Toronto, ON, May 4, 2006 -- Argentex Mining Corporation (OTCBB: AGXM) has signed a Letter of Intent to acquire a controlling interest in the Long Peak project from Staccato Gold Resources Ltd. (TSX-V: CAT). Long Peak is located in the prolific, gold-producing Battle Mountain region in the U.S. State of Nevada and consists of 42 unpatented mining claims covering 620 acres (250 hectares).
“This strategic international expansion is being guided by our extensive epithermal expertise, which we can leverage to build a robust group of properties in the world’s most promising gold and silver regions,” said Ken Hicks, President of Argentex. “The move diversifies opportunities for our company and its shareholders. To that end, we are pleased to be evaluating the Long Peak property given its geographical location in such a prolific mining district.”
Located in the active Battle Mountain/Eureka trend in north central Nevada, Long Peak is in close proximity to land holdings that boast producing mines and proven high-grade, multi-million ounce precious and base metal deposits including Newmont’s Copper Canyon/Phoenix-Fortitude gold-silver deposit cluster, Newmont’s Copper Basin gold project and the Marigold Mine, which is jointly owned by Glamis Gold and Barrick Gold. To date, over 10 million ounces of gold have been produced from this mineralized district.
Under the terms of the Letter of Intent, Argentex must expend a total of approximately US$3 million in combined cash payments, royalty payments and on exploration expenditures over four years to acquire a 60% interest in the property. The first year’s work commitment and royalty payments would amount to approximately US$250,000. Argentex can acquire an additional 15%, for a total of 75% ownership, by completing a feasibility study on the property.
The Letter of Intent is subject to due diligence, including a review of historical data. Staccato has a 100% interest in the Long Peak project, subject to underlying royalty agreements and lease payments.
ABOUT ARGENTEX:
Argentex Mining Corporation is a junior mining exploration company with significant holdings in the Patagonia region of Argentina. It currently owns mineral rights to 30 properties with over 345,000 acres (139,616 hectares) of prospective land, located in the Santa Cruz and Rio Negro provinces of Argentina. The company trades under the symbol AGXM on the OTCBB.
FURTHER INFORMATION:
Argentex Mining Corporation
Investor Relations
1-866-594-7687
[email protected]
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as “expects”, “intends”, “plans”, “may”, “could”, “should”, “anticipates”, “likely”, “believes” and words of similar import also_identify_forward-looking_statements._nbsp.css; Forward-looking statements are forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors beyond the Company’s control. These risks and uncertainties include, among other things, volatility of commodity prices, product demand, market competition, and risks inherent in Argentex's operations. These and other risks are described in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.