November 2009
I want to thank you for taking the time to learn more about Argentex and our focus on the impressive mineral potential of Argentina's Patagonia region. We are very excited by the results of our recently released mineral resource estimate for our 100%-owned polymetallic Pinguino deposit located in Argentina's Santa Cruz province.
In 2004 Argentex was a little-known junior exploration company that had acquired a large package of grassroots mineral exploration properties in Argentina. We had a dedicated team of professional geologists with some worthy geological theories but many naysayers were more than willing to share with us the industry axiom that "only one in 1,000 mineral properties ever becomes a mine."
We raised the venture capital required to begin work on Pinguino, a property with compelling geological features that is situated within the Deseado Massif, an area with several operating precious-metal mines. Our team began methodically combining detailed mapping, geophysics, geochemistry and trenching data into a consistent geological model and then testing our model through drilling. This resulted in the discovery hole into the Pinguino silver-zinc-indium deposit, which was the first of its kind in the region. By August 2009, we had invested almost US$7 million in Pinguino, with more than 30,000 meters (98,500 feet) of diamond drilling, testing 15 of the 47 veins found on the property to date.
The results of our first 43-101 mineral resource estimate were a significant milestone for the company. At a cutoff grade of 50 g/t (1.6 oz/t) silver equivalent, the mineral resource estimate includes:
- 35.4 million tonnes at 123.63 g/t (4.0 oz/t) silver equivalent (inferred category) and
- 7.32 million tonnes at 169.64 g/t (5.5 oz/t) silver equivalent (indicated category)
Silver equivalency combines individual silver, gold, lead, zinc and indium grades at a specific cutoff grade and category into a single "silver equivalent" number. Additional details are available in our news release dated September 14, 2009.
Our geological model was refined by our exploration results as well as academic research in our cooperation with Argentine geologists from La Plata University in Buenos Aires. Through our working association and cooperation with La Plata University, Argentex has become one of the largest employers of geological students in Argentina. We are very proud of the fact that we are training the future mine finders of Argentina with our own experienced Argentine team.
The next phase of exploration at Pinguino is designed to expand upon our existing resource number through wider spaced drilling and adding additional silver-gold values in the near-surface oxidized material. Metallurgical testing of Pinguino mineralization has commenced and will form part of a Preliminary Economic Assessment (scoping study), which is the next step toward our ultimate goal of production.
In addition to Pinguino, Argentex has a portfolio of prospective and drill-ready exploration-stage silver-gold properties in Patagonia, such as our Condor and Cerro Contreras properties. The mineral exploration potential of the Deseado Massif has been compared with Nevada 100 years ago, when many of Nevada's current operating mines had yet to be discovered. We believe our early acquisition of properties in this prospective region is the foundation of a solid growth strategy for the company.
As we continue to develop Pinguino we believe that our recognition in the industry will continue to grow, as will awareness from the broader investment community. We appreciate the support of new and long-term shareholders and hope that you will continue to participate in the success of Argentex Mining Corporation. From our accomplishments to date and our demonstrated leadership, we feel that we are a "one in 1,000" company.
Sincerely,
"Ken Hicks"
Ken Hicks, BSc. (Hons) P.Geo.
President
