Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

September 20, 2010 09:00 ET

Argus Discovers New Gold Bearing Zone at the Hyland Gold Project, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA US NEWSWIRE SERVICES

Argus Metals Corp. (TSX VENTURE:AML) ("Argus") announces the assay results from the Hyland Gold Project confirm significant gold bearing zones underlie the historic "Main Zone" deposit and have also identified a new gold bearing "Feeder Zone" sulphide system.

The drill program confirms the Company's model that the historic gold deposit extends to depth, beneath the oxide zone. Step out drilling confirms the newly defined "Feeder Zone" carries significant gold values and defines new exploration targets over an extensive area on strike.

To date, the Hyland Gold Exploration program has demonstrated:

  • Significant intervals of gold and silver mineralization including 9.13m of 2.08 g/t Au and 13.51 g/t Ag in Hole HY-10-25 and 34.74 m of 1.1 g/t Au and 3.79 g/t Ag in Hole HY-10-26;
  • "Gold in sulphides" in the newly defined "Feeder Zone, (based on surface geochemistry, prospecting and drilling) – over 2km in strike and 300m vertical extent from surface;
  • Several new targets along on structural intersections linked to the "Feeder Zone", in association with historic soil anomaly data and geophysical data and now considered priority drill targets;
  • The host "Quartz Lake Shear" structure can be followed for 14 kilometres on the Property.

Michael Collins, President of Argus Metals Corp. stated, "Argus is excited with the success of the focused Hyland Gold program. Detailed geological mapping and diamond drilling has refined and upgraded the potential of this kilometre scale gold system. Work in the fall of 2010 will consist of a geophysical program designed to delineated the known targets as well as a potential drill program. The Company is planning to implement a multi-drill rig program to test the higher grade mineralization within the Feeder, Main and CUZ Zones, while allowing the Company to step out onto the larger 14km gold trend and address the additional Project anomalies."

The summer 2010 Hyland Gold Project Phase II Diamond drilling program consisted of four drill holes totalling 764 metres focused on: 1) confirming the historically reported gold grades from the "Main Zone" oxide deposit; 2) identification of gold mineralization below the historic "Main Zone"; and 3) testing of the >2 kilometer long semi-massive to massive sulphide structurally controlled "Feeder Zone" mineralization discovered in the Phase I 2010 mapping program.

2010 Hyland Program Drilling Results Summary

Zone* Hole Number From (m) To (m) Length (m) Weighted Average Au (g/t) Weighted Average Ag (g/t) Weighted Average Length (m)
MZ HY10-25 22.86 32 9.13 2.08 13.51 9.13
  and          
MZ HY10-25 75.59 83.20 7.61 0.87 11.11 7.61
               
MZ HY10-26 59.9 94.64 34.74 1.10 3.79 34.74
               
FZ HY10-27 89.25 93.55 4.3 0.14 0.01 4.3
  and          
FZ HY10-27 177.7 182.3 4.6 0.13 0.53 4.6
               
FZ HY10-28 5.49 55.8 50.31 0.14 0.21 50.29
* MZ = Main Zone, FZ = Feeder Zone

The Company has identified the following priority targets for follow-up exploration:

  1. Expansion of the sulphide mineralization below the "Main Zone" by diamond drilling;
  2. Drill testing of the "Feeder Zone" at depth below hole HY-10-28 where hole HY-90-34 returned over 30m of ~1g/t Au several hundred metres into the footwall of the "Feeder Zone" sulphides (permissive lithological target);
  3. The eastward extension of the "Main Zone" (interpreted from Main Soil Anomaly and mapped secondary structures);
  4. Testing of secondary structures at the CUZ Zone.

Results of geochemical surveys carried out by previous workers on the Hyland Gold Property have defined a 2 km long and 1.15 km2, northerly-trending zone (Main Anomaly) of gold-in-soil values greater than 25ppb Au, with coincident highly anomalous arsenic and bismuth geochemical responses. This anomaly continues 1.2 km to the south east (Southeast Anomaly of 0.67 km2) with gold-in-soil values of over 25ppb with weakly to moderately anomalous arsenic values. A broad zone of anomalous gold (over 25ppb Au) and weakly anomalous arsenic spans the east part of the Main Zone (East Anomaly) (0.21 km2). A focused gold-in-soil anomaly of over 25ppb au at the CUZ Zone (0.29 km2) is has the potential to extend eastward under the limestone cap along a strong secondary structural feature. These gold-in-soil geochemical signatures are significant exploration targets which the Company intends to work on a priority basis.

The Company has the option to earn a 100% interest in the Hyland Gold Project (see Company News Release of November 9, 2009).

Paul D. Gray, P.Geo., is the Company's Qualified Person with respect to the Hyland Gold Project and has reviewed and approved this press release.

ON BEHALF OF THE BOARD OF DIRECTORS

Michael Collins, President and CEO

FORWARD LOOKING INFORMATION DISCLAIMER

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of bulk tonnage, anomalies, deposits, continuity, historic results and the execution of drill programs. Each of these activities involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise. The potential for the Company to replicate historical resource estimates or grades, or for new data to expand tonnage or grade, is conceptual and is based on historical reports which have not been verified by a qualified person. There is a risk that current exploration and test work will not result in the delineation of NI 43-101 compliant resource estimates or verify historically reported grades.

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.

Contact Information