Paragon Minerals Corporation (TSX-V: 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 gold; and
- 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 depth.
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 shipping.
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 test programs.
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 Promise Project.
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 www.paragonminerals.com
PARAGON MINERALS CORPORATION
�Michael J. Vande Guchte�
_______________________________
President & CEO
Investor Relations: Miranda McCarthy (604) 629-2353 or Wanda Cutler (416) 303-6460
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.