Argent Minerals Limited: Cashflow Report and Quarterly Activities

Sydney, Australia (ABN Newswire) - Argent Minerals Ltd. (ASX:ARD) (Argent, Argent Minerals or the Company) is pleased to report a strong quarter of progress and positive news flow in relation to its top two projects, as the Company prepares for drill testing the significant 'size of the prize' potential identified at the Kempfield Polymetallic Project, and the sizeable porphyry copper gold target at West Wyalong.


HIGHLIGHTS:

- Diamond hole results validate the deposit model developed by Argent for the project, and increase the potential 'size of the prize' for Kempfield high grade base and precious metal mineralisation

- Extended reach deep announced for Kempfield deep diamond drilling program - seven deep diamond holes to be drilled for a total of 3,200 metres, testing for depth and strike extensions to existing mineralised lenses, as well as potential new lenses

- Private placement capital raising completed for approximately $525,000 before costs

- Share Purchase Program (SPP) offered to qualifying shareholders on the same pricing terms as the private placement to sophisticated investors for up to an additional $1.17 million

- Shareholder meeting date set and agenda announced for 7 August 2015 for SPP completion

- Argent spurred on by market responses to Mallee Bull zinc/lead intersections, and Evolution's purchase of Lake Cowal 37 km north of West Wyalong

Historically considered as a silver project, Argent's exploration efforts have placed Kempfield on the Australian map as a potentially significant volcanogenic massive sulphide (VMS) polymetallic project with base metals featuring the potential for high grade lead and zinc in addition to high grade precious metals silver and gold.

The intersections of high grade lead and zinc of up to 5 m @ 17.9% from 88 metres, and gold of up to 5 m @ 4 g/t from 353 metres, both immediately to the west of the known deposit (see Figure 2 in link below), together with a range of scientific evidence uncovered by the Company, have resulted in a paradigm shift in expectations as to what potentially awaits discovery at Kempfield, a site located close to rail and road infrastructure in the world class Lachlan Orogen neighbourhood in New South Wales.

During the quarter Argent announced that recent diamond drilling results have validated its genesis model for the project, which predicts the potential for significant depth extensions to mineralised lenses below the known deposit, as well as the potential for high grade base and precious metals. The validated model implies that the lengths of the steeply dipping lenses could extend to substantial depths.

With the majority of the historical drilling at Kempfield having been relatively shallow to only 120 metres for most of the deposit, and only 80 metres for the southern section of mineralisation Lens 1, and leaving the majority of the deposit open at depth, Argent is preparing to drill test the genesis model and the extended lens potential.

On 29 April 2015 Argent announced an extended reach deep diamond drilling program for the Kempfield Polymetallic Project, comprising a total of seven holes for 3,200 metres, which includes extensions to two holes partially funded by the NSW Government. This next phase of drilling has been designed to test for depth and strike extensions to existing mineralised lenses, as well as new lenses, with the primary focus being the discovery of high grade zinc, lead, and precious metals, including the potential for high grade gold in addition to silver.

During the quarter the Company commenced a capital raising program to fund the drilling program and a geophysics survey at its West Wyalong project. The capital raising comprises a private placement to investors qualifying as sophisticated investors under Section 708 of the Corporations Acts (2001), and a Share Purchase Program offered to qualifying Argent shareholders on the same pricing terms and conditions (Private Placement).

A total of $525,500 before costs was successfully raised by the Private Placement, and was followed by the commencement of the Share Purchase Program (SPP) on 30 June 2015, which is scheduled to close on Monday 10 August 2015.

Under the terms of the SPP, qualifying shareholders are able to participate on a first come first served basis, to purchase a maximum of $15,000 of Argent shares at 2.2 cents per share for a total maximum of approximately $1.17 million, each share with a free attaching option (Options), subject to a shareholder meeting scheduled for Friday 7 August 2015. The Options will be listed together with all the currently ASX-listed Argent options, which each have a strike of 17.5 cents for exercise on or before and of 31 March 2016. The purpose of the ASX listing of the Options is to facilitate trading at market value prior to exercise date.


Argent spurred on by Mallee Bull zinc/lead intersections

On 10 June 2015 Argent Minerals announced that it was strongly encouraged by Peel Mining Limited's (Peel Mining) (ASX:PEX) 9 June 2015 announcement of 'spectacular' zinc/lead/silver/gold intersections at the Mallee Bull project in the Lachlan Orogen geological terrain in New South Wales, and the impact on Peel Mining's share price and market capitalisation, as Argent prepares to conduct the major deep diamond drilling program at its Kempfield Polymetallic Project, targeting high grade base and precious metals.

Also located in the Lachlan Orogen terrain, Argent's Kempfield project is strategically situated in a historically fertile neighbourhood which has produced world class mines such as the Cadia Valley Operations just 40 kilometres to the Northwest featuring the largest hard rock underground mine in Australia, and one of the largest in the world with Ore Reserves of 1.8 billion tonnes containing 28 million ounces of gold and 4.9 million tonnes of copper.

Kempfield has been identified as a volcanogenic massive sulphide (VMS) deposit in the Eastern Australian Palaeozoic VMS peer group which extends from Red River Resources' Thalanga polymetallic project in Queensland, and southward through the Hill End Trough basin margin deposits in New South Wales which also includes the Company's polymetallic project at Sunny Corner (where grades were so high at one point to that the mined material was direct shipped to London), through to Tasmania where high grade VMS deposits such as Rosebery, Hellyer and Que River are hosted.

