What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.beerandco.com.au
Company: Argent Minerals (ASX: ARD)
Argent Minerals’ focus project is Kempfield, 50 kilometres from Bathurst in New South Wales, in the Lachlan Orogen.
Its current Resource estimate, of 21.8 million tonnes at 47g/t silver includes 86,000 ounces of gold, while the 15.8 million tonnes of primary ore includes 97,000 tonnes of contained lead and 200,000 tonnes of contained zinc.
The base metals grades increase to the west and Argent’s current drill program is targeting lenses to the west of the current resource, following geological, geo‐chemcial and geo-physical indicators.
Argent has earned a 70 per cent interest in Sunny Corner, which is about 100km from Kempfield, and has an Inferred Resource of 1.5 million tonnes at 3.7 per cent zinc, 2.1 per cent lead, 0.39 per cent copper, 24g/t silver and 0.17g/t gold.
Kempfield VMS no longer a silver project, now base metals focus
Following a geological review, led by Professor Ross Large of the Centre of Excellence in Ore Deposits, with Dr Vladimir David, Argent’s VMS expert, the Kempfield Volcanic Massive Sulphide deposit is now seen as a polymetallic mineral system with multiple lenses.
Under the new interpretation, the early, silver focussed, discoveries are the outer reaches of the mineral system, with the prospect of additional mineralised lenses that are more base metal rich closer to the source.
Argent has already reported thick intercepts grading above 4 per cent zinc + lead, plus silver plus gold.
The current drill program was designed after geo‐physical and geochemical work.
Upside Potential
West Wyalong : 1.4km by 0.8km magnetic low, IP high, with strong copper-gold in sampling and shallow drilling; potential for a significant copper-gold porphyry;
Kempfield silver : 11 million ounces oxide plus 22 million ounces sulphide in the current Resource, can add to the value of the infrastructure for the base metals project; and
Sunny Corner, 100km from Kempfield, has 1.5 million tonnes at 3.7 per cent zinc, 2.1 per cent lead, 0.4 per cent copper, 24g/t silver and 0.3g/t gold.
Website: www.breakawayresearch.com
Company: Orion Gold NL (ASX: ORN)
Orion Gold NL, formerly known as Goldstar Resources before a name change in 2009, was initially set up to explore and develop the Walhalla Goldfield in Victoria.
Orion now has a significant land package in the Albany Fraser Belt in Western Australia and the Connors Arc Project located 120 kilometres northwest of Rockhampton and lying between the active mining operations of Cracow (+2Moz produced) and the relatively newly‐developed Mt Carlton mine.
The company has a very knowledgeable and experienced board and management with a proven track record in exploration and development capable of guiding the company through the next stages of exploration.
A current equity raising, is expected to raise sufficient capital to sustain the short‐medium term exploration effort at the company’s two primary projects, which will comprise ground geophysical surveys and initial drill testing.
Switch of Focus a Potential Game Changer
Orion’s move to shift its focus from the Walhalla Goldfield in Victoria and to concentrate its efforts on its Fraser Range nickel‐copper‐PGE and gold exploration, as well as its Queensland epithermal gold, is viewed as a potential game changer.
The Walhalla Gold District in Victoria was a significant plus-four million ounce gold producer.
However, like many previous exploration campaigns at Walhalla and other vein gold exploration efforts in Victoria during the past three decades, the ultimate outcomes have been disappointing.
Over a period of several years, Orion (and Goldstar previous to its name change) has conducted comprehensive exploration and evaluation programs here, largely without commercial success, and it is now highly appropriate to move on.
It is interesting to note that it is the current management of Orion that recognised the non‐gold potential of the Walhalla area, particularly nickel, copper and platinum group minerals, and the deal struck with A1 Consolidated in August 2014 retains a defined interest in this non‐gold potential.
Fraser Range Belt has Massive Exploration Potential
Fortunately, due to very good forward planning, the company has been able to acquire extensive exploration tenements in one of Australia’s exploration hot‐spots, the Fraser Range Belt in Western Australia.
Unlike the Victorian Goldfields with its long history of production, exploration will now focus on a mineral belt only 330km from Kalgoorlie which has had very little modern‐day exploration until recent times.
The substantial land holding in the Fraser Belt lies between two of the most significant exploration discoveries in the past decade: The Nova‐Bollinger nickel-copper-cobalt deposit discovered by Sirius Resources (ASX: SIR) and The Tropicana gold deposit developed by AngloGold Ashanti/Independence Group.
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.
The views, opinions or recommendations of this article do not in any way reflect the views, opinions, recommendations, of The Resources Roadhouse.
The Roadhouse makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions.