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ARGENT MINERALS LIMITED ASX:ARD SHAREHOLDER/INVESTOR BRIEFINGS
22 & 23 SEPTEMBER 2015
DRILL TESTING KEMPFIELD
FOR AUSTRALIA’S NEXT
HIGH GRADE LEAD/ZINC DISCOVERY
DISCLAIMER
2
This investor presentation (Presentation) has been prepared by Argent Minerals Limited (ABN: 89 124 780 276) (Argent Minerals, Argent or the Company). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this Presentation.
This Presentation contains summary information about Argent Minerals, its subsidiaries and their activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Argent Minerals.
By its very nature exploration for minerals is a high risk business and is not suitable for certain investors. Argent Minerals securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Argent Minerals and of a general nature which may affect the future operating and financial performance of Argent Minerals and the value of an investment in Argent Minerals including but not limited to economic conditions, stock market fluctuations, silver, lead, zinc, copper and gold price movements, regional infrastructure constraints, securing drilling rigs, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.
Certain statements contained in this Presentation, including information as to the future financial or operating performance of Argent Minerals and its projects, are forward-looking statements that:
§ may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral resources and mineral reserves and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;
§ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Argent Minerals, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and,
§ involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.
Argent Minerals disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward-looking statements.
All forward-looking statements made in this Presentation are qualified by the foregoing cautionary statements. In particular, the corporate mission and strategy of the Company set forth in this Presentation represents aspirational long-term goals based on current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
No verification: Although all reasonable care has been undertaken to ensure that the facts and opinions given in this Presentation are accurate, the information provided in this Presentation has not been independently verified.
All production related images in this presentation are not Argent Minerals Limited assets, including the images on the cover and in the header.
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
ARGENT AT A GLANCE
3
Capital Structure
Ordinary shares (ASX:ARD) 219.6M
Share price1 $0.024
Market capitalisation1 $5.27M
Cash2
Listed Options (ASX:ARDO) 3 149M
ASX Listing 3 April 2008
Top 20 shareholders4 42% 1. As at market close 21/9/15 2. As at 30/6/15 3. $0.175 strike, 31 March 2016 expiry 4. As at 3/9/15 (2015 Annual Report)
ARD Share price & daily $ volume traded
$ 0k
$ 10k
$ 20k
$ 30k
$ 40k
$ 50k
$ 60k
0.0c
0.5c
1.0c
1.5c
2.0c
2.5c
3.0c
3.5c
4.0c
4.5c
30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15
$611,678
Board & Management
Stephen Gemell Chairman (Non-exec) B.Eng (Hons), FAusIMM (CP)
David Busch Managing Director B.Eng, BSc, MAusIMM
*Peter Nightingale Director (Non-exec) B. Econ, CA
*Peter Michael Director (Non-exec)
Sarah Shipway Company Secretary B. Bus, CA
*Todd McGilvray Exploration Manager BSc (Hons), Economic Geology, MAusIMM
MSEG, MGSA, GradCertAppFin
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
* New appointments announced 17 September 2015
WHY INVEST IN ARGENT MINERALS
§ THREE PROJECTS IN HIGHLY PRODUCTIVE TERRANE
– Kempfield Polymetallic Project (Argent 100%)
• High grade base and precious metals potential • Near term production potential (JORC 2012 Resource)
– West Wyalong (Argent 51%, right to earn 70%)
• Large porphyry copper-gold target identified • 37 km from Lake Cowal mine taken over by Evolution Mining for $US550M
– Sunny Corner (Argent 70%)
