Argentex Mining Corporation
TSX VENTURE : ATX
OTCQB : AGXMF

Argentex Mining Corporation

October 11, 2012 09:20 ET

Argentex Intersects 5 m @ 355.2 g/t Ag and 18.66 g/t Au at Pinguino

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2012) - Argentex Mining Corporation ("Argentex" or the "Company") (TSX VENTURE:ATX)(OTCQB:AGXMF) is pleased to announce results from the remaining 32 holes (2,751 m) of the Phase VIII reverse-circulation ("RC") drill program conducted at its 100%-owned silver-gold and polymetallic Pingüino Project, located in Santa Cruz province, Argentina. With this release, all holes from the 93-hole (8,410 m) RC drill program, completed in June 2012, have been announced.

Drill Hole Highlights from Final 32 holes:

Savary Vein: Hole: PR224-12: 30 m @ 192.5 g/t Ag and 3.65 g/t Au
Including: 3 m @ 1,156.3 g/t Ag and 3.63 g/t Au
and 5 m @ 355.2 g/t Ag and 18.66 g/t Au
Marta Sur: Hole PR177-12: 19 m @ 272.5 g/t Ag and 0.41 g/t Au
Including: 5 m @ 767.2 g/t Ag and 0.57 g/t Au

Key highlights and successes from the 2011/12 Phase VIII Exploration and Development Program (please refer to news releases from June 25th to September 20th, 2012):

  • Discovery of four new high-grade precious metal veins (CSV group of veins, Karina, Kalia and Florencia veins) with a combined strike length estimated at 3 kilometres. High-grade results from these new discoveries are:

    • Drilled 2 m @ 1,459.5 g/t Ag and 1.17 g/t Au and trenched 1 m @ 2,524 g/t Ag and 0.86 g/t Au at Karina Vein

    • Drilled 2 m @ 486.5 g/t Ag and 0.46 g/t Au and trenched 2 m @ 1,029 g/t Ag and 1.80 g/t Au at CSV vein

  • Discovery of high-grade precious metal zones within six previously discovered vein systems (Savary, Silvia, Marta Noroeste, Marta Oeste, Tranquilo Sur and Marta Sur)

  • Extension of oxide zones and higher grade sulphide shoot at depth at Marta Este (2 m @ 281.5 g/t Ag and 5.62 g/t Au)

  • Discovery of high grade zone at Tranquilo in trench (2.5 m @ 4,709.6 g/t Ag and 0.30 g/t Au)

  • Extended the Pingüino vein system by approximately 50% (from ~75 line-km to ~113 line-km)

  • Increased the number of veins drilled from 19 to 36 (from the total of 70+ veins discovered to date)

"This final round of drill results has capped another highly successful exploration program at Pingüino. Results reported on the Savary vein are significant as they indicate the potential for high-grade precious metals at the intersection of two vein sets. We believe these structural targets offer the prospect for additional high-grade precious metal intersections at Pingüino," commented Michael Brown, President of Argentex. "This year's exploration program has succeeded in further demonstrating the potential for a significant precious metal deposit at Pingüino. We look forward to incorporating all results into our resource model, anticipated to be released by the end of January 2013, as well as to receiving results from metallurgical studies."

RC Drill Program Highlights (please visit Argentex's website for graphics discussed below):

Savary ("SAV") Vein

SAV vein is a precious metals target with an interpreted strike length of over 3.7 kilometres. Nine shallow RC holes tested anomalous ground magnetics and structurally favourable areas at the intersections of Savary with crosscutting "K system" veins: Kasia, Kimsia, Kimberly, Karina and Karina Norte (Figure 3).

Drill results revealed three high-grade precious metal zones along the vein. We interpret these to be structurally controlled by the intersections of the Savary structure with Kimsia, Karina III/CSV veins, with the section bound by the two branches of the south part of Savary III. These intersections are all open at depth.

