- Kempfield 1,833 metre drilling programme completed, identifying potential lateral and depth extensions up to 2X existing deposit dimensions.
- Significant intervals intersected by the Kempfield drilling include:
o 20.3 m @ 32 g/t Ag, 1.1 g/t Au from 96.0 m by hole AKDD195
incl. 7.0 m @ 47 g/t Ag, 2.4 g/t Au, from 97.0 m
incl. 3.1 m @ 2.4% Pb, 2.3% Zn, 85 g/t Ag, 2.3 g/t Au from 100.9 m;
o 16.0 m @ 0.6% Pb, 1.8% Zn, 83 g/t Ag, 0.1 g/t Au from 205.0 m by hole AKDD200 at the Henry Zone; and
o 10.2 m @ 1.5 g/t Au from 28.0 m incl. 5.0 m @ 2.6 g/t Au from 32.2 m by AKDD197.
- West Wyalong diamond drilling programme commenced to test the compelling Theia and Narragudgil geophysical targets for porphyry copper-gold and epithermal gold.
- The drilling expenditure will result in Argent increasing its interest in the West Wyalong project to 70%.
- Loch Lilly project - Strategic stake acquired in Mt. Read volcanics equivalent identified 80 km south of Broken Hill - Joint Venture entered into by Argent to earn up to 90%.
- The NSW Government has awarded merit-based 75% co-funding of up to $150,000 for the Loch Lilly project to drill test two walk-up geophysical targets commencing June 2017.
KEMPFIELD DRILL PROGRAMME TARGETING SILVER, GOLD, LEAD AND ZINC
Significant potential extensions identified
The eight hole Kempfield diamond drilling programme was completed at a total of 1,833 metres in January 2017.
The exploration results announced subsequently during the quarter provided excellent information for refining the geological model at Kempfield, and for defining the prospectivity of key identified stratigraphic controls on mineralisation. Significant potential extensions to mineralisation were identified as follows:
- 1,000 metre northeast strike extension - Probable mineralisation continuity was identified from Kempfield North to the Henry Zone where hole AKDD200 intersected five separate mineralised intervals for a total combined downhole length of 45.9 metres. This represents a potential 1,000 metre northeast strike extension of the main deposit (see Figure 1 in the link below).
- New southeast mineralised zone - Holes AKDD195 and 196 intersected C and D Horizon respectively in Kempfield South, confirming the new southeast mineralised zone predicted by the geological model.
- Potential 800 metre extension to the south - Overturning historical assumptions, the geology intersected by holes AKDD198 and 199 has opened up an entire new area to the south as a further extension of the new southeast mineralised zone referred to in the above bullet point, to combine with known mineralisation at the historic Sugarloaf barite mine and the Gully Swamp copper mine (see Figure 2 in the link below). This represents a potential 800 metre extension of mineralisation to the south.
- New southwest gold zone - a shallow gold system intersected by hole AKDD197.
- Depth extensions - the drilling programmes conducted in 2016 and to date in 2017 have confirmed depth extensions to more than 200 metres, where mineralisation continues to remain open at depth. This represents a significant potential extension at depth in relation the known Kempfield deposit, which was defined by historical drilling to approximately 120 metres depth.
Highlights of significant intervals intersected by the drilling programme include:
- New southeast mineralised zone
20.3 m @ 32 g/t Ag and 1.1 g/t Au from 96.0 m by hole AKDD195
including: 7.0 m @ 47 g/t Ag, and 2.4 g/t Au, from 97.0 m;
including: 3.1 m @ 2.4% Pb, 2.3% Zn, 85 g/t Ag, and 2.3 g/t Au from 100.9 m.
- Henry Zone - Five separate mineralised intervals with total combined downhole length 45.9 metres intersected by hole AKDD200, including:
16.0 m @ 0.6% Pb, 1.8% Zn, 83 g/t Ag, 0.1 g/t Au from 205.0 m:
including: 7.6 m @ 1.2% Pb, 3.4% Zn (Pb+Zn 4.6%), 126 g/t Ag, 0.2 g/t Au, from 212.4 m;
including: 1.0 m @ 2.2% Pb, 8.3% Zn (Pb+Zn 10.5%), 250 g/t Ag, 0.2 g/t Au from 213.4 m;
- New southwest gold zone
10.2 m @ 1.5 g/t Au from 28.0 m by hole AKDD197
Including: 5.0 m @ 2.6 g/t Au from 32.2 m
which includes the following individual samples:
1.0 m @ 4.4 g/t Au from 32.2 m; and
1.0 m @ 5.1 g/t Au from 34.2 m.
1.0 m @ 0.97 g/t Au from 48.4 m.
Analysis of the drilling results continues as the Company advances the project towards an update of the Kempfield mineral resource estimate.
WEST WYALONG DRILLING PROGRAMME
On 14 February 2017 Argent announced that approvals had been received for the West Wyalong diamond drilling programme, and on 3 March 2017 the Company announced that the drilling programme had successfully commenced on schedule.
Five holes were designed to test the Theia copper-gold porphyry target over a 1.8 kilometre distance in the northsouth strike direction. The drillholes were generally designed to 350 metre depth and the deepest hole to 500 metres. A single hole has been designed to test the potential for epithermal gold mineralisation at the Narragudgil target to a depth of 400 metres.
All holes are being drilled to a design of 2700 (True) azimuth (ie. to the west), and a dip of 70DEG.
Figure 3 (see the link below) is a plan view illustrating the position of the hole collars, the planned hole traces and depths over the combined high resolution geophysics and induced polarisation (IP) survey results, and Figure 4 in the link below illustrates an example hole design to intersect a 3D IP model derived from the geophysics survey results.
