Drilling underway at Paradigm and Exco JV

Documentation formalizing Paradigm Metals Ltd and Exco Resources Ltd’s...

  Documentation formalizing Paradigm Metals Ltd and Exco Resources Ltd’s exploration joint venture for uranium and other minerals within the Toolebuc Limestone Formation near Cloncurry Queensland, is now signed.Final completion of the agreement will occur once government approvals have been given for the transfer of 8 exploration permits to Toolebuc Resources Pty Ltd (TOR), a jointly-owned company recently constituted. TOR will be funded initially on a 50:50 basis by Paradigm and Exco, with exploration to be managed by Paradigm. TOR will be open to a range of possible future funding alternatives including a public spin-off.The permits to be transferred to TOR are EPMs 15208 and 16113 held by Exco; and EPMs 15325, 15906, 15931, 16073, 16200 and 17306 held by Paradigm. The total area of the tenement package is 500sqkm.Recent uranium assays of Toolebuc Formation outcrops at several prospects are encouraging. Of more than 100 rock chip samples collected from limestone outcrops at the Longford, Elrose and Oorindi Park areas, a significant proportion (about 25%) returned uranium values greater than 175 ppm U3O8.Two samples assayed 707 and 884ppm U3O8 from the Longford East area. According to the company, uranium assays correlate well with radioactivity readings in the field, up to 2000 counts per second. Uranium is believed to be associated with the vanadium mineral carnotite, but may also occur with phosphate, which correlates positively with uranium (assays up to 10% phosphate, P2O5). Uranium mineralisation is associated with a recrystallised fossiliferous limestone, the thickness of which will be tested with upcoming drilling. Molybdenum assays range up to 0.1%Mo, with vanadium up to 0.2%V.An aircore drilling program has started, with 2000m planned to test the thickness of the mineralized horizons at several prospects.