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Argonaut Resources shares continue to run, more news flow from Torrens Project expected

An airborne gravity survey will be flown over the large-scale anomaly in January 2018.
Map of Torrens prospect
Torrens is near major IOCG deposits including Olympic Dam, Carrapateena and Prominent Hill

Argonaut Resources NL (ASX:ARE) shares are up more than 300% this year and the trend is well-positioned to continue as news flow is expected to continue.

The Torrens Copper Project in South Australia has been a catalyst for the share price, which reached a 2017 high of $0.034 this month.

An airborne gravity survey will be flown in January 2018 over the large-scale Torrens anomaly that has been likened to the nearby Olympic Dam deposit.

READ: Argonaut Resources receives government approval at Torrens Project

The company also expects the third of three approvals required for drilling at Torrens to be granted in January.

Argonaut is a 30% partner in the Torrens Joint Venture with Aeris Resources Ltd (ASX:AIS) holding 70%.

The company’s subsidiary, Kelaray Pty Ltd, is manager of the joint venture.

Footprint larger than Olympic Dam anomaly

Torrens is a coincident magnetic and gravity anomaly with a footprint considerably larger than that of Olympic Dam.

Previous drilling confirmed the existence of a major iron oxide copper-gold (IOCG) mineralising system beneath several hundred metres of sedimentary cover.

In the event of a discovery, Torrens has the scale to host a world class copper-gold deposit.

The joint venture has contracted a geophysical acquisition contractor to fly the high-resolution airborne survey.

The aim is to better define the extent of dense bodies of rock within the broader gravity anomaly, which may represent IOCG mineralisation.

Airborne gravity the preferred option

Airborne gravity is the preferred option due to its accuracy and preservation of the salt crust of Lake Torrens.

Lindsay Owler, chief executive officer, said: “The aerial gravity survey will allow us to better target copper mineralisation for drilling.

“It shows stakeholders that the joint venture is very keen to get underway with a major exploration program.

“It also demonstrates our commitment to minimising exploration impact on the environment.”

READ: Argonaut Resources wraps up placement to advance Torrens and Higginsville

Three approvals are required for drilling at Torrens and two of these have been granted.

The exploration program for environment protection and rehabilitation was approved last month.

It allows for exploration activities including aerial and ground gravity surveys, and permits the drilling of up to 70 deep diamond holes from the salt crust.

Native Title Access permitted

In April 2017 the Torrens Joint Venture was granted Native Title Access to enter and undertake exploration.

The joint venture has lodged an application under the South Australian Aboriginal Heritage Act seeking re-grant of an authorisation given in 2010 for a similar drilling program.

South Australia’s Minister for Aboriginal Affairs and Reconciliation will be in a position to properly consider the application in late January 2018.

Argonaut granted two adjacent licences

Argonaut has also been granted two exploration licences contiguous with the project.

The licences cover a confirmed IOCG target in an area known as Murdie and a second anomaly at West Lake Torrens.

The licences cover 1,015 square kilometres and are immediately south and east of the Torrens project.

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