Argent Minerals Limited · ASX:ARD

Argent Minerals — Investor Presentation (March 2013)

33 slides from Argent Minerals's investor presentation, Mar 1, 2013

  1. Slide 1: Developing a 'State Significant' silver project in NSW

    For personal use only Developing a ‘State S ignificant’ s ilver p roject i n NSW Investor Update David Busch – Managing Director March 2013 1

  2. Slide 2: Disclaimer & Competent Persons

    Disclaimer & Competent Persons Certain statements contained in this presentaBon, including informaBon as to the future financial or operaBng performance of Argent Minerals Limited (ASX:ARD, “Argent Minerals”, ABN 89 124 780 276) and its projects, are forward-­‐looking statements that: For personal us

  3. Slide 3: Corporate Overview

    Corporate Overview For personal use only Capital Structure Board & Management Ordinary shares 141.7M Kerry McHugh Chairman Share price1 $0.061 David Busch Managing Director Market capitalisaBon1 $8.6M Marcus Michael ExecuBve Director Cash2 $1.7M Ross Smyth-­‐Kirk Non-­‐Exec Director ASX LisBng 3 Apr

  4. Slide 4: Top Tier Project Team

    Top Tier Project Team For personal use only Company Role GR Engineering Services Process engineering design Kappes Cassiday & Associates Australia Heap leach design + monitoring & control Australian Mine Design & Development Pit opBmisaBon, mine design & Ore Reserves assessment RW Corkery Environmen

  5. Slide 5: Projects

    Projects KEMPFIELD SILVER PROJECT For personal use only ü 100% Argent Minerals ü 52 million silver ounces equivalent ü Near-­‐term producBon focus • Stage 1 – 9.9 Moz silver/5 years • EIS Q1 2013 / FS Q3 2013 COBAR BROKEN HILL SUNNY CORNER ü 51% Argent Minerals (soon 70%) NEWCREST ü Polymetalli

  6. Slide 6: Kempfield Silver Project Location

    Kempfield Silver Project LocaKon For personal use only Kempfield Mining Lease ApplicaKon MLA 418 ü Accepted Argent Minerals 20 km Freehold Land Kempfield Silver Project 1 km ASX: ARD 6

  7. Slide 7: Kempfield Silver Project Summary

    Kempfield Silver Project Summary For personal use only ü Major silver development project located near Orange & Bathurst in NSW Ø classified by NSW Govt as a “State Significant Development” ü 100% owned by Argent; near-­‐term producBon focus ü Strategy: Ø Bring project into producBon in a stage-­‐

  8. Slide 8: Kempfield Geology & Exploration

    Kempfield Geology & ExploraKon For personal use only LEGEND Drill hole collar Drilling highlights Fault Stage 1 Pit Outlines ü Significant programs completed to date BariBc horizons ü 491 holes for 41,568 metres ü Including 70 diamond holes for 7,551 m ü 12.5 – 25 m spacing in mineralised zones Qu

  9. Slide 9: Business Model & Performance

    Business Model & Performance Core Asset: Kempfield Silver Project Resource open to For personal use only the North and at depth 35 Farmin rights accrued * Silver Resource (Moz) 30 Conversion to Argent ownership Generate cash (No NSR royalBes) 25 • Stage 1 20 PRODUCE • Stage 2 • + Growth 15 10 Key Sta

  10. Slide 10: Kempfield Resource April 2012 Resource Statement Summary

    Kempfield Resource 26 April 2012 Resource Statement Summary For personal use only At cutoff grades 25 g/t Ag (Oxide/TransiBonal) and for 50 g/t Ag equivalent1 (Primary): Silver Gold Lead Zinc In-­‐situ Contained (Ag) (Au) (Pb) (Zn) Ag Equivalent1 Resource Grade Contained Grade Contained Grade Containe

  11. Slide 11: Staged Development Plan

    Staged Development Plan Stage 1: Heap leach mining operaKon For personal use only ü Mine approx 8.8 Mt over 5 years to produce 9.9 Moz silver & 15,000oz gold • Significantly reduced capex & opex • Higher NPV and IRR • Earlier debt reBrement • Cash to fund company growth Stage 2: Ag/Au + Zinc/Lead (P