About the 50% NSW Government Cooperative Drilling funding
Under the Funding Deed executed by the NSW Government and Argent, NSW Cooperative Drilling will refund 50% of the direct per-metre drilling costs on the drilling contractor's invoices up to a maximum of $200,000 within 30 business days of the Company producing the reports required by the Funding Deed.
Assessed in a highly competitive environment, the funding award was granted to the Company following the evaluation by an independent expert panel of the West Wyalong project's prospectivity and technical basis, as well as the soundness of the Company's financial management.
About the strategic location of the West Wyalong gold targets and the 70% interest to be earned
Figure 5 (see the link below) illustrates the strategic positioning of the West Wyalong project in which Argent will have earned a 70% interest by incurring the expenditure for the drilling programme as scheduled.
LOCH LILLY PROJECT - STRATEGIC STAKE IN MT. READ VOLCANICS EQUIVALENT BELT
On 20 February 2017 the Company announced that it had entered into a joint venture agreement to earn up to a 90% interest in the Loch Lilly project, with exploration licences and applications covering a significant area of the Loch Lilly - Kars Belt of more than 1,400 km2.
The Loch Lilly - Kars Belt, located in western NSW approximately 80 kilometres south of Broken Hill, hosts a polymetallic volcanic-hosted massive sulphide VHMS, copper-gold porphyry and nickel sulphide mineralisation potential analogous to the Mount Read Volcanics of Western Tasmania.
Argent will earn its first 51% interest in the Loch Lilly Joint Venture by completing a drill programme to test two compelling geophysical targets - Eaglehawk and Netley. One hole will be drilled to test each target to a depth of 500 metres.
The direct per-metre drilling costs of the drilling programme will be 75% co-funded by the NSW Government up to $150,000. The highly contested Government funding was awarded to the project based on merit as assessed by an independent expert advisory panel.
The drill programme is scheduled to commence in approximately June 2017, subject to access agreements, regulatory approvals, drilling logistics and weather.
About the Loch Lilly - Kars belt and equivalent Mt. Read volcanics potential
The Loch Lilly - Kars Belt is a NE-SW belt of Late Neoproterozoic and Cambrian rocks measuring 200 by 30 kilometres in area in western NSW located approximately 80 kilometres south of Broken Hill. The belt occurs along the southern margin of the Palaeoproterozoic Broken Hill Block and forms part of the ~600Ma breakup margin of Gondwana that is represented by volcanic rocks that extend from Antarctica, through western Tasmania and western NSW to Charters Towers in Queensland.
The project area is covered by exploration licences EL8199, EL8200, EL8515 and EL8516, the combined 1,447 km2 area of which covers the majority of the belt.
Research undertaken by Argent's joint venture partner, Dr. Anthony J. Crawford, has indicated that this belt, which extends from western Tasmania, through western Victoria, and easternmost South Australia before swinging northeast and into western NSW, includes rocks equivalent to western Tasmania's Mt. Read Volcanics, with potentially major discovery implications for the Loch Lilly - Kars Belt in NSW. Over a strike distance of just 80km, the Mt. Read Volcanics hosts several world-class base and precious metal deposits, including Mt. Lyell, Rosebery and Hellyer, and numerous medium-sized deposits, including the Que River and Hercules VHMS Cu-Pb-Zn deposit and the Henty gold deposit.
About Argent's participation in the project as JV partner and manager
Under the terms of the Joint Venture Agreement, Argent has been appointed as the Manager/Operator and is the sole contributor during the earning period during which time Argent has the right to earn a 51% interest, then 70% and 90%, in the Loch Lilly project. The joint venture continues until Argent either earns 90% or withdraws from the joint venture.
Figure 7 (see the link below) illustrates the project area and tenements against a magnetic image background, with the key identified targets highlighted by yellow ellipses.
HEAVILY OVERSUBSCRIBED PRIVATE PLACEMENT RAISES $2.28 MILLION
The Company's cash position as at 31 March 2017 was approximately $830,000.
On 20 April 2017 Argent announced that a private placement had been conducted to sophisticated investors to raise up to approximately $2.28 million before costs to advance its projects in the precious and base metals sectors, featuring gold, silver, lead and zinc (Placement).
Strong demand from new and existing sophisticated investors resulted in the Placement being heavily oversubscribed.
Proceeds of the Placement will fund:
- Kempfield Polymetallic Project (Argent interest 100%)
Work to advance the planned mineral resource estimate update:
o Metallurgical testing of existing drill core to determine base and precious metal recovery potential in separate concentrates in a flotation processing environment.
o Resource infill drilling.
- West Wyalong Project (Argent interest 51%, increasing to 70%)
o Completion of the six hole 2,300 metre diamond drilling program testing for porphyry copper gold and epithermal gold at the Theia and Narragudgil targets.
o Drilling is 50% co-funded by the NSW Government Cooperative Drilling programme up to a total of $200,000 (awarded on merit-based assessment by independent panel of experts).
o Increase of Argent interest to 70%.
- Loch Lilly Project (Argent right to earn up to 90%)
o Inaugural drill test of analogous Western Tasmania Mt. Read Volcanics potential identified in the Loch Lilly - Kars Belt located approximately 80 kilometres south of Broken Hill (lead/zinc/copper/nickel/silver/gold).
o Two diamond holes will be drilled up to 500 metres depth, each to test the walk-up geophysics targets (Eaglehawk and Netley).
o The direct per-metre drilling costs are 75% co-funded by the NSW Government Cooperative Drilling programme up to a total of $150,000 (awarded on merit-based assessment by independent panel of experts).
o Earn initial Argent interest of 51% by completing the drill test.
To view tables and figures, please visit:
About Argent Minerals Limited
Argent Minerals Limited (ASX:ARD) 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.
Argent Minerals Limited