to strong airborne EM conductor. The drillholeintersected a thick pyrrhotite-rich mudstone horizon (26 metres) explaining theconductor with assays up to 2.48% zinc, 0.14% copper and 1.1 g/t silver over0.55 metres along the contact.
Preliminary results from the 1,315 line kilometres airborne EM andmagnetic geophysical survey has outlined a number of high priority conductivetrends on the Gills Pond Block located southwest of the Duck Pond Mine. Theconductive zones occur adjacent to alteration zones and mineralized floatcontaining elevated base metals (see news release dated September 23, 2010). Additional ground follow-up of theseareas is planned for the summer.
Other News
Paragon has entered into an option agreement to acquire a 100%interest in the Seal Bay VMS property located in north-central Newfoundland.The property consists of 3 mineral licenses located in the same volcanic beltthat hosts the nearby Point Leamington Deposit (12,300,000 tonnes grading 1.92%zinc, 0.88 g/t gold, 0.28% copper and 16.94 g/t silver; Calibre Mining Corp.NI43-101 report). To acquire a 100% interest in the Seal Bay property, Paragonmust make total cash payments of $122,500 and issue230,000 common shares of Paragon to the property vendor over a four yearperiod. The property vendor will retain a 2% net smelter royalty, of which 50%can be purchased by Paragon at any time for $1,000,000. The option agreement is subject to theapproval of the TSX-Venture Exchange. Paragon is discussing a potential jointventure with a third party.
About Paragon Minerals Corporation
Paragon Minerals Corporation is a Canadian-based mineralexploration company focused on gold and base-metal exploration in Newfoundlandand Ontario. The Company's flagship base metal project is the 100%-owned SouthTally Pond VMS project where it has made a significant precious metal-richmassive sulphide discovery in a producing base metal mining district in centralNewfoundland. The Company is also exploring an exceptional portfolio of goldproperties through company-funded and partner-funded exploration programs. Formore information on the Company and its properties, please visit the companywebsite at www.paragonminerals.com
PARAGON MINERALS CORPORATION
"Michael J. VandeGuchte"
_______________________________
President & CEO
Qualified Person: David A.Copeland, M.Sc., P.Geo., Exploration Manager for Paragon Minerals Corporation isa Qualified Person as defined by NI43-101 and has reviewed and approved thecontents of this news release. Drillhole intervals are core length and estimatedto be near true thickness. Samples were analyzed for Au (1 assay ton), Ag, Cu,Pb and Zn at Eastern Analytical Labs in Springdale, NL from sawn NQ-sized halfcore sections. Data quality is monitored through the insertion of controlsamples comprising one prepared base and precious metal standard and one blanksample for every 20 samples of diamond drill core. All control samples conformedto the accepted contained grades of base and precious metals. Sample pulps wereshipped to ALS Chemex in North Vancouver, BC foranalysis for 33-element ICP analysis on all samples and for further check assaysof significant base and precious metal bearing samples. Historical results wereobtained from published reports and news releases available in the public domain
Forward-looking Statements: This newsrelease contains certain statements that may be deemed "forward-lookingstatements". All statements in this release, other than statements ofhistorical fact, that address events or developments that Paragon expects tooccur, are forward looking statements. Forward-looking statements arestatements 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 thatevents or conditions "will", "would", "may", "could" or "should" occur.Forward-looking statements in this document include statements regardingcurrent and future exploration programs, activities and results. AlthoughParagon believes the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are not guarantees offuture performance and actual results may differ materially from those inforward-looking statements. Factors that could cause the actual results todiffer materially from those in forward-looking statements include marketprices, exploitation and exploration success, continued availability of capitaland financing, inability to obtain required regulatory or governmental approvalsand general economic, market or business conditions. Investors are cautionedthat any such statements are not guarantees of future performance and actualresults or developments may differ materially from those projected in theforward-looking statements. Forward-looking statements are based on thebeliefs, estimates and opinions of Paragon's management on the date thestatements are made. Except as required by securities laws, Paragon undertakesno obligation to update these forward-looking statements in the event thatmanagement'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 ofthe receipt of regulatory and governmental approvals for the transactionsdescribed herein, the ability of Paragon and other relevant parties to satisfystock exchange and other regulatory requirements in a timely manner, theavailability of financing for Paragon's proposed transactions and explorationand development programs on reasonable terms and the ability of third-partyservice providers to deliver services in a timely manner. The foregoing list ofassumptions is not exhaustive. Events or circumstances could cause results todiffer materially.
"Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release."