Winterhill JV Project

70% GFE Capital (earning-in)
30% Paragon

Target: Volcanogenic Massive Sulphide (VMS) deposit (Cu, Pb, Zn, Ag, Au)

Highlights:

• Massive sulphides discovered by Noranda with limited follow-up.
  • Up to 1.61% copper and 11.1% zinc over 4.0 metre (trenching)
  • Up to 1.41% copper over 6.0 metres and 10.1% zinc over 4.0 metres (drilling)
• Over 3.5 kilometres of prospective strike length.
• Excellent VMS potential in an under-explored volcano-sedimentary belt.

Property Information

The 100%-owned Winterhill project is located on the south coast of Newfoundland, approximately 25 kilometres from the coastal community of Harbour Breton, NL. The property consists of 7 mineral licenses (170 claims) covering 4250 hectares.  The property is subject to a 0.5% NSR royalty.  Previous work by Noranda from 1984-1990 identified significant massive sulphides mineralization at the Winter Hill, Winter Hill East, Winter Hill West and Winter Hill North prospects.

In May 2009, Paragon optioned the property to GFE Capital Corporation. Under terms of the option agreement, GFE Capital may earn a 70% interest in the property by funding $700,000 in exploration expenditures over a four year period ($100,000 firm in first year) and making cash payments of $60,000 to Paragon.  Paragon will be the operator during the option earn-in period.   

Geology and Mineralization

The Winterhill property is underlain by Neoproterozoic volcanic and plutonic rocks similar to that of the Arabian-Nubian Shield, which hosts numerous large tonnage and high-grade VMS deposits. The property covers a 3.5 kilometre long zone of altered felsic volcanic and calcareous sedimentary rocks (Tickle Point Formation) that host a number of base metal prospects including Winterhill, Winterhill East, and Winterhill West.  The Tickle Point Formation is variably intruded by felsic and mafic dykes/sill and is overlain by mafic volcanic and volcaniclastic rocks of the Connaigre Bay Group.  Previous drilling by Noranda at the Winterhill base metal prospects (18 holes, 3,872 metres) intersected massive sulphide mineralization with significant assays as follows:

Winterhill - The Winterhill massive sulphide  prospect is exposed for 120 metres on surface and measures from 5 to 15 metres in thickness.  The mineralization consists of massive lenses, bands and disseminations of pyrite, sphalerite, chalcopyrite and galena hosted within calcareous chemical sediments and calc silicate rocks. The mineralization is characterized by an upper, 3 to 7 metre thick lead-zinc rich zone that is stratigraphically and structurally underlain by a less than 10 metre thick pyritic copper-rich zone.  The footwall felsic fragmental rocks are characterized by strong silicification and lesser chloritization.  The mineralized zone is overlain primarily by mafic volcanic rocks.   A total of 8 drill holes were completed by Noranda at the Winter Hill showing with significant intercepts of 6.17% zinc over 11.0 metres including 10.1% zinc over 4 metres (WH-90-11) and 1.41% copper over 6 metres from the copper-rich zone (WH-85-3).

Winterhill East - The Winterhill East propsect is located approximately 1.8 kilometres northeast of the Winter Hill Prospect and consists of semi-massive to disseminated pyrite-sphalerite-galena-chalcopyrite hosted by calc-silicate rock.  A thin, massive and banded pyrite hosted by banded argillite occurs for about 1.0 km along strike to the northeast.  Drilling at the Winterhill East (3 holes) intersected 9.6 metres of massive bedded pyrite (no assays reported).   

Winterhill West - The Winterhill West prospect, located 1.5 kilometres on strike to the southwest of the Winter Hill prospect, hosts mineralization consisting of heavily disseminated to massive pyrite mineralization within silicified argillite.  The silicified argillite extends along strike for an additional 1 kilometre to the southwest.  A massive sulphide boulder assayed 4% copper in the vicinity of the showing.  Drilling at this prospect (1 hole) intersected four 1 metre thick intervals of massive pyrite with no significant base metal values reported.

Winterhill North - The Winterhill North showing, located approximately 600 metres north of Winterhill East, consists of magnetite-sphalerite-galena-chalcopyrite mineralization in boulders.  Trenching in the area exposed a thick calc-silicate unit with one drillhole intersecting massive pyrite bands up to 1 metre thick.  Two grab samples from the showing returned values of up to 2.2% zinc. 

An airborne survey completed by Paragon has identified a least four priority short strike length airborne EM conductors that require follow-up prospecting and drill testing.  One of the priority conductors in the Winterhill area is located below a small lake and coincides with a conductive trend that continues on surface through the Winterhill East prospect.  The best section of this airborne EM conductor occurs over about a 700 metres strike length making it a potentially large target.  Other priority target areas include the Olive Cove prospect that is underlain by mineralized felsic volcanic rocks assaying up to 6.4% zinc. The prospect has not been drill tested and is associated with a short strike length airborne EM conductor (~200 metres long) and a 900-metre long multi-element soil anomaly.