ARGENT MINERALS LIMITED
ANNUAL REPORT 2018
1 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CORPORATE DIRECTORY
DIRECTORS
AUDITORS
Peter Wall – Non-Executive Chairman
KPMG Level 16, Riparian Plaza
Emmanuel Correia – Non-Executive Director
Peter Michael – Non-Executive Director
Tim Hronsky – Non-Executive Director
71 Eagle Street
BRISBANE QLD 4000
CEO
David Busch
COMPANY SECRETARY
Vinod Manikandan
Emmanuel Correia
PRINCIPAL PLACE OF BUSINESS
AND REGISTERED OFFICE:
Level 2, 66 Hunter Street
SYDNEY NSW 2000
Phone: 61-2 9300 3390
Fax:
61-2 9221 6333
E-mail: admin@argentminerals.com.au
Website: www.argentminerals.com.au
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 4, 60 Carrington Street
SYDNEY NSW 2000
Phone: 1300 850 505
Fax: +61 3 9473 2500
HOME EXCHANGE
ASX Limited Level 40, Central Park
152-158 St George’s Terrace
PERTH WA 6000
SOLICITORS
Steinepreis Paganin
DLA Piper Australia
ASX Codes:
ARD (ordinary shares)
ARDO (options)
Argent Minerals Limited,
incorporated and domiciled
in Australia, is a publicly listed
company limited by shares.
ABN 89 124 780 276
2 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CONTENTS
2
3
CHAIRMAN’S LETTER
OPERATIONS REVIEW
17
CORPORATE GOVERNANCE STATEMENT
18
DIRECTORS’ REPORT
29
LEAD AUDITOR’S INDEPENDENCE DECLARATION
30
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
33
CONSOLIDATED STATEMENT OF CASH FLOWS
34
NOTES TO THE FINANCIAL STATEMENTS
58
DIRECTORS’ DECLARATION
59
INDEPENDENT AUDITOR’S REPORT
64
ADDITIONAL STOCK EXCHANGE INFORMATION
68
SCHEDULE OF MINERAL TENEMENTS
69 MINERAL RESOURCES AND ORE RESERVES STATEMENT
FRONT COVER: Argent achieved a significant new milestone during the year for the
Kempfield project - the successful separation of primary material into potentially
marketable commercial grade zinc and lead concentrates also containing silver and gold.
1 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CHAIRMAN’S LETTER
ARGENT MINERALS LIMITED
Dear Shareholders,
On behalf of the Board, I am pleased to present this report for the 2017/18 financial year (FY2018) - an exciting year
of progress for Argent, with an impressive delivery of results across its asset base.
The year commenced with key announcements for the Company’s maiden drilling programme at its West Wyalong
copper-gold project, which is situated in a major mineral field of New South Wales. The area has produced 440,000
ounces of gold up to 1920 and, in more recent times, more than 2.7 million ounces of gold has been produced by
the Cowal gold mine just 45 kilometres to the north. West Wyalong has therefore been a key focus for the company
since its inception. Argent’s enthusiasm for pursuing the next major gold discovery in the region is shared by the
New South Wales State Government, which funded half the direct drilling costs of the programme.
The drilling results provided a very pleasing start to FY2018, with the identification of a large mineralised porphyry
copper-gold-molybdenum system, and the delineation of a 2.5 by 1.5 kilometre prospective area - in which
Argent’s interest was increased during the year to over 78%.
This was closely followed by the Company’s first drilling programme for the recently acquired Loch Lilly project
south of Broken Hill, where prominent Australian scientists have identified mineral potential. The diamond holes
intersected a series of porphyritic intrusives, where elevated copper and gold assays warrant further drilling. The
New South Wales Government shares Argent’s enthusiasm for this 1,447 square kilometre area, and funded 75% of
the direct drilling costs. This exploration earned Argent its first 51% interest in the project.
Argent’s flagship Kempfield project delivered impressive results this year. The Company’s investment in
metallurgical testwork was rewarded with the successful production of separate, commercial grade zinc and lead
concentrates, also containing silver and gold – providing an immediate boost to the economics potential of the
Kempfield project. The Kempfield Mineral Resource was updated to reflect the considerable improvement in
zinc and lead recoveries resulting in 100 million ounces of contained silver equivalent – approximately doubling
the historical assumptions, and signaling the project’s new potential in precious metal terms. A contained zinc
equivalent was also announced for the first time, reflecting the new prominence of the metal in the potential
economics, and de-risking the project with revenue diversification, yet retaining significant leverage to take
advantage of any silver price escalation.
