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Argent Minerals announced June 2018 Quarter activities report

Mining News - Published on Wed, 25 Jul 2018

Image Source: abnnewswire.net
Argent Minerals Limited announced that its activities and cash flow for the quarter ended 30 June 2018.

Highlights:

1. Significant Kempfield Resource update: 100 million ounces Ag Eq at 120 g/t Ag Eq / 520,000 tonnes Zn Eq at 2.0% Zn Eq contained metals.

2. Significant upward revision to the Kempfield Exploration Target estimate of further potential mineralisation:

o Additional 58 to 190 million ounces Ag Eq at 80 to 130 g/t Ag Eq contained silver equivalent - approximately double the previous, and significantly higher Ag Eq grade;

o Additional 300,000 to 1 million tonnes Zn Eq at 1.3 - 2.1% Zn Eq contained zinc equivalent - newly reported for the Kempfield project.

An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade, relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate an additional Mineral Resource and it is uncertain if further exploration will result in the estimation of an additional Mineral Resource.

1. New development scenario potential identified: major zinc-silver-lead-gold project situated in large scale mining growth neighbourhood.

2. Agreement executed with Kempfield neighbours facilitates large scale project advancement.

3. Cash USD 1.65 million as at 30 June 2018 ahead of planned Kempfield drilling program.

During the quarter, Argent achieved a series of significant developments for Kempfield, which we believe significantly advances the progress of the project - opening up a new potential development scenario as a significant large-scale zinc-silver-lead-gold project in a NSW mining growth neighbourhood.

On 30 May 2018, the Company announced a significant update for the Kempfield Resource estimate featuring approximately double the previously reported silver contained metals equivalent - now 100 million ounces Ag Eq at 120 g/t Ag Eq. This was followed by the 6 June 2018 significant upward revision to the Exploration Target estimate for additional potential mineralisation, as summarised in the above Highlights, and detailed in Appendix B of this announcement.

The Resource update and the substantial Exploration Target revision are both a direct result of the metallurgical breakthroughs announced on 12 April 2018 - the successful separation of the primary feed material into potentially marketable commercial grade zinc and lead concentrates, which also contain silver and gold.

LARGE SCALE PROJECT POTENTIAL

New potential development scenario for Kempfield

The following map illustrates the new potential development scale of the Kempfield project in the context of the immediate large scale mining growth neighbourhood and the underlying highly prospective geology that hosts some of the largest mining projects in Australia.

AGREEMENT EXECUTED WITH KEMPFIELD NEIGHBOURS

On 22 June 2018, Argent announced that it had entered into a new agreement with the owners of the neighbouring Box Hill property to the north of the Company's freehold land at the Kempfield project in NSW.

The agreement represents a significant de-risking of the Kempfield project.

Under the terms of the agreement, which reflects the Argent's excellent working relationship with its neighbours, the Box Hill owners have committed to not challenge the grant or validity of the Company's regulatory applications and permitting or ancillary titles related to mining and development approvals ('No Challenge').

During the term of the agreement, Argent has the right, as well as the obligation under certain circumstances, to purchase the Box Hill property at any time up to 12 June 2020 on fixed commercial terms, extendable at the Company's sole discretion up to 12 June 2021. The agreement may be extended for a further year to 12 June 2022 on the agreement of both parties.

The purchase obligation arises in the event that Argent conducts any significant ground disturbances such as the construction of a mining operation.

EXPLORATION AND RESOURCE INFILL DRILLING PROGRAMME UPDATE

During the quarter, Argent completed a reassessment of the planned drilling programmes in view of the commercial impact of the recent metallurgical breakthroughs and updated metals pricing.

The Company is planning to test the Exploration Target through the following revised drilling programme schedule:

- Stage 1 - Mineralisation and genetic model verification - comprising approximately 4,100 metres of drilling, targeting completion before the end of CY 2018(see Note below).

- Stage 2 - Resource category drilling. Further resource infill drilling will be conducted to a level sufficient to estimate an additional mineral resource, if any, initially to Inferred category. Stage 2 timing is envisaged to be completed during CY 2019*. Further infill drilling may be conducted by the Company in order to estimate Indicated and Measured categories ahead of potential Ore Reserve assessments, subject to the results of this stage, including a reassessment of the project economics.

The Company is currently expediting Stage 1 from planning through to execution. In addition to hole design, the process involved field checking of hole collar positions and detailed environmental impact assessment, as well as the management of land access matters related to drilling planned outside Argent's freehold land.

An application for drilling has been submitted to the NSW Government Department of Planning and Environment for approval and initial site preparations have commenced.

Meanwhile, Argent Minerals Limited is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.

Source :

Posted By : Rabi Wangkhem on Wed, 25 Jul 2018
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