• Historic silver/polymetallic mine – very high grades (direct shipped ore to London) • Potential feedstock for Kempfield
4 Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
Significant discovery potential identified
WHY INVEST IN ARGENT MINERALS
§ THREE DRIVERS FOR A POTENTIAL RERATE OF ASX:ARD SHARE PRICE
1. A high grade base & precious metals discovery at Kempfield featuring lead/zinc
• Preparations underway for 7 hole 3,200 metre deep diamond drilling program
2. A copper gold discovery at West Wyalong
• Additional geophysics performed on large porphyry copper-gold target - results pending
3. Silver price breakout upward (significant leverage to silver)
• ASX:ARD high of $0.29 in 2011 as silver price surged toward $US50/oz
§ BOARD STRENGTH AND MANAGEMENT EXPERIENCE
– Depth of experience: mining, finance, commodities & corporate governance
– Compelling track record in high grade base and precious metal discovery • Todd McGilvray: eg. 22Mt for mine life extension to 88 years at MMG’s Rosebery Mine • Professor Ross Large/CODES (advisory role): Pre-eminent Australian authority
5 Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
BUSINESS MODEL
6
Primary Goals/Aspirations
Leading Australian Polymetallic Producer 1.5 Mtpa, 20Y LOM
ASX:ARD premium quality market valuation
Capital Efficiency
Exploration
Production
Near-term potential
Strategy
Execution
Solid foundation: 22 Mt JORC 2012 Resource + NSW State Significant Development
Exploration – significant upside potential
• Kempfield additional tonnes high grade lead/zinc • West Wyalong copper-gold target
Kempfield near term production option
• Significant leverage to silver price • 52 Moz silver equivalent JORC 2012
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
ARGENT STRATEGY: THREE KEY ELEMENTS
7
Capital Efficiency
Exploration
Production
FeedstockFunding (self-sustaining)
Efficient fundingMarket valuation of Argent
Income Expansion/maintenance capital
Goal: Competitive capital structure
• Approx. $2 M in Government R&D claims since July 2013
• NSW Government drilling grant (top five drilling project)
• Non-dilutionary capital
Initial goals/aspirations:
• Kempfield: Additional tonnes, high grade lead/zinc focus - Feeder zone and multiple VMS lens potential
• West Wyalong: drill large identified porphyry copper-gold target
Kempfield: Key goals/aspirations
• Early start, market-ready, fast-response option • Reduction of economic viability threshold to
$15-20/oz silver (2012 PFS based on $30/oz) • Progress regulatory approvals for readiness
- Environmental Impact Statement submitted, feedback received
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
8
KEMPFIELD POLYMETALLIC PROJECT
CADIA
LACHLAN OROGEN
KEMPFIELD SYDNEY
Orange
STRATEGICALLY POSITIONED IN WORLD-CLASS NEIGHBOURHOOD
§ HIGHLY PRODUCTIVE GEOLOGICAL TERRANE § COMPELLING PEER GROUP: RICH BASIN MARGIN POLYMETALLIC DEPOSITS
9
KEMPFIELD
LACHLAN OROGEN
KEMPFIELD
New South Wales
Sydney
Australia
Broken Hill
CADIA NORTHPARKES
COWAL
HILL END TROUGH BASIN
ROSEBERY
QUE RIVER
HELLYER
Wyoming Holtermann Nugget Hill End 1872
Peak Hill
McPHYLLAMYS
SUNNY CORNER
CAPTAINS FLAT
MT. LYELL
WOODLAWN
Eastern Australian Palaeozoic
Volcanogenic Massive Sulphide deposits*
* Prof R. Large et al, 1998
Argent Projects
Copper-gold
Gold
Lead/zinc/silver +/- gold, copper
World-class ( > 100 Mt )
Basin margins
WEST WYALONG
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
Peel Mining
THALANGA
MMG
Glencore
Evolution
Toho Zinc
Newcrest
Iron Bark Zinc /Glencore
Aurelia/ Glencore
Red River Resources
KEMPFIELD POSITIONING WITHIN PEER GROUP
10
Prince Lyell
Mt Morgan
Lyell Blow
North Lyell
Mt Chalmers
Harnett Prospect Balcooma
Crown Lyell III Royal Tharsis
Cape Horn
Highway
Crown Lyell OC
Mt Ararat
Currawong
Wilga
Rosebery
Woodlawn
Hellyer
Thalanga
Lewis Ponds
Lyell Comstock
Captains Flat
Dry River South
Que River Hercules
Wet Lagoon
Liontown
Sunny Corner
Kempfield
0.0
0.1
1.0
10.0
0.1 0.3 0.5 1.0 2.0 4.0 8.0 16.0 32.0 64.0 128.0 256.0
Co
ntai
ned
bas
e m
etal
s (C
u+P
b+
Zn)
(Mt)
Contained silver (Moz)
?
