Huxter Lane JV Project

60% Golden Dory (earning-in)
40% Paragon

Target: Near surface, bulk-tonnage gold deposit

Highlights

• Initial NI43-101 compliant inferred resource - 32.9 million tonnes at 0.461 g/t gold for 488,000 ounces gold.
• Gold-bearing porphyry outlined over 900 metres strike length and widths of up to 500 metres; open in all directions.
• Significant drill intercepts include 2.2 g/t gold over 35.0 metres, 0.67 g/t gold over 103.35 metres, and 0.5 g/t gold over 110.00 metres.
• New gold exploration target in Newfoundland.

Technical Reports

Click here for the NI 43-101 technical report on the Huxter Lane Project (PDF 1.9MB)

Property Information

The Huxter Lane gold project is located approximately 90 kilometres south of Grand Falls-Windsor, NL and 10 kilometres west of the Baie D'Espoir Highway. The property consists of 4 mineral licenses (123 claims) covering an area of 3,075 ha (30.75 square kilometres).   The project area is accessible by various logging roads originating from the Baie D'Espoir Highway. Secondary logging roads and trails provide good access to various parts of the property. The property is subject to a 2.5% NSR of which 1.5% can be purchased for $1.5 million.

In February 2009, Paragon optioned the property to Golden Dory Resources Corp. who can earn a 60% interest in the property by funding $2,000,000 in exploration expenditures over a four year period and making cash and share payments of $50,000 and 350,000 shares to Paragon.  Golden Dory may then elect to earn an additional 10% interest by issuing an additional 150,000 shares to Paragon and completing a bankable feasibility study.  

History

The original discovery of mineralized gold-bearing float on the property was made in 1998. Previous to this, the area had only been sporadically prospected. In the last several years, the area has become increasingly active in gold and base metals exploration.

Gold mineralization at the Huxter Lane property has many geological similarities to bulk-tonnage gold deposits of the Tombstone Gold Belt located in the Yukon and Alask. These include the Donlin Creek deposit (393.8 Mt at 2.50 g/t Au for 31.67M oz Au; NovaGold Resources Inc. website), the Fort Knox deposit (240.9 Mt at 0.5 g/t Au for 3.85M oz Au; Kinross Gold Corporation website) and the past-producing Brewery Creek Mine (13.3 Mt at 1.44 g/t Au for 0.613 Moz Au; Diment and Craig, 1999).  This style of gold mineralization represents a new exploration target in Newfoundland and highlights the potential of the area to host large mineralizing systems with multi-million ounce gold potential.

Geology and Mineralization

The Huxter Lane gold project is underlain by Cambrian Coy Pond Complex ultramafic-mafic rocks with lesser marine volcanic rocks. The Coy Pond Complex rocks in the west part of the Huxter Lane property are highlighted by a regional magnetic high that reflects the distribution of the mafic-ultramafic rocks on the property. Juxtaposed over the Coy Pond Complex are felsic volcanic rocks and marine sedimentary rocks of the Mid-Ordovician North Steady Pond Formation. The rocks are in turn overlain by black shale of the Baie D'Espoir Group.

The rocks which host the gold mineralization are massive and clastic (brecciated) quartz-feldspar porphyry that are mapped as part of the felsic volcanic rocks of the North Steady Pond Formation. The porphyry intrusion is believed to be syn-depositional with the felsic volcanic rocks that were later preferentially mineralized by multiphase quartz/quartz-carbonate veining events.

Gold mineralization at the Mosquito Hill Deposit is best developed in the altered quartz-feldspar porphyry and to a much lesser extent within the surrounding sediment and ultramafic rocks. Mineralization consists mainly of pyrite and arsenopyrite with minor chalcopyrite. The sulphides occur as fine disseminations to coarse network of quartz with carbonate fractures/veins and breccias, and as coarse masses with euhedral cubic pyrite. The arsenopyrite is often disseminated to acicular and needle-like, but also occurs as blocky crystals and as massive fracture fillings. Sulphide contents are mainly 2-5% and up to 15-20% locally. The mineralization is typically gold-bearing arsenopyrite with the bulk of the gold occurring in the lattice structure of arsenopyrite. Preliminary metallurgical work on core samples has indicated favorable gold recoveries.

