Paragon, Scout to set up sample prep facility in Idaho

Executive Summary

• Paragon Advanced Labs Inc. and Scout Discoveries Corp. have entered a strategic partnership to establish a co-branded sample preparation facility, "Scout Analytical, Powered by Paragon," at Scout’s northern operations hub in Coeur d'Alene, Idaho.
• The facility aims to significantly accelerate exploration speeds by integrating local sample preparation with Paragon’s ISO-certified analytical capabilities, specifically the Chrysos PhotonAssay network, reducing assay turnaround times from weeks to days.
• The agreement includes financial and operational support from Paragon, priority processing for Scout and its partners, and provisions for potential expansion into Nevada.

Key Details

• Facility Structure: A new full-scale sample preparation facility co-branded as "Scout Analytical, Powered by Paragon," located at Scout’s Coeur d'Alene, Idaho hub.
• Operational Model: Paragon handles financing and operations. The facility integrates local sample prep with Paragon’s geochemical expertise, fire assay, and Chrysos PhotonAssay technology.
• Efficiency Gains: The partnership removes logistical bottlenecks (shipping and queue times), enabling assay turnaround in days rather than weeks.
• Service Tiers: The facility is open to third parties; Scout and its partners receive preferred rates and Tier 1 priority processing.
• Technology: Features advanced Orbis crushing and pulverizing systems with specialized workflows optimized for PhotonAssay.
• Asset Transfer: Scout will receive assay credits equal to the sale amount of its currently operated Orbis OM50WM crusher and pulverizer, which is being transferred to Paragon for use in the new facility.
• Expansion Provisions: The agreement includes provisions for Scout to assist Paragon in establishing a reciprocal core-processing facility in Sparks, Nevada, expanding Paragon’s facility there to include core-cutting services.
• Timeline: The Coeur d'Alene facility is expected to be fully operational by Q1 2026, coinciding with the spring drilling season.

Notable Quotes

• Dr. Curtis Johnson, President and CEO of Scout Discoveries Corp.: "This partnership is exactly the kind of strategic move that defines Scout's approach to vertical integration of the discovery process... By bringing Paragon's world-class lab capabilities and standards directly into our operations, we are not just improving efficiency, we are fundamentally changing the pace of exploration for our own projects and for our partners by cutting weeks off the assay turnaround time."
• Peter Shippen, CEO of Paragon Advanced Labs: "Paragon is committed to being where the discovery action is. Coeur d'Alene is a premier mining jurisdiction, and partnering with Scout -- a leader in U.S. exploration -- allows us to deploy our Powered by Paragon model in a way that benefits the entire regional mining community."