The significant investment made by Argent in understanding the Kempfield geology also paid off in FY2018
with the development of a new 3D model, which in turn enabled the estimation and the recognition of
additionalmineralisation in this JORC-compliant Exploration Target.
In our view, these combined results have opened up a new development scenario for Kempfield as a large-scale
zinc-silver-lead-gold play in a NSW mining growth neighbourhood, and the magnitude of the project will increase
in the future. This is a key asset of the Company and will continue to grow.
Our special thanks go to the Argent employees and contractors, whose tireless efforts have made this all happen.
We also thank our shareholders for their ongoing support of the Argent Board and management team.
We look forward to the 2019 financial year, as we continue to pursue the development of Argent to its full potential
as a successful leading mineral resources company.
Yours Sincerely,
Peter Wall
Chairman
2 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
2018 HIGHLIGHTS
KEMPFIELD ADVANCES TO LARGE SCALE POTENTIAL
n New development scenario potential identified
– Major zinc-silver-lead-gold project situated in large-scale mining growth neighbourhood.
n Significant Mineral Resource updated to:
– 100 million ounces at 120 g/t Ag Eq silver equivalent contained metals – approximately doubled;
– 520,000 tonnes Zn Eq at 2.0% Zn Eq zinc equivalent – newly reported in 2018.
n JORC-compliant Exploration Target estimated for further significant potential mineralisation:
– Additional 58 to 190 million ounces Ag Eq at 80 to 130 g/t Ag Eq contained silver equivalent;
– Additional 300,000 to 1 million tonnes Zn Eq at 1.3 - 2.1% Zn Eq contained zinc equivalent.
An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological
setting where the statement or estimate, quoted as a range of tonnes and a range of grade, relates to mineralisation
for which there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade of
the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate an additional Mineral
Resource and it is uncertain if further exploration will result in the estimation of an additional Mineral Resource.
n Exploration and infill drilling programme announced
n Metallurgical breakthroughs
– Successful separation of primary material into potentially marketable, commercial grade zinc and lead concentrates also
containing silver and gold;
– Substantial improvement in recoveries, including zinc up to 92% (from 50% historical assumption);
– Potential revenues led by zinc (45%), closely followed by silver (36%), then lead and gold.
n New 3D geology and exploration model
– Providing enhanced insight into potential mineralisation areas, to guide drilling target generation;
– Copper-gold footwall and several potential feeder zones identified for drill targeting.
n Agreement executed with Kempfield neighbours
– Facilitates large scale project advancement – land purchase option and ‘No Challenge’ provisions;
– 2 year term extendable up to 4 years.
WEST WYALONG PORPHYRY COPPER-GOLD-MOLYBDENUM MINERALLISED SYSTEM IDENTIFIED
n Substantial porphyry copper-gold-molybdenum mineralised system confirmed by maiden diamond drilling
– Multiple intrusives intersected over 2.5 kilometre north-south strike and 1.5 kilometre east-west extent;
– 4 square kilometre prospective area delineated;
– Big Cadia and Ok Tedi analogy indicated by the drilling results.
n Argent interest increased to 78%
– Right to earn up to 90%.
3 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
LOCH LILLY DRILLING YIELDS POSITIVE RESULTS REQUIRING FOLLOW UP
n Mineralisation potential analogous to Mount Read Volcanics Western Tasmania
– 51% interest earned by Argent during 2018, right to earn up to 90%.
n Maiden drill test of the Netley and Eaglehawk targets completed
– Both diamond holes intersected a series of porphyritic intrusives and alteration, with both assay sets yielding positive
copper-gold porphyry geochemical suite results, and Netley yielding elevated copper.
ACQUISITIONS IN WORLD CLASS MOUNT READ VOLCANICS BELT WESTERN TASMANIA
n Ringville and Queensberry
– Strategic footprint acquired in productive high grade Mount Read Volcanics Belt:
– Ringville - strategically situated between two world class mines – the Rosebery high grade zinc-leadcopper- gold-silver
mine owned by MMG Ltd, and the Renison Bell Tin Mine owned by Metals X;
– Queensberry - heavily populated with old mine workings including the historic Queensberry Mine, where production
yielded grades of up to 40-56% lead, and 6-7 ounces/tonne silver.
