Argent Minerals Limited (ASX: ARD) ('Argent' or 'the Company') is pleased to announce an upgraded Mineral Resource Estimate ('MRE') for the Kempfield Silver Deposit located within its 100%-owned Kempfield Ag-Au-Pb-Zn Project in New South Wales.
The Kempfield Project is located 45km SSW of Blayney and 8km west of Trunkey Creek in NSW.
The Kempfield Silver Deposit Mineral Resource now stands at 63.7Mt @ 69.75 g/t silver equivalent ('Ag Eq') for 142.8 million ounces of silver, with a 54% increase in silver metal content to 65.8M oz silver from the previous 2023 Mineral Resource Estimation.
Argent Managing Director Mr Kastellorizos commented: 'The upgraded 2012 JORC compliant Resource over the Kempfield Silver Polymetallic Deposit has delivered a significant 54% increase of silver content compared to the previous resource, a major milestone for Argent. This exceptional new resource estimate cements the Kempfield Project as second largest undeveloped silver deposit in Australia. The significance of the Mineral Resource Estimate, both in size and the associated value of the metal content within the resource area is substantial. The Company believes the discovery of further mineralisation within the project area will further enhance the overall value of the future operations. 'Furthermore, our technical team believe the Kempfield deposit has substantial potential for additional resource growth along strike, down hole plunge and depth. Argent will be planning the next phase of drilling within the Kempfield NW, Sugarloaf Hill, Henry's and Golden Wattle Zone Area with a view of increasing the tonnage and grade of the current resource estimation'.
Strategically Positioned in World-Class Area
The Lachlan Orogen is host to one of the largest underground gold-copper mines in the Southern Hemisphere, Newmont Mining's Cadia Valley Operations. The current Cadia Valley Operations Mineral Resource comprises >50 million ounces of gold, and 8.7Mt of contained copper metal. The region also hosts world-class copper-gold and gold deposits (>100 Mt) such as the North Parkes and Cowal mines. The Kempfield Project is the Company's flagship project and is registered in NSW as a Significant Development. The growing number of newly identified zones of the Kempfield deposit, along with the major deposit size and increasing, silver, gold, lead and zinc grade trends, provides Kempfield with significant potential to become a major producer of base and precious metals.
Based on market research from ASX Silver Stocks: 5 Biggest Companies in 2024 | INN (investingnews.com), Silver Mines Ltd - Largest undeveloped silver project in Australia, PowerPoint Presentation (boabmetals.com), INVESTIGATOR RESOURCES LTD (ASX:IVR) - Ann: Noosa Mining Conference Presentation, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum and Silver surfs gold's precious, safe-haven wave and these ASX stocks are capitalising | NT News, Argent Minerals now currently the second largest undeveloped silver deposit in Australia directly behind Silver Mines (ASX:SVL) Bowden Silver Deposit reporting 169M oz of silver and 96,000 ounces of gold in the measured and indicated categories, with an additional inferred resource of 20M oz of silver and 96,000 ounces of gold. Investigator Resources (ASX:IVR) is the third largest silver deposit after Argent's Kempfield Silver Deposit. Investigator Resources Paris' deposit in South Australia has an indicated and inferred resources to 57M oz of silver and 99,000 tonnes of lead.
Mineral Resource
The Kempfield Silver Deposit Mineral Resource estimate for all categories has been upgraded to 63.7Mt @ 69.75 g/t silver equivalent ('Ag Eq') for 142.8 million ounces Ag Eq, an increase of approximately 12% from the previous 2023 Resources Estimate. Overall, the silver ounces have increased by 54% from 42.8M oz silver to 65.8M oz silver - increased by 23 million ounces of Silver Metal Content. The Kempfield Deposit now contains 65.8 Moz silver, 125,192 thousand oz Gold, 207,402t Lead and 420,373t Zinc, confirming the Kempfield Deposit is the second largest undeveloped Silver Deposit in Australia.
