TSX Venture Exchange Symbol: PGR
Shares Issued: 52,939,254
VANCOUVER, April 20 /CNW/ - Paragon Minerals Corporation (TSXV: PGR; "Paragon") is pleased to provide an update on the trenching
and bulk sampling program funded and operated by joint venture partner,
Crosshair Exploration & Mining Corp. (NYSE Amex: CXZ; TSX: CXX)
("Crosshair") on the Golden Promise JV Project in central
Newfoundland. The purpose of the bulk sample program was to determine
the recoverability of the gold and to accurately determine the quantity
of gold in a portion of the Jaclyn Main deposit.
Highlights of the program include:
313.59 ounces of gold and 23.05 ounces of silver were recovered from a
2,174 tonne surface bulk sample;
a bulk sample grade of 5.59 grams/tonne (g/t) gold which is
approximately 26% higher than the average block model grade of 4.42 g/t
positive milling characteristics of the mineralized material.
Based on the encouraging results of the bulk sample, Crosshair plans to
prepare a new resource estimate that will include the 2010 drilling and
bulk sample. The Jaclyn Main deposit remains open along strike and to
Bulk Sample Program Details
The Jaclyn Main gold zone was exposed over a 175 metres length at depths
of up to 4 metres below surface. Blast holes, roughly 2.5 metre deep
were equally spaced along the vein to create the bulk sample. The
quartz vein material was removed by excavator and stockpiled for
A total of 2,174 tonnes were delivered to the Nugget Pond Mill in Baie
Verte, Newfoundland owned and operated by Rambler Metals and Mining
Canada Limited. Two gold bars weighing 5.37 kilograms were poured and
shipped to Johnson Matthey Limited ("Johnson Matthey") in Toronto for
refining. In addition to the bars, the ball mill and SAG mill were
cleaned out and 482.5 kg of concentrate were also shipped to Johnson
Matthey for treatment and refining. After refining, the bars and the
mill concentrate produced a total of 313.59 ounces of gold and 23.05
ounces of silver which were sold for net receipts of CDN$430,001.85
after treatment charges.
Based on the mill records and the total gold recovered, the average
recovered gold grade was calculated at 4.47 g/t gold. The average
tails grade was 1.12 g/t gold indicating a back-calculated head grade
of 5.59 g/t gold with an 80% recovery. While an overall recovery of
80% is positive it is lower than predicted by the bench scale test work
(see Paragon news release dated June 2, 2010). It is believed that the
lower than expected recovery is due to the presence of carbonaceous
material in the waste rock. In future, this issue can be mitigated by
modifying the circuit to a carbon in leach process as opposed to a
carbon in pulp process. This would result in a minor modification to
the flow sheet which will be further refined in future metallurgical
For reconciliation purposes, the head grade was compared with the
estimated sample grade using the block model prepared in April 2008 by
Gary Giroux, P.Eng., which stated an inferred resource of 921,000
tonnes at 3.02 g/t gold (see Golden Promise NI43-101 Report on
Paragon's website for further details). Assuming a 2 metre deep trench
and 25% dilution, Gary Giroux determined that the bulk sample would
have a tonnage of 2,125 tonnes at an average grade of 4.42 g/t gold.
This comparison indicates that the bulk sample grade of 5.59 g/t gold
is approximately 26% higher than the modeled resource grade.
The exploration programs are being funded and operated by Crosshair as
part of the 2009 Joint Venture Agreement (see Paragon News Release
dated August 25, 2009). Paragon retains a 40% interest in the Golden
About Paragon Minerals Corporation
Paragon Minerals Corporation is a Canadian-based mineral exploration
company focused on gold and base-metal exploration in Newfoundland and
Ontario. The Company'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 producing base metal mining
district in central Newfoundland. The Company is also exploring an
exceptional portfolio of gold properties through company-funded and
partner-funded exploration programs. For more information on the
Company and its properties, please visit the company website at
PARAGON MINERALS CORPORATION
"Michael J. Vande Guchte"
President & CEO
Qualified Person: Exploration work on the Golden Promise JV Project is being carried on by
Crosshair and supervised by Stewart Wallis, P.Geo., a member of the
Professional Engineers and Geoscientists of BC; President and CEO of
Crosshair; and a Qualified Person as defined by NI 43-101. Mr. Wallis
has reviewed and approved the technical contents of this news release.
Gary Giroux, P. Eng. of Giroux Consultants Limited and independent
consultant to Crosshair is the Qualified Person as defined by NI 43-101
for the resource estimate discussed above and has reviewed and approved
the technical contents of the news release.
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
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.
"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."
SOURCE Paragon Minerals Corp.
For further information:
Investor Relations: Miranda McCarthy (604) 629-2353 or Wanda Cutler (416) 303-6460