?
EASTERN AUSTRALIAN PALAEOZOIC VMS DEPOSITS
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
Kempfield: Silver rich/base metal ‘poor’ exception; or are there more base metals than previously thought?
Kempfield
1. All deposit data obtained from publicly available reports. Readers should check the latest information with the owners of the deposits
2. See Appendix A for Kempfield JORC 2012 Minerals Resource estimate
21.8 Mt known deposit2
• Historic grades of up to 21.4% combined Cu/Pb/Zn reported1
• Mineralisation similarities identified at Kempfield by Prof Ross Large
0.01
0.3
SUBSTANTIAL OPEN, HIGHLY PROSPECTIVE, UNTESTED AREAS
11
Soil geochem anomalies
Known mineralisation
0 500 1000
N metres
Known mineralisation - But localised, shallow drilling
Colossal Reef copper mine
< 10
10.0 to 30.0
30.0 to 60.0
60.0 to 120
120 to 240
Copper (ppm)
Ope
n
IP chargeability anomalies1
JORC 2012 Resource
4 km strike potential
0.0 to 0.1
0.1 to 0.2
0.2 to 0.5
0.5 to 2.0
2.0 to 5.0
5.0 to 10.0
≥ 10.0
Increasing lead/zinc grades (%)
< 0.5
0.50 to 2.00
2.00 to 4.00
4.00 to 5.00
5.00 to 6.50
6.50 to 8.00
≥ 8.00
(mV/V)
1. See ASX Announcement 2 Sep 2009 2. See Appendix A for details
IInnccrreeaassiinngg lleeaadd//zziinncc ggrraaddeess
52 million ounces silver equivalent of silver, lead, zinc & gold2
AA BB
Gro
wth
faul
t zon
e (b
asin
mar
gin)
Open
Open
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
BASE METAL POTENTIAL IDENTIFIED TO THE WEST AND AT DEPTH
12
Increasing lead/zinc
grade trend to the West
and at depth
Colossal Reef copper mine
< 10
10.0 to 30.0
30.0 to 60.0
60.0 to 120
120 to 240
Copper (ppm)
0.0 to 0.1
0.1 to 0.2
0.2 to 0.5
0.5 to 2.0
2.0 to 5.0
5.0 to 10.0
≥ 10.0
Lead/zinc (%)
LENS 3
INTERPRETED VMS LENS AND FEEDER ZONE AREAS
(Conceptual targets shown, to be adjusted following diamond drilling program results)
View toward the North East
LENS 4
FEEDER ZONE
LENS 2 – Quarries (1.7 Mt) 2.1% Pb/Zn & 0.05 g/t Au
LENS 1 (6.8 Mt) 1.4% Pb/Zn & 0.06 g/t Au
LENS 2 – McCarron (5.8 Mt) 2.2% Pb/Zn & 0.18 g/t Au
West McCarron (1.5 Mt) 2.6% Pb/Zn & 0.34 Au g/t, incl. 3.1% Pb/Zn & 0.46 g/t Inferred
A
B
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
DEPOSIT MODEL VALIDATED BY DIAMOND DRILLING
13
‘SIZE OF THE PRIZE’ EXPLORATION POTENTIAL
including high grade lead/zinc +/- copper/gold
volcanoclastics
Ordovician basement
sediments
Tilted & overturned structure
KNOWN KEMPFIELD MINERALISATION 21.8 Mt JORC 2012 Resource - 52 Moz silver equivalent (Ag Eq) @ 75 g/t Ag Eq2
Basin margin
VMS feeder zone
Increasing lead/zinc grades
Silver/barite
Increasing lead/zinc grades
rhyolite
Increasing lead/zinc grades
High grade lead/zinc +/- copper/gold
Silver/barite
VMS DEPOSIT ZONATION
Deposition Temperature
WEST EAST
Significant lens extension potential
Original volcanogenic massive sulphide (VMS) mound formation
