Canadian-based mineral exploration company, Paragon Minerals has released the assay results of the 2011 November drill program on the Huxter Lane Joint Venture Project in central Newfoundland. The drill program was completed by Paragon Minerals’ exploration partner, Golden Dory Resources who is also the project operator.
Golden Dory Resources will receive about 70% interest in the Huxter Lane Joint Venture Project after completing a feasibility analysis on the property.
The highlights of the drill program comprises a modified porphyry intersected 800 m towards the northwest; drilling had expanded the mineralized zone to an additional 50 m towards the west of the Mosquito Hill Gold Deposit; gold-bearing mineralized porphyry was crisscrossed in all the drill holes across intervals of about 176 m; considerable drill intercepts of 0.35 g/t gold over 47.8 m and 0.20 g/t gold over 113.28 m was encountered; and gold-bearing porphyry remains exposed along depth and strike with more than two-third of the porphyry was to be drill tested. The Huxter Lane Project is a bulk tonnage gold target, which features an inferred resource of 38.76 M tonnes averaging 0.457 g/t fold for 569,496 ounces and a NI 43-101 compliant resource of 11.18 M tonnes averaging 0.546 g/t gold for 196,257 ounces gold at a cutoff of 0.30 g/t gold.
Golden Dory has planned to complete the initial metallurgical testing and update the NI43-101 gold resource by March end of 2012.
Six drill holes measuring 1,318 m extended the mineralization to 50 m towards the west of the gold resource at the Huxter Lane - Mosquito Hill Gold Deposit. Drill holes HX11-67and HX11-61 to 65 intersected mineralized and modified porphyry across widths ranging between 48.35 and 176.25 m. Mineralization includes inconsistent quartz veining with about 2% scattered arsenopyrite and pyrite in the porphyry.
Paragon Minerals’ President and CEO, Michael Vande Guchte said that the company is happy with the ongoing expansion of gold mineralization of the Mosquito Hill Gold Deposit and is looking forward to a revised gold resource estimation. The deposit is exposed along depth and strike with plenty of stratigraphy, which needs to be drill tested based on the company’s geophysics. The identification of a new porphyry body on the property towards the northwest underlines the potential of the region to include a huge mineralizing system, Guchte concluded.