EXPLORATION – KEMPFIELD (100% ARGENT)
LARGE SCALE PROJECT POTENTIAL
Argent achieved a series of significant developments for Kempfield during the year, which we believe significantly advances
the progress of the project - opening up a new potential development scenario as a large-scale zincsilver-lead-gold project in
a NSW mining growth neighbourhood.
The Company announced a significant update for the Kempfield Resource estimate – an increase to 100 million ounces of
contained silver equivalent (Ag Eq) - approximately double the previously reported amount. This update was a direct result of
metallurgical breakthroughs achieved during the year.
Substantial additional mineralisation potential was also identified, estimated and announced as an Exploration Target,
following the development of a new geological and exploration model for the project.
The following map summarises the updated Kempfield Mineral Resource and the Exploration Target, and illustrates the
new potential development scale of the Kempfield project in the context of the immediate large-scale mining growth
neighbourhood and the underlying highly prospective geology that hosts some of the largest mining projects in Australia.
4 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
Figure 1 – New potential development scale for Kempfield in large-scale mining growth neighbourhood
Notes:
1. An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined
geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade, relates
to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. The potential
quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to
estimate an additional Mineral Resource and it is uncertain if further exploration will result in the estimation of an
additional Mineral Resource.
2. Newcrest Mining Limited Ore Reserves and Mineral Resources Statement 31 December 2017 3. Regis Resources Limited March 2018
Quarterly Results Presentation 14 April 2018 4. All mineral resources are illustrated as in-situ-contained metals.
5 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
EXPLORATION AND RESOURCE INFILL DRILLING PROGRAMME
The Company plans to test the Exploration Target through the following drilling programme schedule:
n Stage 1 – Mineralisation and genetic model verification – comprising approximately 4,100 metres of drilling, targeting
completion before the end of FY 2019*.
n Stage 2 – Resource category drilling. Further resource infill drilling will be conducted to a level sufficient to estimate an
additional mineral resource, if any, initially to Inferred category (contingent on satisfactory results from Stage 1). Stage 2
timing is envisaged to be completed during FY 2020*.
* The indicated timings are subject to the completion of heritage surveys where applicable, the timely finalisation of land
access matters, the completion of regulatory approvals and statutory notice periods, weather, as well as all and any other
operational factors that could affect the ability of the Company to perform drilling.
METALLURGICAL BREAKTHROUGHS
Argent achieved a significant new milestone during the year for the Kempfield project - the successful separation of primary
material into potentially marketable commercial grade zinc and lead concentrates also containing silver and gold.
The extraction of zinc and lead into separate concentrates marks a significant advance towards project development, as the
Company pursues the redefinition of Kempfield as an economically viable zinc-silver-lead-gold project with multiple revenue
streams at prevailing market prices.
Under the project redefinition validated by the metallurgical breakthroughs, zinc has become the major contributor to
potential net smelter revenue (45%), followed by silver (36%), lead (11%) and gold (8%) - substantially boosting the economics
and de-risking the project.
In addition to potentially taking advantage of favourable market conditions for zinc producers, the new metallurgical scenario
retains significant upside leverage to any future silver price escalation that may occur.
Figure 2a - High
grade (54-59%)
zinc concentrate
produced by the
2nd cleaner stage
of test AF8.
Figure 2b - High
grade (47-64%)
lead concentrate
produced by the
2nd cleaner stage
of test AF8.
6 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
NEW 3D GEOLOGY AND EXPLORATION MODEL, AND EXPLORATION TARGET
The Company developed a new geological and exploration model during the year for the Kempfield project. The new 3D
model provides a vastly improved level of detail for geometry of the stratigraphy and mineralisation controls for the project,
identifying an immediate potential strike length of 3,000 metres, width up to 650 metres, and depth to 400 metres, remaining
open in all directions including at depth.
The new 3D model enabled the significant Exploration Target to be estimated for potential mineralisation within the portion
illustrated by the green arrowed dimensions in Figure 3 that is not included in the current Mineral Resource estimate:
Predicted mineralisation host
horizons
Holes drilled subsequent to
JORC 2012 resource estimate
Original JORC 2012 mineral
resource holes
Figure 3 - Screenshot of the new Kempfield 3D model – isometric view facing North
1. Open cut pit outlines are included to enable a simplified visual comparison of the increased scale to that of the existing deposit. The pit outlines
were submitted to the NSW Government as part of the Company’s 2013 Environmental Impact Statement (2013 open cut pit outlines) in relation to a
proposed shallow silver and gold mining operation.
