Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

December 05, 2011 13:14 ET

Argus Extends New Gold Discovery 240 Metres On-Strike Intersecting 6 Metres of 1.38g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2011) - Argus Metals Corp. (the "Company" or "Argus") (TSX VENTURE:AML), expands CUZ discovery with two additional drill holes 80 metres and 240 metres from discovery hole HY-11-37, on the Hyland Gold Project, Selwyn Basin, Yukon. Additional assay results are pending for regional exploration and the Main Zone and will be announced as they are received.

CUZ Zone Discovery:

Drillhole HY-11-36:

Drillhole HY-11-38:

  • 3.6 m grading 1.12 g/t gold from 16.4 to 20.0 m
    *240m northwest of discovery hole HY-11-36

Exploration drilling on the CUZ Zone intersected 4.5 m of 1.93 g/t Au in quartz stockwork mineralization in the discovery hole: DDH HY-11-37. Drillholes HY-11-36 and HY-11-38 were collared 80 metres and 240 metres northwest of drillhole HY-11-37, respectively, and highlight gold mineralization continuity on-strike of the mineralized vein. (See map at http://www.argusmetalscorp.com/s/Hyland.asp). The CUZ Zone gold discovery is 4 kilometer south of the Main Zone, where the Company recently announced results expanding the known mineralization (see news release dated November 28th, 2011).

The three 2011 CUZ Zone diamond drillholes intersected stockwork hosted gold mineralization over a strike length of 240 metres within the CUZ Zone gold-in-soil anomaly. This stockwork zone is interpreted as a secondary (cross-cutting) east-west trending structure with potential for expansion where it intersects the primary north-south Quartz Lake Lineament and also carbonaceous siltstone host rocks.

President Michael Collins comments, "We are extremely pleased to see the exploration model validated with the CUZ Zone gold discovery which demonstrates that the Hyland Gold Project has the potential to be a significant gold camp with district scale. Management looks forward to the drill results on the Main Zone, exploration drilling, as well as results from our extensive regional programs."

Table 1: Selected Assay Results from Hyland Gold Project, CUZ Zone 2011 Diamond Drilling Program

Zone
Hole Number
From
(m)
To
(m)
Length
(m)
Weighted Average Au
(g/t)
Total depth (m)
Notes

CUZ

CUZ Zone, Soil Anomaly. 80m NW of Discovery hole
HY-11-37
HY-11-36 9 15 6 1.376 316
and 25.5 27 1.5 1.52
CUZ CUZ Zone, Soil Anomaly. 240m NW of Discovery hole
HY-11-37
HY-11-38 16.4 20 3.6 1.12 231
within 8.9 20 11.1 0.44

The 2001 CUZ diamond drilling results have:

  1. Identified a vein-hosted source for the gold-in-soil geochemical anomaly at the CUZ Zone - similar to the 3ACE project of Northern Tiger in the northern portion of the Hyland Gold District, Selwyn Basin.
  2. Proved mineralization continuity on-strike of the CUZ Zone mineralized structure

Assays remain pending for drillholes HY-11-35 (exploration) and HY-11-43 (Main Zone).

The Company also awaits the analyses of soil (945 samples pending), stream sediment (117 samples pending) and rock (198 samples pending) samples from the Hyland, Tina and Ike Projects which have been submitted to the lab for analysis. Upon receipt of these samples, the results will be compiled and a news release issued on the entirety of the Hyland and Hyland Regional summer 2011 exploration programs.

All drill core from the Hyland Gold 2011 drilling program was analyzed at Acme Analytical Labs of Vancouver, B.C. utilizing a 1EX ICP 44-element analytical package with G6 Fire Assay finish for gold on all samples. All core samples were split on-site at the Hyland exploration camp and shipped to Acme Analytical Labs preparation facility in Whitehorse where samples were sorted and crushed to appropriate particle size (pulp) and representatively split to a smaller size for shipment to Acme's Vancouver analysis facility. A comprehensive system of standards, blanks and field duplicates was implemented in the 2011 exploration program (regional/diamond drilling) and is analyzed as chemical assay data becomes available. Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the Company's Hyland Gold Project and has reviewed and approved this press release.

ON BEHALF OF THE BOARD OF DIRECTORS

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 Hyland Gold Project will be as projected; (ii) the 2011 work program will proceed as projected, (iii) that any positive results will result from such program, (iv) that the Company will be able to complete its work program prior to weather causing the close of the season, or (v) that any new resource estimate of the Main Zone will be better than historic estimates. 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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