Argent Minerals (ASX: ARD) has earned a 70% interest in the Kempfield Tenements through the expenditure of $2,745,000, as part of a farm-in agreement with Golden Cross Resources (ASX: GCR).
Argent had until 30 June 2013 to earn this interest. The expenditure has been on drilling over 17,000 metres of mainly reverse circulation (RC) holes, metallurgical testwork, mining plans and various studies to facilitate the approvals / EIS process.
The Kempfield silver project is located 30 kilometres south of Blayney in New South Wales and about 40 kilometres southeast of Newmont’s (NYSE: NEM) giant Cadia/Ridgeway gold and copper mines.
Argent will commence a Definitive Feasibility Study (DFS) into the project designed to produce over 20 million ounces of silver and 108,000 tonnes of lead and zinc. The company estimates the DFS will cost about $2.5 million and is scheduled to be completed by the end of 2011.
Golden Cross has the option of maintaining its 30% interest under the terms of the farm-in agreement by contributing towards future expenditures or not contributing to future expenditures and diluting its interest.
Kerry McHugh, Argent’s executive chairman, said that “this was an important milestone for Argent, and re-emphasised the company’s renewed focus on NSW and the Kempfield silver project.
"It is now three years since Argent listed on 3 April 2008 and the Company has made excellent progress in that period."
On April 8 Argent acquired the Kempfield surface rights covering some 115 hectares of land which contain Argent's main silver project tenements.
By acquiring ownership of the property, which contains over 90% of the Kempfield silver resources, it will enhance the approvals process for Argent’s Kempfield silver project.
Current JORC resource at Kempfield is 31.6 million ounces of silver, 65,000 ounces of gold and 261,000 tonnes of zinc and lead. This has a gold equivalent equal to 780,000 ounces of gold.