Long Pond Project

100% Paragon

Target: Gold (mafic and ultramafic-hosted, mesothermal gold deposit); Copper-Gold (mafic-hosted VMS)

Highlights

• Five known gold occurrences with limited drill testing in the highly prospective Bett's Cove (Ophiolite) Complex
• Drillhole assays from the Long Pond showing of 21.5 g/t gold over 1.19 metres (Inco, 1988).  Historic grab samples contain up to 75.9 g/t gold with abundant visible gold noted
• Hosted within same stratigraphy as the past-producing Nugget Pond Mine (1997-2001) that produced 168,745 ounces of gold (New Island Resources Inc., Press Release; February 14, 2006).
• Excellent potential for additional gold and base metal discoveries in an under explored part of the Baie Verte Peninsula

Property Information

The 100%-owned Long Pond property is located on the Baie Verte Peninsula in Northeastern Newfoundland, approximately 65 kilometres east of the town of Baie Verte. The property consists of 2 mineral licences (63 claims) for a total area of 1,575 hectares.

Geology and Mineralization

The Property is underlain by Lower Ordovician mafic-ultramafic and sedimentary rocks of the Bett's Cove Ophiolite and fault bound Siluro-Devonian Cape St. John Group felsic volcanic rocks. The following five gold occurrences were outlined during previous exploration by Inco Gold and others, proceeding from east to west:

Long Pond - The Long Pond showing is hosted by altered, brecciated ultramafic rocks of the Lower Ordovician Bett's Cove (ophiolite) Complex, near a fault contact with the Cape St. John Group. Gold mineralization occurs within a quartz-carbonate stockwork in the hydrothermally altered and brecciated ultramafic rocks of the Betts Cove ophiolite. The alteration zone is about 125 m long by 35 m wide and consists of ultramafic rocks pervasively altered to dolomite, with lesser quartz, hematite, serpentine, talc and minor fuchsite. Anastamosing trains of opaque minerals outline pre-existing olivine grains. The quartz stockwork contains pyrite, chalcopyrite and specularite, with minor visible gold. Assays of 21.5 g/t gold over 1.19 m were intersected in drill core (Inco, 1988).

Long Pond West - The Long Pond West showing consists of a gold-bearing quartz vein which cuts the conglomerate of the Cape St. John Group. The vein is 15 cm wide, contains shoots of massive specularite, and returned grab samples up to 75.9 g/t gold (Rubicon, 2005), and a channel sample with 1.5 g/t gold over 15 cm. The host conglomerate contains jasperite fragments in a strongly hematized, quartz-sericite matrix. The conglomerate is part of a sequence consisting mainly of felsic crystal and lapilli tuffs and agglomerate. A single drill hole at the showing intersected a 2 cm quartz vein which returned assays of 2.69 and 1.12 g/t gold.

Tom - The Tom showing occurs in a shear zone at the contact between felsic tuff and conglomerate of the Cape St. John Group. Gold is hosted by a shallow-dipping quartz vein up to 30 cm wide, which cross-cuts foliation. Specularite lenses occur in the quartz vein, and fuchsite also occurs in the shear zone. Grab samples of specularite returned assays up to 3.7 g/t gold. Channel samples have assay values up to 3.7 g/t gold over 30 cm across the vein. A grab sample from the fuchsite-bearing part of the shear zone assayed 2.9 g/t gold.

Boneyard - Gold mineralization at the Boneyard showing is hosted by pyritic quartz veins within a shear zone cutting felsic pyroclastic rocks of the Cape St. John Group. The wall rock is locally pyrite-bearing and contains several hundred ppb gold. Gold-bearing quartz-carbonate veins that were intersected in drill core beneath the showing are cutting amygdaloidal and porphyritic basalt, but may be part of the same zone. The showing is within a few hundred metres of a fault contact with mafic-ultramafic rocks of the Bett's Cove (ophiolite) Complex. Numerous gold occurrences have been reported at various levels within the ophiolite. It is speculated that the gold originated in ultramafic rocks within the complex, was transported by hydrothermal fluids, and deposited with quartz along brittle fractures within the Cape St. John Group. Grab samples returned assay values up to 3.5 g/t gold (Rubicon, 2005).

George - The showing consists of an auriferous quartz vein hosted by felsic tuff of the Silurian Cape St. John Group. The 5 to 20 cm wide vein strikes 70 meters east-west and dips shallowly south. The vein locally contains coarse, platy specularite lenses with visible gold, and is strongly sericitic along its margins. Outcrop grab samples from the showing area, on the north shore of Red Cliff Pond, returned values as high as 12.6 g/t gold (Rubicon, 2005).

Newmont - Newmont Exploration (1981) reported gold occurrences on the shores of Red Cliff Pond. One of these occurrences was a one metre wide iron formation that assayed 0.43 g/t gold. The second occurrence is on the southeast shore of Red Cliff Pond where green, finely bedded pyritic argillite returned assays of 8.49 g/t gold.  Inco drilled three Winky holes into the prospect with one hole returning and assay of 2.13 g/t gold over 0.64 metres.

Nudulama - Cyprus-type Cu-Au VMS prospect located at the southern margin of Licence 12976M. Grab samples consist of chloritized basalt with up to 30% veinlets and pods of pyrite + chalcopyrite, with numerous samples returning significant gold values.  Grab sample of mineralized basalt from the main shaft showing area assayed 15.3 g/t gold (Exploration Sulliden Inc.).