The Savary I segment is important for its apparent continuity based on drilling to date and for its potential volume of mineralisation. The Savary II area appears to present a structurally favourable setting for high-grade mineralisation. The high-grade precious metals encountered in PR224-12, with values up to 30 m @ 192 g/t Ag and 3.65 g/t Au, including two high-grade mineralized structures: a silver-rich one with 3 m @ 1,156.3 g/t Ag and 3.63 g/t Au; and a gold-rich one with 5 m @ 355.2 g/t Ag and 18.66 g/t Au, support this assumption. This hole suggests that intersections of the K vein systems, striking ENE, against the NW striking SAV vein system could provide a favourable setting for high-grade mineralisation.

Highlights of drilling at Savary vein:

Vein Drill Hole From
[m]
To
[m]
Length
[m]
Ag
[g/t]
Au
[g/t]
Cu
[%]
Pb
[%]
Zn
[%]
In
[g/t]
Ag eq.
[g/t]
Savary PR212-12 19 30 11 22.6 0.44 0.03 0.77 0.05 3.2 44.54
including 28 30 2 27.4 1.67 0.06 0.98 0.17 4.3 111.00
PR214-12 16 24 8 67.4 1.43 0.05 1.70 0.12 21.2 139.09
including 19 20 1 213.0 2.71 0.16 4.08 0.41 38.2 348.65
PR193-12 22 25 3 53.9 1.46 0.05 3.33 2.92 50.9 127.17
PR213-12 52 74 22 31.9 0.39 0.10 0.41 1.66 21.7 51.25
including 58 60 2 143.5 1.03 0.90 0.95 3.74 94.0 194.78
including 70 72 2 66.4 1.65 0.07 1.61 5.35 43.2 148.90
PR215-12 78 94 16 79.5 0.89 0.03 0.31 0.05 13.0 124.20
including 79 81 2 196.5 1.30 0.05 0.35 0.07 31.1 261.40
including 90 93 3 176.3 2.86 0.07 0.70 0.07 20.3 319.25
PR224-12 11 41 30 192.5 3.65 0.02 0.34 0.05 6.1 375.16
including 15 18 3 1,156.3 3.63 0.04 1.56 0.07 22.5 1,338.00
including 26 31 5 355.2 18.66 0.03 0.15 0.07 1.8 1,288.08
PR192-12 45 58 13 38.1 0.83 0.03 0.82 1.53 10.9 79.78
including 46 47 1 52.6 3.08 0.14 0.48 2.24 29.0 206.80
including 57 58 1 182.0 0.38 0.04 4.98 2.81 30.6 200.95

Marta Sur ("MS") Vein

Ten exploratory RC holes targeted previously identified high-grade areas along the two kilometre-long MS vein. Based on detailed ground magnetics, three anomalous areas (South, Central and North) were defined (Figure 2). The North zone, with a different (NNW) strike, had not been previously tested.

Wide intervals of high-grade precious metal values were intersected at the southern anomaly with hole PR177-12 (19 m @ 272.5 g/t Ag and 0.41 g/t Au, including 5 m @ 767.2 g/t Ag and 0.57 g/t Au) and hole PR202-12 (21 m @ 109.9 g/t Ag and 0.26 g/t Au, including 4 m @ 313.3 g/t Ag and 0.63 g/t Au). These holes, together with results from the 2011 Phase VII drill program, indicate a high-grade precious metal system with a strike length of approximately 350 metres.

This is the first high-grade area found at this large and thick quartz vein, and suggests that additional high-grade precious metal values may exist at depth (See longitudinal section, Figure 2).

Highlights of drilling at Marta Sur vein:

Vein Drill Hole From
[m]
To
[m]
Length
[m]
Ag
[g/t]
Au
[g/t]
Cu
[%]
Pb
[%]
Zn
[%]
In
[g/t]
Ag eq.
[g/t]
Marta Sur PR177-12 39 58 19 272.5 0.41 <0.01 0.82 0.21 0.4 292.94
including 47 58 11 439.7 0.36 <0.01 0.76 0.34 0.4 457.73
and including 47 52 5 767.2 0.57 <0.01 1.23 0.02 0.5 795.46
PR202-12 47 68 21 109.9 0.26 <0.01 0.65 0.49 0.4 123.08
including 52 56 4 313.3 0.63 <0.01 1.43 0.01 0.6 344.98
including 66 68 2 242.5 0.21 <0.01 0.23 0.28 0.2 253.12
PR186-12 (I) 61 70 9 14.1 0.29 <0.01 0.31 1.50 0.6 28.79
including 67 68 1 8.5 1.87 <0.01 0.16 0.66 0.7 101.85
PR186-12 (II) 91 108 17 48.9 0.02 0.02 0.64 1.72 2.9 49.99
including 92 95 3 175.7 0.02 0.10 1.61 4.95 2.1 176.85
PR187-12 55 110 55 25.8 0.10 <0.01 0.41 0.88 3.6 30.89
including 68 69 1 156.0 0.17 0.10 0.53 0.04 8.9 164.73

