Toronto, ON, September 6, 2005 – Argentex Mining Corporation (OTCBB: AGXM) is pleased to announce assay results for the final 16 of 45 HQ diamond drill holes from the 3,010-meter (9,875-foot) Phase One drill program on its Pinguino silver-gold property in Argentina’s Patagonia region. The drill program tested the main Marta vein system in selected pockets along a total distance of 3.1 miles (5.0 kilometers). Silver-gold mineralization was encountered in each area tested and the structure remains open to the northwest and southeast. Approximately 15 miles (25 kilometers) of epithermal veins have been documented to date on the Pinguino property.
“We continue to encounter significant silver-gold values near surface over multi-meter widths,” said Ken Hicks, President of Argentex. “These final results of the Phase One program extend drill-intersected mineralization in the Marta vein to a total distance of more than 5,000 meters. We believe this is a positive sign that points to a strong underlying structure that has distributed silver-gold mineralization over large distances.”
The newest results contain intersections that are both wider and higher in silver and gold content than any previous drilling results on the property. The best results to date were returned from hole P05-32, which contains 1,094.9 grams per tonne (g/t) silver and 0.90 g/t gold (silver equivalent 1,148.9 g/t) over 8.80 meters. Hole P05-44 was targeted solely because of prospective-looking vein material, which had been trenched but contained negligible silver and/or gold values on surface. Targeted approximately 35-40 meters below the surface of the trench, hole P05-44 intersected 23.6 g/t silver and 4.79 g/t gold (silver equivalent 311.0 g/t) over 5.86 meters with a contained interval of 37.2 g/t silver and 8.69 g/t gold (silver equivalent 558.6 g/t) over 2.65 meters. This new discovery has very favorable implications for the Pinguino property because it confirms that not all mineralization is exposed on surface. It also suggests that other areas at Pinguino with exposed vein material on surface warrant drill testing.
Significant results from the final 16 holes are highlighted in Table 1:
Table 1
| Hole-ID |
From (m) |
To
(m) |
Width (m) |
Au (g/t) |
Ag (g/t) |
Au equivalent Au:Ag 60:1(g/t Au) |
Ag equivalent Ag:Au 60:1(g/t Ag) |
| P05-31 |
43.60 |
46.50 |
2.90 |
0.56 |
509.3 |
9.05 |
542.9 |
| P05-32 |
28.30 |
37.10 |
8.80 |
0.90 |
1094.9 |
19.15 |
1148.9 |
| P05-40 |
37.20 |
41.71 |
4.51 |
0.50 |
168.2 |
3.30 |
198.2 |
| including |
|
|
|
|
|
|
| 40.20 |
41.71 |
1.51 |
1.16 |
375.0 |
7.41 |
444.6 |
| P05-41 |
47.25 |
58.95 |
11.7 |
0.55 |
134.6 |
2.79 |
167.6 |
| including |
|
|
|
|
|
|
| 57.50 |
58.95 |
1.45 |
1.15 |
175.0 |
4.07 |
244.0 |
| P05-44 |
47.00 |
51.65 |
4.65 |
2.62 |
37.6 |
3.25 |
194.8 |
| 56.64 |
62.50 |
5.86 |
4.79 |
23.6 |
5.18 |
311.0 |
| including |
|
|
|
|
|
|
| 57.25 |
59.90 |
2.65 |
8.69 |
37.2 |
9.31 |
558.6 |
Argentex commenced exploration activities at Pinguino in April 2004. Traditional scientific methods to explore for epithermal precious metal deposits worldwide were used, including tightly spaced soil sampling, prospecting, trenching and IP geophysics. The results from these tests were combined to define a series of drill targets, which became the focus of the company’s recently completed Phase One drilling program. Argentex will continue to focus its activities based on these proven exploration techniques.