Ordovician basement
1
2
3
4
1 2
3 4
1
2 3
SHALLOW DRILLING HISTORY 120 metres
1. Current day VMS analogue. Photo reproduced with permission from Science Photo Library Ltd. London, UK
2. See Appendix A
Hydrothermal fluid convection
‘Black smoker’ sulphide vent on ocean floor1
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
HIGH GRADE LEAD/ZINC TARGET ZONE
Lens 1 Lens 2 Lens 3
Increasing deposition temperatures
AKDD178
5m @ 4 g/t Au from 353 m
Au +/- Cu Pb/Zn/Ag Ag/Ba
AKDD159
18 m @ 9.8% Pb/Zn, 113 g/t Ag & 0.26 g/t Au from 85 m including: 5 m @ 17.9% Pb/Zn, 259 g/t Ag & 0.34 g/t Au from 88 m
High grade Pb/Zn target zone
West East
14
B A
X X
§ Targeting high grade lead/zinc: – Multiple exploration vectors indicate significant grade/tonnes potential – Sufficient tonnes & grade could also unlock significant silver production – Zinc price resurgence fuelled by compelling supply/demand outlook
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
DRILL TESTING FOR LENS EXTENSIONS AT DEPTH (EXAMPLE)
15
HISTOGRAM LEGEND
0 – 1,000 1,000 – 5,000 5,000 – 20,000 20,000 – 100,000
Combined Pb/Zn grade (ppm)
Histograms on left hand side of drillholes
Base metals grade (Pb/Zn)
B (East) A (West)
ARGENT MINERALS LIMITED
metres
200 100 0 300 400
Plan view – planned holes & interpreted lenses overlaid on
Magnetometric Conductivity (MMC) Map
750mR
L
KempfieldMagnetometric conductivity
(MMC) map
ARGENT MINERALS LIMITED
2000 50 100
metres
Scale: 1:5000
Drawing:
Date: 10/10/2014
Author: Vladimir
Office:
Projection: MGA Zone 55 (GDA 94)
ARGENT MINERALS LIMITED
Hole 4 design to test depth extensions of Lens 3, Lens 2 West, Lens 2 East, and Lens 1 (Lens 1 not shown)
27/4/15
Section
800mR
L 700m
RL
650mR
L 600m
RL
770077,,995500mmEE 770088,,000000mmEE 770088,,110000mmEE 770088,,005500mmEE 770088,,115500mmEE 770088,,220000mmEE 770088,,225500mmEE
770077,,995500mmEE 770088,,000000mmEE 770088,,110000mmEE 770088,,005500mmEE 770088,,115500mmEE 770088,,220000mmEE 770088,,225500mmEE
750m
RL
800m
RL
700m
RL
650m
RL
600m
RL
550m
RL
AKDD159 18 m @ 9.8% Pb/Zn, 113 g/t Ag & 0.26 g/t Au from 85 m
including: 5 m @ 17.9% Pb/Zn, 259 g/t Ag & 0.34 g/t Au from 88 m
AKRC136 48 m @ 4.33% Pb/Zn, 43 g/t
Ag & 0.6 g/t Au from 56 m including:
14 m @ 5.2% Pb/Zn, 64.5 g/t Ag & 1.5 g/t Au from 72 m
12 m @ 2.74% Pb/Zn & 17.2 g/t Ag from 118 m
18 m @ 3.34% Pb/Zn, 20.4 g/t Ag & 0.19 g/t Au from 54 m
16 m @ 1.77% Pb/Zn, 18 g/t Ag & 0.18 g/t Au from 22 m
4 m @ 2.6% Pb/Zn, 25.8 g/t Ag & 0.09 g/t Au from 124 m
AK
DD
159
Hole 4 600 m
NTS
metres
0 50
0 – 10
25 - 50 50 - 90 90 – 10,000
Ag Grade (ppm)
10 – 25
Histograms on right hand side of drillholes
Precious metals grade (Ag)
550mR
L
Lens 2 West
Lens 3
Lens 2 East
To Lens 1 potential extension
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
?
