Shares in Argent rally 10% on exploration update
Shares in Argent Minerals (ASX:ARD) surged more than 10% after the company provided an exploration update on Thursday in relation to its Kempfield, West Wyalong and Loch Lilly projects.
Of course it should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
Kempfield is a volcanic-hosted massive sulphide base and precious metals project which is wholly owned by ARD. The project has a current JORC 2012 Mineral Resource of 52 million ounces of silver equivalent contained metal.
The planned resource update will incorporate both lateral and depth extensions with management of the view that there is the potential to double the existing deposit dimensions.
Following the recent diamond drilling program at Kempfield which also established significant depth extensions to the known deposit, an updated resource estimate will be prepared to incorporate extensions beyond the historical shallow drilling limit of approximately 120 metres.
This was the foundation for the current mineral resource estimate, but key inputs to the updated estimate will include data from a proposed infill drilling program and a metallurgical test program.
The metallurgical test programme has commenced where the silver/lead/zinc recovery potential of primary rock material will be optimised through a series of tests in a dedicated flotation processing environment, for a potential boost to project economics as well as the JORC 2012 resource.
Management said that approximately 5000 metres of reverse circulation drilling is envisaged, with infilling of the identified immediate lateral and depth extensions to the deposit being the first priority.
West Wyalong running ahead of schedule
Management said the West Wyalong drill core processing is running ahead of schedule with the detailed core logging completed and five of the six holes submitted for assay.
This suggests that potentially market moving news could be forthcoming from the highly prospective copper-gold project.
Whilst management noted that there had been some delays in laboratory processing which could result in news flow emerging in approximately five weeks, the lab has informed Argent that it is in the process of upgrading its operations to 7 days per week to cope with nationally increased exploration drilling.
While assay results are required to provide an accurate picture, it is worth noting that more than 80% of the total drillcore will have been submitted by ARD for assay. This significant percentage has been selected on the basis of visual observations during the drillcore logging process.
The Loch Lilly drilling program is expected to commence in the first half of July 2017. While it is early days with that project, there is the potential for the identification of both precious and base metal mineralisation given the research work done by Dr. Tony Crawford as a professor at the renowned Australian Research Council Centre of Excellence in Ore Deposits (CODES) at the University of Tasmania.
Dr. Crawford’s research has indicated that a geological belt, which extends from western Tasmania to western Victoria and eastern South Australia before swinging northeast and into western NSW, includes rocks equivalent to western Tasmania’s Mt. Read Volcanics, with potentially major discovery implications for the Loch Lilly – Kars Belt in NSW.
The Mt. Read Volcanics of western Tasmania hosts several world-class base and precious metal deposits, including Mt. Lyell, Rosebery and Hellyer, and numerous medium-sized deposits, including the Que River and Hercules volcanic-hosted massive sulphide (VHMS) copper-lead-zinc deposits, and the Henty gold deposit.
Dr. Crawford’s expertise and instinct has led to significant discoveries, including the Nova nickel discovery, where he provided similar initial exploration guidance to Sirius Resources, whose shareholders hit the jackpot through a subsequent $1 billion takeover by Independence Group.
Originally Anglo American Exploration (Australia) had partnered with Dr. Crawford to drill two targets that it had identified at Loch Lilly with a new type of geophysics survey. But before it was able to drill, Anglo was instructed by its head office to shut down all of its Australian metals exploration as part of a worldwide restructuring effort by the company.
Dr. Crawford has partnered with ARD in a joint venture where the company has the right to earn up to 90% of this massive potential company-maker project covering an area of more than 1,400 square kilometres.
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