Argent Minerals Ltd (ASX:ARD) has the potential to benefit from the rampaging zinc price, which has hit a 10-year high on the LME with a spot price at US$3,143 per tonne.
Zinc stocks are declining to critically low levels, reflecting a material shift in supply/demand dynamic.
Argent is leveraged to zinc through its Kempfield polymetallic project in New South Wales, which hosts 200,000 tonnes of contained zinc, along with 33 million ounces of silver and 86,000 ounces of gold.
The company expects its zinc assets to benefit substantially from the planned update to the Kempfield mineral resource, following recent diamond drilling results.
About the Kempfield resource
Extensional diamond drilling at Kempfield has demonstrated lateral and depth extensions equating to around twice the current deposit dimensions.
Any depth extension to the existing resource will comprise mostly primary material – the base metals host domain.
The existing resource, which includes 200,000 tonnes of contained zinc and 97,000 tonnes of lead, will be re-estimated based on a 3D model to be constructed from the extensional drilling results and an infill drilling program.
The anticipated upgrade to the zinc and lead components of the Kempfield project, in addition to the significant silver and the prospect of increased gold resources, means that the project is a significant polymetallic project on the Australian mining landscape.