Argentex commenced a 2006 drilling program on its Pinguino silver-gold property in May 2006. Drilling of the initial phase, which included 25 HQ diamond drill holes over 1,876.5 meters (6,156.5 feet) was successfully completed in July. The 25-hole program tested the upper portion of the Marta mineralized system over the 3.7+ mile (6.0+ kilometer) strike length that has been confirmed to date. In addition, new areas, including the sulphide-rich Yvonne vein, were tested as part of the company's continuous expansion of new targets.

Pinguino was originally thought of strictly as a silver-gold property. However, results from 2006 drilling revealed new exploration targets, including high-grade copper, lead, zinc, silver and indium intersections. Argentex was also encouraged by the strong silver values and promising intercepts over considerable widths returned in the final group of drill holes.

Results for the first nine holes, which all hit mineralization, revealed a new zinc-lead-copper vein massive sulphide discovery with large intervals of significant base metal, precious metal and indium values. Geochemically anomalous concentrations of tin and tungsten suggest a higher temperature style of mineralization in contrast to the typical low sulphidation occurrences elsewhere on the property. Both holes drilled within the 700-meter (2,296.5-foot) Marta Centro segment intersected long intervals of base metal and indium containing high-grade material over significant widths as detailed in Table 1. Results included 34.8 meters (114.2 feet) of mineralization, including nearly 4% combined lead-zinc, 48 grams per tonne (g/t) silver and 55 parts per million (ppm) indium with a higher grade core of 10.8 meters (35.4 feet) of 11% combined lead-zinc, 138.7 g/t silver and 177 ppm indium in hole 8 (P53).

Table 1

Low sulphidation-style silver-gold mineralization was returned in all 16 of the remaining holes, with a significant intercept of 10.1 meters (33.1 feet) of 445 g/t silver equivalent at Marta Este. These latest results continue to reveal blind mineralized zones adjacent to known mineralization, suggesting that the overall system is more extensive than what is exposed on surface. Importantly, the pathfinder element signatures in these holes appear to suggest a pattern (vector) toward increasing mineralization that might be useful in targeting a higher grade center of mineralization.

Details of the final 16 holes are highlighted below:

Table 2

Overview of Pinguino property vein distribution and drillhole location map. Shows drilling targets and vein names from Argentex's current areas of interest. Blue dots indicate 2005 drilling, black dots indicate spring 2006 drilling. Scale is by 1,000-meter square grid.

In late November 2006, Argentex announced the commencement of additional drilling at Pinguino. The program was scheduled to include a minimum of 3,000 meters (9,842 feet) of HQ diamond drilling. In late December, Argentex announced that a visual inspection of the first five drill holes showed that all had intersected significant intervals of epithermal mineralization. The first five holes were drilled within the 700-meter (2,296.5-foot) Marta Centro segment, in between two holes drilled earlier in 2006 (P53-06 and P54-06) spaced approximately 110 meters (360.9 feet) apart. These earlier holes returned high base metal and indium values.