Lar,

You're wright. Section 26.2. about the budget for proposed Metallurgical testwork is missing.

The suggestion I read about using the new CTL-hydrometallurgical proces from Argex brings no solution in my opinion. Argex is looking for high grade TiO2 -ore and is not intended to mine La Blache and not even their higher grade Lac Brulé.

An internal sensitivity-study resulted in the conclusion that Argex has to process the highest grade TiO2-ore to maximise the project economics.

Argex-management commented on the results of the study as followed:

Argex President and CEO, Roy Bonnell, commented on the results of the sensitivity study. “The internal analysis, completed with BBA, demonstrates improved project economics by using higher TiO2 grade feedstock for the CTL process. These promising results, demonstrate not only the important value-added that the acquisition of the Lac Brûlé property represents, but also why we have initiated preliminary testing of selected third-party ilmenite concentrates in order to determine the optimal feedstock specifications to maximize the profitability of the process.”

“The internal study shows that an increase in the TiO2 grade of the feedstock significantly lowers the operating cost per unit of TiO2 produced,” said Enrico Di Cesare, COO and V-P Technology of Argex. “With a similar capital investment, we could increase potential revenues by more than three times and reduce our operating expenses per tonne of TiO2 produced by close to 70%. Furthermore, because of the fixed quantities of iron that an industrial module can process due to equipment constraints, results show that lower iron content in feedstock allows the company to process a larger amount of raw material.”