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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 31, 2012) – Argus Metals Corp. (the “Company” or “Argus”) (TSX VENTURE:AML) reports that the Guyana Geology and Mines Commission has granted and signed Argus’ PL29/2011 licence. This licence allows for the exploration of uranium, gold and precious elements. PL29/2011 is west of, and contiguous with Argus’ PL53/2009 licence, which also allows for the exploration of uranium, gold and precious elements. With PL29/2011 in place, Argus now holds the full 10 x 1 kilometre extent of the Kaituma uranium target and plans to execute a drill program on the project as soon as technically and financially feasible.
President Michael Collins comments, “The Kaituma Project is one of the few undrilled global uranium exploration targets with the potential size to have a significant impact on uranium markets and is located one-half kilometre from a deep water shipping port, an active paved airstrip and is traversed by all-weather roads and rail grade. With all of the ground work already in place and historic data in hand, the project is drill ready and will be tested as soon as possible.”
The Kaituma Project represents a geophysical/geochemical uranium target in an episyenite intrusive in Guyana Shield Greenstone Belt with similar geological models as deposits like the Husab deposit of Extract Resources Ltd. in Namibia, (319.9M lb U3O8 @ 519ppm U3O8) and the Lago Real Mine in Brazil which has resources of 125M lb U3O8 @ ~0.25% U3O8. The high priority Kaituma target has a strike of 10 kilometres and a width of one kilometre and grades from trace up to 0.23% U in saprolite trenches and trace up to 0.0948% U in weathered outcrop.
Historically, the Kaituma Project has been explored by various companies including Cogema and BHP, with work including airborne geophysics, ground based geophysics, soil sampling and trenching. The Kaituma East and West PLs covers the full ten total 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 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.
The Company has released 400,000 Argus shares from escrow to VIT and Newmont with respect to the title transfer of PL35/2005 (now PL39/2011) and PL53/2009. A further 200,000 escrow Argus shares have been released to VIT and Newmont with respect to the Company holding clear title for uranium exploration and drilling on these properties.
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.
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 Kaituma Target will be as projected or that it will bear any similarity to the Husab deposit or Lago Real Mine as anticipated; (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 is subject to raising sufficient funds to execute the drill 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.
