Argus Metals Corp. releases final Hyland Gold Project drillholes, completes earn-in work expenditure requirements, wait by 24hgold

Keywords : Diamond | Gold | Gold Discovery | Silver |

NEWS RELEASE

Wednesday, January 04, 2012
Argus releases final Hyland Gold Project drillholes, completes earn-in work expenditure requirements, waits on regional data and N.I. 43-101 compliant resource

Vancouver, B.C., January 4, 2012 Argus Metals Corp. (the "Company" or "Argus") (TSX.V AML) announces:

Exploration drilling in 2011 resulted in a new "Gold Discovery" south of the Main Zone on the Quartz Lake Structural Trend, and expanded the Main Zone deposit with newly identified gold/silver mineralization east and west of historic drill intersections. An updated N.I. 43-101 compliant Main Zone resource estimate is pending from GeoVector Management Inc.
Preliminary results from district scale regional exploration in 2011 highlight several compelling geochemical (gold-in-soils and gold-in-stream sediment) targets which will be discussed in a forthcoming news release once detailed analysis by a third party geochemical specialist is received.
The Company has completed all required work expenditures to earn a 100% interest in the core "Hyland Gold Property" and has one year in which to make a final $100,000 cash payment and issue an additional 300,000 shares, thereby completing its earn-in option.
Assays have been received from the last two drill holes (HY-11-35 and HY-11-43) from the 2011 exploration program. These holes targeted the western extension of the Main Zone deposit and the newly defined THAS anomaly, respectively:
- HY-11-43 intersected mineralization near surface and at depth (due to technical issues drilling halted short of target depth) with the hole ending in 2.1m of 0.97g/t Au and 8.6 g/t Ag. This mineralization was intersected approximately 115m west (down dip) of the nearest historic intersections, demonstrating that the Main Zone mineralization model is robust and open to expansion.
- HY-11-35 targeted the THAS "arsenic-in-soils via XRF" anomaly east of the Carbonate Zone and intersected trace gold mineralization. The anomaly remains unexplained and the Company will look to follow up these results in 2012.

President Michael Collins comments, "2011 was an extremely successful year at the Hyland Gold Project where exploration work has greatly expanded the historic Main Zone deposit, identified a gold discovery by drilling 4km to the south on the Quartz Lake Structural Trend and generated new gold targets regionally. These results continue to demonstrate the district scale potential of the Hyland Gold Project. Management looks forward to the new Main Zone resource as well as the results of the geochemical analysis of the Hyland Property and regional targets as the Company plans for the 2012 exploration season."

With the receipt of the final drilling results, the data has been compiled and transmitted to GeoVector Management Inc. who has been contracted to review and update the 1990 non-compliant N.I. 43-101 resource* estimate of the "Main Zone". The historic resource was reported to contain approximately 117,000 ounces of gold (Au) within 3.2 million tonnes grading 1.1 grams per tonne (g/t) Au. The Company expects to release a new N.I. 43-101 compliant resource estimate later this month.

*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. However confirmation work may produce results that differ substantially from the historic results.

With the close of the 2011 exploration season, Argus has completed the required work expenditures of $2,250,000 to earn a 100% interest in the core "Hyland Gold Property" and has one year in which to make a $100,000 payment and issue an additional 300,000 shares to close the purchase option. The agreement with Victoria Gold Corp. ("VIT") covers the 299 claims optioned in December 2009 as well as claims within a 1 km area of interest. VIT and underlying stakeholders hold a maximum 2.5% NSR with up to a 1% buyback clause. The Tina and Hyland Extension Projects are 100% held by Argus. The Ike Project is joint-ventured to Great Bear Resources which has the option to earn up to a 75% interest, (see press release, May 31, 2011).

All drill core from the Hyland Gold 2011 drilling program was analyzed at Acme Analytical Labs of Vancouver, B.C. utilizing a 1EX ICP 44-element analytical package with G6 Fire Assay finish for gold on all samples. All core samples were split on-site at the Hyland exploration camp and shipped to Acme Analytical Labs preparation facility in Whitehorse where samples were sorted and crushed to appropriate particle size (pulp) and representatively split to a smaller size for shipment to Acme's Vancouver analysis facility. A comprehensive system of standards, blanks and field duplicates was implemented in the 2011 exploration program (regional/Diamond drilling) and is analyzed as chemical assay data becomes available. Paul D. Gray, P.Geo. is the Company's Qualified Person with respect to the Company's Hyland Gold Project and has reviewed and approved this press release.

ON BEHALF OF THE BOARD OF DIRECTORS

Michael Collins
President and CEO

For further information, please contact:
Argus Metals Corp.
350-580 Hornby St,
Vancouver BC, V6C 3B6
Telephone: (604) 687-2471
Facsimile: (604) 687-2472
Website: 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.

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 Hyland Gold Project will be as projected; or (ii) that any new resource estimate of the Main Zone will be better than historic estimates. 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.

You can also view this News Release on our website at:
http://www.argusmetalscorp.com/s/NewsReleases.asp?ReportID=499519

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