Argus Metals Corp.

Argus Metals Corp.

May 22, 2012 14:02 ET

Argus Metals Corp.: Drilling Commences on Kaituma Uranium/Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2012) - Argus Metals Corp. (TSX VENTURE:AML) (the "Company" or "Argus") announces that, further to the Company's news release dated May 10, 2012, the 2,500m drill program on its 100% owned Kaituma uranium and gold project in north-west Guyana has commenced.

President Michael Collins stated, "The Kaituma Uranium/Gold Project is one of the few undrilled global uranium exploration targets with the potential size to have a significant impact on uranium markets. With exceptional infrastructure in place, Argus expects this drill program to quickly and efficiently test this outstanding uranium target."

AK Drilling has been contracted to execute a minimum 2,500 metres of reverse circulation drilling in a series of 150m long drill holes over five fences targeting uranium and gold anomalies identified through airborne and ground-based exploration work conducted by StrataGold, BHP Billiton ("BHP"), AREVA SA ("AREVA") (previously Cogema SA) and confirmed by the Company's own ground-based exploration programs in 2010.

The Kaituma Uranium/Gold Project represents a geophysical/geochemical uranium target within an episyenite/leucogranite intrusive in Guyana Shield Greenstone Belt with similar geological model as deposits such as the alaskite hosted Husab deposit of Extract Resources Ltd. in Namibia (319.9M lb U3O8 @ 519ppm U3O8) and the metasomatic albite hosted Lago Real Mine in Brazil which has resources of 125M lb U3O8 @ ~0.25% U3O8. The Kaituma geology model will become clearer with the execution of this drill program. The high priority Kaituma uranium target has a strike of over 10 kilometres and a width of approximately one kilometre punctuated by grades from trace up to 0.23% U in saprolite trenches and from trace up to 0.0948% eU in weathered outcrop.

Historically, the Kaituma Project has been explored by various companies including AREVA and BHP, with exploration work including airborne geophysics, ground-based geophysics, soil sampling and trenching. The Kaituma East and West PLs covers over 10 kilometres strike length of radiometric anomalies defined by a 1982 Cogema soil sampling and geophysical program, a 1996 BHP airborne radiometric survey and a StrataGold 2007 stream, soils and trenching program. The results of these programs have demonstrated a high level of correlation of results among operators and survey techniques.

Work on the Kaituma West PL, (PL29/2011) has also identified three gold anomalies with grades from trace and up to 827 ppb Au (averaging 9 ppb) and demonstrates an association with both hydrothermal alteration in greenstones on the margins of the intrusive (Anomalies #1 and 2), and also shear related mineralization internal to the intrusive rock (Anomaly #3).

The Kaituma project was purchased from StrataGold Corporation (a subsidiary of Victoria Gold Corp., ["VIT"]) and Newmont Overseas Exploration Limited ("Newmont") and is subject a 2% NSR with a provisional buy back of 0.75% of the NSR for $1,250,000 USD.

About Argus

Argus Metals is a Vancouver based exploration and development company with a strong portfolio of natural resource assets focused on gold in the Yukon and Uranium in Guyana. The 100% owned Hyland project in the Yukon is a highly prospective gold project with the potential to substantially increase its existing NI 43-101 Au Eq resource.

The Company's directors and officers are a geologically focused team whose objective is to build shareholder value through exploration and development of existing projects and through identifying assets with company making potential.

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


Michael Collins, President & CEO

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We seek safe harbour.

Certain statements set out in this news release constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate", or "will", and similar expressions; (i) 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; (ii) 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, (1) there is no assurance that (i) mineralization on the Kaituma Target will be as projected or that it will bear any similarity to the Husab deposit or Lago Real Mine as anticipated; or (ii) the 2012 work program will proceed as projected, or that any positive results will result from such program, or that it will proceed with the time frame anticipated; and (2) commencement of drilling is subject to raising sufficient funds to execute the drill program, and there is no assurance the Company will be able to raise the funds on terms acceptable to it or at all. 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.

Contact Information

  • Argus Metals Corp.
    Michael Collins
    President & CEO

    Argus Metals Corp.
    David Fry
    VP Corporate Development