Golden Promise JV Project

60% Crosshair
40% Paragon

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

Highlights

• Major mineralized system traced over 7 kilometres with surface samples up to 10.5 oz/t gold
• Jaclyn Vein Zone system defined over 800 metres strike length and 275 metres depth - open in all directions
• Significant drill intercepts of up to 93.71 g/t gold over 1.40 metres including 327.97 g/t gold over 0.40 metres
• 43-101 compliant inferred resource of 921,000 tonnes averaging 3.02 g/t gold for 89,500 contained ounces of gold
• Strong similarities to the Bendigo-Ballarat Gold District in Australia - an area with over 22 million ounces of past gold production

Technical Reports

Click here for the NI 43-101 technical report on the Golden Promise JV Project (PDF 3.6MB)

Property Information

The Golden Promise project is located in central Newfoundland near the town of Badger and Grand Falls-Windsor. The property consists of 6 mineral licenses (1,033 claims) covering an area of 25,825 ha (258.25 sq km). 

In April 2009, Paragon entered into a Joint Venture Agreement with Crosshair Exploration & Mining Ltd ("Crosshair"), whereby Crosshair can acquire up to a 70% interest in the Golden Promise property.  The new agreement resulted in the termination of the original property option earn-in agreement with Crosshair and the property purchase and sale agreement that Paragon entered into in June 2008.   Under the terms of the new joint venture agreement Crosshair will issue to Paragon 2,655,000 of its common shares to earn a 60% interest in the Golden Promise project.  Crosshair will provide Paragon with a $2.0 million carried interest in exploration expenditure to be completed prior to May 2013.  On completion of the initial $2.0 million in exploration expenditures, Crosshair can elect to earn an additional 10% interest (to 70%) by providing Paragon with an additional $1.0 million carried interest in exploration expenditures within a one year period.  

History

A total of 15,310 metres of diamond drilling in 98 holes have been completed on the property, along with 8,250 line kilometres of airborne magnetic and electromagnetic surveys, ground geophysical surveys on 20 line kilometres of grid, excavation of 30 trenches, ~6,000 B-horizon soil and humus samples, ~2,400 rock float, grab and channel samples and regional (1:50,000 scale) and detailed (1:500) geological mapping. The majority of the work, including 71 diamond drill holes has focused on the Jaclyn Main Zone.

Geology and Mineralization

The project is underlain by sedimentary rocks of the Ordivician Victoria Lake Group, which are overlain by black Caradocian shale and the Late Ordivician to Silurian Badger Group sedimentary rocks. The Victoria Lake Group comprises mainly epiclastic greywacke and siliceous mudstone with minor sequences of felsic volcanic tuff and pillow basalts. The Caradocian shale unit is highly graphitic and pyrite rich and in places is up to 600 metres thick. The Badger Group is comprised of generally coarse grained sandstone and conglomerate with lesser shale and siliceuous mudstone layers.

The entire sequence has been folded into tight regional anitclines and syclines that overall plunge moderately to the northeast, but are occasionally doubly-plunging. The folds have upright, near vertical axial surfaces. The sequence is cut by regional to local scale faults and mafic dyke swarms and is intruded by the Siluro-Devonian Skull Hill Intrusive Complex to the north and the Hodges Hill Granite to the east. Overall the sequence is metamorphosed to lower greenschist facies. The finer grained thinner bedded sediments usually display a strong, penetrative cleavage and local scale chevron folds.

Significant gold-bearing quartz veins have been identified and drill tested in three key areas on the property including the Jaclyn Main Zone, Jaclyn North Zone and Jaclyn South Zone. Other significant gold occurrences include the Christopher and Shawn's Shot gold occurrences.

Jaclyn Zone - 71 drill holes (10,315 metres) have successfully tested the Jaclyn Zone mineralized quartz veins over a strike length of 800 metres and to a depth of up to 275 metres. The zone is well defined by a composite arsenopyrite-bearing quartz vein zone measuring up to 4.0 metres in width (true thickness). Visible gold has been reported in 59 of the 71 drillholes completed to date. The Jaclyn Main zone remains open along strike and to depth. Significant drill intercepts include:

• 16.57 g/t gold over 1.64 metres (GP02-01).
• 93.71 g/t gold over 1.40 metres including 327.97 g/t gold over 0.40 metres (GP06-52);
• 6.50 g/t gold over 1.40 metres including 14.9 g/t gold over 0.45 metres (GP07-83)
• 10.10 g/t gold over 1.40 metres including 35.3 g/t Au over 0.40 metres (GP07-90)
• 6.30 g/t gold over 1.35 metres including 10.5 g/t Au over 0.75 metres (GP07-90)
• 43.83 g/t gold over 1.45 metres, including 141.21 g/t Au over 0.45 metres (GP07-91)
• 10.41 g/t gold over 4.70 metres, including 64.49 g/t Au over 0.50 metres (GP07-92)
• 20.89 g/t gold over 1.90 metres, including 44.74 g/t Au over 0.65 metres (GP07-93)
• 6.87 g/t gold over 1.70 metres, including 18.59 g/t Au over 0.45 metres (GP07-98)

A 43-101 compliant resource estimate was recently completed by Crosshair based on 68 drill holes at the Jaclyn Main Zone. The estimate determined an inferred resource of 89,500 contained ounces of gold (921,000 tonnes averaging 3.02 g Au/t) at a 1 g/t Au cutoff.

Jaclyn North Zone - 10 drill holes (1,987 metres) have successfully tested the Jaclyn North Zone, which is located about 200 metres north-northwest of the Jaclyn Main Zone. The zone consists of three sub-parallel mineralized quartz vein zones that dip moderately to the north and are generally parallel to bedding.

Jaclyn South Zone - 4 drill holes (607 metres) have successfully tested the Jaclyn South Zone, which is located about 300 metres south-southeast of the Jaclyn Main Zone. The zone consists of two sub-parallel mineralized quartz vein zones. The veins contain trace arsenopyrite and are up to 3 metres thick with the best grade (44.59 g/t gold over 0.26 metres) thus far coming from a 0.26 m wide arsenopyrite-rich vein in hole GP03-31.

Christopher Occurrence - The Christopher Zone is located 500 metres on trend with the Jaclyn Zone. The Christopher Zone consists of a 2.0 metres wide composite vein zone with a main central quartz vein with a thickness of 0.4 to 1.8 m wide. The vein zone has an exposed strike length of 35 metres and has been intersected by diamond drilling (2 drillholes for 315.1 metres) at a vertical depth of 28 metres. Visible gold has been noted at surface at the Christopher Zone with assays up to 3.8 g/t gold.

Shawn's Shot Occurrence - Steeply dipping gold-bearing quartz veins in bedrock located approximately 7 kilometres west-southwest of Jaclyn Zone. The 0.3 metre wide vein outcrops along the bank of the Exploits River and is exposed over a strike length of 2 metres on the riverbank. Assays of up to 100.5 g/t gold over 0.35 metres from a single quartz vein. Two drillholes (387.1 metres) have targeted the Shawn's Shot Occurrence and have intersected narrow and weakly mineralized quartz veins that bear many similarities to those observed at the Jaclyn Zone.

Results

Golden Promise Drill Assay Results