VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2012) - Argentex Mining Corporation ("Argentex" or the "Company") (TSX VENTURE:ATX)(OTCBB:AGXMF) announces that it has engaged Mine Development Associates ("MDA") of Reno, NV, USA, to complete a detailed review and update of the geological resource at the Company's Pinguino project. Although this work will result in a delay in the ongoing resource estimate, the Company is confident it will result in a better understanding of the geological model. It will include the ongoing structural review and the most recent drill data, which continues to indicate that there are several areas of higher-grade mineralization.
The resource being modeled consists of approximately 16 individual variably dipping and striking veins and data from 55,966 meters of drilling in 564 drill holes, which includes 25,938 meters and 295 drill holes from the Company's 2010 and 2011 exploration programs. Complexities in the vein system, including varying orientations, depths, widths and grades, require that each vein undergo extensive modeling. In addition, results from recent drilling and trenching are not currently included in the geological model, and the failure to include this data in an update to the Company's resource report would effectively make it outdated when published.
"We believe the decision to retain MDA to complete an updated NI 43-101 compliant estimate of the Pinguino resource is the correct one. We need the work completed to a level that incorporates the structural review of the geological understanding of the vein systems and also reflects all of our recent exploration. We expect that the resource estimate will now be completed by year end," commented Peter A. Ball, President of Argentex.
2012 Exploration Program Update
The Company recently completed its 2012 Exploration program (Phase VIII), including 10,520 meters of drilling and 20,900 meters of trenching, with assay results pending. The 10,520-meter drill program, which operated from February 23, 2012 to June 1, 2012, was comprised of 8,410 meters (93 holes) of reverse circulation drilling for exploration on new high priority vein targets and 2,110 meters (20 holes) of diamond drilling on known vein systems for metallurgical and in-fill/definition studies. The Company has also initiated a structural geological review (SRK Consulting, Toronto) and metallurgical studies (ALS Ammtec and G&T Metallurgical Services Ltd.) with the goal of identifying preliminary recoveries of the oxide, transition and sulphide zones to further assist in understanding the Pinguino vein system.
MDA has scheduled a site visit for July 2012 and the Company believes that the update to its resource report, which will fully incorporate all exploration data relevant to the Pinguino resource, will be available in late 2012.
At the end of the Company's first quarter ended April 30, 2012, Argentex had approximately $7.4 million in cash and cash equivalents to fund its activities going forward.
Argentex's 10,000-hectare advanced silver and gold exploration Pinguino project is located in Argentina's Patagonia region, within the Deseado Massif of Santa Cruz province. The Deseado Massif is an active region of mining with four precious metal mines currently in production, and includes multiple active advanced and early stage exploration projects.
The Pinguino system has grown to 70+ individual veins, with a combined strike length approaching 113 line-kilometers. The Pinguino project is unique within the Deseado Massif region of Santa Cruz province in that it contains two different and geographically distinct types of mineralization, one precious metal and the other sulphide-rich polymetallic. The Company also continues to evaluate the geological model of sulphide-enriched potentially mineralized intrusives at depth, forming the probable source for the polymetallic veins exposed on surface.
Pinguino is easily accessible, situated approximately 400 meters above sea level in low-relief topography. An existing system of all-weather roads provides year-round access to the property.
Argentex Mining Corporation is an exploration company focused on advancing its Pinguino silver-gold project in Santa Cruz, Argentina.
Shares of Argentex common stock trade under the symbol ATX on the TSX Venture Exchange and under the symbol AGXMF on the OTCBB.
On behalf of Argentex Mining Corporation:
Peter A. Ball, President
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. Forward-looking statements in this news release include the Company's expectation that the resource estimate will be completed by year end and that the recently initiated structural geological review will assist in understanding the Pinguino vein system. 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, the availability of the Company's consultants and risks that are inherent in Argentex's operations including the risks that the expected update is further delayed by unforeseen circumstances. These and other risks are described in the Company's Annual Information Form and other public disclosure documents filed on the SEDAR website maintained by the Canadian Securities Administrators and the EDGAR website maintained by the Securities and Exchange Commission.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.