Arcus Financing and Project Update

V.ADG
Arcus Financing and Project Update

Marketwire

Arcus Financing and Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 29, 2013) - Arcus Development Group Inc. ("Arcus") (TSX VENTURE:ADG) is pleased to announce the following:

Private Placement

Subject to regulatory acceptance, Arcus will carry out a $100,000 private placement with Strategic Metals Ltd. The placement will consist of the sale of 3,333,333 Arcus common shares at a price of $0.03 per share. No sales commission or finder's fee will be paid in respect of the placement. All proceeds will be used as general working capital.

"Once the placement has been completed, Strategic Metals will hold an 8.25% interest in Arcus", reported Ian Talbot, the Arcus President and CEO. "We are very pleased with the investment by Strategic Metals as it provides Arcus with working capital for the next year as well as creating a significant shareholder with a longer term view of the potential of the Dawson Gold Project".

Dawson Gold Project

The Dawson Gold Project is a joint venture between Arcus and ATAC Resources Ltd. ("ATAC"), with each company holding a 50% interest. The project is comprised of the Dan Man, Touleary, Green Gulch and Shamrock claim blocks, all located in the White Gold District of Yukon Territory. Exploration at various levels has been carried out in the project area over the past four years. Significant advancements have been made at the Touleary property, located immediately south of the Kinross Gold Corp. White Gold project and the Dan Man property, located immediately north of Kaminak Gold Corp.'s Coffee property.

The 2011 diamond drill program at the Touleary property resulted in the first volcanogenic massive sulphide ("VMS") discovery in the White Gold District. A five hole diamond drill program totaling 935 m targeted a 300 by 100 m area within a 1,200 m long zone of coincident magnetic and intermittent gold-in-soil geochemical anomalies. VMS mineralization was intersected in all five holes, with the most significant intersection containing 7.18% copper, 116 g/t silver, 3.55 g/t gold and 4.30% zinc over 2.25 m (see October 4, 2011 news release). A helicopter borne Versatile Time Domain Electromagnetic (VTEM) survey was flown subsequent to the discovery and a number of electromagnetic targets have been modeled for future drill testing.

The Dan Man property hosts four separate gold-in-soil geochemical anomalies coincident with multiple structural features interpreted from a detailed airborne magnetic survey and air photo lineament analysis. Two of these zones were partially tested in 2011 as part of a 1,500 m diamond drill program and both identified structurally hosted gold mineralization (see December 7, 2011 news release).

Current Work Programs

The primary focus of the 2012 exploration program was directed toward secondary evaluation of the Touleary South A anomaly, one of two interpreted VMS soil anomalies identified during the late fall of 2011 and located 6 km south of the Touleary VMS discovery (see August 10, 2012 news release).

The Touleary South A anomaly is defined by strongly coincident lead-zinc responses and lesser coincident copper soil values along an east to northeasterly trend. The anomaly, as defined by the lower threshold in-soil zinc and lead values, is currently 2,000 m long and 200 to 400 m wide. The 2012 program consisted of additional soil sampling, prospecting and hand pitting within core portions of the Touleary South A anomaly. No work was conducted at the Touleary South B anomaly in 2012.

Forty-eight hand pits were excavated within three core portions of the Touleary South A anomaly coincident with the strongest intensity lead-zinc soil responses from the original grid sampling results defined in 2011. Pits were dug at approximately 25 m intervals along lines spaced 100 m apart. Soil samples collected from the bottoms of the pits in all three areas returned strongly anomalous values for both lead and zinc, and in some cases the values were multiples to an order of magnitude higher than the corresponding surface soil samples. The strongest values for the key VMS indicator elements (Pb-Zn-Cu) were obtained from the central pit area. This particular target was significantly elevated in copper response in contrast to the surface sampling.

Peak Soil Values from 2012 Pits

Area Surface
Pb - ppm
  Hand Pit
Pb - ppm
  Surface
Zn - ppm
  Hand Pit
Zn - ppm
  Surface
Cu - ppm
  Hand Pit
Cu - ppm
                       
Eastern 165   820   1185   828   -   44
Central 381   2400   1085   4550   171   579
Western 286   1590   659   2550   115   227

Hand pits were excavated down to an average depth of 1 m and generally only encountered a thin veneer of vegetation/organic cover. The nature of the soil and rock from the base of the pits were noticeably homogenous suggesting both are near source. 

Little is known about the geology of this particular area given the lack of outcrop exposure. However, the most common rock types noted from the pits are: 1) various gneisses mostly of felsic composition with lesser biotite flecks, quartz spheres/augen with low aspect ratios, disseminated flecks of magnetite and retrograde garnet; and 2) schists comprising varying amounts of quartz-muscovite-sericite-feldspar-biotite. Several specimens have been interpreted as intermediate to felsic volcaniclastic in origin by appearance and the identification of certain remnant features including quartz phyric fragmental textures. 

In addition to the Touleary South A and B soil geochemical anomalies, two other significant copper-in-soil trends are apparent along strike from the Touleary VMS discovery site. To date, neither of these trends has received follow up exploration.

The purpose of the 2013 program will be to further assess the South A and B anomalies and copper-in-soil trends along strike from the Touleary VMS discovery as potential drill targets. Such drilling would accompany the additional drilling required at the main Touleary VMS discovery area.

The Arcus website in currently being updated with maps and information related to the 2012 and 2013 programs (www.arcusdevelopmentgroup.com).

Arcus management believes the modest 2012 and 2013 work programs will achieve two important objectives. The project is being advanced through the identification and refinement of additional drill targets outside of the main VMS discovery zone, while avoiding the excessive dilution of shareholder value under current market conditions.

The technical information in this news release has been prepared and approved by William A. Wengzynowski, P. Eng., a director of Arcus and a qualified person for the purposes of National Instrument 43-101.

On behalf of Arcus Development Group Inc.

Ian J. Talbot, President and CEO

Neither the 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.

CAUTIONARY NOTE: This news release includes certain "forward-looking statements". Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Arcus Development Group Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Arcus Development Group Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Arcus Development Group Inc. with securities regulators. Those filings can be found on the Internet at http://www.sedar.com.

Arcus Development Group Inc.
Grant Longhurst
Corporate Communications
(604) 688-2578
(604) 506-2445
grant@arcusdevelopmentgroup.com
www.arcusdevelopmentgroup.com

Arcus Development Group Inc.
Ian J. Talbot
President & CEO
(604) 688-2578
(604) 687-2522
ian@arcusdevelopmentgroup.com
www.arcusdevelopmentgroup.com


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