The Exploration Target (summarised in Figure 2) was estimated by H&S Consultants Pty Ltd and announced as a JORC
2012-compliant estimate on 6 June 2018. For further details refer to the Exploration Target section of the Mineral Resources
and Ore Reserves Statement.
Argent also identified further additional potential for mineralisation, not included in the Exploration Target estimate, through
two broad scale regional mapping campaigns and petrological analyses of drill core conducted by the Company at Kempfield.
The potential dimensions significantly exceed all historic expectations (illustrated by the red ‘open’ arrows in Figure 3):
n Kempfield host geology continues 4 km along strike to the north.
n Additional 800 m strike length - to the south.
n Copper-gold footwall domain - to the west.
n Several potential feeder zone locations.
7 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
AGREEMENT EXECUTED WITH KEMPFIELD NEIGHBOURS
A new agreement was executed with the owners of the neighbouring Box Hill property to the north of the Kempfield main
project area, significantly de-risking the project.
Noise and dust studies performed in relation to the 2013 Environmental Impact Study determined that, since the Kempfield
project mainly occupies Argent freehold land surrounded by hills, the main 3rd parties that would be affected by a mining
operation are the owners of the Box Hill property located immediately to the north.
Under the terms of the agreement, the Box Hill owners have committed to not challenge the grant or validity of the
Company’s regulatory applications and permitting or ancillary titles related to mining and development approvals (‘No
Challenge’), as Argent also continues to advance the project through further exploration drilling.
Argent has the right (as well as the obligation before commencement of mine construction), to purchase the Box Hill property
at any time up to 12 June 2020 on fixed commercial terms, extendable at the Company’s sole discretion up to 12 June 2021.
The agreement may be extended for a further year to 12 June 2022 on the agreement of both parties.
Exercise of the option allows Argent to significantly increase its existing freehold land at Kempfield from 115.8 to approximately
540 hectares (5.4 square kilometres), for large scale project operations.
8 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
EXPLORATION – WEST WYALONG (ARGENT 78%)
PORPHYRY COPPER-GOLD-MOLYBDENUM MINERALISED SYSTEM IDENTIFIED
During the year Argent announced significant exploration results for the West Wyalong maiden diamond drilling programme.
Argent’s interest in the West Wyalong project has been increased to 78.14%.
Argent’s drill core visual observations and assays for the six holes revealed evidence of a near position to a porphyry copper-
gold-molybdenum deposit in a fertile system, enabling the Company to delineate a prospective area of 4 square kilometres.
The diamond drill core visual observations and assay results indicated that multiple porphyritic intrusives had been intersected
over a north-south strike length of 2.5 kilometres and an east-west extent of 1.5 kilometres, which are associated with elevated
chalcopyrite, molybdenite and gold mineralisation, and extensive zones of sulphide mineralisation – together being signature
features of porphyry copper-gold-molybdenum mineralised systems.
Figure 4 – Illustrating the strategic location of the project together with a plan view of the drilling programme holes and the
geophysical targets they were designed to test.
9 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
Drilling highlights
The following selected drill core section photographs, intersections and visual observations illustrate highlights of the drilling
programme results.
Figure 5 – Highlights of the West Wyalong drilling programme results.
10 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
Big Cadia and Ok Tedi analogy indicated
The exploration results provide evidence of the porphyry system being analogous to Ok Tedi in Papua New Guinea (PNG) and
Big Cadia - where magnetite skarns are located peripheral to the main deposit. A strike length of 1.5 kilometres and east-west
extent of 1.5 kilometres of magnetite skarn was visually observed within the porphyry system total 2.5 kilometre strike length,
with assays confirming the presence of chromium (>0.1%) and nickel (>0.1%).
Figure 6 – Illustrating the interpreted location of West Wyalong intersections in relation to
observed alteration and mineralogy in relation to a potential large scale deposit.
11 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
EXPLORATION – LOCH LILLY (ARGENT 51%)
MAIDEN DRILLING PROGRAMME YIELDS POSITIVE RESULTS REQUIRING FOLLOW UP
Mineralisation potential analogous to Mount Read Volcanics Western Tasmania
The Loch Lilly - Kars Belt, located in western NSW approximately 80 kilometres south of Broken Hill, hosts a volcanic-hosted
massive sulphide (VHMS) and copper-gold porphyry potential that is analogous in age and composition to the Mount Read
Volcanics of Western Tasmania. Argent hopes to unlock a new large-scale mineralisation province covered by the Company’s
1,447 square kilometre tenements, through its exploration.
