KEMPFIELD JORC 2012 RESOURCE STATEMENT SUMMARY
52 MILLION OUNCES SILVER EQUIVALENT OF SILVER, LEAD, ZINC & GOLD
Table 1.0 is a summary of the Kempfield Mineral Resource announced on 6 May, 2014 and was restated in the 2014 Annual Report as at 30/6/2014. Table 2.0 shows the Resource tonnes and grades by Measured, Indicated and Inferred categories, whilst Table 3.0 provides details of tonnes and contained metal in the Measured and Indicated categories.
At cutoff grades 25 g/t Ag (Oxide/Transitional) and for 50 g/t Ag equivalent1 (Primary):
Table 1.0 – Kempfield Resource Summary
* 90% ** 79% *** 82%: Percentage of Resource tonnes in Measured or Indicated Category. See Table 3.0 for details.
Note 1 – 50 g/t Silver Equivalent Cutoff Grade
This Resource is only reported in Resource tonnes and contained metal (ounces of silver and gold, and tonnes for lead and zinc). The Resource estimation for the Primary material was based on a silver equivalent cutoff grade of 50 g/t.
A silver equivalent was not employed for the oxide/transitional material estimation and was based on a 25 g/t silver only cutoff grade.
The contained metal equivalence formula is based on the following assumptions made by Argent Minerals:
Silver price: $US 30/oz ($US 0.9645/g)
Gold price: $US 1,500/oz
Lead & zinc price: $US 2,200/tonne
Silver and gold recoverable and payable: 80% of head grade
Lead & zinc recoverable & payable: 55% of head grade
Based on metallurgical testing to date, Argent Minerals is of the opinion that recoverable and payable silver and gold of 80% is achievable, and recoverable and payable lead and zinc at 55% of the head grade. Argent Minerals is also of the opinion that this is consistent with current industry practice. These metallurgical recoveries were included in the calculation of silver equivalent cutoff grades used for reporting of Mineral Resources. Please note that Ag Eq is reported as in-situ contained ounces and grade ie. not recoverable & payable ounces and grade, and in accordance with the JORC Code 2012 Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Table 2.0 – Resource by Category
Note 2 – Contained Silver Equivalent (‘Ag Eq’) Calculation Details
(i) A revenue figure was calculated for each metal by category and material class (r) as follows:
_ r = tonnes * head grade * recoverable and payable %.
_ Eg. For Measured Oxide/Transitional silver: r = 2.7Mt * 68 g/t * 80% / 31.1 g/oz * $US 30/oz = $US 142M.
_ Eg. For Measured Primary Zinc: r = 4.1Mt * 1.2% * 55% *$US 2,200/t = $US 59.5M.
(ii) Total revenue R was calculated for each resource category and material class as the sum of all the individual (r) revenues for that category and class.
(iii) Contained silver metal equivalent ounces was then calculated as follows:
_ Ag Eq (oz) = R / Ag recoverable and payable % / Ag price = R / 80% /$US 30.
(iv) Contained silver metal grade was calculated as follows:
_ Grade (Contained Ag Eq g/t) = Ag Eq (oz) * 31.1 / tonnes.
Table 3.0 – Kempfield Resource tonnes and contained metal in Measured and Indicated categories
Note 3 – Mineralisation is open to the West, North and at depth
Note 4 – Rounding and Significant Figures
Figures in the tables in this Appendix may not sum precisely due to rounding; the number of significant figures does not imply an added level of precision.