Argosy Mining makes announcement; Major Gold Acquisitions.

VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 24, 1995--The Board of Directors is pleased to announce the acquisition of three epithermal gold projects in central Europe, one with open pit gold reserves sufficient to commence feasibility studies.

Argosy has entered into an agreement with Kremnicka Banska Spolocnost s.r.o. to acquire a 75 per cent interest in the Kremnica gold project, Slovakia. The agreement covers the Kremnica Mine, a 12 sq. km. property encompassing a major epithermal vein system mined since the 14th Century. Recorded production, mainly from underground mining, is 1.5 million ounces of gold and 6.7 million ounces of silver. Open pit reserves were delineated in 1992 on a 1,200 metre long section of the Kremnica vein system known as the Sturec Deposit. Proven and probable reserves of 428,000 ounces (gold equivalent) are documented to a vertical depth of 120 metres consisting of 8.33 million tonnes at an average grade of 1.6 grams gold equivalent (1.4 grams gold and 11.4 grams silver/tonne) with a waste to ore ratio of less than 1:1.

The Sturec Deposit is 65 metres wide and remains open for expansion of reserves both at depth and along strike. Previous metallurgical testing and mine planning by a government agency has returned 90 per cent gold recoveries by conventional cyanide leaching. The deposit forms part of an active mining area with existing mining approvals.

Argosy has also entered into joint venture agreements to acquire a 75 per cent interest in the 36 sq. km. Pukanec property, one of the largest unexplored systems of epithermal gold/silver mineralization in Slovakia. Geologically the property is very similar to Kremnica with swarms of veins and stockworks over widths in excess of 100 metres along a north-south distance of 8 kilometres. Past production data is not recorded but evidence of medieval mining is widespread with pits and trenches covering many square kilometres. The Slovak government geological agency recently mapped and sampled the extensive quartz vein system over an 8 sq. km. portion of the property. That program yielded assays from 30 kilogram samples of up to 10.1 grams/tonne gold and 300 grams/tonne silver. The average grade of the 47 samples was 1.64 grams/tonne gold equivalent (silver to gold ratio of 36:1).

Pukanec represents a very attractive exploration target for the development of a major open pit gold deposit. Based on the extensive distribution of known workings within the vein system and its geological similarity to the Kremnica and Banska Stiavnica deposits to the north, a potential geological resource of 55 to 60 million tonnes is indicated at a potential grade of 2 to 2.4 grams/tonne gold plus equivalent silver. Pukanec's potential deposit size is 4 million ounces of contained gold.

Argosy can earn a 75 per cent interest in the Kremnica property from Kremnica Banska Spolocnost s.r.o., an arm's-length Slovak private company, by completing a feasibility study on the property within a three year period. Through joint ventures with Hell, spol. s.r.o. and with Slovenska Geologia, s.p., the Slovak state geological service, Argosy can earn a 75 per cent interest in the Pukanec and Banska Stiavnica properties by staged expenditures over four years. The minimum Year One exploration obligations total $300,000. A finder's fee is payable on the transactions, which are subject to Vancouver Stock Exchange approval.

At the Goldeck gold project, Austria, Argosy has completed three diamond drill holes at the Guginock tunnel, a prospect located at the western extremity of the east-west striking Goldeck fault zone. Sampling of the tunnel returned a 15 metre (46.5 ft.) width of mineralization with an average grade of 5.2 grams gold/tonne (0.15 oz/ton). All of the mineralization in the tunnel is within a sulphide bearing mica schist formation at a marble contact.

Drill hole GU-1, located 40 metres east of the tunnel, intersected the mica schist zone and returned 9 metres (29.4 ft.) at an average grade of 3.43 grams gold/tonne (0.1 oz/ton). Drill hole GU-2, located 50 metres west of GU-1, intersected 9 metres (29.5 ft.) at an average grade of 0.91 grams gold/tonne (0.027 oz/ton). The lower grade is due to the presence of blocks of unmineralized marble within the fault zone.

The 1995 drilling program has demonstrated that the Guginock mineralized fault is significantly gold bearing across substantial widths where it coincides with sulphidic mica schist, with reduced grades where it cuts through marble. East of Guginock, the Goldeck fault system has been mapped on surface for 5 kilometres within a mica schist sequence with coincident highly anomalous gold, tungsten and arsenic values in stream sediment samples. Argosy's ongoing exploration will target higher grade mineralization to the east.

At the Schellgaden gold project, Argosy is nearing completion of a drilling program at the Stubelbau Mine, the largest and most accessible of the medieval mines along the 28 km. long trend of the Schellgaden mines. The drilling is a pilot program to determine the geological structures that control the position width and grade of the mineralization at the locality. Three vertical, 100 metre deep diamond drill holes have been completed along an east-west line approximately 150 metres south of the mine workings. The drill holes intercepted multiple narrow, flat-lying zones of quartz, some with visible sulphides, confirming the continuation of mineralization along strike. A 15 cm intercept in drill hole Schell-1 showed visible gold and was assayed as a priority, returning 10 grams/tonne gold (0.29 oz/ton) and 8.4 grams/tonne silver (0.25 oz/ton); other assays are pending. Vertical drill hole Schell-4 (in progress), located 66 metres north of Schell-1, has intersected the widest zone of visible quartz and mineralization encountered to date between 42.0 and 49.5 metres.

Argosy has ceased funding 100 per cent of diamond exploration in Africa. Joint venture partner Reunion Mining PLC has agreed to fund a US$456,000 program for the period October 1, 1995 to December 31, 1995 that will result in minimal dilution to the 20 per cent interest held in the joint venture by Argosy and the 5 per cent held by Novennial Pty. Ltd., a related party. The program will fund two aeromagnetic surveys and drill test some of the high priority geophysical targets in Tanzania and Zimbabwe.

In Tanzania four kimberlite pipes have been identified to date, associated with the Mabuki and Lunguya diamondiferous kimberlite clusters. In central Zimbabwe the joint venture has identified two macrodiamonds and numerous kimberlitic indicator minerals in a large reconnaissance sample collected from a river draining the Sessami project area. Previous regional sampling yielded picroilmenites with good diamond preservation characteristics.

ON BEHALF OF THE BOARD

Yale R. Simpson, President

The Vancouver Stock Exchange has neither approved nor disapproved the contents of this News Release.

CONTACT: Argosy Mining Corp.

Yale R. Simpson

604/689-5529

1-800-851-7423

604/689-5079 (Fax)

INDUSTRY KEYWORD: MINING REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

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