VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 03/26/12 — Argus Metals Corp. (the „Company“ or „Argus“) (TSX VENTURE: AML) provides a first quarter 2012 corporate update.
Further to the closing of the second tranche of the Company-s recent private placement, management wishes to outline its strategy and initiatives for the second quarter, 2012.
The Kaituma Uranium/Gold Project
Proceeds from the private placement will be used to drill test its 100% owned Kaituma Uranium/Gold Project in Guyana. The Company has outlined a first phase, ten-hole drill program consisting of two fences of five drill holes designed to test uranium mineralization across the one kilometre wide Kaituma coincident radiometric/uranium-in-soils geochemical anomaly. To date, historic exploration work has sampled only the leached laterite horizons of the cap rock. Argus is targeting the near surface, potentially un-leached lithologies which are interpreted to underlie this cap rock.
The Kaituma Project represents a potential low cost uranium production target with a low exploration (discovery) costs, solid infrastructure and a rapid timeline to a conceptual resource definition and development.
The Kaituma Project is located in northwest Guyana, 1.5 kilometres from a deep water port, town and paved regularly serviced airfield. Topography on the Project is rolling and subdued with a change in relief of only 100m. Access is defined by an all weather road that runs along a central ridge on the project and is augmented by an historic railway grade and secondary logging roads and trails.
The Kaituma geophysical/geochemical uranium target is hosted 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 @ approx. 0.25% U3O8. The opportunity for the discovery of similar uranium grades and tonnage exists on the Kaituma Property and the proposed drilling program will test this potential. The high priority Kaituma target has a strike of ten kilometres and a width of one kilometre and grades from trace up to 0.23% U3O8 in saprolite trenches and trace up to 0.0948% U3O8 in weathered outcrop.
Historical exploration work on the Kaituma Project includes airborne/ground based geophysical surveys by Cogema (now Areva) in the early 1980s followed by a 1996 – 1998, BHP High Sense airborne magnetic/radiometric survey and regional BLEG-ICP stream sediment and soil geochemistry programs. A large 70 square kilometres radiometric anomaly was identified by both the airborne surveys, and a significant stream sediment gold anomaly was also identified on the property. The BHP stream sediment and soil geochemistry surveys did not assay for uranium. Work in 2006 by StrataGold validated the uranium target with conformational ground based radiometric, soils and trenched uranium anomalies (with values from trace up to 0.23% U3O8) as well as delineated three gold anomalies on the property associated with over 100 years of placer mining.
President Michael Collins stated: „Argus is excited to be drill testing the Kaituma uranium/gold anomaly. The Kaituma target has the scale and pedigree to develop into a major uranium deposit.“
Financing Outlook
The Company is confident it will obtain sufficient working capital going forward to fund its planned exploration activities through a strategy of; divesting or joint venturing its non-core assets combined with capital raising in the public market.
About Argus
Argus Metals is a Vancouver based exploration and development company with a strong portfolio of 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 equivalent resource. The 100% owned Kaituma project in Guyana has undergone extensive surface and shallow depth sampling and will be drilled as soon as practicable. Kaituma has the potential to develop into a major uranium deposit and has similar geological features to the Husab (Rossing South) uranium deposit of Extract Resources.
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., the Company-s Qualified Person, and has reviewed and approved this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Collins, President and CEO
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.
Contacts: Argus Metals Corp. Michael Collins President & CEO 604.687.2471
Argus Metals Corp. David Fry VP Corporate Development 604.687.2471
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