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Argent Minerals Limited ABN 89 124 780 276
Level 1, 115 Cambridge Street, Postal Address PO Box 1305, West Leederville WA 6901
Ph +61 8 9322 6600 Fx + 61 8 9322 6610
ASX ANNOUNCEMENT
16 February 2011
INVESTOR PRESENTATION
Argent Minerals Limited (“Argent” or “Company”) advises that the following presentation was made to
investors on 16 February 2011.
For more information contact:
www.argentminerals.com.au
Kerry McHugh
Executive Chairman
Argent Minerals Limited
Ph: 0404 465 154
Marcus Michael
Executive Director
Argent Minerals Limited
Ph: 0418 908 091
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ARGENT MINERALS LIMITED l www.argentminerals.com.au
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DisclaimerCertain statements contained in this presentation, including information as to the future financial or operating performance of Argent
Minerals Limited (ASX:ARD) and its projects, are forward looking statements:
-may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral
resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may
be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;
-are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Argent, are inherently subject to
significant technical, business, economic, competitive, political and social uncertainties and contingencies; and
-involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or
anticipated events or results reflected in such forward looking statements.
Argent disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future
events or results or otherwise. The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”,
“continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements.
All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that
forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on
ARGENT MINERALS LIMITED l www.argentminerals.com.au
forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on
forward looking statements due to the inherent uncertainty therein.
The information in this Report that relates to Exploration at Kempfield and West Wyalong is based on information compiled by David
Timms and Dr Vladimir David who are members of the Australian Institute of Geoscientists, and Technical Consultants to Argent, and who
have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Mr Timms and Dr David consent to the inclusion in the report of the matters based on the
information in the form and context in which it appears.
The information in this Report that relates to Mineral Resources is based on information compiled by Mr Arnold van der Heyden, who is a
Fellow of the Australian Institute of Geoscientists and an employee of Hellman & Schofield Pty Ltd. Mr van der Heyden has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves”. Mr van der Heyden consents to the inclusion in the report of the matters based on the information in the form and context in
which it appears.
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Corporate Overview
• A focused silver exploration and development company
• Kempfield ,70% owned, silver, lead, zinc project is the Company’s key asset
JORC Resource of 31.6m oz of silver, 65,000 oz of gold and 261,000 tonnes of
zinc and lead
– Definitive feasibility study underway targetting a 10+ year mine life at 1.5mt
ARGENT MINERALS LIMITED l www.argentminerals.com.au
– Definitive feasibility study underway targetting a 10+ year mine life at 1.5mt
pa.
• Exploration Portfolio
– Sunny Corner VMS prospect (51% earning 70%)
– West Wyalong precious metals tenement (earning 51-70%).
• Argent is selling its interest in the Bullant gold mine in W A
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Corporate Information
Capital Structure
ASX Code - Shares: ARD
ASX Code – Options: ARDO
Current Shares on Issue 101.9
USN shareholding – to be cancelled* 19.5
Post Transaction Shares on Issue 82.4
Share Price Chart
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Post Transaction Shares on Issue 82.4
Current Options on Issue 48.2
Current Share Price $0.20
Current Market Cap $ 20.4 million
Cash at 31 Dec $3.1m
Value of shares in USN * $7.5m
* Following ARD and USN shareholder vote
Directors
Kerry McHugh – Executive Chairman
Marcus Michael – Executive Director
Steve Gemell – Non Executive Director
Douglas Daws – Non Executive Director
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Investment HighlightsNear term development
• Kempfield DFS due for completion late 2011 triggering decision to mine
• First production targeted for early 2013
• At current prices, project cash flow (pre capex) estimated to exceed A$300m
Leverage to rising silver prices
Reserve base highly sensitive to silver price.
Significant Zn/Pb by-product revenue
Definitive Feasibility Study Underway
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Definitive Feasibility Study Underway
• Industry leading experts being engaged to complete the DFS
• Metallurgical testwork underway
Solid financial position
• Cash at Dec 31 2010 of $3.1 m.
Significant exploration potential at Kempfield
• Open at depth & along strike.
• Several near mine IP targets.
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Bullant Transaction
Argent to sell Bullant gold project to US Nickel Ltd. subject to shareholder approval
by both companies.
• Consideration for the sale comprises:
– The issue of 44 million US Nickel shares to Argent
– The cancellation of US Nickel’s 19.5m shares (19%) in Argent
ARGENT MINERALS LIMITED l www.argentminerals.com.au
– The cancellation of US Nickel’s 19.5m shares (19%) in Argent
• Following approval of the transaction, the US Nickel shares will be distributed to
Argent shareholders on a pro-rata basis expected to be in the ratio of 0.53 US Nickel
shares for every Argent share held .
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Kempfield Project
• Kempfield is a silver, lead, zinc VMS deposit, located 30km south of Blayney
• Known mineralisation extends for more than 3 kilometres
• DFS underway.