Metallurgical test work shows excellent recoveries for silver and gold (86% and 90% respectively) within the Primary Zone via Cyanide Leach Process. The Kempfield Mineral Resource has been independently estimated by Odessa Resources Pty Ltd (Perth). The estimate has been produced by using Leapfrog Edge software to produce wireframes of the various mineralised lode systems and block grade estimation using an ordinary kriging interpolation. Top cuts were applied to individual lodes as necessary to limit the effect of high-grade outliers. The reporting is compliant with the 2012 JORC Code and Guidelines.
Forward Plan and Next Steps
The Project has exceptional growth potential with drill targets already defined. Infill RC and diamond drilling is planned over the untested drill zone (area lies between the 100 and 300 ore zones), as there is over 600m strike length between both orebodies with strong soil and RAB drilling results along with historical drillhole AKRC169 intersecting 34m @ 36.7 g/t Ag, 0.6% Pb and 1.3% Zn from 48m - which remains poorly drill tested and warrants immediate follow-up work. Deeper extensional drilling below Lodes 100 to 300 will target the broad high-grade down plunging silver mineralisation. Currently, Lode 100 Mineralised Block has a 250m length down plunge target zone below 370m from the surface. Lode 200 Mineralised Block has a 650m length down plunge target zone below 330m from surface. Lode 300 Mineralised Block has a down plunge target zone extending 400m in length from surface. All these areas have been classified as high priority resource drill targets and will be systematically tested.
Geology and Geological Interpretation
The Kempfield Deposit has been classified as a Volcanogenic Massive Sulphide (VMS) system. The geological setting is Silurian felsic to intermediate volcaniclastics within the intra-arc Hill End Trough in the Lachlan Orogen, Eastern Australia. The style of mineralisation comprises stratiform barite-rich horizons hosting silver, lead, zinc, +/- gold. The geology and mineral assemblage are consistent with a distal facies of a volcanic-hosted base metals sulphide deposit. The key result of the drilling programmes has identified the litho-stratigraphy over the Kempfield deposit which has five key host horizons. Five mineralisation horizons 1, 2, 3, 4 and 5 have been identified within stratigraphy that dips approximately 70-degree to 80-degree to the west, with the younger material located to the east. Mineralisation is hosted in stratiform normally barite-rich horizons occurring in what appear to be a series of tight isoclinal folds. Silver, lead, zinc, gold and barite mineralisation is derived from submarine volcanic exhalations associated with felsic volcanic activity. Primary mineralogy comprises pyrite, chalcopyrite (copper), galena (lead), sphalerite (zinc), tetrahedrite (silver), native silver and pyrargyrite. Silver is present in tetrahedrite, native silver, pyrargyrite, argentite and galena. Five (5) zones of barite/sulphide mineralisation have been identified over a 2.3 km strike length within the volcano-sedimentary sequence.
Overview
The Kempfield deposit has been explored over a period of approximately forty years by Argent Minerals Limited (Argent Minerals), Golden Cross Operations Pty Ltd (Golden Cross), Jones Mining Limited (Jones Mining), The Shell Company of Australia/Metals Division (Shell), and International Nickel Australia Limited (Inco). Variation in techniques or procedures applied by each exploration company are outlined in this report as appropriate. The data on which the Resource Estimate has been determined is considered to be of high quality in nature. The Kempfield deposit was sampled with drill chips from reverse circulation (RC) and conventional rotary percussion (PERC) drilling, and with diamond drill hole (DDH) core of PQ, HQ and NQ size. A total of 35,211 drill samples have been collected, including 24,578 RC/percussion chip samples and 10,633 diamond drill hole core samples. A summary of Kempfield sample types is provided in Table 6. Samples of between 2 and 3 kg each in weight were selected for assay according to the procedures detailed under the criteria heading 'sub-sampling techniques and sample preparation'. These were crushed to 6 mm and then pulverized to 75 microns. A 25 g split of the sample was fire assayed for gold. The lower detection limit for gold is 0.01 ppm, which has been determined to be an appropriate detection level. All other elements including silver and base metals were analysed using acid digest and either an Inductively Coupled Laser - Mass Spectrometry (ICP-MS) or Inductively Coupled Laser - Atomic Emission Spectroscopy (ICP-AES) finish, or an Atomic Absorption Spectrometer (AAS).
