Argex estimates conceptual exploration potential at Mouchalagane

MONTREAL, Sept. 26, 2011 /CNW Telbec/ - Argex Mining Inc. is pleased to report that it has finalized the compilation of historical data available for its 100%-owned Mouchalagane iron ore property. The data compilation includes the results of a conceptual estimate of the exploration potential, which is based on the historical work completed on the property and the airborne magnetic survey data acquired by Geophysics GPR International Inc. for Argex in November 2010.

The conceptual estimate, as defined by the National Instrument 43-101 Standards of Disclosure for Mineral Projects, is intended to demonstrate the potential tonnage and grade, expressed as ranges, of the mineralized iron formations occurring on the Mouchalagane property. The analysis of the exploration potential also has the objective of prioritizing the iron formations in preparation for an initial drilling program to be conducted on the property.

The overall conceptual tonnage estimated for Mouchalagane ranges between 940 million tonnes and 2.31 billion tonnes of magnetite and hematite-rich mineralization at a grade of 30% to 35% Fe total. The analysis of the exploration potential has been conducted separately for areas with known historical drilling and for untested areas on the property. The results of the conceptual estimate are summarized in the tables below.

Estimated Exploration Potential for Areas with Historical Drilling
Area
Area of FVD Magnetic
Anomaly (km2)*
Estimated Thickness
of Iron Formation
Volumetrics
(million m3)
Conceptual Tonnage
(million tonnes)
Everett Lake 0.85 10 ‐ 15 m 9 ‐ 13 30 ‐ 40
Crazy Lake 1.34 15 ‐ 35 m 20 ‐ 46 60 ‐ 150
North Parr Lake 0.68 10 ‐ 15 m 7 ‐ 10 20 ‐ 30
South Mountain 1.68 15 ‐ 80 m 25 ‐ 134 80 ‐ 430
South Parr Lake 2.39 20 ‐ 60 m 48 ‐ 143 150 ‐ 460
Total Estimated Exploration Potential for Mineralized Iron Formation with Historical Drilling       340 ‐ 1,110 million tonnes
* FVD : First vertical derivative

Estimated Exploration Potential for Untested Areas
Area
Area of FVD Magnetic
Anomaly (km2)*
Estimated Thickness
of Iron Formation
Volumetrics
(million m3)
Conceptual Tonnage
(million tonnes)
North 4.91 10 ‐ 15 m 50 ‐ 75 160 ‐ 240
Central 9.88 10 ‐ 25 m 100 ‐ 250 320 ‐ 790
Southeast 3.68 10 ‐ 15 m 35 ‐ 55 120 ‐ 170
Total Estimated Exploration Potential for Untested Iron Formation              600 ‐ 1,200 million tonnes
* FVD : First vertical derivative

The exploration information of potential quantity and grade is conceptual in nature; there has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The conceptual tonnage was calculated from the volumetric estimate of the mineralized iron formations using an average specific gravity of 3.2 tonne per cubic metre. The volumetric parameter is defined by the total area covered by the first vertical derivative anomaly outlined by the airborne magnetic data multiplied by the estimated average thickness of the mineralized iron formations. The average thickness is expressed as a range and has been estimated from iron formations intersected in the first 150 m below surface as reported from historical drilling in the vicinity of each area. The volumetric and tonnage values are rounded to reflect the estimate nature of the parameters. Finally the Fe total average grades are based on drill core composite assay results reported in the historical work.

Argex President and CEO, Roy Bonnell, commented on compilation of the historical data available for Mouchalagane, "The compilation of historical data provides us with an excellent starting point to prioritize targets for an exploration campaign on the property. Additionally, by conceptualizing the potential tonnage, we are advancing our stated goal of creating a value-realization event for our shareholders."

The Mouchalagane property is located 275 km north of the city of Baie-Comeau, adjacent to the Manicouagan Reservoir. The property is composed of one block of 637 designated claim cells covering 335 square kilometres and is 100% owned by Argex. The property covers extensive iron formation stratigraphy known as meta-taconites, which are interpreted to be part of the prolific Wabush Geological Formation hosting the major iron ore deposits of the Fermont-Labrador City region. Exploration work conducted in the 50's, 60's and 70's consisting of mapping, ground geophysics, diamond drilling and metallurgical testing successfully identified numerous magnetite and hematite-rich iron formations on the property.

The technical information disclosed in this news release has been reviewed and approved by André Laferrière, M.Sc. P.Geo., Qualified Person for Argex Mining Inc. as defined by National Instrument 43-101 for the Standards of Disclosure for Mineral Projects.

About Argex Mining Inc.

ARGEX MINING INC. has recently transitioned from a mining exploration company to a near-term producer of commodities that the world needs: Titanium Dioxide, Iron and Vanadium Pentoxide. With a primary goal of advancing rapidly towards production, Argex has adopted a simple and low-risk strategy for the scale-up of its proprietary process that allows it to produce high purity TiO2 directly from its 100% owned deposit.

The process is running continuously at the mini-plant in Mississauga, Ontario. The closed-loop process is environmentally friendly and produces minimal inert tailings.

Additionally, the Company owns 100% of the Mouchalagane property, which is a large Labrador Trough iron ore property that represents further potential upside for the Argex shareholders.

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.

 

 

For further information:
Roy Bonnell, President and Chief Executive Officer    
Argex Mining inc.
514-788-8923
roy@argex.ca
Argex Mining Inc.
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