Maiden test of the Netley and Eaglehawk targets
Argent earned its first 51% interest in the Loch Lilly project in 2018 by completing a drill program to test two compelling
geophysical targets – Netley and Eaglehawk, each by a single diamond drillhole to approximately 500 metres. The direct
drilling costs were 75% funded by the NSW Government.
The Netley and Eaglehawk holes were designed by Argent with the benefit of geophysics survey work and analysis performed
by Dr. Anthony Crawford and Anglo American Exploration (Australia) Pty Ltd (AngloAmerican).
Figure 7 – Plan view illustrating the locations of the collars for drillholes ALE001 and ALN001 over a total magnetic intensity
(TMI) background, together with a map showing the locations of the Argent projects.
12 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
Drilling highlights
Both drillholes intersected a series of porphyritic intrusives. The Netley hole featured propylitic to skarnoid alteration with lesser
zones of potassic alteration, abundant pyrite and sparse, localised chalcopyrite. Diorite-gabbro dykes in the lower portion of
the hole yielded assay ranges typically ranging up to 0.01 g/t Au, 0.11% Cu, 92 ppm Zn, 136ppm Pb, 174 ppm As, and 65 ppm
Mo – potentially indicative of the outer halo of a mineralised porphyry copper system. The elevated copper and gold in the
visually observed context warrants further drilling.
Figure 8 - Photo of Netley ALN001 drillcore from 392.8 to 393.0 and 393.6 to 393.8 metres with intersected copper
(chaleopyrite) highlighted.
13 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
EXPLORATION – RINGVILLE (ARGENT 100%)
ACQUISITIONS IN WORLD-CLASS MOUNT READ VOLCANICS BELT TASMANIA
Ringville - located between Renison Bell Tin Mine and the Rosebery Mine
The Ringville tenement is strategically situated between two world class mines – the Rosebery high grade zinclead-copper-
gold-silver mine owned by MMG Ltd (1208:HK), and the Renison Bell Tin Mine, one of the world’s largest and highest grade tin
mines, considered to hold more than 85% of Australia’s economic tin resources1.
Queensberry - located near Mt Lyell Copper Mine
Queensberry is located 11 kilometres northwest of the world class Mount Lyell copper mine. Considered to be Australia’s
oldest continually operating mining field, Mount Lyell produced more than 1.8 million tonnes of copper, 2 million ounces of
gold, and 41 million ounces of silver over approximately 120 years4.
The 82 square kilometre Queensberry tenement area is heavily populated with old mine workings and recorded mineral
occurrences. Four of these comprise the historic Queensberry Mine, which production yielded grades of up to 40-56% lead,
and 6-7 ounces/tonne silver5.
Figure 9 – Illustrating the strategic positions of Argent’s Mt Read Volcanics tenements.
14 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
The new Argent tenements include pre-JORC code historical mineralisation estimates, featuring high grade tin:
Table 1 – Pre-JORC Code historical mineralisation estimates.
Pre-JORC Code Historical Mineralisation Estimates
Deposit Name Category
Tonnes
(t)
Pieman
Salmons
Probable
Possible
Total
Probable
Possible
Total
433,300
744,900
1,178,200
830,200
1,016,000
1,846,200
Godkin
Probable
299,400
Queensberry
Mine
Probable
28,300
Sn
(%)
1.00
0.30
0.60
0.19
0.10
0.14
0.91
-
Cu
(%)
0.18
0.18
0.18
0.62
0.10
0.33
-
0.3
Au
Grade
Pb
(g/t) (%)
Zn
(%)
Ag
(g/t)
Estimation
Method
Estimate
Date
-
-
-
-
-
-
-
-
0.06
0.06
0.06
3.17
1.25
2.12
-
0.32
0.32
0.32
2.24
1.37
1.76
8
8
8
104
58
79
Polygonal
Polygonal
Polygonal
Polygonal
Polygonal
Polygonal
-
-
Polygonal
11.5
8.8
52
Polygonal
1985
1985
1985
1985
1985
1985
1983
1983
The estimates are historical estimates and are not reported in accordance with the JORC Code. A competent person has not
done sufficient work to classify the historical estimates as mineral resources or ore reserves in accordance with the JORC Code,
and it is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be
reported as mineral resources or ore reserves in accordance with the JORC Code.
CORPORATE
BOARD APPOINTMENTS AND RESIGNATIONS
On 5 December 2017 Chairman Mr. Stephen Gemell and Mr. Peter Nightingale resigned as directors of the Company.
