Argus Metals Corp.
TSX VENTURE : AML

Argus Metals Corp.

May 31, 2011 09:30 ET

Argus Options IKE Selwyn Basin Gold Project, Yukon to Great Bear

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2011) - Argus Metals Corp. (TSX VENTURE:AML) (the "Company" or "Argus"), announces the signing of an Option Agreement with Great Bear Resources, (TSX:GBR) (Great Bear) to earn up to a 75% interest in the IKE Selwyn Basin Gold Project, Hyland District, Yukon.

Option Agreement

  • Great Bear has an option to earn a 70% interest in the IKE project by paying to Argus $275,000 in cash payments, issuing a total of 700,000 Shares, and incurring an aggregate of $2,050,000 of exploration expenditures on the Property over a 3 year period. A further 5% interest may be earned through completion of a prefeasibility study within 2 years of the initial earn-in.
  • Argus will manage the summer 2011 exploration program on behalf of Great Bear.

IKE Gold Project

  • The IKE Gold Project is located in the Selwyn Basin of the Yukon, an emerging highly prospective gold district characterized by recent major Carlin-type sediment hosted gold discoveries made by ATAC Resources Ltd. at the Rau Gold project.
  • Analytical work by Argus in 2010 defined an 80 square kilometer area with discrete areas of coincident anomalous arsenic and gold in regional stream sediment samples. The project area is underlain by carbonate lithologies and an intrusive suite.
  • The phase I exploration program will commence in June and will consist of detailed stream and soil sampling, mapping and trenching to quantify drill targets.

The IKE project has the potential to host a sediment-hosted gold system similar to Nevada style gold deposits in the Carlin District. In addition to positive reconnaissance geochemical survey results and favourable rock types, the IKE property also hosts spatially related lead-zinc showings (MINFILE # 105A 030).

President Michael Collins comments, "Argus is pleased to have Great Bear as Joint Venture partner on the IKE Claim Block. The staff and management of Great Bear bring significant Nevada exploration experience to the program that will complement our knowledge base and maximise the potential for discovery in the IKE Claim Block. This joint venture will leverage Argus's strategy of defining and developing gold resources in the Yukon's Selwyn Basin."

Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the IKE Selwyn Basin 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 IKE Selwyn Basin Gold 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.

Contact Information

  • Argus Metals Corp.
    350-580 Hornby St,
    Vancouver BC, V6C 3B6
    (604) 687-2471
    (604) 687-2472 (FAX)
    www.argusmetalscorp.com