?
?
EXTENDED REACH DEEP DIAMOND DRILL PROGRAM TO START
16
3
4 5
ARGENT MINERALS LIMITED
N LEGEND
50 20 10
0
-10 -20 -50
MM
C R
esp
onse
(pT/
A)
MMC conductive zones & follow up priorities
1
0.0 to 0.1
0.1 to 0.2
0.2 to 0.5
0.5 to 2.0
2.0 to 5.0
5.0 to 10.0
≥ 10.0
Mineral Resource lenses - contained Pb/Zn grades (%)
metres
200 100 0 300 400
1
Plan view – planned holes & interpreted lenses overlaid on
Magnetometric Conductivity (MMC) Map
707,500 mE
708,000 mE
707,000 mE
708,500 mE
709,000 mE
707,500 mE
708,000 mE
707,000 mE
708,500 mE
709,000 mE
6,259,000 mN
6,258,500 m
N
6,258,000 mN
6,25
8,00
0 m
N
6,25
8,50
0 m
N
6,25
9,00
0 m
N
Fault structures
* NSW Government funding (Top 5 State project)
Hole 7 – 450 m
Hole 6 – 400 m
* Hole 4 – 600 m
Hole 5 – 400 m
Hole 9 – 400 m
Hole 8 – 400 m
Ordovician & Silurian granite basement rock
Colossal Reef copper mine
KempfieldMagnetometric conductivity
(MMC) map
ARGENT MINERALS LIMITED
2000 50 100
metres
Scale: 1:5000
Drawing:
Date: 10/10/2014
Author: Vladimir
Office:
Projection: MGA Zone 55 (GDA 94)
ARGENT MINERALS LIMITED
Extended diamond drilling program & interpreted
lenses overlaid on magnetometric
conductivity (MMC) map
metres
200 100 0 300 400
2
* Hole 3 – 550 m
AKDD159 18 m @ 9.8% Pb/Zn, 113 g/t Ag & 0.26
g/t Au from 85 m Including:
5 m @ 17.9% Pb/Zn, 259 g/t Ag & 0.34 g/t Au from 88 m
5 m @ 4 g/t Au from 353 m
Plan view
QUARRIES ZONE
27/4/15
NTS
Interpreted lenses
7 additional deep holes for 3,200 metres to test for depth extensions and additional lenses
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
ADVANCING AS A POLYMETALLIC PROJECT
INCREASED EXPOSURE TO ZINC AS MARKETS PRICE IN SUPPLY OUTLOOK
17
LME ZINC STOCKS (tonnes, RHS)
10 YEAR HISTORICAL LME ZINC SPOT PRICE AND STOCK LEVELS ZINC DEFICIT FORECAST1
-250,000
-200,000
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
2012
2013
2014
e
2015
e
2016
e
2017
e
2018
e
surplus/-‐deficit (tonnes, LHS)
Mine Closures Production (ktpa)2 Closing Date2
Century* 455-470 2nd half 2015
Lisheen 180 FY2014-15
Skorpion 125 2016-17
Tara 166 2019
Rosebery 80-85 2024
1. UBS Global I/O®: Miner’s Price Review 9 July 2014 (confirmed as current with UBS Nov 2014) 2. Company public reports as at the date of this presentation (most recent production). Investors must not rely on
this information. Please refer directly to the individual company reports. 3. Based on global usage rate forecast of 14.14 million tonnes for 2015. Source: International Lead and Zinc
Study Group (ILZSG): April 2015 ILZSG Global Forecasts. 4. See MMG 2nd Quarter Report dated 16 July 2015
LME ZINC SPOT ($/t, LHS)
LME critical stock levels: <14 days at forecast 2015
global usage rates3
* Century ceases open cut mining – July 20154
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
WEST WYALONG PROJECT
18
WEST WYALONG PROJECT LEAPS FORWARD
§ Porphyry copper-gold signature indicated: coincident magnetic low and IP chargeability high anomalies in Ordovician volcanics