Percussion drilling chip sampling Approximately 70% of the total number of samples were collected by either RC or conventional percussion drilling. A total of 24,578 percussion drill chip samples were collected during three major drilling programs conducted by Shell, Golden Cross and Argent Minerals. The sampling sizes (between 2 and 3 kg) and techniques are considered to have been appropriate for percussion drilled chip sampling for the style and grain size of mineralisation at Kempfield, and further details are set out according to exploration company as follows: Argent Minerals conducted RC drilling under industry best practice procedures. The total recovered RC drill chips were collected at 1 metre intervals in plastic bags, left to dry out if required, split to 1:12 with a riffle splitter in calico bags each up to 2.5 kg in weight and then composited on 2 metre intervals. Golden Cross conducted RC drilling and collected 4,090 samples. Samples were collected by the spear method - the total sample for a 1 metre of drill hole length was collected in a bag which was speared and the spear samples then composited at two metre intervals. Golden Cross samples were collected as both wet and dry, and sample sizes were between 2 and 3 kilograms each. Shell drilled 146 percussion holes in three programs of 30, 30 and 86 holes respectively - 146 of which are recorded in the Argent Minerals database and employed in the Kempfield Resource estimation. During programs one and two, cuttings were collected using either simple cyclones or sludge buckets and much of the fines was either blown or washed away. Sample collection methods were improved in the third program through the use of an Ingersoll Rand Jumbo Airtrac drilling rig, and from hole 3PD-27 onward the Aqua-Dust sampling system was used to minimise the loss of fines. Documentation is not available for the specifics of Shell's sample preparation techniques at Kempfield. Argent Minerals believes that it is a reasonable assumption that Shell, as a leading minerals exploration company, would have operated according to documented procedures, and that these procedures were likely to have reflected international best practice at the time.
Sample Analysis
Method Argent Minerals samples were submitted to ALS Laboratories in Orange for gold assays by fire assay, and silver and base metals by ICP-MS. Samples were crushed by ALS to 6mm and then pulverized to 75 microns. A 25g split of the sample was fire-assayed for gold. The lower detection limit for gold is 0.01 ppm, which has been determined to be an appropriate detection level. All other elements including silver and base metals were analysed using aqua regia acid digest and an ICP-MS finish. Aqua regia digest/ICP-MS finish was compared with four-acid/ICP-MS finish with a very high correlation achieved, confirming a near-total result for the aqua regia/ICP-MS technique. ALS Laboratory QAQC comprised the use of certified reference materials, blanks, splits and duplicates as part of in-house procedures and internal standards. Argent Minerals submitted an independent suite of standard reference materials (SRM) 1:25 and coarse blanks 1:50 Field duplicates were collected every 25th sample during RC drill chip sampling. For percussion drilling samples, Argent Minerals performed laboratory cross checking by submitting samples to ALS and Genalysis Laboratory Services Pty Ltd for cross checking; a very high correlation was achieved. For core samples, metallurgical assays for 1/2 core were compared with the original 1/4 core assays; a very good correlation was achieved. Periodic internal QAQC reports for Argent Minerals sampling procedures show good precision and accuracy of analytical methods and sampling procedures. No obvious contamination was observed during sample preparation. Full sets of assay certificates are retained by Argent Minerals. Golden Cross samples were submitted to ALS Laboratories in Orange for gold assays by fire assay, silver and base metals by aqua regia digest with an ICP-AES finish, and barium by X-ray diffraction (XRF). Samples were crushed by ALS to 6 mm and then pulverized to 75 microns. A 25 g split of the sample was fire-assayed for gold. The lower detection limit for gold is 0.01 ppm, which has been determined to be an appropriate detection level. All other elements including silver and base metals were analysed using aqua regia acid digest and an ICP-AES finish. Duplicate samples were submitted to the Australian Nuclear Science and Technology Organisation (ANSTO) for Neutron Activation Analysis (NAA), a very sensitive method of quantitative multi-elemental analysis with the potential to determine concentrations in a sample from parts per billion (ppb) to tens of percent.
