Argex completes Airborne Survey at Mouchalagane

MONTREAL, Oct. 30, 2012 /CNW Telbec/ – Argex Titanium Inc. (TSXV: RGX) (“Argex”) and Fugro Airborne Surveys, a division of Fugro Canada Corp. (“Fugro”) are pleased to announce the completion of the first commercial GRYPHON™ Multi-Parameter Airborne Platform survey over the Mouchalagane property. The main objective of the geophysical survey was to cover the entire property with airborne gravity data in order to complement the current geophysical information of the project. In addition to the survey, Fugro and Argex entered into a technical collaboration agreement where the Mouchalagane survey will be processed by Fugro to provide advanced multi-parameter results. As part of the agreement, Fugro will use the Mouchalagane survey as a case study for iron ore exploration projects for its marketing strategy of the GRYPHON™ Multi-Parameter Platform capabilities.

The Mouchalagane survey is the first commercial flight completed by Fugro using the GRYPHON™ Multi-Parameter Airborne Platform. Fugro is currently processing the survey data and will be delivering the preliminary results to Argex within the next few weeks. In addition to the standard geophysical data included in the contract, Fugro and Argex entered into a technical collaboration agreement where Fugro will provide advanced multi-parameter results to the company. In return, Fugro will be able to use the Mouchalagane survey as a case study for the promotion of the new GRYPHON Multi-Parameter Airborne Platform capabilities as a unique integrated geophysical tool for large scale iron ore exploration. The final survey results should be made available to the company early next year.

“We are pleased that Fugro selected Mouchalagane to be the first commercial survey for their new GRYPHON platform. We are eagerly waiting to see the final results of this state-of-the-art airborne survey” commented André Laferrière, VP Mining and Geology of the company. “This survey is one of the last steps of the preliminary exploration phase at Mouchalagane. The next phase for the project will be the initial drilling program which will be designed to test the most promising targets outlined by the recent airborne survey.”

Fugro’s new GRYPHON™ Multi-Parameter Airborne Platform collects simultaneous measurements using Time Domain Electromagnetics (TEMPEST® or MEGATEM®), High Resolution Magnetics, FALCON® Gravity Gradiometry, Gamma Ray Spectrometry, LiDAR and Digital Video in a single pass. The GRYPHON™ Multi-Parameter Airborne Platform is the most cost effective method of acquisition; delivering a full range of geophysical products, reducing the risk of missed targets and providing fully integrated data sets and interpretation products.

“Despite the challenges in the iron ore market of late, we remain committed to adding value to the project so as to complete the planned spin-off at the maximum value to shareholders in a timely fashion,” stated Roy Bonnell, President and Chief Executive Officer of Argex Titanium. “Mouchalagane is a highly promising project with exploration potential of 2.3 billon tonnes of iron formation grading 30-35%. We are committed to working with our local stakeholders to see it developed.”

The Mouchalagane iron ore property is located approximately 275 km north of Baie-Comeau adjacent to the Manicouagan reservoir and is composed of one block of 637 claims covering 334 km². Numerous iron formations occur on the property and are hosted by the Wabush geological formation of the southern Labrador Trough. Historical drilling in five areas on the property confirmed the presence of several economic grade iron deposits up to a hundred meter in thickness.