Argent Minerals (ASX:ARD) has entered into a joint venture to earn up to 90% of the Loch Lilly project located 80 kilometres south of Broken Hill in western New South Wales.
The project covers 1,447 square kilometres of the Kars Belt and Argent plans to drill test two geophysical targets, Eaglehawk and Netley, each with a 500 metre diamond hole.
The direct per-metre drilling costs of the drilling program will be 75% co-funded by the New South Wales government up to $150,000.
The drill program is scheduled to commence in late May 2017, subject to access agreements, regulatory approvals and weather.
Loch Lilly complements Argent’s capabilities and project portfolio, which now comprises three projects – the flagship Kempfield project, where the Company has most recently intersected 20.3 metres at 32 g/t silver and 1.1 g/t gold, and West Wyalong, where diamond drilling is scheduled to commence early next week.
Joint venture details
Under the terms of the joint venture agreement, Argent has been appointed as the manager/operator and is the sole contributor during the earning period during which time Argent has the right to earn a 51% interest, then 70% and 90%, in the Loch Lilly project.
Argent will earn its first 51% interest in the Loch Lilly Joint Venture by completing a drill program to test two compelling geophysical targets – Eaglehawk and Netley.
One hole will be drilled to test each target to a depth of 500 metres.
The joint venture continues until Argent either earns 90% or withdraws from the joint venture.
Loch Lilly project
The Loch Lilly project comprises exploration licences EL8199 and EL8200, and exploration licence applications ELA5376 and ELA5377, over 1,447 square kilometres of the Loch Lilly - Kars Belt in western New South Wales, 80 kilometres south of Broken Hill.
Research undertaken by Argent’s joint venture partner, Dr. Anthony J. Crawford, has indicated that this belt includes rocks equivalent to western Tasmania’s Mt. Read Volcanics, with potentially major discovery implications for the Loch Lilly - Kars Belt in NSW.
Over a strike distance of just 80 kilometres, the Mt. Read Volcanics hosts several world-class base and precious metal deposits, including Mt. Lyell, Rosebery and Hellyer, and numerous medium-sized deposits, including the Que River and Hercules VHMS copper-lead-zinc deposit and the Henty gold deposit.