Comparison of neutron activation, four acid/ICP-MS and aqua regia digest/ICP-AES assay results verified that the primary technique (aqua regia digest/ICP-AES) was reliable for silver and base metal assaying, yielding near-total results. Full sets of assay certificates are retained by Argent Minerals. Jones Mining samples were assayed by Australian Laboratory Services in Brisbane for silver and barium using method XRF-1A, and one hole (JKF-20) by AMDEL in South Australia. The XRF-1A method comprised sample preparation by milling to -75 microns and pressing into briquettes each of minimum 25 g weight. A limited number of samples were analysed for gold (7) and other elements (2), for which analysis procedure documentation has not been located. Jones Mining reassayed many of the 2 metre lengths at 1 metre intervals using the same methodologies as for the original 1 metre interval assays. The PQ size hole, JKF-18, was split and 1/8 core analysed for Ag and Ba by ALS as per the above XRF-1A method together with the core from the other holes. Half of the silver anomalous zones were despatched to AMDEL in South Australia for metallurgical tests as well as silver and barium assays (analytical method documentation not available). Partial documentation has been located in relation to the Jones Mining internal QAQC procedures. The original assay certificates have not been located. In 1998 Golden Cross re-sampled and re-assayed material from Jones Mining's drill holes JKF-7 to JKF-18 and JKF-19 in 1999. Intervals were selected for re-assay were warranted by grade and distribution. A comprehensive inter-laboratory check assay program was performed, with samples sent to ALS Orange, ALS Stafford, Becquerel and Genalysis. Silver was assayed for by method A101 and lead and zinc by method G102. Method A101 was recommended by the lab for lead andsilver ores containing barite and comprised aqua regia digestion, hydrochloric acid dissolution with addition of ammonium acetate and thiosulphate for complexation of lead and silver, followed by flame AAS. Method G102 was recommended by the lab for sulphidic samples and comprised aqua regia digestion followed by flame AAS. Satisfactory QAQC procedures were applied, and data pertaining to ALS's internal lab standards are documented. Evaluation of the data found that there were good correlations between the Stafford laboratory by method A101, Stafford fire assay (correlation coefficient = 0.9976), and Becquerel (correlation coefficient = 0.9982). Data that fell outside the acceptable range of tolerance was discarded from the database. From this work Golden Cross concluded that the best available sample and assay data have been employed in the database (favouring the Golden Cross re-assays). A subsequent review by Argent Minerals determined that there are no material issues with the remaining Jones Mining data.
