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| ||August 17, 2010|
Argus Discovers New Sulphide Mineralization Zone At Hyland Gold Project
| ||August 17, 2010 - Vancouver, BC, - Argus Metals Corp. (TSX.V: AML) ("Argus") announces the discovery of a new sulphide zone during the recently completed Phase II of 2010 exploration program the Company's, Hyland Gold Project, Yukon. Drilling has successfully confirmed the geological team's belief that historic exploration on the Highland project had neglected sulphide replacement and structurally hosted sulphide mineralization as a priority exploration target. Phase II drilling tested a continuous 2 kilometre (km) long gossanous sulphide gold mineralized zone that was defined by the Company's Phase I program completed earlier this year. Four drill holes were completed by NQ core for a total of 764 metres of drilling and have been sent for assay.|
The Phase I program was successful in mapping the structurally controlled gossanous zone as a continuous, sub-vertical structure extending over 2 km in strike length and with widths of up to 30 metre (m) which variably contains massive to semi-massive sulphide mineralization. This sulphide mineralization (historic drill intersections graded from trace up to 5.1 g/t gold; however intervals with grades above 1 gram were commonly associated with strong sulphide mineralization) was previously interpreted as being discontinuous lithologically controlled pods of mineralization and was never the focus of any previous drilling campaigns (see Corporate News Release of July 14, 2010).
Phase II diamond drilling on this 2km long gossan has proven that the sulphide mineralization persists to depths of 100m from surface, over an approximate 300m change in elevation and over 1 km in strike. The north-south structural control of this mineralizing system can be traced for over 14 km in outcrop and sulphide mineralization is open to both the North and the South.
Argus targeted the sulphide mineralization that is presumed to be the underlying source of the "Main Zone" Oxide resource during its 2010 exploration program. The success of the Phase II programs confirms the Company's belief that a much larger system exists. Historic work at the Hyland project focused on defining and expanding the "Main Zone" near surface oxide gold resource that currently stands at 117,000 ounces Au (within 3.2 million tonnes grading 1.1 grams per tonne Au), non-National Instrument 43-101 compliant resource*.
*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.
Michael Collins, President of Argus Metals Corp. stated "These results validate the Company's model that the Hyland Deposit hosts a large scale gold bearing sulphide rich system (> 1kmX30mX300m) that has the potential to add significant value to the Company and its shareholders. We eagerly await the assay results from the drill program."
Historically intersected gold mineralization on the Hyland Property can be characterized as associated with stockwork or semi-massive to massive sulphides. The first 3 drill holes in the 2010 drill program intersected a similar style of sulphide mineralization within the projected sub-vertical structure. The fourth hole was drilled 1.5 km north of the "Main Zone" and intersected a significant amount of fine grained, massive sulphides which may reflect a more permissive depositional environment, or closer relationship with the centre of the hydrothermal system as defined by coincident historic geophysical anomalies.
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 $175,000, issuing 800,000 Company shares and completing $2,250,000 in exploration work over 3 years. The Property will be subject to a 2.5% net smelter return royalty with a provisional buyback of 1.5% for $1,000,000 (See Company News Release of November 9, 2009).
Argus' private placement, announced June 23, 2010, has closed having raised an aggregate $579,800 through the issuance of 2,415,000 flow-through shares at a price of $0.12 per share and 2,900,000 non-flow-through units at a price of $0.10 per unit (each a "Unit") under the placement. Each Unit consists of one common share and one-half of one transferable share purchase warrant. Each warrant is exercisable for up to one year from the closing date, at a price of up to $0.15 per share.
Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the Hyland Gold Project and has reviewed and approved this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
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
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 bulk tonnage, anomalies, deposits, historic results and the execution of drill programs. 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. 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. The potential for the Company to replicate historical resource estimates or grades, or for new data to expand tonnage or grade, is conceptual and is based on historical reports which have not been verified by a qualified person. There is a risk that current exploration and test work will not result in the delineation of NI 43-101 compliant resource estimates or verify historically reported grades.
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