Argent Minerals Ltd. Conductive Zones Detected by MMR Surveys at Kempfield

Sydney, Australia (ABN Newswire) - Argent Minerals Ltd. (ASX:ARD) (Argent, Argent Minerals or the Company) is pleased to announce exploration results for the magnetometric resistivity (MMR) geophysics surveys conducted at the Kempfield Polymetallic Project.

The surveys have detected several conductive zones in the area immediately to the west of the Kempfield deposit, where the Company has identified the potential for additional volcanogenic massive sulphide (VMS) mineralisation lenses and a high temperature feeder zone (Western Prospective Area).

This area has been identified by the Company as being prospective for additional tonnage and rich base and precious metal grades, which, in sufficient quantity together with the substantial existing JORC 2012 Mineral Resource, could propel the economics through the level required for to proceed with the development of a new polymetallic mine just 50 km south west of Bathurst.


HIGHLIGHTS:

- Conductive zone targets identified by MMR surveys in the adjacent western prospective area

- Priority #1 target is coincident with an IP chargeability anomaly and extends from adjacent West McCarron (Lens 3) to Colossal Reef copper mine for a potential strike length of 500 to 900 m

- The conductive zones are consistent with Argent's interpreted prospective lens model, and possible variations to the geometry are indicated

- Argent proceeding to test the delineated targets - diamond drilling plan being finalised

Argent Minerals Managing Director David Busch said, "The innovative MMR geophysics survey technique has been evaluated by Argent at Kempfield, and following the significant breakthroughs we have seen in lead/zinc detection, it now forms a strategic part our methodical approach to base and precious metals exploration at the site. The ability of the MMR technology to detect lead/zinc mineralisation at Kempfield has been successfully tested on known high grade mineralisation in the deposit, which was not detected by traditional electromagnetic survey methods.

"A detailed analysis of the recent surface MMR surveys, which followed the evaluation, has been instrumental in the delineation of some compelling targets. These targets have now been qualified and prioritised for drill testing.

"The priority #1 target is particularly interesting, because it is adjacent to the West McCarron Zone where rich base and precious metals were intersected, and extends to the historic Colossal reef copper mine and an area of copper anomalies in soil geochemistry (see Figure 1). This conductivity zone is also coincident with an induced polarisation (IP) chargeability high anomaly, which is an indicator of proximity to mineralisation. The strike length of this target could be over 500 metres to as much as 900 metres.

"The next step is to finalise the diamond drilling test plan, and then start drilling the targets in November 2014". Recently the NSW Government awarded Argent one of the five largest grants out of a highly contested funding pool, to drill test the significant exploration upside identified at Kempfield. The Government initiative is designed to encourage private drilling programs in under-explored areas of NSW, and the Kempfield project was selected on the basis of its exploration merit, following a detailed review by an independent panel of experts.


About the surface MMR surveys

Three surface MMR (also known as Sub-Audio Magnetics - SAM) surveys were completed in August 2014 by GAP Geophysics Pty Ltd (GAP) under the design and data quality supervision of Mitre Geophysics Pty Ltd (Mitre). The surveys targeted known mineralisation and various interpreted mineralised lenses at Argent's Kempfield Polymetallic Project near Bathurst in central NSW.

The SAM surveys followed the successful test of downhole MMR on the rich mineralisation intersected in hole AKDD159, and the subsequent successful test of an initial SAM survey over VMS Lens 2 of the existing deposit, which also responded clearly to known mineralisation.

In contrast to traditional electromagnetic survey techniques which rely on the target material being a good conductor, MMR detects material that only needs to be a slightly better conductor than the surrounding rock. MMR is able to map structures invisible to EM methods, such as low conductivity mineralisation. Many zinc-rich ore bodies fall into this category.

A SAM survey is performed by injecting electrical current directly into the ground on either side of the area of interest with a powerful transmitter. Using a highly sensitive, fast-sampling caesium vapour sensor, the magnetic field generated by the ground electrical currents is measured continuously as the operator carrying the magnetometer walks along predesigned survey lines. The SAM survey technique is able to detect current channelling to a depth of approximately 150 - 200 metres.

The three SAM surveys were designed and executed with a high degree of overlap, to facilitate normalisation of the data and combination of the survey data into a single, cohesive map covering an area of approximately 1,900 by 1,100 metres.


About the surface MMR survey analysis

Figure 1 shows an image of the combined magnetometric conductivity (MMC) map - so named since it is the conductivity which is of interest, and how the results have been processed and represented. The colour coding has been designed such that red represents the highest conductivity, and blue the lowest. The MMC image has been bandpass filtered, with a lower cut off wavelength 50 metres, and an upper cut off wavelength of 500 metres.

The analysis revealed correlation with existing known mineralisation, interpreted additional mineralisation lenses, faults, and some cultural features such as metal fences. The geophysics contractor, GAP Geophysics Pty Ltd, an expert in metal detection science for highly specialised requirements including sophisticated military applications, performed a detailed manual filtering process to reduce the impact of cultural objects.

This was followed by further data filtering followed by detailed modelling by Mitre, a specialist with experience in the MMR detection of lead/zinc mineralisation in Australian VMS deposits. Mitre also performed inversion analysis for potential indications of MMC conductive anomaly depth for incorporation into Argent's 3D Micromine model of the existing deposit and the interpreted Western Prospective Area.

