Argus Metals Corp.

Argus Metals Corp.

August 26, 2011 12:18 ET

Argus Announces Identification of 2 Km Long Iron Magnetite Trend at Iron King Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2011) - Argus Metals Corp. (the "Company" or "Argus") (TSX VENTURE:AML), announces Phase I Iron King reconnaissance program (formerly Iron Mountain) completed on "core" 60 km2 claim block. A 2km long trend of iron magnetite outcrops was identified in the western portion of the Project with a central iron unit mapped as 25m true thickness over >300 m. This central unit is open on strike and to depth where samples assayed from trace to 54.8% with 25 samples reporting >20% Fe. The iron magnetite outcrops are located approximately 60 km east of the deep water port of Porto Supe and 13 km from high voltage power lines.

The Phase I program culminated in the collection and analysis of 741 samples with approximately 40% of the Project mapped. A Phase II exploration program will follow-up on the mineralized targets identified in Phase I as well as reconnaissance map and sample the remaining 60% of the Property which includes several sites of historical gold mining. Historical gold mining on the Iron Mountain Project included not only narrow vein deposits typical to the region but also but also larger scale targets that may be amenable to bulk mining practices.

Additional mineralization targets identified by Argus' Iron King exploration program include:

  • Identification of a gold bearing quartz stockwork zone, returning assays from trace to 277 ppm Ag, and trace Au associated with arsenopyrite mineralization. The showing exhibits locally strong sericite and pervasive epidote alteration within the stockwork vein system.
  • Low Sulphidation Gold Zone – A 300 x 800m area of low sulphidation style alteration punctuated by the discovery of a 5.028 g/t Au grab sample.

The Phase II program is planned for Fall of 2011 and will systematically sample and map the targets noted above with a focus on areas of artisanal historic gold production.

The Argus Metals (LIM) SRL Lima offices are open and fully staffed with a focus on evaluation of additional Peruvian projects as well as planning and execution of exploration for the Iron King Property extension project, where the Company, in cooperation with San Lorenzo DV Consultores, has staked an additional 60 km2 of ground covering areas of historical small scale gold mining.

President Michael Collins comments, "The results of our first ever program demonstrate the presence of significant iron and gold mineralization on the Iron King Project and provide excellent iron mineralization targets that, in addition to historical gold mining areas, will be the main priority of our Phase II program."

The Iron King Project is a 65/35 Joint Venture with San Lorenzo DV Consultores where Argus can earn up to a 100% interest with a 2% NSR subject to a buyout clause (see Argus news release of March 7, 2011).

All rocks analyzed at ACME Labs using 1EX ICP with G6 FA finish. Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the Iron King Project and has reviewed and approved this press release.


Michael Collins, President and CEO

We seek safe harbour.

Certain statements set out in this News Release constitute forward-looking statements. Forward-looking statements (i) are often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate", or "will", and similar expressions; (ii) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties, or upon the opinions, expectations and estimates of management of the Company as at the date the statements are made; (iii) are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements, including, but are not limited to risks, uncertainties and other factors that are beyond the control of the Company, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. In particular, there is no assurance that (i) mineralization on the Iron Mountain Project will be as projected; (ii) the 2011 work program will proceed as projected, or that any positive results will result from such program. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

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 news release.

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