Shares in Argent Minerals jumped this morning on news the company has lifted its interest in its core silver project at Kempfield in NSW to 51 per cent, 12 months ahead of its joint venture schedule.
Shares in Argent Minerals jumped this morning on news the company has lifted its interest in its core silver project at Kempfield in NSW to 51 per cent, 12 months ahead of its joint venture schedule.
Under the terms of the JV Agreement with Golden Cross Resources, Argent could earn a 51 per cent interest in the project by spending $2 million by 1 June 2011.
As of June 30 2010, Argent has spent $2.2 million.
In a statement Argent said it anticipated spending a further $.05 million to bring its total expenditure to $2.7 million and thereby earn a 70 per cent interest in the tenements.
Argent's chief executive chairman, Kerry McHugh said it was gratifying to see the milestone achieve less than 2 year since the company listed.
Mr McHugh said, "Argent's objective is to complete the Definitive Feasibility Study and obtain all necessary approvals by the middle of 2011 with a view to being in production in 2012."
Argent shares had risen 9.68 per cent or 1.5 cents to 17 cents by 1100am.
See full company statement below:
Argent Minerals Limited (the 'Company') is pleased to announce that its aggressive exploration and development program has lifted its interest in its core silver project at Kempfield in NSW to 51%, just 2 years after listing and 12 months ahead of its JV schedule.
Under the terms of its JV Agreement with Golden Cross Resources Limited, Argent could earn a 51% interest in the project by spending $2.0 million by 1 June 2011 and earn a further 19%, bringing its interest to 70%, by the expenditure of an additional $700,000 by 1 June 2013.
As of 30 June 2010, Argent has spent $2.2 million and earned its 51% interest in the Kempfield Project. Argent intends to spend a further $0.5 million to bring total expenditure to $2.7 million and thereby earn its 70% interest in the tenements.
Argent's Executive Chairman, Kerry McHugh said "it was gratifying to see this milestone achieved in a little over 2 years since the Company was listed."
Mr McHugh said that "on present indications Argent is likely to now reach this second milestone by early 2011, more than 2 years ahead of the original JV schedule."
Argent's expenditure over the past 2 years at Kempfield has involved over 8,000 metres of drilling culminating in a resource containing 21 million ounces of silver, 165,000 tonnes of lead and zinc and over 2.5 million tonnes of barite, see further Argent's ASX, 'Kempfield Resources Increased by 88% to 21.2m OZ of Silver', released on 22 March 2010 for more details.
Extensive metallurgical test work, flora and fauna surveys and a scoping study have been completed based on a project to produce 12 million ounces of payable silver, 15,000 ounces of gold and 42,000 tonnes of payable lead and zinc in concentrates over a 10.5 year mine life.
A Definitive Feasibility Study has been commenced and a Conceptual Project Presentation has been made to the NSW Department of Industry and Investment which has advised the NSW Planning Department that there are no technical reasons preventing the project being submitted for Development Approval.
Expressions of interest are now being sought from experienced consulting groups to manage the Approvals / EIS process, in the expectation that the metallurgical test work to be undertaken over the next 10 weeks will confirm the findings of the scoping study concerning the production of separate zinc and silver-rich lead concentrates.
Mr McHugh said that "Argent's objective is to complete the Definitive Feasibility Study and obtain all necessary approvals by the middle of 2011 with a view to being in production in 2012."