Table 2 shows highlights of previously released Phase One drill results, which were originally announced by Argentex on July 26, 2005 and August 8, 2005:
Table 2
| Hole-ID |
From (m) |
To
(m) |
Width (m) |
Au (g/t) |
Ag (g/t) |
Au equivalent Au:Ag 60:1(g/t Au) |
Ag equivalent Ag:Au 60:1(g/t Ag) |
|
| P05-01 |
33.80 |
37.65 |
3.85 |
3.92 |
91.6 |
5.45 |
326.8 |
| including |
|
|
|
|
|
|
| 33.80 |
35.20 |
1.40 |
7.35 |
140.0 |
9.68 |
581.0 |
| P05-05 |
11.85 |
14.50 |
2.65 |
1.22 |
128.0 |
3.35 |
201.2 |
| P05-06 |
27.30 |
28.87 |
1.57 |
0.49 |
208.0 |
3.96 |
237.4 |
| P05-11 |
43.90 |
52.04 |
8.14 |
2.44 |
158.7 |
5.09 |
305.1 |
| including |
|
|
|
|
|
|
| 49.87 |
52.04 |
2.17 |
5.89 |
362.0 |
11.92 |
715.2 |
| P05-16 |
73.19 |
76.00 |
2.81 |
3.83 |
272.3 |
8.37 |
502.1 |
| P05-24 |
32.00 |
33.90 |
1.90 |
8.19 |
916.7 |
23.47 |
1408.1 |
| P05-26 |
29.15 |
32.00 |
2.85 |
0.70 |
201.3 |
4.06 |
243.3 |
| P05-27 |
49.20 |
52.00 |
2.80 |
1.09 |
411.8 |
7.95 |
477.2 |
| P05-28 |
14.15 |
17.00 |
2.85 |
0.41 |
324.8 |
5.82 |
349.4 |
| P05-29 |
37.14 |
39.05 |
1.91 |
|
523.4 |
9.08 |
545.0 |
Pinguino was first discovered in the mid-1990s by a major mining company that was conducting regional exploration around its advanced project in the southern Patagonia region. That advanced project was the primary focus of its exploration and development efforts and subsequently, in 1998, commenced production as Patagonia’s largest ever gold-silver mine. Reconnaissance-level exploration was carried out at Pinguino in 1996 and 1997, but the major company made a decision to divest the property in 1998. At that time, the price of gold averaged $290 per ounce and silver averaged $5.75 per ounce. Since then, the prices of gold and silver have risen to current rates of approximately $440 and $7 per ounce, respectively. Argentex is the first exploration company to conduct any exploration on Pinguino since 1998.
“We are pleased with the results of our first phase drilling campaign and look forward to additional exploration.” added Argentex’s Ken Hicks. “The Marta structure remains open to the northwest and southeast. Additional veins on the property, parallel to the main Marta vein, remain untested by drilling. Furthermore, numerous other targets have yet to be drill tested. We are planning an advanced drilling program at Pinguino in the near future.”
Samples were sent to Acme Analytical Laboratories in Santiago, Chile for silver and gold assays. Both Argentex and Acme Labs maintain comprehensive and independent Quality Control/Quality Assurance programs.
ABOUT ARGENTEX:
Argentex Mining Corporation is a junior mining exploration company with mineral rights to 30 properties with over 345,000 acres (139,616 hectares) located in the Patagonia region of southern Argentina. Argentex common stock currently trades under the symbol AGXM on the OTCBB.
FURTHER INFORMATION:
Argentex Mining Corporation
Investor Relations
1-866-594-7687
[email protected]
Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Argentex's actual results in future periods to differ materially from forecasted results. Forward looking statements made in this press release include, among others, comments regarding the company’s belief that its recent test results have favourable implications for the Pinguino property, and the company’s results are subject to numerous risks and uncertainties, including the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc., volatility of commodity prices, product demand, market competition, and other risks inherent in Argentex's industry and operations. Please refer to Argentex’ Annual Report on Form 10-K and other filings with the Securities and Exchange Commission for a comprehensive discussion of these and other risk factors.
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.