On 6 December 2017 Mr. Klaus Eckhof was appointed as Non-Executive Chairman, Mr. Emmanuel Correia as Non-Executive
Director and Joint Company Secretary, and Mr. Tim Hronsky as Non-Executive Director.
On 23 April 2018 Mr. Klaus Eckhof stepped down as Non-Executive Chairman to continue in the new role of Technical Advisor,
Acquisitions, and Mr. Peter Wall was appointed as Non-Executive Chairman.
FUNDING
$1.2 million before costs was raised during the year through a private placement.
Additional funds totalling $860,219 were received as income, comprising $693,749 under the R&D Tax Incentive Scheme,
receipts of $141,966 from the NSW Government under the Cooperative Drilling Round 2 grant awarded to the Company, and
interest income of $24,504.
Argent concluded the 2017/18 financial year with a cash position of approximately $1.65 million.
15 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
OPERATIONS REVIEW
COMPETENT PERSON STATEMENTS
Previously Released Information
This Annual Report contains information extracted from the following reports which are available for viewing on the
Company’s website http://www.argentminerals.com.au :
n 3 July 2017 West Wyalong Drilling Confirms Mineralised Porphyry Systemi
n 12 July 2017 Argent Commences Loch Lilly Drilling Programmei
n 17 July 2nd Set of Assays – Increased Gold in West Wyalong Porphyryi
n 27 July Copper and Gold in West Wyalong Porphyry – Final Assaysi
n 2 November 2017 Loch Lilly Drilling Resultsi
n 8 November 2017 Kempfield Exploration Targetii
n 9 November 2017 Excellent Kempfield Metallurgical Test Resultsiii
n 29 January 2018 Acquisitions in World Class Mt Read Volcanics Belt Tasmaniai
n 12 April 2018 Separate Commercial Grade Concentrates – Kempfield Milestoneiii
n 30 May 2018 Significant Kempfield Resource Updateiv
n 6 June 2018 Significant Kempfield Exploration Target Revisionii
Competent Person:
i. Clifton Todd McGilvray
ii. Arnold van der Heyden (Exploration Target), Clifton Todd McGilvray (Exploration Results)
iii. Roland Nice
iv. Arnold van der Heyden
The Company confirms it is not aware of any new information or data that materially affects the information included in the
original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves and historical Pre-JORC Code
mineralisation estimates (‘Historical Estimates’), that all material assumptions and technical parameters underpinning the estimates
in the relevant market announcements continue to apply and have not materially changed. The Company is not in possession of
any new information or data relating to the Historical Estimates that materially impacts on the reliability of the Historical Estimates
or the Company’s ability to verify the Historical Estimates as Mineral Resources in accordance with Appendix 5A (JORC Code). The
Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.
Notes for section under heading ‘Exploration – Ringville (Argent 100%)
1 Source: Australian Government Geoscience Australia, http://www.australianminesatlas.gov.au/education/fact_sheets/tin.html.
2 Source: ASX, Metals X Limited AGM Presentation 22 November 2017.
3 Source: Vedanta Plc, Copper Mines of Tasmania Pty Ltd website cmt.com.au, About Us/Overview.
4 Source: Vedanta Plc, CMT Submission to DFAT re Australia - India FTA - 2011-07-18.
5 Source: Tasmanian Government, Director of Mines Preliminary Report on Queensberry Western District, 30 June 1927.
6 0.8% Sn cutoff grade.
7 Source: MMG Ltd website, 2016 Rosebery Fact Sheet.
8 Source: MMG Ltd website, 2016 Annual Results Presentation 8 March 2017, 2017 production guidance.
9 Source: MMG Ltd website, 2016 Annual Report, Mineral Resources and Ore Reserves Statement (A$166/t NSR cutoff grade).
10 Source: http://mininglink.com.au/site/hellyer
11 Source: Gemmell, JB and Fulton, R (2001) Geology, Genesis, and Exploration Implications of the Footwall and Hanging-Wall
Alteration Associated with the Hellyer Volcanic-Hosted Massive Sulfide Deposit, Tasmania, Australia. Economic Geology, 96 (5).
pp. 1003-1035. ISSN 0361-0128. Mineral Resource estimate quoted (cutoff grade not stated).
12 Source: Tasmanian Government, The mining and mineral processing industry in Tasmania, A guide for investors August 2016.
13 Source: Corbett, K.D, Quilty, P.G., & Calver, C.R., editors, 2014. Geological Evolution of Tasmania. Geological Society of Australia
Special Publication 24, Geological Society of Australia (Tasmania Division): Mineral Resource as at 30/6/2009 (cutoff grade not
stated).