Between 2006 and 2008, Paragon completed a total of 31 drill holes (5,362 metres) at the Mosquito Hill Deposit. The wide-spaced drilling (100+ metres) outlined a significant gold-bearing porphyritic intrusion over a 900 metres strike length and widths of up to 500 metres. Drilling has intersected the mineralized porphyry over lengths ranging from 45 to 130 metres and to a vertical depth of 224 metres. The mineralized porphyry dips gently to the south and remains open along strike and to depth.

Drilling in 2009 by joint venture partner Golden Dory (15 holes, 2,024 metres) focused  on a specific area of the Mosquito Hill prospect where previous drill results have included 2.21 g/t over 35.0 metres (HX06-16) and 1.68 g/t gold over 20.2 metres (HX07-24).  Drillholes HX09-32 to HX09-46 were completed in a grid pattern at 50-metre centers covering an area of approximately 100 by 300 metres.  The gold-bearing porphyry was intersected in all of the completed drillholes over thicknesses of up to 98 metres (core length).  These drill results have been incorporated into the compliant resource calculation for the Mosquito Hill Deposit as outlined below.

Recent drilling 2010 by Golden Dory (14 holes, 3,018 metres) has continued to expand the size of the Mosquito Hill mineralization and return broad zones of gold mineralization with grades that are higher than the average grade of the compliant resource volume.  The increase in grade during this phase of drilling may be in part due to more effective drill orientation that was applied in 10 of the 14 completed holes during this program.  The drill was collared at and azimuth of 070 degrees which may provide a more optimum orientation for intersecting key gold bearing structures within the larger porphyry host.  Assay results have been returned for 7 of the 14 completed holes.  This latest phase of drilling has not been incorporated into the compliant resource calculation for the Mosquito Hill Deposit.

 NI 43-101 Complaint Resource Estimate

In March 2010 Paragon and Golden Dory completed a NI43-101 compliant gold resource estimate on the Huxter Lane property. The resource estimate, prepared by independent consultant Mr. Gary Giroux, P.Eng. of Giroux Consultants Limited, estimates the Mosquito Hill Zone to contain an indicated resource of 4.47 million tonnes averaging 0.526 g/t gold for 75,600 ounces gold and an inferred resource of 32.9 million tonnes averaging 0.461 g/t gold for 488,800 ounces gold at a cutoff of 0.30 grams per tonne gold.  It should be noted that this resource estimate is not an economic assessment of the Mosquito Hill Zone, therefore a range of cutoff grades are listed below.  Highlights include:

• Resources estimated at a 0.30g/t gold cutoff:  75,600 ounces gold indicated and 488,800 ounces gold inferred.
• Resource remains open to depth and along strike with near surface open pit potential.
• Resource modeling identifies high grade corridor in center of resource with little previous drilling.
• Over 90% of the resource estimate occurs at depths shallower than 200 metres. 
• Additional drilling, metallurgical testing and environmental studies scheduled for 2010. 

Mosquito Hill Zone - Indicated Resource within the mineralized solid  

 Mosquito Hill Zone - Inferred Resource within the mineralized solid 

The independent mineral resource estimate prepared by Giroux Consultant Limited was produced from a database consisting of 46 diamond drill holes (NQ size core) totaling 7,289 metres from which 3,777 samples were assayed for gold.  Assays within the mineralized solid were capped at 4.5 grams per tonne gold and uniform downhole composites measuring 5 metres in length were created to honour the boundaries of the solid.  A block model was created with blocks measuring 20 by 20 by 5 metres that were superimposed over the geologic solid.  A specific gravity of 2.78 was applied to all blocks, which was measured by the weight in air/weight in water method.  Gold grades were interpolated into the block model by ordinary kriging.  The resource estimates can be classified as indicated and inferred mineral resources based on definitions from National Instrument 43-101and from CIM 2005.

Results

2006-2010 Huxter Lane Drill Results