Gold Star Project

100% Paragon (earning in)

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

Highlights

• High-grade gold prospects in past-producing Archean greenstone belt
• Historic drill assays at the Powell Prospect of 0.87 oz/ton gold over 4 feet
• Recent surface sampling by Paragon at Powell Prospect up to 8.06 oz/ton gold
• Under-explored nature with only 26 shallow (<100 vertical metres) and narrow diameter drillholes (1663.5 metres) at three gold prospects

Property Information     

The Gold Star property is located near the community of Savant Lake, Ontario; approximately 230 kilometres northwest of Thunder Bay, Ontario, Canada. The property consists of 29 claims (323 units) for a total area of 5,168 hectares. The property is optioned from a local prospector and is subject to an underlying NSR.

History

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.  Highlights of historical assessment work at key prospects include:

• 4.66 oz/ton gold and 0.66% copper from select grab samples at the Y-Island gold prospect;
• 4.62 oz/ton gold over 0.5 feet in drillhole completed at the Davidson-Carr gold prospect with 0.12 oz/ton gold over 5.5 feet in the associated shear zone; and
• 0.87 oz/ton gold over 4 feet in one of two diamond drillholes completed at the Powell gold prospect.

The Sturgeon Lake Gold Belt has seen past gold production at the past-producing St. Anthony Gold Mine which produced 63,310 ounces of gold from 332,720 tons at an average grade of 0.191 oz/ton gold (43-101 Report (2009) - Pacific Iron Ore Corporation). 

Geology and Mineralization

The Gold Star property is underlain by Archean-aged mafic and felsic volcanic rocks (greenstone) that are cut by later intrusive rocks related to the Lewis Lake granites to the west and/or the Sturgeon Narrows intrusive complex to the southeast.  Gold-bearing quartz veins located are hosted within north-northeast trending shear zones that are well developed at lithological boundaries.  Late folding and structural disruption of the shear zones and primary gold mineralization show the potential for remobilization and concentration of gold within later structures; a feature common to many high-grade gold environments.  The rocks have been variably folded and faulted and metamorphosed to middle-greenschist facies.

Powell Prospect - The Powell Prospect comprises visible gold-bearing quartz veins hosted within sheared contact zone between mafic volcanic rocks and quartz porphyry.  The sheared contact between these two rock types has been traced 1.5 kilometres to the southwest towards the Richelieu Gold Prospect. The quartz veins are exposed in several small historic pits and shallow shafts.  The veins have variable orientation generally striking NE (045 degrees) and NW (330 degrees).  A total of 9 diamond drillholes totaling 711.9 metres have been completed at the Powell Prospect.  Drilling has returned assays up to 0.87 oz/ton gold over 4 feet. Sampling by Paragon in October 2009 returned assays from 34.2 g/t to 276.0 g/t gold (0.99 to 8.06 oz/ton) at the Powell Prospect (4 grab samples);

Davidson-Carr Prospect - The Davidson-Carr Prospect comprises a visible gold-bearing quartz vein hosted at the contact between mafic volcanic rocks and quartz porphyry.  The vein has a minimum inferred strike length of 200 feet (60 metres) is steeply dipping and strikes from NE (040 degrees) to NW (330 degrees).  The vein structure is hosted within a local minor fold implying a possible linkage between fold and vein development. The prospect was discovered as early as 1911 and by 1930 an inclined shaft was sunk on the quartz vein to a depth of 160 feet (48.8 metres).  A total of 230 feet (70.1 metres) of underground development on levels 130 and 160 were completed prior to the workings being flooded in 1930.  Historic underground sampling returned and average grade of 0.34 oz/tonne gold on the vein.  A total of 15 shallow drillholes (749.9 metres) have tested the prospect area.  Highlight assay grades from previous drilling include 4.62 oz/ton gold over 0.5 feet and 0.12 oz/ton gold over 5.5 feet in the associated shear zone.  Surface sampling by Paragon in October 2009 (5 samples) from surface waste dumps near the historic shaft returned 3.46 g/t to 22.80 g/t gold (0.10 to 0.66 oz/ton) at the Davidson-Carr Prospect. 

Y-Island Prospect – The Y-Island Prospect comprises two vein zones exposed via historic trenching on a small island.  The quartz vein zones (15 cm wide) are associated pyrite-bearing sheared mafic volcanic wallrock, strike east-northeasterly (065 degrees) and have steep southeasterly dips.  Historic sampling at the northern vein zone returned assays up to 4.54 oz/t gold and 0.66% copper.  Historic sampling at the southern vein zone returned assays up to 3.80 oz/t gold.  Each vein zone has been tested by a single drillhole totaling 201.8 metres.  Drilling returned assays of 0.30 oz/t gold over 0.9 feet (59.4 to 60.5 feet) from hole 3 targeting the northern vein zone.  Hole 4 targeting the southern vein zone returned 0.04 oz/t gold over 0.6 feet (68.0 68.6 feet). Sampling by Paragon in October 2009 returned assays of 49.8 g/t gold (1.45 oz/ton) at the Y-Island prospect with 6.14 g/t gold (0.18 oz/ton) from the sheared host wallrock.  

Limited diamond drilling at each of the prospects highlights the underexplored nature of the area; particularly given the positive results of surface sampling and diamond drilling completed to date.  All drillholes were completed using narrow diameter drilling (AXT, AQ and BQ) and have not tested below 100 vertical metres.  Paragon is currently compiling historic data from the project area and planning a 2010 exploration program.