§ Strong copper-gold geochemistry intersected by shallow aircore drilling
§ Similarities to Northparkes system observed
19
YID
DA
H F
OR
MAT
ION
NA
RR
AG
UD
GI
L
N
kilometres
5
Total Magnetic Intensity
-460 nT
770 nT
Magnetic Anomaly 1.4 km x 0.8 km
GI
LM
OR
E
0
MAGNETIC SURVEY REVEALS LARGE PORPHYRY COPPER-GOLD TARGET ARGENT PROJECT EQUITY NOW 51% WITH RIGHT TO EARN 70%
6,240,500 mN
6,240,000 mN
527,500 mE
527,000 mE 527,500 mE526,500 mE
526,500 mE
6,24
0,00
0 m
N6,
240,
500
mN
6,24
1,00
0 m
N
6,241,000 mN
527,000 mE
6,240,500 mN
6,240,000 mN
527,500 mE
527,000 mE 527,500 mE526,500 mE
526,500 mE
6,24
0,00
0 m
N6,
240,
500
mN
6,24
1,00
0 m
N
6,241,000 mN
527,000 mE
ACNG041
ACNG060 ACNG059
ACNG050 ACNG051
ACNG049
ACNG056
ACNG041
ACNG060 ACNG059
ACNG050 ACNG051
ACNG049
ACNG056
A A B B Section Section
Magnetic low IP Chargeability high
N N
metres
Magnetic Flux
-460 nT
770 nT
0 500
metres
IP Chargeability
0 500
0
7 mV/V
527,000mE
527,000mE
527,500mE
527,500mE
-250mR
L
0m
RL
0mR
L
-250
mR
L
526,500mE
526,500mE 527,000mE
527,000mE
527,500mE
527,500mE
-250mR
L
0m
RL
0mR
L
-250
mR
L
526,500mE
526,500mE
527,000mE
527,000mE
527,500mE
527,500mE
-250mR
L
0m
RL
0mR
L
-250
mR
L
526,500mE
526,500mE
ACNG050 ACNG051 ACNG049 ACNG051 ACNG049 A A B B ACNG050
0
-4,000 X 10-5 SI
Magnetic Susceptibility IP Chargeability
7 mV/V
0
Magnetic low anomaly (plan view)
IP chargeability (cross section AB) Magnetic anomaly (cross section AB)
Coincident IP chargeability high
Exploration Licence
Area WYALONG
Airborne Magnetic Survey Area
37 km to Lake Cowal mine purchased by Evolution ($US550M)
WEST WYALONG
Narragudgil prospect
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
West Wyalong Goldfields 445,700 oz gold mined (1894 to 1921)
SUMMARY
§ KEMPFIELD – DRILL TESTING THE HIGH GRADE VMS POTENTIAL
– Significant (21.8 Mt) Mineral Resource – JORC 2012 compliant (upgrade-ready) • Significant leverage to silver price – short term production potential (EIS submitted)
– Extended reach deep diamond drilling program – 7 holes for 3,200 metres • Targeting high grade base and precious metals • Drilling activity and discovery potential -> liquidity and share price
– Resurgent interest in zinc – compelling supply/demand outlook
– Project quality has attracted: • Federal Government R&D funding (expected to continue) • NSW State Government drilling-specific grant (Top 5 project based on merit)
– Capital-efficiency optimised by Government co-funding alongside equity capital
§ WEST WYALONG
– Large porphyry copper-gold target
– Only 37 km from Lake Cowal Mine infrastructure – Evolution purchase for $US550M
20 Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
WEALTH GENERATION POTENTIAL – MALLEE BULL EXAMPLE
21 Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
$A0.220 $A29,416,913
Share price and market cap rerate resulting from ‘spectacular’ lead/zinc
drill results
21 September 2015 $0.024 219,631,852i $5,271,164