The analysis was also peer-reviewed by ARCTAN Pty Ltd, which has accumulated a detailed working knowledge of Kempfield geophysics over time.

Argent's in-house expert in VMS deposits, Dr. Vladimir David, who also has expertise in interpretive geophysics, reviewed the results of the analysis for interpretation in the context of the Company's comprehensive exploration database for the Kempfield Polymetallic Project, as Competent Person under JORC 2012.


About the surface MMR survey results

Five targets have been delineated and assigned priorities for follow up.

The highest priority target, priority #1, is a compelling feature that stands out clearly, extending from west of the West McCarron Zone toward and potentially beyond, the historic Colossal Reef copper mine. Additionally, this target is of particular interest because of its coincidence with an IP chargeability high anomaly, fault structures, and there are no known potential cultural influences. The position and strike direction of the target is consistent with projected potential mineralisation trends that have been indicated by Argent in previous ASX announcement maps y red 'Open' arrows (see page 14 of 27 August 2014 presentation).

Whilst the target priority #1 key focus area has been marked in thicker red dashed lines in Figure 1, a potential extension has also been marked in thinner red dashed lines, for further follow up. Closer inspection reveals a potential coincidence with a weaker copper soil geochemistry anomaly 'ridge' trend (see the thin light blue copper anomaly contour lines within the extension in Figure 1).

Whilst both this potential extension and the associated soil copper anomaly are both relatively weak, this would be consistent with the Kempfield deposit mineralisation generally plunging to the west. SAM surveys are limited to a depth of approximately 150 - 200 metres.

Target priority #2 is also of particular interest, due to its coincidence with an IP chargeability high anomaly, and its potential correlation with either the interpreted NW extension of Lens 3, or a SW extension of interpreted Lens 4. Target priorities #3 and #4 are of interest due to their strength, and potential correlation with interpreted lenses.

However, further work has been recommended to improve discrimination from cultural objects. Target priority # 5 is also coincident with an IP chargeability high anomaly. Further follow up work is required. The SAM survey analysis also revealed a distinctly resistive response associated with the silver/barite mineralisation in Lens 1, where the current is diverted around the predominantly silver/barite portion of the mineralisation. The ability of the SAM survey to discriminate against the typically resistive silver/barite mineralisation provides further support for the interpreted model, which predicts decreasing silver/barite grades toward the Western Prospective Area, in favour of increasing Pb/Zn/Au and potentially Cu, mineralisation associated with higher deposition temperatures, and a potential feeder zone.


About the potential feeder zone

Of special interest to Argent is the potential location of a feeder zone to the Kempfield deposit and origin of the copper mineralisation that was historically mined at Colossal Reef. Of several possibilities, two possible explanations are 1) that the copper mineralisation emanated (eg. via a NW trending fault) from a feeder zone that is close to, or underneath, the western edge of the known deposit, or 2) that a feeder zone is located further to the west, and closer to the Colossal Reef mine.

Either way, the observed target priority #1 trend is extremely interesting, as it could provide vital clues to the potential location of a feeder zone at Kempfield, and potentially, rich base and precious metal grades.

In VMS deposits, copper mineralisation is associated with higher depositional temperatures that occur closer to, or at, a feeder zone. Professor Ross Large's research revealed that metal zonation occurs in VMS deposits according to depositional temperature, from silver/barite distal to the feeder source (lowest temperature), followed by lead/zinc mineralisation increasing toward the feeder zone (increased temperature), and copper-gold mineralisation featuring closest to the feeder zone (highest depositional temperature).

The Kempfield deposit exhibits clear metal zonation, from the predominantly silver/barite style of mineralisation in the Lens 1 BJ Zone (lowest temperature), to the Lens 2 McCarron Zone, where lead/zinc grades increase (higher temperature), to the Lens 3 West McCarron Zone, where lead/zinc grades are much higher again, and hole AKRC136 intersected 48 m @ 4.33% Pb/Zn, 43 g/t Ag, and 0.6 g/t Au from 56 m, including 14 m @ 5.2% Pb/Zn, 64.5 g/t Ag and 1.5 g/t Au from 72 m (see announcement 16 October 2014).

Whilst Argent has identified the potential for increased lead/zinc grades which the Company is primarily targeting in the Western Prospective Area, the increase in gold grades to the western edge of the known deposit, and the existence of the historic Colossal Reef copper mine points to the possibility of copper-gold mineralisation also occurring in that area.

Metal zonation is indicated in Figure 1 in link below, together with the conductive zones identified by the MMR surveys.

For details of the deposit formation ('genesis') models developed by Argent in conjunction with Professor Ross large, please refer to pages 12 and 13 of the presentation released to the ASX on 27 August 2014.


Drill program

Argent is finalising the preparation of a drilling program to test targets in the prospective area to the west of the deposit.

The drilling program will be announced to the ASX on completion of the formulation of the plan.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ARD-695882.pdf


About Argent Minerals Limited:

Argent Minerals Ltd. (ASX:ARD) is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.



Contact:

David Busch, Managing Director
Argent Minerals Ltd.
M: 0415 613 800
E: david.busch@argentminerals.com.au