Despite the worst junior resource market in years, Argus’s management group continues to do what they said they would do (yet their stock has languished to ultra low levels along with many others). Argus has just announced that their drill program at the Kaituma Uranium project has begun.

Having witnessed the success they had in their small-yet-effective methods last year in the Yukon, I needed to know just how meaningful and how quickly this initial drill program would take (given the much larger world’s largest un-drilled uranium prospect size potential of this project).

Management has indicated to to me that, the initial 2,500 meter program consisting of 5 fences of ~150 meter deep holes, should give a pretty clear indication of what the geology underneath the oxidized layer could yield in a relatively short time frame. The Company expects drilling to only take a couple of weeks to complete, with assays to follow shortly thereafter.

To briefly reiterate, the project covers over 10 km strike length by 1 km width of radiometric anomalies defined by a 1982 Cogema (now AREVA) soil sampling and geophysical program, a 1996 BHP airborne radiometric survey and a StrataGold 2007 stream, soils and trenching program. Kaituma has a similar geological model to that of deposits such as the Husab deposit of Extract Resources Ltd. in Namibia, (319.9M lb U3O8 @ 519ppm U3O8) and the Lago Real Mine in Brazil which has resources of 125M lb U3O8 @ ~0.25% U3O8. The project is conveniently located near existing infrastructure – close proximity to deep-sea port, roads, rail grade and active airstrip with scheduled service, which makes this even that much more attractive if drilling testing proves positive

One potential bright spot in a dismal market is what newsletter writer John Kaiser said; “the market has returned to the ‘Big Anomaly’ play.”

Here’s hoping that goes from John’s mouth to God’s ears!