Argus Metals Corp.

Argus Metals Corp.

July 07, 2011 09:00 ET

Argus Drills Selwyn Basin Sediment Hosted Gold Targets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2011) - Argus Metals Corp. (TSX VENTURE:AML) (the "Company" or "Argus") updates on-going exploration activities at the Hyland Gold Project, Selwyn Basin, Yukon.

Since opening the Hyland camp on June 1, 2011 Argus has:

  • Started drilling on the historic Main Zone Deposit, where exploration work is focused on upgrading and expanding to depth and along strike; the historic 117,000 ounce Au (within 3.2 million tonnes grading 1.1 grams per tonne Au), non-National Instrument 43-101 compliant resource*.
  • Completed an infiniTEM survey where preliminary results defined chargeability anomalies interpreted to correspond to the "Sulphide Feeder structure" continuing south from the 2010 TEM survey for over 3.5 km.
  • Conducted field mapping that has refined the geological model at the Main Zone and CUZ anomaly as well as defined new, high priority drill targets.
  • Refined drill targets in the 4km interval between the Main Zone and CUZ zones through on-going geochemical stream, soil and rock sampling and geological mapping work, which will soon progress to the south of CUZ, focusing on historic Au stream sediment anomalies in the Hyland Extension claims staked in 2010.

*The reliability of the historical data is unknown but is considered relevant by Company management. The historical data is non-N.I. 43-101 compliant and should not be relied upon. It is the Company's intention to verify the historical data and confirmation work may produce results that differ substantially from the historic results.

Drilling at the Main Zone deposit will initially focus on verifying and upgrading historic results, and then progress to expanding on the area at depth and along strike. Subsequent drilling in the initial 4,000m program will target both historic anomalies and also newly defined targets derived from field mapping and sampling as well as the high priority drill targets identified from the infiniTEM Geophysical Survey.

Preliminary results of the Abitibi Geophysics infiniTEM survey have defined a southern extension to the already 2 km long "Sulphide Feeder Structure" that lies at the heart of the Quartz Lake Structural trend. Regression analysis and additional geophysical modeling is expected to be completed shortly and will serve to more tightly constrain potential diamond drill targets within the Main Zone, central Carbonate Cap Zone and CUZ Zone targets as well as highlight possible secondary structures to the Quartz Lake Structural Trend.

Geological mapping teams have focused on mapping and sampling within and on strike to historic anomalies, once completed the mapping teams will target under-tested geochemical stream and soil anomalies, north and south of the historic Hyland Gold Project area where anomalous "gold in stream" sediments and soil samples combined with geophysical and structural targets are interpreted as highly prospective for the discovery of Selwyn Basin Sediment Hosted style Gold mineralization. This detailed geological/geochemical work is supported by the use of an XRF chemical analysis unit which will enhance the Company's ability to quickly follow up any geochemically anomalous sampling results.

President Michael Collins comments, "Argus is extremely pleased with the initial results of the Hyland Gold Projects 2011 summer campaign. The "Selwyn Basin Sediment Hosted Gold" model at the Hyland Gold Project has been further validated by the success of ATAC Resources current drilling program in the Rackla Belt, YT. The Company intends to demonstrate the same scale and mineralization potential along the 24km long Quartz Lake Structural Zone through the aggressive 2011 drilling, trenching and geological campaign."

Paul D. Gray, P.Geo., is the Company's Qualified Person with respect to the Company's Yukon Projects 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 company's Yukon projects 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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