Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

May 09, 2011 11:44 ET

Argus Initiates 2011 Gold Exploration at Iron Mountain Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2011) -Argus Metals Corp. (the "Company" or "Argus") (TSX VENTURE:AML) announces:

  • The start of Phase I gold exploration at the Iron Mountain Project, Ancash Province, Northern Peru.
  • The staking of an additional 60 km2 of prospective gold exploration ground at Iron Mountain project.

The Company has begun exploration on the Iron Mountain Project in Department Lima, Peru, located about 4 kilometres (km) from the border with Ancash Department. The Iron Mountain concessions cover over 60 km2 of a district-scale porphyry system that exhibits zoned alteration typical of a large porphyry system (as well as associated gold, copper, molybdenum, tungsten and iron/magnetite mineralization showings).

The Iron Mountain Phase I exploration programs are designed to verify and define the extent and grades of previously known gold mineralization via extensive chip and channel sampling with parallel stream and soil geochemical sampling surveys, plus define targets for follow-up geophysics and drilling. Geological and alteration mapping will be utilized to outline the interpreted large-scale copper-gold porphyry system. The Company also announces the staking of 60 km2 of additional concessions to the immediate east, west and south of the Iron Mountain Project, for a total area of 120 km2. This staking evolved from discussions with local stakeholders during the process of securing community approval of exploration activities and definition of historic small scale mining within the area.

Argus President Michael Collins comments, "Argus believes the Phase I exploration campaign will demonstrate the Iron Mountain project's potential to be a district-scale copper-gold porphyry project. The Company is also pleased to be able to work with and have the support of the local community in expanding the potential of the Phase I exploration program as we double the size of the project through additional staking."

The Iron Mountain 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).

Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the Iron Mountain 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 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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