Toronto, ON, June 9, 2005 – Argentex Mining Corporation (OTCBB: AGXM) is pleased to announce the completion of the phase one drill program on its high-grade Pinguino gold-silver property in Argentina’s mineral-rich Patagonia region. Drilling of 45 HQ holes totaling 9,875 feet (3,010 meters) has been concluded and select core samples are in the process of being analyzed.
Drilling tested near-surface extensions of trenched mineralization within the main Marta vein system. Target areas were selected based on earlier surface trenching and sampling results, which returned high-grade gold-silver assay values. Earlier 3D IP geophysics carried out by SJ Geophysics, an independent Canadian contractor, revealed large chargeability and resistivity anomalies beneath the high-grade surface values, indicating that the silicified zone likely continues at depth.
Geological observations from drill core logging reveal typical characteristics found in the upper levels of a low temperature epithermal precious metal mineral occurrence. Specifically, the mineralization is composed of multiple generations of hydrothermal silica and is usually accompanied by brecciation of the host fine-grained tuff units. Alteration minerals include clay and disseminated pyrite, which form a broad halo around the vein. Galena and sphalerite can also be found associated with the silica.
“These positive preliminary observations of the drill core provide further evidence of the strength of the underlying mineralized system at Pinguino,” said Ken Hicks, President-Elect and Vice President of Exploration for Argentex. “Our geological model is based on quartz-adularia epithermal gold-silver ore deposits, which can extend vertically for 250 to 350 meters. This model, together with information gained from near surface drilling, will enable us to expand our exploration to deeper levels in the hydrothermal system with our next phase drill program, which we expect to schedule in the coming months.”
The company is continuing its exploration work at Pinguino, with a current focus on the Marta vein system. Preliminary work is also being conducted on other vein systems within the Argentex property boundaries.
Argentex’s Pinguino property is underlain by a large, under-explored epithermal precious metal system. It is located within the Deseado Massif, an active exploration and production area in Argentina’s Patagonia region.
Samples selected for analysis have been sent to Acme Analytical Laboratories in Santiago, Chile for gold and silver assays. Both Argentex and Acme Labs maintain comprehensive and independent Quality Control/Quality Assurance programs.
New Pinguino Trenching Results
Separately, Argentex is pleased to announce reconnaissance trenching results from another area of its Pinguino property . Fieldwork was completed in December 2004 as part of the company’s ongoing exploration program. Findings confirm earlier gold and silver soil geochemical anomalies, and will further assist the company in delineating additional targets for future drilling.
Argentex excavated and sampled a large number of widely spaced trenches identified through geochemical-based targets, with most in new territory that was previously unexplored. Most of these trenched areas have less than three feet of overburden.
The highlights of the trenching program are as follows:
|
Trench |
Width (ft) |
Au oz/t |
Ag oz/t |
|
TM 136 |
9.8 |
0.03 |
120.3 |
|
ARG 44 |
9.8 |
0.01 |
9.5 |
|
ARG 12 |
6.6 |
0.16 |
0.3 |
|
ARG 02 |
4.6 |
0.27 |
0.3 |
|
ARG 23 |
4.6 |
0.15 |
6 |
|
CGT 12 |
3.3 |
0.18 |
1.1 |
|
ARG 25C |
3.3 |
0.10 |
0.4 |
|
ARG 42 |
3.3 |
0.10 |
0.7 |
|
ARG 32 |
3.3 |
0.16 |
1.4 |
|
TM 137 |
2.6 |
0.14 |
143.4 |
|
TM 132 |
7.5 |
0.07 |
8.5 |
The results from the trenching program exposed additional epithermal mineralization away from the main Marta vein within subsidiary veins. Multiple generations of epithermal mineralization were recognized and distinguished by their gold-silver content such as strongly anomalous gold with low silver; combined high assay values of both gold and silver; and, extremely high silver values with negligible gold.
With these initial trenching results and our geological interpretation in these new areas, Argentex can better target additional exploration of these hidden targets.
Approximately 15 miles (25 kilometers) of epithermal veins have been documented to date on the Pinguino property and occur within rhyolitic tuffs of the Lower Jurassic Roca Blanca Formation.
Evidence to date indicates that precious metal mineralization at Pinguino is geologically similar to classic epithermal gold-silver occurrences around the world. Epithermal textures include open space filling, silica flooded hydrothermal breccias, banded silica and vein swarms.
ABOUT ARGENTEX:
Argentex Mining Corporation is a junior mining exploration company with significant holdings in the Patagonia region of Argentina. The company currently owns mineral rights to 30 properties with over 345,000 acres (139,616 hectares) of highly 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]
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. 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. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.