  12. Slide 12: Staged Project Plan

    Staged Project Plan Stage 1: Heap leach extracKon of Ag/Au to doré For personal use only ü Significantly reduced capex & opex + Quarries ü Higher NPV and IRR EIS => Q1 2013 ü Earlier debt reBrement ü Cash to fund company growth FS => Q3 2013 McCarron North Starter Pit BJ Oxide & McCarron TransiKo

  13. Slide 13: Stage progress

    Stage 1 progress ü Stage 1 approval process for Kempfield Project is on schedule For personal use only ü EIS to be submi`ed Q1, 2013. Work undertaken & progress includes: • Air Quality & Noise Analyses • Community & Stakeholder Engagement • Flora & Fauna Assessments • Heritage Surveys • Site Layout

  14. Slide 14: Compact, Limited Impact Design

    Compact, Limited Impact Design Inset showing dams Inset located to the South of For personal use only the heap leach pad Two open cut pit complexes Water management structures • HDPE liner underneath pads & ponds • Leakage detecBon • Groundwater monitoring ROM pad, crushing plant & agglomerator Merr

  15. Slide 15: Stage Metrics

    Stage 1 Metrics Current EsKmates1 For personal use only Stage 1 ProducKon Mining target 8.8 million tonnes over approx 5 years ProducKon 9.9 million ounces of silver Strip raKo 0.7:1 (0.5:1 for starter pits) IniKal capex $67 M2 Total LOM capex $83 M3 Direct cash costs (C1) $16.6/oz of silver bullion

  16. Slide 16: Leverage to Silver Price

    Leverage to Silver Price For personal use only Silver spot daily close 60 day moving average Each + 10% in silver price 200 day moving average => + 20% EBITDA 220 EBITDA ($M) 200 180 160 Stage 1 $30/oz $33/oz $36/oz $40/oz Gross revenue1 $296 M $326 M $356 M $395 M 140 Direct cash costs (C1)2 (164 M

  17. Slide 17: Significant Upside Potential

    Significant Upside PotenKal For personal use only ü Independent review of Kempfield Project uncovered major upside potenBal ü New high priority Ag-­‐Pb-­‐Zn-­‐Au drill targets idenBfied ü Provide significant potenBal for growth over and above that envisaged from future producBon stages. Highlights in

  18. Slide 18: Significant Upside Potential

    Significant Upside PotenKal PotenKal for high grade Ag-­‐Pb-­‐Zn-­‐Au lenses IdenKfied by VMS expert Professor Ross Large For personal use only LEGEND Ba-­‐Ag-­‐Au* Drill hole collar Quarries Zn-­‐Pb-­‐Ag Fault Zone High Altered Stage 1 Pit Outlines grade Volcanic Cu-­‐Au Rocks GRAVITY ANOMALY IDENTIF

  19. Slide 19: Significant Upside Potential

    Significant Upside PotenKal PotenKal for high grade Ag-­‐Pb-­‐Zn-­‐Au lenses For personal use only LEGEND Drill hole collar Quarries Fault Zone Stage 1 Pit Outlines VTEM CONDUCTIVITY New drill targets 1. Very High Priority -­‐ Causeway Zone 2. High Priority -­‐ Quarries South Zone McCarron 3. Moderat

  20. Slide 20: Significant Upside Potential

    Significant Upside PotenKal PotenKal for high grade Ag-­‐Pb-­‐Zn-­‐Au lenses For personal use only LEGEND Drill hole collar Quarries Fault Zone Stage 1 Pit Outlines IP ANOMALY New drill targets 1. Very High Priority -­‐ Causeway Zone 2. High Priority -­‐ Quarries South Zone McCarron 3. Moderate Prior

