Argent Minerals (ASX: ARD) has entered into the farm-in and joint venture agreements with Golden Cross Operations (ASX: GCO) over the Argent Minerals Properties.
The Kempfield Tenements, Sunny Corner Tenements and West Wyalong Tenements, collectively known as the Argent Minerals Properties, are located in New South Wales within the well mineralized Lachlan Fold Belt.
Argent Minerals estimates Kempfield silver resource up by 88% to 21.2m oz
Argent Minerals (ASX: ARD) has reported that a revised estimate of the silver/lead/zinc/barite resources at its Kempfield property has been undertaken by consulting geologists Hellman and Schofield Pty Ltd.
The Kempfield Tenements are located approximately 29 kilometres south of the New South Wales town of Blayney, in the central-west of the state. Argent is earning a 70% interest from Golden Cross Resources at Kempfield.
Preliminary indications are that between 50 and 80% of these resources may be available for open pit mining. Also reported is the resource estimate which was included in the company’s prospectus issued in conjunction with its listing on the ASX on 4th April 2008.
Revised estimate results include: 21.2 million ounces of contained silver, an 88% increase on the Prospectus resource, equivalent to 326,000 ozs of gold at a silver/gold ratio of 65 to 1; 30,000 ozs of contained gold; 110,000 tonnes of contained Zinc as sulphide; and 55,000 tonnes of contained Lead as sulphide.
Zones are open at depth and along strike, indicating potential for further resource upgrades. Results of Scoping Studies into Heap Leach and Agitated Leach/Flotation Projects are Imminent.
Argent said drilling programmes undertaken since the company listed in April 2008 have been very successful with approximately 8,000 metres of mainly RC drilling in 120 holes being completed over the period resulting in an additional 4.8 million ozs of silver at an approx cost of 15 cents per ounce.
The changes in the cut-off grade from 60g/t Ag to 40g/t Ag for the oxide and transitional material, and from 60g/t Ag only to 80g/t Ag equivalent for the sulphide, reflect the increase in the silver price between 2000-2001.
The resource estimates quoted in the Prospectus were made at A$9 per ounce and are now A$18 per ounce, and reflect the value of the lead and zinc in the sulphide mineralization.The revised cut off grades have resulted in an additional 5.1 million ozs of silver.
Approximately 75% of the tonnes in the overall resource are classified as Measured or Indicated under the JORC Code. 80% of the contained silver and 68% of the contained lead and zinc report to the Measured or Indicated categories.
The Kempfield Tenement contains a Volcanic Massive Sulphide (VMS) system which is over three kilometres in north-south strike length and varies from 300 to 400 metres in width.
The system contains many zones of mineralised lenses which have only been drilled to an average depth of 70 metres with the deepest hole drilled so far to a depth of approximately 200 meters vertical depth.
Many of these lenses show higher lead/zinc grades and are open at depth. There are several gaps along strike which also require further drilling. There is a strong expectation that further drilling will substantially increase the resources.
Argent Resources shares rose by 14% to 20 cents in trading today.
