Argent Minerals Ltd (ASX:ARD) has entered into an option agreement with the owners of land to the north of its flagship Kempfield project in New South Wales.
Under the agreement, the owners of the neighbouring Box Hill property have committed to not challenge the grant or validity of regulatory applications and permitting or ancillary titles related to mining and development approvals.
The agreement allows Argent to purchase the neighbouring land at any time up until 12 June 2020 for a fixed price of $2.4 million.
READ: Argent Minerals upgrades Kempfield silver resource to 100 million ounces
Noise and dust studies performed in 2013 determined that the Box Hill property was the main third party to be affected by a future mining operation at Kempfield.
Therefore this agreement represents a significant derisking event for the development of the Kempfield project.
Kempfield is strategically located in proximity to rail and road infrastructure, and mining-supportive communities with skilled trade capabilities.
Preparations continue for upcoming drill program
Preparations continue for the Kempfield drilling program.
Notably, the optioned area includes the copper-gold footwall zone located to the west of the current Kempfield resource, as well as the historic Colossal Reef copper mine.
Both of these areas are planned to be included in the next drilling program.
Recent upgrade to the Exploration Target
Earlier this month, Argent revised the Exploration Target for Kempfield significantly upward.
Notably, this Exploration Target is in addition to the recently upgraded JORC resource to 100 million ounces of silver equivalent grading 120 g/t silver equivalent.
The Exploration Target provides for an additional 58 to 190 million ounces of silver equivalent grading 80 to 130 g/t silver equivalent.