Glenwood Project

100% Paragon

Target: Gold (turbidite-hosted, mesothermal gold deposit)

Highlights

• Clydesdale Prospect outlined by initial trenching and diamond drilling (5 holes for 642 metres)
• Significant trench assays up to 6.34 g/t gold over 5.0 metres and drill intercepts of up to 1.92 g/t gold over 1.60 metres, including 5.17 g/t gold over 0.55 metres
• Strong similarities to the Bendigo-Ballarat Gold District in Australia -- an area over 22 million ounces of past gold production

Property Information

The 100%-owned Glenwood property is located in central Newfoundland, approximately 25 kilometres west of the town of Gander. The property consists of 1 mineral licence (87 claims) for a total area of 2,175 hectares.

Geology and Mineralization

The property area is underlain by sedimentary rocks of the Davidsville Group, a thick sequence of north-northeast trending grey to black slate and siltstone with minor red slate and sandstone units. The sedimentary rocks have been variably folded and faulted and metamorphosed to lower greenschist facies. The eastern part of the property area (east of the Dog Bay Line) is underlain by turbiditic sedimentary rocks of the Davidsville Group (similar to the JBP Linear) with similar potential for Bendigo-Ballarat type gold deposits. The western part of the property (west of the Dog Bay Line) is underlain by a fault bounded block of mélange that hosts the Clydesdale and T-Rex Prospects.

Clydesdale Prospect - At the Clydesdale Prospect, a five metre channel sample returned an average grade of 6.34 g/t Au over 5.0 metres and included a higher grade section assaying 12.22 g/t gold over 2.5 metres. Gold values in grab samples have returned values of up to 50.23 g/t gold, 44.46 g/t gold and 39.69 g/t gold. A five-hole diamond drill program (642.6 metres) completed in 2005, tested approximately 75 metres of the Clydesdale linear. All five drill holes intersected multiple zones of brecciated, quartz veined sedimentary and intrusive rock that is variably mineralized with pyrite and arsenopyrite. Drill holes CD-05-3 and 4 drilled underneath the high grade channel sample reported from the 2004 channel sampling (6.34 g/t gold over 5.0 metres). Both drill holes intersected the target zone with drillhole DC-05-03 intersecting 1.31 g/t gold over 0.80 metres and CD-05-4 (drilled below CD-05-3) intersecting 1.92 g/t gold over 1.60 metres including 5.17 g/t gold over 0.55 metres.

T-Rex Prospect - Trenching at the T-Rex gold showing, located 1.5 km west of the Clydesdale prospect, has exposed a mineralized zone over a width of 3 metres and length of 50 metres. Channel sampling (42 samples each 0.5 metre in length) have returned anomalous gold values of 2.17, 2.26, and 1.04 g/t gold over 0.5 metre intervals with an average grade of 1.20 g/t gold over 2.0 metres and 6.0 metres of 0.52 g/t gold. The mineralized zone consists of moderate to strongly sericitized and silicified porphyry with 2-5% generally finely disseminated pyrite, arsenopyrite and local sphalerite.