Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

November 28, 2011 12:49 ET

Argus Makes New Gold Discovery at CUZ Zone & Expands Main Zone Deposit-Cutting 25.9 m of 2.03g/t Gold and 4.64g/t Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2011) - Argus Metals Corp. (the "Company" or "Argus") (TSX VENTURE:AML), reports assays from nine additional drill holes resulting in a new gold discovery at the CUZ Zone and an expansion of the Main Zone deposit at depth and to the east at its Hyland Gold Project, Selwyn Basin, Yukon. Additional assay results are pending and will be announced as they are received. An NI 43-101 compliant resource update for the Main Zone has been commissioned and is anticipated to be completed early in 2012 once all remaining assays are received. New assay highlights include (see also table below):

New Discovery - CUZ Zone

  • 4.5 m grading 1.93 g/t gold from 25.9 to 30.4 m
  • and 4.5 m grading 0.65 g/t gold from 10.5 m to 15 m

*Identifies a vein-hosted source of CUZ Zone gold-in-soils anomaly
See map at http://www.argusmetalscorp.com/s/Hyland.asp

New Main Zone Results

    • 25.9 m grading 2.03 g/t gold and 6.42 g/t silver from 122.9 to 148.8 m
  • within 144.3 m grading 0.54 g/t gold and 2.84 g/t silver from 3.0 to 148.8 m
  • including 1.5 m of 11.7 g/t gold and 20.1 g/t silver at 131.2 m

*Extends Main Zone mineralization to depth and to the east

  • 17.7m grading 1.0 g/t gold and 8.0 g/t silver from 99.3 to 117 m

*Extends Main Zone mineralization to the East

    • 21.0 m grading 1.1 g/t gold and 15.0 g/t silver from 48 to 69 m
  • within 45 m of 0.65 g/t gold and 7.8 g/t silver from 24 to 69 m

*Extends Main Zone mineralization to the east

Exploration drilling four km south of the Main Zone at the CUZ anomaly intersected 4.5m of 1.93 g/t Au in quartz stockwork mineralization. Soil sampling in the 2011 summer exploration program has also expanded the strike of the CUZ gold-in-soils geochemical target to over two km in length. This stock work 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.

Results of up to 25.9 m of 2.03 g/t gold and 6.42 g/t silver have expanded the Main Zone Deposit at depth and to the east. Additional drill results are pending for the Main Zone.

President Michael Collins comments, "In Fall 2010 Argus doubled the size of the Hyland Claim package to exploit the new model developed from the 2010 exploration success and the evolution of the Selwyn Basin exploration models used by other companies including ATAC Resources and Northern Tiger to the north of the Hyland Gold Project. The discovery of the CUZ Zone mineralization four km south of the Main Zone demonstrated the district-scale potential of the now 24 km strike of the Hyland Gold Project land package. Argus will continue to work to expand both the newly discovered CUZ Zone mineralization and also to define promising gold/arsenic-in-soils anomalies in the under explored north and south extents of the Hyland Gold Project.

Main Zone drilling continues to deliver tonnage and grade additions to the current non-NI 43-101 compliant resource. Drillhole HY-11-41 represents the most continuous mineralization encountered to date on the Main Zone deposit and will add to the recalculation of the current non-NI 43-101 compliant resources both to depth and to the east."

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

Zone* Hole # From To Length Au Ag Target/Notes
(m) (m) (m) (g/t) (g/t)
MZ - South HY-11-32 36.5 41.3 4.8 0.79 0.082 South of Main Zone
and 75 78 3 0.9 0.05
SE HY-11-33 10.5 14.9 4.9 0.4 16.4 EW Structure target
SE HY-11-34 NSV Geophysical Conductor target
CZ HY-11-37 10.5 15 4.5 0.62 0.1 CUZ Zone, Soil Anomaly
and 25.9 30.4 4.5 1.93 0.25
CZ-SUR HY-11-39 NSV CUZ Zone Test Hole. Failed to reach target depth. 30m EOH
MZ HY-11-40 99.3 117 17.7 1 8.12 Main Zone 60 m East Step out Hole
MZ HY-11-41 122.9 148.8 25.9 2.02 6.42 Main Zone 10 m East step out hole and Test to Depth below oxide zone
with 131.2 132.7 1.5 11.7 20.1
within 3 148.8 145.8 0.54 1.84
MZ HY-11-42 48 69 21 1.07 15.24 Main Zone 80 m East step out
within 24 69 45 0.65 7.77
MZ HY-11-44 22.5 51.3 28.8 0.24 1.62 Failed to reach mineral target zone. Abandoned at 51.3 m

*MZ = Main Zone, CZ = CUZ Zone, SE = Southeast Extension Zone

The Results received to date from 2011 Diamond drilling have resulted in:

  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. Further expansion of the sulphide mineralization to depth, below the "Main Zone" oxide horizon.
  3. Expansion of the "Main Zone" gold mineralization (oxide and sulphide horizons) to the east.
  4. Confirmation of, and extension to the Main Zone gold mineralization towards an updated N.I. 43-101 compliant resource.

Assays remain pending for drillholes HY-11-35, HY-11-36, HY-11-38, and HY-11-43(totalling 621 samples). Exploration diamond drilling results are expected soon for these holes that targeted the THAS, CUZ and Main Zones.

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.

GeoVector Management Inc. has been contracted to review and update the 1990 non-compliant N.I. 43-101 resource* estimate of the "Main Zone". The historic resource was reported to contain approximately 117,000 ounces of gold (Au) within 3.2 million tonnes grading 1.1 grams per tonne (g/t) Au.

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

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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