Vancouver – Paragon Minerals (PGR-V) saw a modest boost in the markets after the first set of drill holes into the Douglas Lake project in central Newfoundland returned promising results.
Seven drill holes tested favourable stratigraphy over a 300-metres strike length, and all seven intersected a thick sequence of moderately to strongly altered felsic volcanic and sedimentary rocks. Multiple zones of disseminated to stringer sulphide mineralization within local, semi-massive, and massive sulphide intervals hosted base metals.
Hole 4 intersected the most significant mineralized interval, returning 10 metres grading 4.37% zinc, 2.8% lead, 0.26% copper, and 56.84 grams silver per tonne from 43 metres depth. The mineralized interval included 6.45 metres grading 6.3% zinc, 4.19% lead, 0.39% copper, and 82.86 grams silver.
The other drill holes, collared along strike from hole 4, intersected zone of elevated to anomalous mineralization over widths up to 23 metres.
The Douglas Lake project results pushed Paragon’s share price up 2 to close at 96. The company has a 52-week trading record of 24.5 to $1.65 and has 21.2 million shares issued.
The Douglas Lake project, which Paragon owns 100%, is 10 km south of Paragon’s South Tally Pond project and 25 km southwest of Teck Cominco‘s (TCK.B-T, TCK-N) Duck Pond mine. Paragon drilled five holes at South Tally Pond in November, hitting massive sulphide mineralization over a 300-metre strike.
In its third, 100-metre step-out from discovery hole 15, which returned 9.46% zinc, 2.13% lead, 0.81% copper, 73.44 grams silver, and 1.85 grams gold per tonne over 14.6 metres from 219 metres downhole, in the Lemarchant copper-zinc prospect at South Tally Pond Paragon again hit semi-masive to massive polymetallic sulphide mineralization. Hole 17 returned 23.5 metres of 8.55% zinc, 1.63% lead, 0.35% copper, 3.46 grams silver, and 0.49 gram gold per tonne, including 8.1 metres grading 21.04% zinc, 4.26% lead, 0.72% copper, 76.05 grams silver, and 0.65 gram gold. Following the results from hole 17, the company announced plans to drill 10,000 metres at South Tally Pond in the coming months.
And Paragon has cash to do so, having closed a non-brokered private placement that raised gross proceeds of $3.76 million. The placement consisted of 1.39 million non-flow-through units at 70 a piece and 2.78 million flow-through shares at $1 a piece.
Be the first to comment on "Douglas Lake shows VMS potential for Paragon"