On inspection of drill core and rock outcrops during a site visit at Kempfield, Professor Ross Large of the Centre of Excellence in Ore Deposits (CODES) identified similarities in the style of mineralisation at Kempfield to that of the historically high grade Que River deposit in Tasmania.

To illustrate the potential for a junior mining company to generate shareholder wealth, Argent provided the following table comparison of market capitalisations for Peel Mining at market close before and after the Mallee Bull exploration results announcement, and for Argent Minerals at the time.


Argent Strategic Update - West Wyalong Project

On 1 June 2015 Argent Minerals announced that the Company was strongly encouraged by the announcement of a tangible transaction in the precious metals mining space, which could serve as a guide to the value potential for a fully developed asset at the Company's West Wyalong Project located in a fertile production neighbourhood within the Lachlan Orogen terrain in New South Wales.

On Monday 25 May Evolution Mining Ltd. (Evolution) (ASX:EVN) announced that it had executed a share purchase agreement with Barrick Cowal (Pty) Limited (Barrick) for its transformational acquisition of the Cowal Gold Mine (Cowal) for million ( million).

Cowal is located approximately 37 km to the north of the West Wyalong Project, and according to Evolution's ASX announcement on 25 May 2015, is one of Australia's most attractive gold assets with combined annual production of 230-260,000 ounces of gold, and all-in sustaining costs (AISC) of -900 per ounce.

The Cowal transaction confirms the Board's view that it should continue to pursue delineation and testing of the large porphyry copper gold target established by Argent at West Wyalong.

Located only 7 kilometres from the West Wyalong gold fields that produced yielded 445,700 ounces of gold from 374,111 tonnes of material between 1894 and 1921, Argent's project is situated in the Macquarie Arc of the Lachlan Orogen, in a geological setting of Ordovician age volcanics which hosts world-class porphyry copper-gold mines such as Newcrest's Cadia, China Molybdenum's Northparkes, and the Cowal Gold Mine.

In terms of the specific geological setting, the Argent project is strategically located on the Narragudgil Volcanics, in between the Gilmore Suture, a major crustal structure, and the Yiddah Formation. Copper-gold porphyry deposits commonly occur in orogenic belts at convergent plate boundaries and are often associated with oceanic volcanic island arcs overlying oceanic crust such as the Macquarie Arc.

Ordovician age Narragudgil Volcanics are prospective for porphyry copper-gold deposits. Porphyry copper gold deposits are typically medium to large tonnage (30 to >300 Mt) with grades ranging from 0.4 to 2.5 g/t gold and 0.2 to 1.5% copper.

Argent noted in the 1 June 2015 announcement that it has determined that the porphyry copper gold target at West Wyalong is to be tested as a priority.

Prior to drill testing of this target, the area will be surveyed with a high resolution deeply penetrating induced polarisation (IP) survey, to complement the high resolution magnetic survey performed in 2014, and serve as an aid for precision drillhole planning.

About the validated deposit model and the extended reach Kempfield deep diamond drilling program The relevant diagrams for the Kempfield extended reach deep diamond drilling program are reproduced for the convenience of investors in Figures 1 to 4 inclusive. For details please refer to the relevant ASX announcements listed on page 10 of this quarterly activities and cash flow report.

The additional holes have been designed to test the recently validated Volcanogenic Massive Sulphide deposit model which predicts the potential for significant depth extensions to mineralised lenses below the known deposit.

Most of the historical drilling at Kempfield has been relatively shallow to only 120 metres for most of the deposit, and only 80 metres for the southern section of Lens 1, with the intersected mineralisation leaving the majority of the deposit open at depth.


Director appointment - Sarah Shipway

On 15 June 2015 Argent Minerals advised that Sarah Shipway had been appointed as Non-executive Director of the Company, following the untimely passing away of Non-executive Director Marcus Michael.

Having served Argent Minerals Company Secretary since 22 November 2013, Sarah has a detailed working knowledge of all regulatory, corporate governance, and financial accounting matters of the Company, for a smooth transition. Ms Shipway has a Bachelor of Commerce from Murdoch University, Western Australia, and is a member of the Institute of Chartered Accountants in Australia.


Cash position and funding activities

The available cash position for Argent Minerals as at 30 June 2015 was approximately $606,000.

Under the terms of the SPP the Company is able to raise up to a further $1.17 million on a first come first served basis to qualifying shareholders.

Under the ASX Listing Rules the Company is also able to place any shortfall with sophisticated investors on the same terms and conditions as the SPP pricing, in the event that any shortfall is available for separate placement by Argent.

Following full take up of the SPP the Company anticipates being in strong cash position will be fully funded for the Kempfield extended reach deep diamond drilling program, the West Wyalong high resolution geophysics survey, working capital, and strong associated news flow.

The Company also intends to continue lodging Research & Development (R&D) claims to the Federal Government, as specifically approved and supervised by AusIndustry for the Kempfield Polymetallic Project. The next R&D claim will be submitted in the second half of calendar year 2015 for the R&D related activities conducted during the financial year ending 30 June 2015.

To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ARD-728594.pdf


About Argent Minerals Limited:

Argent Minerals Ltd. (ASX:ARD) is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.



Contact:

David Busch, Managing Director
Argent Minerals Ltd.
M: 0415 613 800
E: david.busch@argentminerals.com.au