Arcus Development Group Inc.
TSX VENTURE : ADG

Arcus Development Group Inc.

December 07, 2011 06:00 ET

Arcus Drills Gold Bearing Structural Zones at Dan Man

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2011) - Arcus Development Group Inc. (TSX VENTURE:ADG) ("Arcus" or the "Company") is pleased to announce the completion of its exploration in the White Gold District, Yukon. The 2011 exploration campaign at the Dan Man property was focused within the southern portion of the claim block in close proximity to the bordering Coffee Creek claims being aggressively explored by Kaminak Gold Corp. Auger soil sampling on the Dan Man property identified four zones of anomalous gold-in-soil responses along an 8 km trend near the southern border of the claim block. Two of the zones were partially drill tested targeting four separate structural trends interpreted from air photo lineament analysis and detailed magnetic interpretation. Structural zones encountered in drill holes are interpreted to be steeply southerly dipping and dominantly associated with northwest trending lineaments.

Significant drill intervals are listed in the following table while the individual zones are more fully described below.

Hole # Zone Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)(1)
Au
(g/t)
DM-11-02 Kambaa 000 29.10 34.46 5.36 0.64
including 29.10 30.65 1.55 1.18
DM-11-03 Kambaa 180 10.34 16.63 6.29 1.61
including 12.24 16.63 4.39 2.08
DM-11-07 Kwazulu 180 72.54 109.78 37.24 0.22
DM-11-08 Kwazulu 035 21.15 56.67 35.52 0.50
including 21.15 29.77 8.62 1.63

(1) True widths are believed to be 70 - 90% of the intervals reported in the table above.

The areas grid soil sampled in the southern portion of the Dan Man claims are characterized by low lying north-facing slopes vegetated with moss and buckbrush, largely underlain by variable accumulations of organic material, loess and permafrost. Considering these conditions, gold-in-soil contour thresholds were appropriately adjusted lower to interpret areas of significant anomalous response.

The Kambaa Zone is characterized by a 900 x 200 m easterly trending gold-in soil geochemical anomaly with soil values ranging from 12.5 to 132 ppb. The anomaly is bounded by two northwest trending lineaments interpreted from airphotos.

Four drills holes were located on two section lines spaced 100 m apart to test the strongest gold-in-soil response within the broader anomaly. All holes encountered structural alteration characterized by varying intensities of texturally destructive brittle fracturing accompanied by silica flooding, sericitization, partial oxidation and intermittent brecciation. Alteration zones contain moderately to significantly elevated levels of arsenic, antimony and barium relative to the unaltered wallrock background responses. Narrow intervals of elevated gold responses (>250 ppb) were encountered in all holes with the best grades reporting from DM-11-03.

The Kwazulu Zone is situated 2.5 km southwest of the Kambaa Zone and encompasses a 2 km area of interest defined by a weakly anomalous intermittent gold-in-soil response. Anomalous gold values span a range of 12.5 to 156 ppb. The zone hosts a series of northwest trending lineaments bisected by an arcuate northeasterly to northwesterly trending feature. The core portion of the gold-in-soil response is contained within the western part of the zone and is defined by an area roughly 1200 x 200 m in size.

Five drill holes were located at three sites to test an 800 m portion of the zone containing at least three separate structural trends. Three of the holes tested two northwesterly trending lineaments approximately 600 m apart and encountered significant structural alteration between 35 and 60 m thick. The structural alteration is characterized by intense clay-altered shearing with multi-episodic brecciation and intermittent oxidation.

The best gold grades were encountered within a subinterval of the western Kwazulu structure yielding 1.61 g/t gold across 8.62 m within a broader alteration zone grading 0.50 g/t gold across 35.52 m. The geochemical signature of the structures within the Kwazulu Zone is best characterized by gold and intermittent weakly elevated arsenic values.

The Rooibos Zone is located 1 km south of the Kambaa Zone and consists of a series of anomalous gold-in-soil clusters within an 800 x 100 m easterly trend. Anomalous gold values range from 12.5 to 98 ppb. No follow-up work to explain the gold-in-soil anomalies was possible as assay results were not received by Arcus until after the end of the 2011 field season.

The Bengal Zone is situated 3 km east of the Rooibos Zone and hosts the strongest gold-in soil response (12.5 to 444 ppb) identified on the property to date. Anomalous gold values are contained within an 1,800 x 500 m west northwesterly trend. Lineament analysis suggests the soil geochemical anomaly is bisected by a series of north-northwest trending structures, the orientations of which coincide with the moderate to strongly anomalous core portions of the gold-in soil response. No follow-up work to explain these anomalies was possible as assay results were not received by Arcus until after the end of the 2011 field season.

"Arcus management is encouraged by the first phase assessment of the Dan Man gold targets, specifically with the tenor of structural alteration encountered at the Kambaa and Kwazulu zones," stated Ian Talbot, the President of Arcus. "While gold responses within these structural zones are currently limited to narrow intervals or broader low grade intervals, the size and nature of the associated alteration is very compelling. The Bengal soil anomaly represents the strongest gold response defined on the claim block to date and appears to be associated with a northerly trending structural system similar to Kaminak's Supremo Zone 2.5 km to the south."

Arcus will spend the coming months conducting a detail evaluation of all of the 2011 Dan Man data for the purposes of drill targeting in 2012. A 740 line km close spaced airborne Vertical Time Domain Electromagnetic (VTEM) survey over the Touleary property has been completed. Condor Consulting of Lakewood Colorado has been retained to level and interpret the VTEM data for drill targeting along trend from the Company's 2011 volcanogenic massive sulphide discovery (see October 4, 2011 news release).

Updated maps, sections and photos of the Dan Man project can be viewed on the Arcus website (www.arcusdevelopmentgroup.com).

QA/QC

Samples were forwarded to ALS Minerals in Whitehorse, Y.T. or North Vancouver, B.C. where they were fine crushed before a 250 gram split was pulverized to better than 85% passing 75 microns. Pulps were then analyzed at ALS Minerals in North Vancouver where gold determinations were carried out and splits of the pulverized fraction were routinely dissolved in aqua regia and analyzed for 49 elements using inductively coupled plasma (ICP). Gold analyses were by the Au-AA24 procedure that involves fire assay preparation using a 50 gram charge with an atomic absorption spectroscopy finish.

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards and blanks are routinely inserted into the sample stream to ensure integrity of the assay process.

The technical information in this news release has been prepared and approved by William A. Wengzynowski, P.Eng., a director of Arcus and a qualified person for the purposes of National Instrument 43-101.

On behalf of Arcus Development Group Inc.

Ian J. Talbot, President and CEO

CAUTIONARY NOTE: This news release includes certain "forward-looking statements". Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Arcus Development Group Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Arcus Development Group Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Arcus Development Group Inc. with securities regulators. Those filings can be found on the Internet at http://www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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