MONTREAL, Nov. 16, 2011 /CNW Telbec/ - Argex Mining Inc. ("Argex") announced today that it has entered into a letter agreement (the "Letter Agreement") with Quinto Mining Corporation ("Quinto"), a wholly-owned subsidiary of Cliffs Natural Resources Inc., to
acquire the claims located on the Lac Brûlé property, which is located
95 km northwest of the city of Forestville on the Quebec North Shore
(the "Lac Brûlé Property"). The Lac Brûlé Property is composed of one block of 35 map-designated
claims covering a total of 19.6 km2 and is located at the center of Argex's existing claim block in the
The Lac Brûlé Property covers part of the Labrieville anorthosite
complex which hosts known magmatic iron oxide deposits strongly
mineralized in titanium. Historical exploration work completed on the
property in the 50's and 70's outlined three massive ilmenite lenses.
An internal study completed in 2005 following definition drilling
completed on Lens A and Lens B reported a mineral resource estimate
totalling 3.8 million tonnes and having an average grade of 30.1% TiO2. Such tonnage is however not confirmed by the 43-101 report.
A qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral reserves
and Argex is not treating the historical estimate as current mineral
resources or mineral reserves.
Argex's President and CEO Roy Bonnell commented on the acquisition,
"This acquisition will complete our current set of properties in the
Lac Brûlé area. It will provide us with a strong complement to our La
Blache deposits with the potential contribution of higher grade TiO2 mineralization. Processing significantly higher grade TiO2 through the hydro-metallurgical plant should strongly increase the
project's potential cash-flow without increasing capital costs."
The Letter Agreement provides that, upon signature of a definitive
agreement following successful completion of the due diligence review,
Argex will purchase all rights, title and interest in the Lac Brûlé
Property for a consideration of C$1,150,000 payable as follows:
C$400,000 deposit which was paid at signature of the Letter Agreement,
C$300,000 payable after the due diligence review on the information
related to the Lac Brûlé Property and C$450,000 payable upon the
execution of the definitive agreement.
The technical information disclosed in this news release has been
reviewed and approved by André Laferrière, P.Geo., Qualified Person for
Argex, 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.
SOURCE ARGEX MINING INC.
For further information:
| Roy Bonnell, President and Chief Executive Officer |
Argex Mining Inc.
| Argex Mining Inc. |
| || |
| MEDIA: |
Frédéric Bérard, Vice President
HKDP Communications and Public Affairs
514 395-0375, ext.259