Silvia ("SIL") Vein

SIL is a very long structure, having a strike length of approximately 4.5 kilometres. It had just two holes drilled in previous exploration phases. The central area (Figure 4) is outlined by both anomalous ground magnetics and gradient IP which was tested with four RC exploration holes.

The drilling reported high-grade precious metal values, along with high-grade base metal values for the two northern holes - 2 m @ 286.5 g/t and Ag 0.88 g/t Au in hole PR180-12 and 4 m @ 131.1 g/t Ag and 0.39 g/t Au in hole PR240-12. These two holes suggest the presence of a new high-grade area at SIL with a potential strike length of 450 metres (Figure 4).

Highlights of drilling at Silvia vein:

Vein Drill Hole From
[m]
To
[m]
Length
[m]
Ag
[g/t]
Au
[g/t]
Cu
[%]
Pb
[%]
Zn
[%]
In
[g/t]
Ag eq.
[g/t]
Silvia PR180-12 41 98 57 35.7 0.19 0.03 0.18 0.09 0.1 45.03
including 55 71 16 88.5 0.42 0.08 0.20 0.08 0.3 109.59
and including 55 57 2 286.5 0.88 0.32 0.87 0.25 1.6 330.38
PR240-12 44 56 12 73.9 0.26 0.05 1.62 1.48 0.0 86.99
including 49 53 4 131.1 0.39 0.03 2.82 2.43 0.0 150.49

Silver Eq (presented in above tables) is Silver Equivalent of gold plus silver and based upon a price ratio of 50:1 gold to silver. True widths are estimated to be 85 to 90% of the drilled intersection length. See Appendix A below for a full table of assay results.

In our press release dated September 6, 2012, we incorrectly disclosed that the results were from the first 30 holes (3,004 m). This should have been reported as 28 holes (2,717) meters.

About Pingüino

Argentex's 10,000-hectare advanced silver and gold Pingüino exploration project is located in Argentina's Patagonia region, within the Deseado Massif of Santa Cruz province. The Deseado Massif is an active region of mining with four precious metal mines currently in production, and includes multiple active advanced and early stage exploration projects.

The Company has drill tested 36 of the known 70+ veins at the Pingüino system, which in total have a combined strike length approaching 113 line-kilometres. The Pingüino project is unique within the Deseado Massif region of Santa Cruz province, in that it contains two different and geographically distinct types of mineralisation, one precious metal and the other sulphide-rich polymetallic. The Company also continues to evaluate the geological model of sulphide-enriched potentially mineralized intrusives at depth, forming the probable source for the polymetallic veins exposed on surface.

Pingüino is easily accessible, situated approximately 400 metres above sea level in low-relief topography. An existing system of all-weather roads provides year-round access to the property.

This press release has been reviewed and approved by Mr. J. David Williams, P. Eng. a "Qualified Person" (QP) as defined by Canada's National Instrument 43-101.

Quality Assurance

Samples selected for analysis are sent to Acme Analytical Laboratories' sample preparation lab in Mendoza, Argentina. From there, sample pulps are sent to its laboratory in Vancouver, Canada for multielement ICP-MS analysis (1DX procedure). Samples overlimit in silver, lead, zinc, and/or copper are reanalysed by a high detection limit ICP-ES analysis (7AR procedure). Samples overlimit in silver from that procedure and gold results >300 ppb are rerun by fire assay (G6 procedure). Acme Analytical Laboratories is an ISO 9000:2001 accredited, full-service commercial laboratory, with its head office located in Vancouver.

