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MARGIE (Minute-of-Arc Resolution Gamma ray Imaging Experiment) will be a new balloon-borne telescope to observe 30 - 300 keV gamma ray sources with excellent angular resolution ($1^/prime$). The instrument will use a coded aperture mask and a fine-grained position-sensitive central detector. The mask will be 0.5 mm thick tungsten, with 0.5 mm pixels at a distance of 1.5 m from the central detector, giving an angular resolution of $1^/prime$ and a fully coded field of view of $12^/circ$. The central detector will be based on either cesium iodide microfiber arrays coupled to a large area silicon CCD readout array, or cadmium zinc telluride. Prototype testing of both CZT and the CsI/CCD combination have been carried out, and results will be shown, together with expected sensitivity and instrument performance.