Argent Minerals (ASX:ARD) has raised A$771,921 in an oversubscribed share purchase plan shortfall ahead of deep diamond drilling at the company’s Kempfield lead-zinc project in New South Wales this week.
Along with a $269,000 research and development claim made last week, the share plan brings cash on Argent’s balance sheet to more than $1 million.
The proceeds will fund a 7-hole, 3,200-metre extended reach drilling program at Kempfield, targeting high-grade zinc/lead mineralisation and potentially copper and gold.
The money will also benefit downhole geophysics surveys for selected Kempfield diamond holes, follow up work in relation to the high resolution induced polarisation geophysics survey at the company’s West Wyalong copper-gold target (also in NSW), and working capital.
Recent survey work at West Wyalong has represented a major step forward in confidence and practical development of the project by defining corresponding geologic anomalies meriting further investigation.
Meanwhile, two key technical appointments made in recent weeks are expected to provide Argent with access to the latest techniques and analytical facilities for the targeting of high-grade VMS mineralisation at Kempfield.
Analysis
The strong response from both new and existing shareholders to Argent’s latest fundraiser demonstrates the strong level of sentiment for the company portfolio in a world class minerals region and the core commodities targeted.
The deep diamond drill program at Kempfield polymetallic project to commence this week provides investors with new price catalysts and an exposure to zinc and precious metals with the renewed interest in the resources sector.
Drilling will bring increased news flow as a fascinating exploration program unfolds as Argent looks to find Australia's next high grade lead/zinc discovery. There is near term production potential.
Drivers to a further share price re-rating include: a potential copper gold discovery at West Wyalong, additional geophysics performed on large porphyry copper-gold target - results pending and any silver price breakout upward (significant leverage to silver).
There is also follow up work at the Company’s West Wyalong copper gold target. Historically, the West Wyalong goldfields produced about 445,700 ounces of gold between 1894 and 1921.
Argent’s tenements in the area lie only 37 kilometres from Evolution Mining’s (ASX:EVN) Lake Cowal gold mine.
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