Ubika Research Bulletin ON RGX
On June 5, 2012 Argex Mining Inc (TSXV: RGX) (FSE: ASV)
(OTCBB: ARGEF) announced that it has conducted sensitivity
analysis to understand the impact of different grades of ilmenite
feedstock on the project economics of its proposed Ti02 production
processes. The results confirmed that as the Ti02 grade in the
ilmenite (feedstock) increases, the Ti02 output increases for a
module with a given installed capacity. It was also found that the
ratio of iron (Fe) to Ti02 also had a significant impact over the
economics of the project (the lesser the iron the better and higher the
grade of Ti02 is better for Argex’s process economics.)
v? Earlier, Argex also announced that it has increased the pilot plant
production to 3kg/day of high purity Ti02 from 0.3 kg/day principally
due to ongoing refinements in the treatment and purification process.
v? The company is currently working to scale up the production with an
expanded pilot plant to 10 kg/day by the end of June. The goal of this
production increase is not to test the scale up capability (as RGX is
confident about the scalability) but to produce enough Ti02 to supply
to prospective customers and to help them test and conform the
customers processes to the Ti02 produced by Argex’s plant.
v? The results of the sensitivity analysis and the increased output from
the process refinements gives us reasonable confidence that the
company has developed a good understanding of the process to
successfully execute the scale up of the pilot plant.
v? We reiterate that the Argex process uses easily available
equipment that is used today in processing other materials like
Uranium. Their success in scaling up the pilot production to 3kg/day
from 0.3 kg/day is a good first step in improving their understanding
and communicating to the markets the robustness of their
proprietary CTL process. The PPG relationship gives us a higher
degree of confidence that Argex is likely to have the support of the
industry and a ready customer base for its product once it achieves
full-scale production.
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