December 2014 quarterly activities and cash flow report
30 January 2015
DECEMBER 2014 QUARTERLY ACTIVITIES AND CASH FLOW REPORT
HIGHLIGHTS:
■ Argent commences the Kempfield deep diamond drilling program
■ Four hole deep diamond drilling program designed to test interpreted VMS lenses in the Western
Prospective Area - targeting high grade zinc, lead, copper and gold
■ Interpreted mineralisation model updated with Kempfield surface Magnetometric Resistivity (MMR) survey results
■ Base and precious metal zonation quantitative data announced for Kempfield Mineral Resource - adding further evidence in support of the interpreted mineralisation model
■ A total of $821,000 funding received from the most recent R&D claim and a December capital raising from sophisticated investors in support of the drill program
■ Cash of approximately $816,000 as at 31 December 2014
POTENTIAL 'COMPANY MAKER' DRILL PROGRAM DEVELOPED, FUNDED, AND COMMENCED AT KEMPFIELD POLYMETALLIC PROJECT
Argent Minerals Limited (ASX: ARD, Argent, Argent Minerals or the Company) has completed the second quarter of FY2014/15 with significant achievements in the progression of the Kempfield Polymetallic Project toward the Company's goal of an exciting base and precious metal discovery in a highly prospective untested area of the Lachlan Orogen geological terrane, where Argent has identified the potential for additional volcanogenic massive sulphide (VMS) lenses and a high temperature feeder zone and associated high
grade base and precious metals.
Managing Director David Busch said, "Argent Minerals is pleased to report a strong quarter, with the comprehensive interpreted mineralisation model updated from the results of the surface magnetometric resistivity surveys, a deep diamond drilling program developed to test the identified base and precious metals potential, a total of $821,000 of funds raised from the most recent R&D claim and a sophisticated investor capital raising, and the commencement of the Kempfield deep diamond drilling program.
"Financially supported by a merit-based award from the NSW Government, the Kempfield deep diamond drilling program currently underway is the deepest to be conducted at Kempfield in over four decades of exploration, and is designed to test the comprehensive mineralisation model that has been developed by Argent. Drawing on a range of industry best-practice expertise including the Company's in-house expert Dr. Vladimir David who has a track record in VMS discovery, Argent's advanced exploration techniques have provided fresh insight into potential mineralisation structures that were not detected previously by traditional survey methods.
"With drilling currently underway on the first hole of the 1,900 metre program, January 2015 marks the start of an exciting year for Argent Minerals as the Company tests for high grade base and precious metal mineralisation from the basin margin adjacent the historic Colossal Reef copper mine, and eastward through to underneath the existing deposit".
About the drilling program
During the quarter Argent designed and announced the Kempfield deep diamond drilling program. Four holes will be drilled for a total length of 1,900 metres. The first two holes will be drilled toward the Southeast from locations adjacent the historic Colossal Reef copper mine. The first hole will be drilled to a length of up to 500 metres, and the second, the deepest hole in the program, will be drilled to a length of up to 650 metres. Together these first two holes will test the interpreted VMS feeder zone and Lenses 4 and 5.
The third hole in the program will be drilled for a length of up to 350 metres to test the interpreted VMS Lenses 4, and the Northeast extension of Lens 3. A fourth hole will also be drilled for a length of up to 400 metres underneath the known mineral resource, to test for extensions of Lenses 2 and 3 at depth. Holes 3 and 4 will require additional funding to be raised.
Given a reduction in contractor drilling rates negotiated for this project, the NSW Government funding contribution, and the extent of R&D claims that Argent intends to pursue in relation to Federal Government approved research aspects of the project, the Company is anticipating the achievement of highly competitive net outlay dollars per metre for this program, ultimately resulting in a greater quantity and depth of metres drilled per investment dollar. The majority of the drilling samples will be diamond core, which provides the greatest insight possible into mineralisation structures and geology.
The Company will provide further updates as results become available.
About the interpreted mineralisation model update and surface MMR results
During the December quarter Argent announced the results of the surface MMR surveys conducted at Kempfield during the previous quarter (also referred to as SAM - sub audio magnetics). Five targets were delineated and assigned priorities for follow up.
The highest priority target, priority #1, is a compelling feature that stands out clearly, extending from west of the West McCarron Zone toward and potentially beyond, the historic Colossal Reef copper mine. Additionally, this target is of particular interest because of its coincidence with an IP chargeability high anomaly, fault structures, and there are no known potential cultural influences.
Target priority #2 is also of particular interest, due to its coincidence with an IP chargeability high anomaly, and its potential correlation with either the interpreted NW extension of Lens 3, or a SW extension of interpreted Lens 4.
Target priorities #3 and #4 are of interest due to their strength, and potential correlation with interpreted lenses. However, further work has been recommended to improve discrimination from cultural objects.
Target priority # 5 is also coincident with an IP chargeability high anomaly. Further follow up work is required.
The SAM survey analysis also revealed a distinctly resistive response associated with the silver/barite mineralisation in Lens 1, where the current is diverted around the predominantly silver/barite portion of the mineralisation. The ability of the SAM survey to discriminate against the typically resistive silver/barite mineralisation provided further support for the interpreted model, which predicts decreasing silver/barite grades toward the Western Prospective Area, in favour of increasing Pb/Zn/Au and potentially Cu, mineralisation associated with higher deposition temperatures, and a potential feeder zone.
Figures 1 and 2 set out the design of the drill hole plan designed to test the updated interpreted feeder zone and mineralisation lens model, where Figure 1 is a plan view against the MMR anomalies, and Figure 2 is a cross section.
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