HIGHLIGHTS

• New polymetallic discovery made at Kangiara by Paradigm during Q4 2009.

• 27 percussion holes completed to date with highlights including (SULPHIDE):

-  66m @ 2.6% Pb+Zn, 0.3% Cu, 0.7g/t Au, 28g/t Ag from 20m depth (KAN009);
-  56m @ 3.4% Pb+Zn, 0.1% Cu, 0.5g/t Au, 22g/t Ag from 38m depth (KAN012);
-  102m @ 0.6% Pb+Zn, 0.3% Cu, 0.5g/t Au, 10g/t Ag from 84m depth (KAN003) including:
        -  20m @ 0.6% Cu, 0.9g/t Au, 0.3% Pb+Zn, 19g/t Ag from 138m depth;
-  42m @ 3.4% Pb+Zn, 0.1% Cu, 0.2g/t Au, 28g/t Ag from 42m depth (KAN019) including:
       -   6m @ 6.6% Pb+Zn, 0.4g/tAu, 132g/t Ag from 66m depth;
-   40m @ 3.0% Pb+Zn, 0.1% Cu, 0.6g/t Au, 18g/t Ag from 18m depth (KAN008).

 • Encouraging metallurgical test results in early work.

• Mineralisation is shallow, open along strike and at depth, with 3 other nearby prospects to be drill tested Q1 2010.

• Paradigm is targeting a 5 to 10 million tonne polymetallic ore deposit at Kangiara project, open-pittable.

• The Kangiara project is 100% owned by PDM.

Paradigm announced on 24 March 2010 a maiden JORC Mineral Resource estimate for the Kangiara project as follows:
2.75 million tonnes grading 1.3% zinc, 1.0% lead, 0.2% copper, 0.5g/t gold, and 24 g/t silver.  This includes a higher-grade resource component of:
1.25 million tonnes grading 1.9% zinc, 1.6% lead, 0.3% copper, 0.75g/t gold, and 36g/t silver. 

The Mineral Resource has been calculated over a strike length of 360m and horizontal width of up to 60m.  There are two sulphide ore types, zinc-lead dominant and copper-gold dominant, respectively.  About 80% of the resource lies between 20-100m depth and almost 90% of the high-grade resource. A plan of the resource and cross sections through it are provided in Figure 1-3 below. 

There remains significant potential to expand the resource in adjacent prospects including Kangiara South and Allys.  Potential also exists for a gold-silver oxide cap, although more drilling is required to define an initial resource in the oxide material. 

UPDATED 4 JUNE 2010
A 1000m aircore drill programme is to be carried out during early June, targeting shallow oxide gold and silver mineralisation at Kangiara, North Kangiara, and Ally's prospects.  We expect the results by the end of June 2010. 

Figure 1.  Plan of Kangiara resource with select drill intersections

 

Figure 2.  Cross section through the Kangiara resource through KAN012

Figure 3.  Cross section through Kangiara resource through KAN009

About Kangiara
The Kangiara project is located 30km north of the township of Yass NSW, about 100km north of Canberra.  The old Kangiara mine (1909-1927) produced about 40,000 tonnes of ore grading 16% lead, 3% copper, 5% zinc, 280g/t silver and 2g/t gold from underground workings exploiting narrow north-south trending sulphide veins to a depth of 120m. Mineralisation is hosted by Silurian silicic volcanics and is believed to be related to a mineralised porphyry system. Prior to Paradigm, only minor drilling was conducted at Kangiara. 

The project is very well located close to populated towns, roads, and the main east-west railway line is just 20km away.

The sulphide mineralisation discovered so far occurs close to surface, and is partially overlain by an oxidised gold-silver cap (best oxide intercept - 12m @ 0.3g/t Au and 150g/t Ag from 2m). The sulphide mineralisation occurs in veins and breccias with minor quartz, and is dominated by sphalerite, galena, chalcopyrite, and pyrite. A Cu-Ag rich lens appears to lie in the footwall of a Pb-Zn-Au-Ag rich lens at the Kangiara prospect. 

 
Figure 2.  RC percussion drilling on KAN012 at Kangiara, November 2009, looking north (drilling rig not owned by PDM).