i As at market close Monday 21 September 2015
$0.050
$0.220 $29,416,913
CONTACT DETAILS
22
§ WEBSITE www.argentminerals.com.au
§ MANAGING DIRECTOR
– David Busch
– Mobile 0415 613 800
– Email [email protected]
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
APPENDIX A – KEMPFIELD JORC 2012 RESOURCE STATEMENT SUMMARY
KEMPFIELD JORC 2012 RESOURCE STATEMENT SUMMARY
23
Silver (Ag)
Gold (Au)
Lead (Pb)
Zinc (Zn)
In-situ Contained Ag Equivalent2
Resource Tonnes
(Mt)
Grade (g/t)
Contained Metal (Moz)
Grade (g/t)
Contained Metal
(000 oz)
Grade (%)
Contained Metal (000 t)
Grade (%)
Contained Metal (000 t)
Grade (Ag Eq
g/t)
Contained Ag Eq (Moz)
Oxide/Transitional*
6.0 55 10.7 0.11 21 N/A N/A N/A N/A - 11.7
Primary** 15.8 44 22.3 0.13 66 0.62 97 1.3 200 - 40.5
TOTAL*** 21.8 47 33.0 M 0.12 86 N/A 97 N/A 200 75 52 M
Table 1.0 is a summary of the Kempfield mineral resource announced on 6 May, 2014. Table 2.0 shows the Resource tonnes and grades by Measured, Indicated and Inferred categories, whilst Table 3.0 provides details of tonnes and contained metal in the Measured and Indicated categories.
At cutoff grades 25 g/t Ag (Oxide/Transitional) and for 50 g/t Ag equivalent1 (Primary):
Table 1.0 - Kempfield Resource Summary
* 90% ** 79% *** 82%: Percentage of Resource tonnes in Measured or Indicated Category. See Table 3.0 for details.
Note 1 - 50 g/t Silver Equivalent Cutoff Grade
This Resource is only reported in Resource tonnes and contained metal (ounces of silver and gold, and tonnes for lead and zinc). The Resource estimation for the Primary material was based on a silver equivalent cutoff grade of 50 g/t.
A silver equivalent was not employed for the oxide/transitional material estimation and was based on a 25 g/t silver only cutoff grade.
The contained metal equivalence formula is based on the following assumptions made by Argent Minerals: Silver price: $US 30/oz ($US 0.9645/g) Gold price: $US 1,500/oz Lead & zinc price: $US 2,200/tonne Silver and gold recoverable and payable: 80% of head grade Lead & zinc recoverable & payable: 55% of head grade
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
APPENDIX A – KEMPFIELD JORC 2012 RESOURCE STATEMENT SUMMARY
24
Grade (g/t) Grade (%) In-situ Grade
(Contained Ag Eq g/t)
Category Resource Tonnes
(Mt)
Silver (Ag)
Gold (Au)
Lead (Pb)
Zinc (Zn)
Silver Equivalent (Ag Eq)
Oxide/Transitional
Measured 2.7 68 0.11 - - 73
Indicated 2.7 47 0.11 - - 52
Inferred 0.6 39 0.08 - - 43
Total Oxide/Transitional 6.0 55 0.11 - - 60
Primary
Measured 4.1 57 0.12 0.66% 1.2% 93
Indicated 8.4 41 0.13 0.58% 1.2% 76
Inferred 3.2 35 0.13 0.66% 1.4% 74
Total Primary 15.8 44 0.13 0.62% 1.3% 80
Total Resource 21.8 47 0.12 N/A N/A 75
Table 2.0 – Resource by Category
Note 2 - Contained Silver Equivalent (‘Ag Eq’) Calculation Details
(i) A revenue figure was calculated for each metal by category and material class (r) as follows:
r = tonnes * head grade * recoverable and payable %.