14 Source: Tasmanian Government, Mineral Resources Tasmania (MRT) database.
15 For further details in relation to the Pre-JORC Code historical mineralisation estimates refer to the original announcement dated
29 January 2018, which continues to apply (see also Competent Person Statements in this 2018 Annual Report).
16 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about
having a set of core values and behaviours that underpin the Company’s activities and ensure transparency, fair dealing
and protection of the interests of stakeholders. The Company has reviewed its corporate governance practices against the
Corporate Governance Principles and Recommendations (3rd edition) published by the ASX Corporate Governance Council.
The 2018 corporate governance statement is dated as at 21 September 2018 and reflects the corporate governance practices
throughout the 2018 financial year. The 2018 corporate governance was approved by the Board on 21 September 2018. A
description of the Company’s current corporate governance practices is set out in the Company’s corporate governance
statement which can be viewed at : www.argentminerals.com.au/about/corporate-governance.
17 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
The names and particulars of the directors of the Company during the financial year and as at the date of this report are as
follows. Directors were in office for the entire period unless otherwise stated.
PETER WALL LLB BComm MAppFin FFin
Non-Executive Chairman
Appointed 23 April 2018.
Mr Wall is a corporate lawyer and has been a Partner at Steinepreis Paganin (Perth based corporate law firm) since July 2005. Mr
Wall graduated from the University of Western Australia in 1998 with a Bachelor of Laws and Bachelor of Commerce (Finance).
He has also completed a Masters of Applied Finance and Investment with FINSIA.
Mr Wall has a wide range of experience in all forms of commercial and corporate law, with a particular focus on resources
(hard rock and oil/gas), technology companies, equity capital markets and mergers and acquisitions. He also has significant
experience in dealing in cross border transactions.
During the past three years he has also served on the board of the following listed companies:
Company
Minbos Resources Limited
MMJ PhvtoTech Limited
MyFizig Ltd
Transcendence Technologies Limited
Sky & Space Global Ltd
Pursuit Minerals Limited
Bronson Group Limited
Activistic Ltd
Zyber Holdings Limited
Ookami Limited
Zinc of Ireland NL
TV2U International Limited
BrainChip Holdings Ltd
KLAUS PETER ECKHOF Dip.Geol.TU, AusIMM
Non-Executive Chairman
Appointed 6 December 2017.
Resigned 23 April 2018.
Date of Appointment
Date of Resignation
February 2014
August 2014
May 2015
October 2015
October 2015
January 2016
June 2017
June 2015
January 2015
October 2015
April 2015
February 2012
September 2014
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
February 2018
January 2018
January 2018
July 2016
February 2016
August 2015
Mr Klaus Eckhof is a geologist with more than 20 years of experience identifying, exploring and developing mineral deposits
around the world. Mr Eckhof worked for Mount Edon Gold Mines Ltd before it was acquired by Canadian mining company,
Teck. In 1994, he founded Spinifex Gold Ltd and Lafayette Mining Ltd, both of which successfully delineated gold and base
metal deposits. In 2003, Mr Eckhof founded Moto Goldmines which acquired the Moto Gold Project in the Democratic
Republic of Congo. There, Mr Eckhof and his team delineated more than 20 million ounces of gold and delivered a feasibility
study within four years from the commencement of exploration. Moto Goldmines was subsequently acquired by Randgold
Resources, who poured first gold in September 2013.
During the past three years he has also served on the board of the following listed companies:
Company
Amani Gold Limited
AVZ Minerals Limited
Okapi Resources Ltd
Carnavale Resources Ltd
Panex Resources Inc.
Date of Appointment
Date of Resignation
February 2012
May 2014
May 2017
January 2008
May 2006
Not Applicable
Not Applicable
Not Applicable
July 2015
July 2014
18 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
STEPHEN GEMELL B.Eng (Mining) (Hons), FAusIMM (CP) MAIME, MMICA
Non-Executive Chairman
Appointed 7 July 2010.
Resigned 5 December 2017.
Stephen Gemell has more than 38 years’ experience in the Australasian and global mining industry. His experience includes
operational management of underground and open pit mines with CIP/CIL, flotation and alluvial plants. He has been Principal
of Gemell Mining Engineers, an independent multi-discipline consultancy, since its formation in Kalgoorlie in 1984. Since
1987, he has served as a chairman, managing director, technical director or non-executive director of more than 20 ASX-
listed mining/exploration companies or private mining companies. He is currently a member of the VALMIN Committee,
which overlooks the revision and implementation of the Australasian Code for Public Reporting of Technical Assessments and
Valuations of Mineral Assets.
