Paragon Minerals – 100% Owned Gold and Base Metal Projects with Significant Discoveries

Overview

Paragon Minerals Corporation (TSXV: PGR) is a Canadian-based mineral exploration company focused on gold and base-metal exploration and development in Newfoundland and Ontario. The Company’s flagship project is the 100%-controlled South Tally Pond volcanogenic massive sulphide (VMS) project located in a producing base metal mining district in central Newfoundland. In January 2012, Paragon reported an initial NI 43-101 compliant Resource Estimate on the Lemarchant Cu-Pb-Zn-Au-Ag massive sulphide deposit. The deposit remains open for expansion. The Company is also exploring an exceptional portfolio of gold properties through partner-funded exploration programs.

Investment Highlights

• Exploring in politically stable, mining friendly jurisdiction.
• Excellent share structure (53 MM shares I/O and 67 MM shares FD)
• Strong management and technical team
• 100%-controlled base metal (Cu-Pb-Zn-Ag-Au) and gold projects
• Flagship South Tally Pond VMS project located in a producing mining district
  • Large, 100%-controlled land position located next to Teck’s Duck Pond Cu-Zn Mine
  • Highly prospective, producing volcanic belt with numerous, underexplored base metal (Cu-Pb-Zn-Ag-Au) VMS targets.
  • Initial NI 43-101 Resource Estimate at Lemarchant Deposit
    
    
    
  • Partners advancing gold projects with NI 43-101 compliant gold resources.
    • Huxter Lane – 196,000 oz gold indicated & 569,496 oz gold inferred; open for expansion.
    • Golden Promise – 89,500 oz gold inferred; open for expansion

  Key Projects

  South Tally Pond VMS Project – Newfoundland

  The 100%-controlled South Tally Pond VMS project is located in Newfoundland’s most recognized base-metal mining district. This area in central Newfoundland is host to the past producing world-class Buchans base metal deposits, historically one of Canada’s richest base metal mining camps and the producing Duck Pond Cu-Zn mine operated by Teck Resources Limited. The South Tally Pond project covers a large land position (21,400 hectares) immediately adjacent and southwest of the Duck Pond mine. Access to the property is excellent via a well maintained network of hydro, logging and mining roads.

  Highlights:

  • Large, 100%-controlled land position located in a producing volcanic belt – Teck Resources Duck Pond Cu-Zn Mine & Mill complex.

  • Significant precious metal rich base metal discovery at the Lemarchant Prospect -initial NI43-101 resource estimate completed in January, 2012.

  

  • Deposit defined to vertical depth of 210 metres and remains open for expansion

  • Numerous other VMS targets identified on the property with limited to no drilling.

  

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  Paragon made a significant precious metal-rich copper-lead-zinc massive sulphide discovery at the Lemarchant Prospect. A total of 74 drillholes (24,500 m) have been completed at the Lemarchant discovery which has outlined a significant zone of semi-massive to massive sulphide mineralization over a 500 metre strike length.

  In January, the Company completed a NI 43-101 compliant resource estimate on the Lemarchant Main Zone.  The deposit is defined to a vertical depth of 210 metres and remains open for expansion along strike and at depth. The Company believes the Lemarchant massive sulphide deposit at Lemarchant has an excellent opportunity to develop into an economic resource in the near term.  The nearby Duck Pond Mine & Mill Complex (20 km) with reported reserves to mid-2014 provides a potential infrastructure cost advantage to any future development of the Lemarchant deposit.  In addition, there are at least six, high-priority, underexplored target areas that have been identified in the project area.

  JBP Linear Gold Project – Newfoundland

  The 100%-controlled JBP Linear property is a high-grade gold target located alongside the Trans Canada Highway, 15 kilometres northwest of the town of Gander, Newfoundland. The property consists of 8 mineral licenses (302 claims) covering 7,550 hectares. The property has excellent road access and nearby infrastructure.

  Highlights:

  • Major mineralized system traced over 15 km; 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.

  • Strong geological similarities to the Bendigo-Ballarat Mining District in south Australia , a district with 22 million ounces of past gold production.

  Systematic exploration for gold on the property began about eight years ago with the discovery of visible gold bearing veins along the Gander Lake shoreline in 2002 and quartz float along H-Pond creek in 2003. The first drillhole at the H-Pond prospect intersected gold-bearing quartz vein zones containing coarse visible gold. Since then, 54 drillholes totalling 9,880 metres have outlined a significant gold-bearing quartz vein zone over nearly a three-kilometre strike length and to a depth of 200 metres at the H-Pond and Pocket Pond prospects. The gold zone is open in all directions. High-grade drill intercepts include 255.0 g/t gold (7.45 oz/ton) over 0.5 metres and 52.37 g/t gold (1.53 oz/ton) over 0.35 metres.

  The three-kilometre long gold-bearing vein zone forms part of a longer “linear” mineralized system traced across the property. Large, angular gold-bearing quartz vein boulders assaying up to 798.87 g/t gold (23.30 oz/ton) have been located along this trend, approximately 2.5 kilometres north of the H-Pond prospect. The boulders remain to be sourced to bedrock and, given the angular nature of the boulders the bedrock source is interpreted to be nearby.

  Gold Star Project – Ontario

  Located 230 km northwest of Thunder Bay, Ontario, the property consists of 35 claims covering 6,137 hectares. Paragon can earn a 100% interest in the property by making cash and share payments. The property area was initially explored in the early 1900’s which led to the discovery of numerous high-grade, gold-bearing quartz vein systems in shear zones. The area saw very little further work until the 1970’s and 1980’s when intermittent exploration work was carried out including ground geophysics and limited diamond drilling. Recent work by Paragon has identified two high priority gold target areas on the property.

