Paragon Minerals Corporation

JBP Linear

100% Paragon

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

Highlights

• Major mineralized system traced over 15 kilometres; quartz float samples up to 798 g/t gold (23.3 oz/ton)
• Significant gold drill intercepts at the H-Pond and Pocket Pond prospects with visible gold in 20 of the 54 drill holes
• High-potential target area between the H-Pond prospect and 798 prospect
• Strong similarities to the Bendigo-Ballarat Mining District in Australia - 22 million ounces of past gold production

Property Information

The JBP Linear property is located 15 kilometres northwest of the town of Gander in central Newfoundland. The property consists of 8 mineral licences (340 claims) for a total area of 8,500 hectares. Five of the eight mineral licenses were optioned from local prospectors and are subject to NSR agreements.

History

Exploration for gold in the area prior to 2002 consisted mainly of grassroots exploration to the west of the JBP Linear property area, where sporadic exploration work was completed in the late 1980's through the 1990's.

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. Significant gold-bearing quartz veins have been identified at the H-Pond Prospect and Pocket Ponds Prospect. These two areas, located about 1.2 kilometres apart are found along what appears to be a major mineralized gold system that has been traced over 15 kilometres. The 798 Prospect, located 2.5 kilometres further to the northeast, highlights the potential for additional discovery along the mineralized trend.  Paragon has completed a total of 9,880 metres of diamond drilling in 54 drillholes on the property.

Pocket Pond Prospect - Fifteen drillholes (2,529 metres) have been completed at the Pocket Pond Prospect and the mineralization has been exposed in two surface trenches. Drilling has traced mineralized quartz veined zones over a strike length of 950 metres and to a depth of 250 metres. Alteration and mineralization is similar to that at H-Pond with up to 10% combined pyrite-arsenopyrite in the quartz vein zones. Significant drill intercepts include:

HP04-07 : 6.63 g/t gold over 1.70 m including 25.23 g/t gold over 0.40 metres;
HP05-28 : 5.37 g/t gold over 1.55 m including 13.99 g/t gold over 0.40 metres;
HP07-39 : 1.89 g/t gold over 12.60 metres including 14.36 g/t gold over 0.50 metres;
HP08-44 : 12.43 g/t gold over 3.40 metres including 84.77 g/t gold over 0.50 metres;
HP08-48 : 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres.

H-Pond Prospect - Thirty-two drillholes (5,766 metres) have tested the H-Pond mineralized quartz veins over strike length of 800 metres and to a depth of 250 metres. Multiple, broad (up to 24 metre wide) gold-bearing zones containing on average 25% quartz vein material with individual veins reaching from <1 to 190 cm in thickness. The veining typically consists of variably stylolitic, partly vuggy quartz-iron carbonate veins and often contains visible gold. Associated sulphides consist of up to 15% porphyroblastic pyrite and arsenopyrite that occurs adjacent to the veining. Significant drill intercepts include:

HP04-01 : 0.75 g/t gold over 44.45 metres including 12.39 g/t gold over 0.50 metres;
HP04-03 : 11.70 g/t gold over 3.40 metres including 16.27 g/t gold over 2.40 metres;
HP05-09 : 2.08 g/t gold over 3.75 metres including 9.02 g/t gold over 0.80 metres;
HP05-11 : 5.47 g/t gold over 2.35 metres including 6.91 g/t gold over 1.85 metres;
HP05-15 : 3.40 g/t gold over 3.80 metres including 9.79 g/t gold over 1.15 metres;
HP06-29 : 2.41 g/t gold over 4.80 metres including 6.58 g/t gold over 1.00 metres;
HP06-35 : 6.15 g/t gold over 2.30 metres including 12.29 g/t gold over 1.05 metres.

798 Prospect – One drillhole (302 metres) was competed at the 798 Prospect located 2.5 kilometres northeast and on trend with the H-Pond Prospect. The prospect consists of high grade, large angular quartz vein boulders assaying up to 798 g/t (23.3 oz/t) gold.  Nearby bedrock, exposed by trenching, shows intense iron carbonate and sericite alteration.  Drilling intersected a strong sericite-iron carbonate altered zone over 41.5 metres that contained a 6.1 metre wide pyrite and arsenopyrite-bearing quartz veined zone. Assay results of the veined zone include 1.15 g/t gold over 0.30 metres. Variable to moderate alteration is encountered throughout the drillhole with extensive quartz veining in the last 50 metres of the drillhole. The vein zone intersected in this drillhole is interpreted to represent the host mineralized structure.  The source of the high-grade boulders remains unexplained, however, given the angular nature of the gold-bearing boulders the source is interpreted to be nearby in a “down ice” direction to the south-southwest.

To-date, wide-spaced drilling (mainly 50 to 100-metre spacing) at the Pocket Pond and H-Pond prospects has demonstrated excellent continuity of the quartz vein zone from drillhole to drillhole. At the Pocket Pond and H-Pond prospects, drilling has outlined a gold-bearing quartz vein zone over strike lengths of 950 metres and 800 metres, respectively and to a depth of 250 metres. The two prospects are separated by approximately 1200 metres of strike length.  Of particular note is the fine to very coarse-grained nature of the gold at the JBP Linear property. Visible gold is commonly observed in surface grab samples (quartz float/boulders) with assays up to 798 g/t gold (23.3 oz/ton) and in 20 of the 54 drill holes completed to date. The quartz vein zones are typically enveloped by a broader zone of moderate to strong hydrothermal alteration, suggestive of a robust fluid system affecting these rocks. The quartz vein zone remains open along strike and to depth.

The Pocket Pond and H-Pond quartz vein zone is interpreted to form part of a longer linear trend with high gold potential extending to the north-northeast and south-southwest. Additional exploration at the 798 Prospect is well warranted given the high-grade gold bearing boulders encountered and the 2.5 kilometres of untested strike length in the down-ice direction.  The Company considers this area to have high potential to host additional gold bearing structures.

Results

JBP Linear - Drill Assay Results