Eg. For Measured Oxide/Transitional silver: r = 2.7Mt * 68 g/t * 80% / 31.1 g/oz * $US 30/oz = $US 142M.
Eg. For Measured Primary Zinc: r = 4.1Mt * 1.2% * 55% *$US 2,200/t = $US 59.5M.
(ii) Total revenue R was calculated for each resource category and material class as the sum of all the individual (r) revenues for that category and class.
(iii) Contained silver metal equivalent ounces was then calculated as follows:
Ag Eq (oz) = R / Ag recoverable and payable % / Ag price = R / 80% /$US 30.
(iv) Contained silver metal grade was calculated as follows:
Grade (Contained Ag Eq g/t) = Ag Eq (oz) * 31.1 / tonnes.
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
APPENDIX A – KEMPFIELD JORC 2012 RESOURCE STATEMENT SUMMARY
25
Contained Metal
Resource Tonnes
(Mt)
Moz Silver (Ag)
000 oz Gold (Au)
000 t Lead (Pb)
000 t Zinc (Zn)
In-situ Moz Silver Equivalent
(Ag Eq)
Oxide/Transitional
Measured 2.7 5.8 9.3 - - 6.3
Indicated 2.7 4.1 9.9 - - 4.6
Measured + Indicated 5.4 10 19 - - 11
As % of Total Oxide/Transitional 90% 93% 93% - - 93%
Primary
Measured 4.1 7.5 16 27 51 12
Indicated 8.4 11 36 49 103 21
Measured + Indicated 13 19 51 76 154 33
As % of Total Primary 79% 83% 79% 78% 77% 81%
Oxide/Transitional + Primary
Measured 6.8 13 25 27 51 19
Indicated 11 15 46 49 103 25
Total Measured + Indicated 18 28 71 76 154 44
As % of Total Resource 82% 86% 82% 78% 77% 84%
Table 3.0 – Kempfield Resource tonnes and contained metal in Measured and Indicated categories
Note 3 – Rounding and Significant Figures
Figures in the tables in this Appendix may not sum precisely due to rounding; the number of significant figures does not imply an added level of precision.
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery
COMPETENT PERSON STATEMENTS
26
COMPETENT PERSON STATEMENTS
Previously Released Information
This Presentation contains information extracted from the following reports which are available for viewing on the Company’s website http://www.argentminerals.com.au :
• 10 March 2014 Assays Confirm Third VMS Lens Group at Kempfield – Revised;
• 16 Oct 2014 Base and precious metal grade zonation in Kempfield Resource;
• 22 Oct 2014 Conductive zones detected by MMR surveys at Kempfield;
• 29 Oct 2014 Kempfield Deep Diamond Drilling Program;
• 25 February 2015 Hole 1 intersects significant gold grades at Kempfield;
• 21 April 2015 Hole 2 increases potential size of the prize at Kempfield;
• 29 April 2015 Extended reach for Kempfield Deep Diamond Drilling Program;
• 9 June 2015 Major deep diamond drilling program to commence at Kempfield; and
• 17 August 2015 Argent commences high resolution IP survey at West Wyalong.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
Drill testing Kempfield for Australia’s next high grade lead/zinc discovery