  Highlights:

  • High-grade gold prospects in past-producing Archean greenstone belt.

  • Two, high priority gold target areas identified with assays up to 276 g/t gold (8.06 oz/t) and 62.80 g/t gold (1.83 oz/t).

  • Historic drill assays of 0.87 oz/ton gold over 4 feet at the Powell Prospect.

  • Under-explored nature with limited historic drilling(43 shallow drillholes).

  Paragon holds a 100%-interest in the Huxter Lane gold project, a near surface-bulk tonnage gold target which hosts a NI 43-101 compliant resource estimate of 569,000 oz gold inferred and 196,000 oz gold indicated. The deposit remains wide open for expansion. The property is under option to Golden Dory Resources Corp. who can earn up to a 70% interest in the property by preparing a bankable feasibility study.

  Golden Promise Gold Project – Newfoundland (Joint Venture)

  Paragon holds a 40% interest in the Golden Promise, a joint venture with Crosshair Exploration & Mining Ltd that is targeting high-grade gold bearing vein systems hosted in metasedimentary rocks. The most actively explored vein zone, the Jaclyn Main hosts an initial NI 43-101 inferred resource estimate of 0.921 million tonnes averaging 3.02 g/t gold for 89,500 contained ounces of gold. The Jaclyn Main deposit remains open along strike and to depth. Paragon has a $2.0 million carried interest in the joint venture before participating.

  Management

  Michael J. Vande Guchte, P.Geo. – President & CEO, Director
  Michael Vande Guchte is a professional geologist with extensive experience in the mineral exploration and information technology industries. He received his Bachelors Degree in Geology from the University of Alberta in 1986 and Diploma of Technology from BCIT in 2000. Michael spent fourteen years as a project manager and geologist working with both major and junior exploration companies focused on gold and base metal projects in Canada, USA, South and Central America.

  In 2000, he entered the high tech industry, where he spent five years as System Consultant for Accenture Business Services. Michael rejoined the mineral exploration industry in 2005 to create Paragon Minerals Corporation and has been the President and CEO since the Company’s incorporation in 2006.

  Tom R. Wilson, CA – Chief Financial Officer
  Tom Wilson is a Chartered Accountant and founding partner of CWA Consulting Inc., a professional services firm that provides contract accounting, tax and internal control consulting services to both public and private companies. He has over 28 years of corporate experience in the areas of financial management with an emphasis on corporate governance, government and securities compliance.

  Tom has in-depth knowledge and experience in corporate restructuring and financings and coordinates activities for a variety of government programs. His experience extends throughout the mining, forestry, technology and public education sectors, and with PricewaterhouseCoopers.

  David A. Copeland, M.Sc, P.Geo. – Exploration Manager
  David Copeland received his B.Sc. and M.Sc. in Geology from the University of New Brunswick in 1995 and 1999. David has over 14 years of base and precious metal and diamond exploration experience with junior exploration companies in Canada and Western Australia. In 2003, David started as Exploration Manager (Newfoundland) for Rubicon Minerals Corporation and he is now based in Newfoundland as Exploration Manager for Paragon Minerals Corporation.

  David W. Adamson, Ph.D- Chairman of the Board, Director
  David Adamson, President & CEO, and Director of Rubicon Minerals Corporation, received his B.Sc. (Hons.) at the University of Southampton, U.K. in 1980, an M.Sc. (1984) at the University of Regina, Saskatchewan and Ph.D. (1988) at the University of Aston in Birmingham, U.K. David has been associated with the mineral exploration industry for over 22 years with experience with both major and junior companies in gold and base metal exploration in North America, Europe and Africa.

  As CEO of Rubicon, he was instrumental in the identification and acquisition of a world-class cobalt/copper deposit in Africa and seeing it through to completion of a feasibility study prior to it being spun out. David Adamson was the driving force behind the Company’s Red lake acquisitions including the flagship Phoenix Gold Project, leading to recent discovery of F2 Zone at Phoenix. David has extensive experience in marketing and capital raisings, particularly in North American and European capital markets and has been active in raising over $200 million for Rubicon and is a member of the board of one other junior exploration company.

  J. Garfield MacVeigh – Director
  Garfield MacVeigh, President & CEO, and Director for Constantine Metal Resources Ltd, received his B.Sc. from Queen’s University at Kingston in 1972. He has 32 years of experience in gold and base metal exploration in Canada, U.S.A. and Central America. He was a participant in the discovery of the Hoyle Pond Gold Deposit in Timmins, Ontario, and contributed to the exploration and discovery of HW Deposit and several new zones at Westmin Resources Ltd. Buttle Lake massive sulphide ore deposits on Vancouver Island, British Columbia.

  As District Manager for Lac Minerals Ltd. from 1991 – 1995, he was involved in the exploration of the Red Mountain gold deposit near Stewart, BC, Canada. Mr. MacVeigh was a founding member, the past President & CEO and Chairman of the Board of Rubicon Minerals Corporation.

  Kenneth R. Yurichuk, CA – Director
  Kenneth Yurichuk is a Co-Founder and Senior Partner of Bobot & Yurichuk, Chartered Accountants LLP and has extensive experience in accounting, capital markets and corporate governance. Mr. Yurichuk has been in public practice for over 30 years and has served as both director and officer of private and publicly-traded corporations involved in a wide range of businesses including mining, real estate development, investment and manufacturing.

  In addition, Mr. Yurichuk is a director of Matrix Funds Management – Fund Corporation and has served as a director and officer of several fund partnerships including Contrarian Resource Fund Limited Partnerships and Mavrix Fund Limited Partnerships. Mr. Yurichuk holds a Bachelor of Commerce degree as well as the CA designation.