Argent Minerals (ASX:ARD) has bagged new funds from sophisticated and professional investors for an aggressive 24 hour / 7 day a week drilling program.
The placement includes 40,150,000 shares at $0.02 each, which bolsters the company's cash balance, yet only has a small dilution impact.
Proceeds will be used across two projects.
At Kempfield, funds will be used for the next stage of the diamond drilling program targeting high grade precious and base metals targets.
The project was peer reviewed by the NSW State Government, and awarded Top 5 funding based on project merit.
The resource is predominantly silver, currently defined as: 21.8 million tonnes at 47g/t silver for 33 million silver ounces, + 300,000 tonnes lead/zinc.
At West Wyalong, Argent will extend the high resolution induced polarisation geophysics survey over the copper gold target, and will also progress towards 70% ownership under the recently updated terms.
Drilling at Kempfield
Argent has scheduled drilling to commence on Wednesday 16th March 2016, with an immediate follow up to hole AKDD181.
A new drilling contractor has been appointed with 24 hour/7 day operations capabilities for a high impact, accelerated results drilling program.
Kempfield recently yielded the bonanza intersection of 1 metre at 1,065g/t gold.
The drilling campaign has been designed to test for high grade precious metals and base metals, and features tests along strike as well as for mineralisation zone extensions at depth and potentially new zones of mineralisation, based on the most recent 3D modelling and interpretation.
In addition to the intersected mineralisation, the 3D Kempfield model has been updated in detail during January and February 2016 to include revised stratigraphic and structural information, and geochemical interpretation that
is key to drill hole design optimisation.
These advanced techniques were successfully utilised by the Argent exploration manager in a previous employment position to discover 22 million tonnes of high grade volcanic-hosted massive sulphide (VHMS) mineralisation at MMG’s Rosebery Mine in Tasmania.
Regulatory approvals have been obtained for an immediate start to the Kempfield drill pad preparation, which is currently underway.
Analysis
Argent's cash raiser, along with existing reserves, would give the company a cash balance in the vicinity of $1.5 million, and an enterprise value of just $4.5 million.
Kempfield already hosts 33 million silver ounces, and recently yielded 1 metre at 1,065g/t gold.
Argent's aggressive approach to drilling 24 hours a day and 7 days a week, will deliver strong newsflow in the near-term.
Considering the current resource and valuation, Argent is highly leveraged to exploration success.
Key share price drivers:
- High grade base & precious metals discovery at Kempfield;
- A copper gold discovery at West Wyalong; and
- Silver price breakout upward.
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