Mining and Metallurgical Methods, Parameters and other modifying factors considered to date. Surface open cut mining is the most likely method to be used in the extraction of this orebody based on the based on the mine design over Kempfield. Mining assumptions were based on bench marking from industry standard mining operations. In 2012, ALS Metallurgy conducted rougher stage flotation resulting in 21% recovery for lead and 67% recovery for zinc within the transitional zone. This illustrated reasonable lead and zinc recoveries in the transitional zone over the Kempfield Deposit. The QPWF5 test results quoted are for the first cleaner concentrate and these demonstrate lead and zinc recoveries are still at saleable grades. The samples used for metallurgical testing came from diamond holes drilled into lode 300. Previous metallurgical testwork in 2008 on 4 holes drilled into lode 200 indicated recoveries of 83% Zinc and 30% Pb. R W Nice & Associates Pty Ltd conducted a series of metallurgical testwork to determine the effectiveness of extracting metals from Kempfield primary material by flotation, targeting separate concentrates. The successful separation of primary material into potentially marketable commercial grade zinc and lead concentrates also containing silver and gold was achieved. The metallurgical results were achieved by a flotation test followed by the regrinding of lead rougher concentrates and conducting a series cleaning tests for separate lead and zinc flotation circuits as per announced on the 12 April 2018 and 30 May 2018 releases. The same silver and gold recovery assumptions have been adopted for the Oxide/Transitional material on the basis that they are approximately identical to historical metallurgical results for that material. The samples used for metallurgical testing came from two diamond holes drilled into lode 100. This lode contains the majority of tonnes with over 50% of tonnes. The metallurgical recovery assumptions are subject to any changes that may result from future metallurgical testing including variability testing across the various mineralogical domains across the Kempfield deposit. The metallurgical testwork stated are the most recent for the relevant weathering domains and while from specific lodes, numerous historical metallurgical testwork has confirmed similar results in base metal recoveries across the various lodes for both primary and transitional. Argent believes the metallurgical test work that was completed between 2012 and 2018 was conducted to industry-standards which also would be applicable to 2023. Thus, the metallurgical test work results are considered to be relevant, representative, and sufficient to the Mineral Resource Estimate at its current project development stage.
Contact:
Pedro Kastellorizos
Managing Director/
Argent Minerals Limited
Email: info@argentminerals.com.au
Competent Persons Statement
The information in this report / ASX release that relates to Mineral Resources Estimation is based on information compiled and reviewed by Mr. Alfred Gillman, Director of independent consulting firm, Odessa Resource Pty Ltd. Mr. Gillman, a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy (the AusIMM) and has sufficient experience relevant to the styles of mineralisation under consideration and to the activity being reported to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Exploration Targets and Mineral Resources. Mr Gillman is a full-time employee of Odessa Resource Pty Ltd, who specialises in mineral resource estimation, evaluation, and exploration. Neither Mr Gillam nor Odessa Resource Pty Ltd holds any interest in Argent Minerals Ltd, its related parties, or in any of the mineral properties that are the subject of this announcement. Mr Gillman consents to the inclusion in this report / ASX release of the matters based on information in the form and context in which it appears. Additionally, Mr Gillman confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.
Forward Statement
This news release contains 'forward-looking information' within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward looking information can be identified by the use of forwardlooking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget' 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or indicates that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be' taken, 'occur' or 'be achieved.' Forward-looking information is based on certain factors and assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, commodity prices, the estimation of initial and sustaining capital requirements, the estimation of labour costs, the estimation of mineral reserves and resources, assumptions with respect to currency fluctuations, the timing and amount of future exploration and development expenditures, receipt of required regulatory approvals, the availability of necessary financing for the project, permitting and such other assumptions and factors as set out herein. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to changes in commodity prices; sources and cost of power and water for the Project; the estimation of initial capital requirements; the lack of historical operations; the estimation of labour costs; general global markets and economic conditions; risks associated with exploration of mineral deposits; the estimation of initial targeted mineral resource tonnage and grade for the project; risks associated with uninsurable risks arising during the course of exploration; risks associated with currency fluctuations; environmental risks; competition faced in securing experienced personnel; access to adequate infrastructure to support exploration activities; risks associated with changes in the mining regulatory regime governing the Company and the Project; completion of the environmental assessment process; risks related to regulatory and permitting delays; risks related to potential conflicts of interest; the reliance on key personnel; financing, capitalisation and liquidity risks including the risk that the financing necessary to fund continued exploration and development activities at the project may not be available on satisfactory terms, or at all; the risk of potential dilution through the issuance of additional common shares of the Company; the risk of litigation. Although the Company has attempted to identify important factors that cause results not to be as anticipated, estimated or intended, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward looking information is made as of the date of this announcement and the Company does not undertake to update or revise any forwardlooking information this is included herein, except in accordance with applicable securities laws.
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