Argentex has assembled an impressive land portfolio in Argentina's Santa Cruz and Rio Negro provinces. In total, the company holds the option for 100% mineral rights to more than 30 properties with over 377,490 acres (152,766 hectares) of land. All of the Argentex properties are located within geological environments that are prospective for the discovery of epithermal silver-gold mineralization as evidenced by the large number of new discoveries over the last decade. In addition, the company has revealed a new polymetallic massive sulphide discovery at its Pinguino property in Santa Cruz.

In 2004-2005, Argentex completed a Phase One work program at Pinguino. The first visit revealed outcropping mineralization within an extensive system of epithermal veins, numerous open trenches with exposed mineralization together with abundant quartz float showing open-space filling, colloform and banded epithermal textures. During this preliminary exploration program, which included 3,000 meters (9,800 feet) of drilling, numerous intersections of significant silver and gold were encountered at surface and at shallow depths.

Highlights of the 2005 drilling program included 8.8 meters of 1,094 grams per tonne (g/t) silver revealed at a vertical depth of 23 meters. This discovery was made in the same area of a previously reported, anomalous trench that returned 9.0 meters of 1,690 g/t silver on surface. Management believes these results demonstrate the existence of discrete high-grade silver mineralization. Additional drilling was then proposed as part of future exploration programs to define and expand this and other high-grade intersections.

Only a small fraction of the approximately 36.4 miles (58.7 kilometers) of known epithermal veins has been tested to date. Following the successful drill program in 2005, excellent targets, both near surface and at depth, were compiled from a combination of soil geochemistry, trenching work and ground geophysics. Some of these areas were tested in 2006 as part of a 1,876.5-meter (6,156.5-foot) initial drilling phase, which included 25 HQ diamond drill holes. Results returned significant base metal, precious metal and indium values. A visual inspection of core from the company’s most recent drill program, completed in mid-January 2007, has revealed more high sulphide mineralization. Results from this drill phase are pending.

Exploration work on Argentex's less advanced properties in Santa Cruz and Rio Negro has generated anomalous results in precious metal and pathfinder elements from reconnaissance-level examination. These results were compiled in a geographic information system for property scale and regional interpretations. Geological examinations were also conducted on the company's properties in Rio Negro province, where two significant and separate gold discoveries were identified.