About Argentex

Argentex Mining Corporation is an exploration company focused on advancing its Pingüino silver-gold project in Santa Cruz, Argentina. In total, Argentex owns 100% of the mineral rights to more than 35 properties located within approximately 307,981 acres (124,636 hectares) of highly prospective land located in the Santa Cruz and Rio Negro provinces.

Shares of Argentex common stock trade under the symbol ATX on the TSX Venture Exchange and under the symbol AGXMF on the OTCQB.

On behalf of Argentex Mining Corporation:

Michael Brown, President & CEO

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements in this news release include: Extended the Pingüino vein system by approximately 50% (from ~75 line-km to ~113 line-km; Increased the number of veins drilled from 19 to 36 (from the total of 70+ veins discovered to date); We believe these structural targets offer the prospect for additional high-grade precious metal intersections at Pingüino; This year's exploration program has succeeded in further demonstrating the potential for a significant precious metal deposit at Pingüino. We look forward to incorporating all results into our resource model, anticipated to be released by the end of January 2013, as well as receiving results from metallurgical studies; We interpret these to be structurally controlled by the intersections of the Savary structure with Kimsia, Karina III/CSV veins, with the section bound by the two branches of the south part of Savary III. These areas are all open at depth; The Savary II area appears to present a structurally favourable setting for high-grade mineralisation. The high-grade precious metals encountered in PR224-12 support this assumption. This hole suggests that intersections of the K vein systems, striking ENE against the NW striking SAV vein system could provide a favourable setting for high-grade mineralisation; These holes, together with results from the 2011 Phase VII drill program, indicate a high-grade precious metal system with a strike length of approximately 350 metres; This is the first high-grade area found at this large and thick quartz vein, and suggests that additional high-grade precious metal values may exist at depth; These two holes suggest the presence of a new high-grade area at SIL with a potential strike length of 450 metres; These risks and uncertainties include, among other things, the availability of the Company's consultants and risks that are inherent in Argentex's operations including the risks that the Company may not find any minerals in commercially feasible quantity or raise enough money to fund its exploration plans. These and other risks are described in the Company's Annual Information Form and other public disclosure documents filed on the SEDAR website maintained by the Canadian Securities Administrators and the EDGAR website maintained by the Securities and Exchange Commission.