Yellow
NEW SOUTH WALES 500 km
ARGENT MINERALS LIMITED l www.argentminerals.com.au
YellowStreak
Sunny Corner
LACHLANFOLDBELT
West Wyalong
Kempfield
SydneyOrange
Canberra
Cobar
Broken Hill
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Local Geology
Defined mineralisation is over a 3 km long
silver rich barite horizon with six zones,
Of those six zones, three contain significant
economic resources :
- Quarries Zone
- BJ Zone
ARGENT MINERALS LIMITED l www.argentminerals.com.au
- BJ Zone
- McCarron Zone
Three types of mineralisation are present:
• Oxide
• Transitional
• Sulphide
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Project Site
ARGENT MINERALS LIMITED l www.argentminerals.com.au
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ARGENT MINERALS LIMITED l www.argentminerals.com.au
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Plant Layout Area
ARGENT MINERALS LIMITED l www.argentminerals.com.au
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Mineral Resources
Tonnes
Silver Gold Lead Zinc
Grade Contained
Metal
Grade Contained
Metal
Grade Contained
Metal
Grade Contained
Metal
Million g/t M ozs g/t 000 ozs % 000t % 000t
Oxide/Mixed*
Cut off grade
25g/tAg
5.8 58 10.8 0.1 19 N/A N/A N/A N/A
ARGENT MINERALS LIMITED l www.argentminerals.com.au
25g/tAg
Primary**
Cut off grade
50g/tAg Eq
14.4 45 20.8 0.1 46 0.6 86 1.2 175
Total 20.2 49 31.6 0.1 65 N/A 86 N/A 175
31.6m ozs of silver + 65,000 ozs of gold equivalent to 780,000 ozs of gold
at current silver /gold ratio of 44 to 1.
* Approximately 83% of these resources are Measured or Indicated
**Approximately 64% of these resources are Measured or Indicated
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Resources by Category
Tonnes Grade (g/t) Grade (%)
Oxide and Mixed million Silver Gold Lead Zinc
Measured 2.1 70.3 0.1
Indicated 2.7 52.4 0.1
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Inferred 1.0 45.5 0.1
Primary
Measured 2.1 60.2 0.1 0.64 1.08
Indicated 7.5 45.7 0.1 0.59 1.21
Inferred 4.8 38.5 0.1 0.60 1.31
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Project EconomicsPit Optimization 600,000 tpa
April 2010 Prices
Scoping Study
1 million tpa
November 2010 Prices
Operating Parameters
Tonnes Treated 6.3mt 15.9mt
Strip Ratio 1.6 to 1 1.4 to 1
Mine Life 10.5 years 15.9 years
Payable Silver Produced 12.3 million ounces 20.8 million ounces
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Payable Silver Produced 12.3 million ounces 20.8 million ounces
Payable Gold Produced 15,200 ounces 33,600 ounces
Payable Lead Produced 10,900 tonnes 25,500 tonnes
Payable Zinc Produced 31,300 tonnes 82,800 tonnes
Operating Cash Flow (Before Capex)
Undiscounted $97.3 million $297.5 million
Revenue equivalent to 700,000 ozs of gold at current prices
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BJ Zone Cross Section 3100N
1850mE
1900mE
1950mE
2000mE
2050mE
2100mE
2150mE
700mRL 700mRL
750mRL 750mRL
800mRL 800mRL
Nov. 2010 0.6 Mt Shel l
April 2010 Shell
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Note: AgEq based on Feb 2010 parameters
1850mE
1900mE
1950mE
2000mE
2050mE
2100mE
2150mE
600mRL 600mRL
650mRL 650mRL
Scale1:
Date:
KempfieldProject - BJ
Section3100N
Showing Whittle Shells1000
0 10 20 30 40 50
18-Nov-10
25 to 50g/t AgE q
50 to 75g/t AgE q
75 to 100g/t AgE q
100 to 125g/t AgE q
125 to 150g/t AgE q
150 to 175g/t AgE q
>175g/t AgE q
Nov. 2010 1 Mt Shel l
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Processing
• 3 Stage Crusher
• Ball Mill
• Agitated Cyanide Leach
• Followed by:
(a) Merrill - Crowe Circuit to
Recover Ag and Au to Dore
CrusherPit Ball Mill
Agitated
Cyanide
Leach
Merrill-
Crowe
Circuit
Ag, Au
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Recover Ag and Au to Dore
(b) Flotation Circuit to Recover
Additional Ag+Pb+Zn from Primary
Ore
• Tailings to a Dam
Flotation
CircuitAg, Au
Dore
Ag, Pb, Zn
ConsTailings
Dam
Ag, Au
Dore
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Site Layout
ARGENT MINERALS LIMITED l www.argentminerals.com.au
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Key Target Dates
• Metallurgical Testwork – April 2011
– Confirm processing route , recoveries and concentrate characteristics.
• New Resource Statement – June 2011
– Incorporating planned infill and extensional drilling
• Appoint Project Engineering Contractor – May 2011
ARGENT MINERALS LIMITED l www.argentminerals.com.au
• Appoint Project Engineering Contractor – May 2011
– Discussions currently underway
• DFS Completion – December 2011
– Will include financing strategy
– Development Approval – March quarter 2012
• Construction Commencement – June quarter 2012
– Financing in place
• First Production – March 2013
– Initially precious metal dore.
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Key Advantages
Resource Size
Short time to Production
Long mine life
Reserves sensitive to commodity prices
Potential to increase resources
Feasibility work underway
Targetting first production early 2013
ARGENT MINERALS LIMITED l www.argentminerals.com.au
Close to infrastructure
Targetting first production early 2013
Commodity Diversification
Skilled labour pool
Strong community & Govt relationships
Grid power within 20km
Silver key commodity but strong Zn/Pb revenue
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In Conclusion ………ARGENT’S KEY AIM IS:
Producing Silver at Kempfield by Early 2013
ARGENT MINERALS LIMITED l www.argentminerals.com.au
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ARGENT MINERALS LIMITED l www.argentminerals.com.au
Silver Price