  21. Slide 21: Shallow Gold Feedstock Potential

    Shallow Gold Feedstock PotenKal For personal use only ü Shallow gold feedstock potenBal within 10 km radius of Kempfield Silver Project ü Opportunity to minimise capex by uBlising Kempfield Silver Project infrastructure ü Proven historic gold mining area (circa 1860s to early 1900s) • Limited by th

  22. Slide 22: Shallow Gold Feedstock Potential

    Shallow Gold Feedstock PotenKal ...within 10 km radius of Kempfield Silver Project (all 100% Argent) KEMPFIELD SILVER PROJECT For personal use only ü 100% Argent Minerals ü 52 million Silver ounces equivalent ü Near-­‐term producBon focus • Stage 1 – 9.9 Moz silver/5 years Yellow Streak • EIS Q1 2

  23. Slide 23: Kempfield Silver Project Summary

    Kempfield Silver Project Summary For personal use only ü Major silver project classified by NSW Govt as a “State Significant Development” ü 100% owned by Argent; near-­‐term producBon focus ü Strategy: Ø Bring project into producBon in a stage-­‐by-­‐stage process Ø Stage 1: Mine 8.8 Mt for 9.9 Mo

  24. Slide 24: For personal use only

    For personal use only 24

  25. Slide 25: Additional Exploration Assets

    AddiKonal ExploraKon Assets For personal use only Argent Minerals project prioriBes in context: 1. #1 Priority: Kempfield Silver Project – 100% ownership Ø Major resource and project established -­‐> near term producKon focus Ø Major upside idenKfied -­‐> exploraKon priority 2. Sunny Corner – 51%, r

  26. Slide 26: Sunny Corner – silver/base metals/gold

    Sunny Corner – silver/base metals/gold For personal use only ü Argent Minerals 51%, right to earn 70% Ø Only $30,000 expenditure remaining: enhanced asset value for Argent Minerals ü Strategy: To assess potenBal & suitability of feedstock for Kempfield Silver Project Ø Sunny Corner mine: silver/l

  27. Slide 27: Sunny Corner – silver/base metals/gold

    Sunny Corner – silver/base metals/gold Kempfield Silver ü Historic mining area – VMS silver/polymetallic and shallow gold For personal use only Project ü 51%, right to earn 70% EL5964 Ø Only $30,000 to go Paddy Lackey Sunny Corner Mine 0 g/t Au 0.75 • Ag/Cu/Pb/Zn Resource St George’s Reef • Open t

  28. Slide 28: West Wyalong Project – Porphyry Cu-Au

    West Wyalong Project – Porphyry Cu-­‐Au Kempfield Silver ü Four porphyry untested Cu-­‐Au targets idenKfied ü Right to earn 51 & 70% For personal use only Project Results of Q4 2012 Geophysics Analysis: ü Four prominent IP chargeability anomalies ü Earlier Newcrest drilling did not test the target

  29. Slide 29: For personal use only

    For personal use only 29

  30. Slide 30: Appendix A – Kempfield Resource

    Appendix A – Kempfield Resource The basis for the 26 April 2012 Kempfield Mineral Resource statement announcement referred to in this presentaBon is as follows. At cutoff grades 25 g/t Ag (Oxide/ TransiBonal) and for 50 g/t Ag equivalent (Primary)1: For personal use only ! ! In/situ!Grade! ! ! Containe

  31. Slide 31: Appendix B – Mt. Dudley Resource

    Appendix B – Mt. Dudley Resource Mt. Dudley Maiden Resource EsKmate – 21 February 2013 For personal use only GeostaBsBcal analysis was performed by H&S Consultants Pty Ltd (“H&SC”) on the Mt. Dudley exploraBon database in 2012, together with a review of resource classificaBon criteria under the 2004

  32. Slide 32: Appendix B – Mt. Dudley Resource

    Appendix B – Mt. Dudley Resource The esBmates employed a 3 pass search strategy, with iniBal search radii of 6 X 25 X 25 m (in easBng, northing and elevaBon respecBvely), using a minimum of 8 and a For personal use only maximum of 24 sample composites, and data from a minimum of 4 octants. The searc

  33. Slide 33: For personal use only

    For personal use only 33

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