Appendix A - Full Set of Drill Results
Vein Drill Hole From
[m]
To
[m]
Length
[m]
Ag
[g/t]
Au
[g/t]
Cu
[%]
Pb
[%]
Zn
[%]
In
[g/t]
Ag eq.
[g/t]
Marta Sur PR205-12 (I) 27 30 3 32.1 0.04 0.02 0.35 0.26 0.0 34.04
PR205-12 (II) 43 55 12 21.5 0.04 <0.01 0.02 0.04 0.0 23.25
PR204-12 45 49 4 40.4 0.01 0.01 0.39 0.08 0.1 41.10
PR203-12 78 80 2 13.8 0.71 <0.01 0.17 0.62 0.1 49.53
PR177-12 39 58 19 272.5 0.41 <0.01 0.82 0.21 0.4 292.94
including 47 58 11 439.7 0.36 <0.01 0.76 0.34 0.4 457.73
and including 47 52 5 767.2 0.57 <0.01 1.23 0.02 0.5 795.46
PR202-12 47 68 21 109.9 0.26 <0.01 0.65 0.49 0.4 123.08
including 52 56 4 313.3 0.63 <0.01 1.43 0.01 0.6 344.98
including 66 68 2 242.5 0.21 <0.01 0.23 0.28 0.2 253.12
PR188-12 24 25 1 38.6 0.03 <0.01 0.14 0.12 1.2 40.07
PR201-12 29 44 15 26.5 0.07 0.01 0.27 0.47 0.9 29.83
PR186-12 (I) 61 70 9 14.1 0.29 <0.01 0.31 1.50 0.6 28.79
including 67 68 1 8.5 1.87 <0.01 0.16 0.66 0.7 101.85
PR186-12 (II) 91 108 17 48.9 0.02 0.02 0.64 1.72 2.9 49.99
including 92 95 3 175.7 0.02 0.10 1.61 4.95 2.1 176.85
PR187-12 55 110 55 25.8 0.10 <0.01 0.41 0.88 3.6 30.89
including 68 69 1 156.0 0.17 0.10 0.53 0.04 8.9 164.73
PR189-12 70 71 1 27.6 0.08 0.02 0.66 1.12 2.8 31.73
Savary PR212-12 19 30 11 22.6 0.44 0.03 0.77 0.05 3.2 44.54
including 28 30 2 27.4 1.67 0.06 0.98 0.17 4.3 111.00
PR214-12 16 24 8 67.4 1.43 0.05 1.70 0.12 21.2 139.09
including 19 20 1 213.0 2.71 0.16 4.08 0.41 38.2 348.65
PR193-12 22 25 3 53.9 1.46 0.05 3.33 2.92 50.9 127.17
PR213-12 52 74 22 31.9 0.39 0.10 0.41 1.66 21.7 51.25
including 58 60 2 143.5 1.03 0.90 0.95 3.74 94.0 194.78
including 70 72 2 66.4 1.65 0.07 1.61 5.35 43.2 148.90
PR215-12 78 94 16 79.5 0.89 0.03 0.31 0.05 13.0 124.20
including 79 81 2 196.5 1.30 0.05 0.35 0.07 31.1 261.40
including 90 93 3 176.3 2.86 0.07 0.70 0.07 20.3 319.25
PR224-12 11 41 30 192.5 3.65 0.02 0.34 0.05 6.1 375.16
including 15 18 3 1156.3 3.63 0.04 1.56 0.07 22.5 1,338.00
including 26 31 5 355.2 18.66 0.03 0.15 0.07 1.8 1,288.08
PR225-12 21 22 1 39.0 0.11 <0.01 0.30 0.04 0.7 44.67
PR226-12 12 13 1 29.2 0.02 0.02 1.11 0.15 0.1 30.00
PR192-12 45 58 13 38.1 0.83 0.03 0.82 1.53 10.9 79.80
including 46 47 1 52.6 3.08 0.14 0.48 2.24 29.0 206.80
including 57 58 1 182.0 0.38 0.04 4.98 2.81 30.6 200.95
Silvia PR180-12 41 98 57 35.7 0.19 0.03 0.18 0.09 0.1 45.03
including 55 71 16 88.5 0.42 0.08 0.20 0.08 0.3 109.59
and including 55 57 2 286.5 0.88 0.32 0.87 0.25 1.6 330.38
PR240-12 44 56 12 73.9 0.26 0.05 1.62 1.48 0.0 86.99
including 49 53 4 131.1 0.39 0.03 2.82 2.43 0.0 150.49
PR241-12 11 12 1 0.7 0.03 <0.01 0.00 0.02 0.0 2.11
PR179-12 33 34 1 32.0 0.13 0.05 0.43 0.08 0.0 38.64
Sonia PR197-12 (I) 18 23 5 59.2 0.10 <0.01 0.21 0.03 0.7 64.43
PR197-12 (II) 95 100 5 23.9 0.32 0.02 0.11 0.70 8.4 39.82
PR183-12 55 56 1 37.8 0.10 0.01 0.63 1.37 10.6 42.82
PR207-12 47 51 4 28.9 0.03 0.02 0.81 2.01 26.1 30.51
PR209-12 27 29 2 54.5 0.16 0.03 1.74 1.98 15.7 62.40
PR208-12 20 23 3 30.7 0.04 0.03 0.29 0.27 11.6 32.54
Marcela PR200-12 20 21 1 19.2 0.17 <0.01 0.28 0.18 4.4 27.75
Fantasma PR257-12 39 40 1 0.4 0.34 <0.01 0.00 0.00 0.0 17.20
PR256-12 48 49 1 6.4 0.01 <0.01 0.00 0.01 0.0 6.72
Luna PR252-12 23 24 1 29.6 0.03 <0.01 0.00 0.01 0.0 31.23

Neither 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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