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| | February 01, 2010
Hyland Gold Project -- Exploration Update
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| | February 1, 2010 - Vancouver, BC, -- Argus Metals Corp. (TSX.V:AML) (the "Company") provides an update on the exploration plans for the recently acquired Hyland Gold Property (the "Property"), located 70 kilometres (km) northeast of Watson Lake, Yukon Territory.
Hyland Gold Property Highlights
• A 1990 noncompliant National Instrument (NI) 43-101 resource* estimate of the Main Zone at approximately 117,000 ounces of gold (Au) within 3.2 million tonnes grading 1.1 grams per tonne (g/t) Au
• Expansion potential of the Main Zone is defined by a 3.2 km long zone of anomalous ">25ppb Au in soils" geochemistry signature within a coincident 20 square km aeromagnetic anomaly
• Main Zone oxide gold mineralization is hosted by a 14 km long fault Zone with numerous unexplored Au in soils geochemical anomalies both north and south of the Main Zone anomalies
*The reliability of the historical data is unknown but is considered relevant by Company management. The historical data is non-N.I. 43-101 compliant and should not be relied upon. It is the Company's intention to verify the historical data and confirmation work may produce results that differ substantially from the historic results.
The Company believes that previous exploration work demonstrates mineralized grade and continuity as show in the following table:
Drill Hole or Trench Number Length or Width (m) Gold g/t
PDH 90-09 16.7 2.65
PDH 90-41 129.7 1.19
PDH 90-34 13.7 1.0
PDH 90-34 33.6 0.9
Trench 88-36 Main 30 4.87
Including 20 6.55
Trench 88-36 West 88 0.81
Trench 88-36 Main 16 1.84
Trench 87-11 15.5 2.3
Trench 88-23 40 2.1
Trench 88-25 17.7 2.8
HY-03-01 17.2 1.29
HY-03-02 53.1 1.38
2010 Exploration Program
The Company is reviewing and compiling all the available historical data in preparation for an aggressive 2010 exploration program. The program will be designed to test the potential of the sulphide and oxide gold mineralization. Exploration work will focus on continued definition and expansion drilling within the Main Zone and Quartz Lake fault zone to both south and north of the Main Zone. Previous operators viewed the area north of the Main Zone as the most favourable area for further exploration and felt that there was considerable potential for extension of the known gold mineralization.
President Michael Collins commented "Argus is excited about the Hyland Gold Property and the potential to define and increase the historical gold resources. In particular, the Company views the untested sulphide potential of the Property as a primary target and main focus of exploration. The Hyland Gold Property was acquired by Argus as Company management sees the potential of a >1 million ounce gold target. The Company will look to aggressively advance the Property in 2010 as well as to increase its exploration presence in the Watson Lake district of the Tintina Gold Belt."
Geology
The Hyland Gold Property's geological style and setting of mineralization has similarities to the Telfer gold-copper deposit in Australia and may represent a distal intrusion-related type of deposit within the Tintina Gold Belt which could have the potential to host a large sediment-hosted gold deposit similar to the multi-million ounce deposits in the Carlin District in Nevada. The Property has the potential to host deeper seated sulphide mineralization as well as near surface oxide mineralization and as such, is an exciting opportunity for the Company to advance by aggressive exploration and drilling.
Mineralization occurs within zones of intense silicification and silica replacement of phyllites and quartzites with 5% to 20% total sulphides. Geophysics indicates that coincident areas of high chargeability, high conductivity and anomalously low magnetic response around the Main Zone and up to 1.5 km north of the zone likely defines disseminated to massive sulphide mineralization in siderite replacement lenses along the base of the limestone overlying the mineralized zone.
Historical Work
The Property is located in the Watson Lake Mining District and is comprised of 299 quartz claims covering over 6,100 hectares (more than 40 square km). The Property has been worked intermittently since its discovery and staking in 1981 by Archer Cathro & Associates (1981) Ltd and Kidd Creek Mines. Various workers have explored the Property and highlights include, 48 exploration drill holes totalling over 4,500 m completed between 1988 and 1994. In 1988 a trenching program of 16 trenches (2,760 m total) was completed on the Main Zone. In 1995 two airborne geophysical surveys were flown over the Property, including a magnetics survey by Newmont Exploration Limited and a survey by Westmin Resources Ltd. that included magnetics, electromagnetics and radiometrics. During 2003-2005 the Property was tested by 2,416 m of diamond drilling and 15.72 line km of Induced Polarization/Resistivity ground geophysics.
Option Agreement
Under the terms of the Option Agreement, the Company has the option to earn a 100% interest in the Property from Victoria Gold Corp. (TSX.V:VIT) by making cash payments totalling $175,000CAD, issuing 800,000 Company shares and completing $2,250,000CAD in exploration work over 3 years. The Property will be subject to a 2.5% capped net smelter return royalty with a provisional buyback of 1.5% for $1,000,000CAD. The TSX Venture Exchange approved the Option Agreement on December 17, 2009.
Paul D. Gray P.Geo., a Director of the Company is a Qualified Person as defined by NI 43-101, has read and approved the contents of this release. No resource calculations conforming to NI43-101 standards have been determined on the Property.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Collins
President and CEO
For further information, please contact:
Argus Metals Corp.
350-580 Hornby Street,
Vancouver British Columbia, Canada V6C 3B6
Telephone: (604) 687-2471
Facsimile: (604) 687-2472
www.argusmetalscorp.com
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.
FORWARD LOOKING INFORMATION DISCLAIMER
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable securities legislation, including statements concerning our plans to raise private placement funds and settle debts. Each of these activities involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain required TSXV or shareholder approvals. There is no assurance the Company will be able to raise any equity financing. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise. |
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