News

October 4, 2011 -- Vancouver, British Columbia: Arcus Development Group Inc. ("Arcus") is pleased to announce the discovery of the first significant volcanogenic massive sulphide (VMS) system in the White Gold District of north central Yukon at its Touleary property. 2011 diamond drilling targeted a 300 by 100 m area within a 1,200 m long zone of coincident geophysical and intermittent gold-in-soil geochemical anomalies. Highlights from the five hole (935 m) drill program include:

• High-grade copper-silver-gold-zinc mineralization grading up to 7.18% Cu, 116 g/t Ag, 3.55 g/t Au and 4.30% Zn across 2.25 m;
• Near surface intersections starting at 64.21 m;
• Excellent lateral continuity within the initial 300 m area drill tested; and
• Onsite road access.

Results for the five Touleary drill holes are shown below:
 

*Intervals reported are drilled thicknesses believed to represent approximately 70 to 90% of the true thickness. 

The Dawson area, including the White Gold District is underlain by rocks of the Yukon Tanana Terrane and is considered highly favorable for VMS style mineralization. A cluster of VMS deposits in the Finlayson District, 450 km to the southeast are hosted in the same Yukon Tanana Terrane stratigraphy. Certain parts of the Dawson area and the Finlayson District are believed to have been linked as part of a concurrent back-arc/basinal environment prior to displacement along the Tintina Fault.

The most notable deposit in the Finlayson District is Yukon Zinc Corporation's Wolverine Deposit where a NI 43-101 measured and indicated mineral resource is reported at 4.46 Mt grading 12.14% zinc, 354.8 g/t silver, 1.16% copper, 1.70 g/t gold and 1.58% lead (Yukon Zinc Corporation Technical Report, 2007).

"Exploration activity in the Dawson area, including the White Gold District in the early 1990's was largely directed toward VMS potential in response to the discovery of various VMS deposits in age equivalent rocks in the Finlayson District", stated Ian Talbot, the Arcus President. "The Touleary discovery represents the first significant VMS mineralization reported in the White Gold District. Having only drilled 25% of the 1,200 m trend of coincident geophysical and geochemical anomalies, the exploration potential at the Touleary property remains largely untested".

Arcus is currently completing a 740 line km close spaced airborne Vertical Time Domain Electromagnetic (VTEM) survey at the Touleary property to identify areas of high chargeability that may represent thicker accumulations of massive sulphide along the current mineralized trend.

Host rocks at Touleary are pervasively sericitized fine tuffaceous felsic-to-intermediate volcaniclastic units with narrow intervals of weakly preserved fragmental textures. These rocks coincide with a laterally continuous linear magnetic low feature identified by a detail airborne magnetic survey completed by Arcus in the spring of 2011. This feature, although structurally offset at a number of locations, can be traced along strike from the discovery for a distance in excess of 5 km.

Sulphide mineralization within the volcaniclastic horizon(s) is dominantly pyrite and occurs as moderate to heavily disseminated concentrations and rarer semi-massive to massive bands. Much of the mineralization is coarsely recrystallized and remains roughly parallel to foliation but evidence of primary finely laminated textures has largely been destroyed. Copper mineralization is present as chalcopyrite and rarer covellite. These sulphides preferentially occur in the middle to lower portion of the felsic volcaniclaistic intervals as fine foliaform wisps, clots and aggregates plus coarsely recrystallized masses believed to be strain induced near the apex of folds.

Updated maps, sections and photos of the Touleary project can be viewed on the Arcus website (www.arcusdevelopmentgroup.com).

Dan Man Update

The 2011 diamond drilling and auger soil sampling programs on the Dan Man property were completed in late August. The Dan Man property is located immediately north of Kaminak Gold Corporation's Coffee property. The 10 hole (1,500 m) drill program was designed to test four separate structural zones along a 2.5 km portion of the property. Results will be reported once all assays have been received and interpreted.

QA/QC
Samples were forwarded to ALS Minerals in Whitehorse, Y.T. where they were fine crushed before a 250 gram split was pulverized to better than 85% passing 75 microns. Pulps were then analyzed at ALS Minerals in North Vancouver, B.C. where splits of the pulverized fraction were dissolved in aqua regia and analyzed for 35 elements using inductively coupled plasma (ICP) together with atomic emission spectroscopy (AES). Over limit analyses for specific elements were further analysed to completion using the OG 46 method. Gold analyses were by the Au-AA24 procedure that involves fire assay preparation using a 50 gram charge with an atomic absorption spectroscopy finish. 

Rigorous procedures are in place regarding sample collection, chain of custody and data entry. Certified assay standards, duplicate samples and blanks are routinely inserted into the sample stream to ensure integrity of the assay process.

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"

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.

For additional information contact:

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

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