Paragon partner Yamana to finance Huxter drill program
2008-06-10 09:24 ET - News Release
See News Release (C-PGR) Paragon Minerals Corp
Mr. Michael Vande Guchte of Paragon reports
PARAGON MINERALS CORPORATION AND YAMANA GOLD INC. PLAN 2,000 METRE DRILL PROGRAM AT HUXTER LANE PROJECT
Yamana Gold Inc. will finance a 2,000-metre drill program at Paragon Minerals Corp.'s Huxter Lane project in Newfoundland. Yamana has earned a 55-per-cent interest in the project by spending $1.0-million on exploration and can earn an additional 10-per-cent interest by completing an industry standard bankable feasibility study based on a minimum 500,000-ounce gold resource and spending a minimum $250,000 per year on exploration.
The Huxter Lane project is a bulk-minable gold target located 90 kilometres south of Grand Falls-Windsor in central Newfoundland. Two drill programs, totalling 25 holes (4,144 metres), have outlined a significant gold-bearing, porphyritic intrusion over a strike length of 750 metres and to a shallow vertical depth of 125 metres. The mineralized porphyry dips gently to the south and typically contains up to 15 per cent disseminated and vein-hosted arsenopyrite-pyrite mineralization.
The porphyry remains open along strike and to depth. Significant drill intercepts include 2.21 grams per tonne gold over 35 metres (HX06-16), 1.07 g/t gold over 28.6 metres (HX06-01), 2.00 g/t gold over 16.85 metres (HX07-24) and 0.67 g/t gold over 103.35 metres (HX07-20). Initial metallurgical tests completed by Yamana on several drill core samples indicate favourable gold recoveries.
"We are very pleased to have Yamana continue as a partner on this exciting bulk tonnage gold project," said Michael Vande Guchte, president and chief executive officer of Paragon. "The work to date on this near-surface, gold-bearing system is demonstrating robust gold mineralization, and we look forward to continued exploration success on this project with Yamana."
The Huxter Lane project work is being supervised by qualified person David Copeland, MSc, PGeo, exploration manager for Paragon Minerals.
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