During the past three years he has also served on the board of the following listed companies:
Company
Date of Appointment
Date of Resignation
Stonewall Resources Limited
Eastern Iron Limited
Golden Cross Resources Limited
Dateline Resources Limited
July 2016
January 2010
June 2012
October 2013
January 2017
July 2017
October 2014
August 2014
EMMANUEL CORREIA BBus, CA
Non-Executive Director and Joint Company Secretary
Appointed 6 December 2017.
Mr Emmanuel Correia has over 25 years’ public company and corporate finance experience in Australia, North America and the
United Kingdom and is a founding director of Peloton Capital and Peloton Advisory.
Mr Correia is an experienced public company director/officer and, prior to establishing Peloton Capital in 2011, he was a
founder and major shareholder of Cardrona Capital which specialised in providing advisory services to the small/mid cap
market in Australia. Cardrona was acquired by a UK backed private advisory firm seeking advisory capabilities in Australia.
Mr Correia has also held various senior positions with Deloitte and other boutique corporate finance houses. Mr Correia’s
key areas of expertise include IPOs, secondary capital raisings, corporate strategy, structuring, mergers and acquisitions and
corporate governance.
Mr Correia is currently a non-executive director of Canyon Resources Limited and Orminex Limited. Mr Correia is also the
Company Secretary of Bluglass Limited.
During the past three years he served on the board of the following listed company:
Company
Canyon Resources Limited
Orminex Limited
Date of Appointment
Date of Resignation
July 2016
April 2018
Not Applicable
Not Applicable
19 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
PETER MICHAEL
Non-Executive Director
Appointed 16 September 2015.
Peter has over 20 years’ experience in the property sector encompassing the arrangement and execution of commercial and
residential property transactions, land development, construction and joint venture operations utilising an extensive network
of contacts throughout Australia.
Peter is currently the Executive Director of a private age care business, a private property development business and privately-
owned Real Estate Agency. Peter is also the Managing Director of a private investment firm, based in Subiaco, specialising in
developing resource exploration companies. He is also a director of not for profit group who specialise in delivering exercise
programs for people with diabetes in WA and Vanuatu.
TIM HRONSKY B.Eng (Geology) MAusIMM, MSEG
Non-Executive Director
Appointed 6 December 2017.
Mr Tim Hronsky is a geologist with over 25 years of international experience in the mining and exploration industry. Tim has
a strong focus on precious metals, base metals and nickel exploration. He is highly experienced in exploration targeting for
precious metals, and spent 15 years with Placer Dome Inc, one of the largest gold companies in the world at that time.
Tim has extensive global consulting experience in the mining industry, providing clients with unique and value-adding
solutions. He specialises in the fields of business improvement and strategy and sustainable development and has a
demonstrated track record in establishing new businesses and creating value in the early phases of exploration and in Junior
company development.
Tim has strong conceptual and analytical skills and has been able to integrate geological, exploration and operational
information to create unique technical and commercial solutions.
During the past three years he served on the board of the following listed company:
Company
Date of Appointment
Date of Resignation
St George Mining Limited
November 2009
Not Applicable
PETER J NIGHTINGALE B.Econ, CA
Non-Executive Director
Appointed 16 September 2015.
Resigned 5 December 2017.
Mr Nightingale graduated with a Bachelor of Economics degree from the University of Sydney and is a member of the Institute
of Chartered Accountants in Australia. He has worked as a chartered accountant in both Australia and the USA.
As a director or company secretary Mr Nightingale has, for more than 25 years, been responsible for the financial control,
administration, secretarial and in-house legal functions of a number of private and public listed companies in Australia, the
USA and Europe including Bolnisi Gold N.L., Callabonna Uranium Limited, Cockatoo Coal Limited, Mogul Mining N.L., Pangea
Resources Limited, Perseverance Corporation Limited, Sumatra Copper & Gold plc, Timberline Minerals, Inc. and Valdora
Minerals N.L. At the date of resignation, Mr Nightingale was the director of unlisted public companies Nickel Mines Limited
(currently listed) and Prospech Limited.
During the past three years he has also served as a director of the following listed companies:
Company
Collerina Cobalt Limited
Planet Gas Limited
Date of Appointment
Date of Resignation
November 2009
December 2011
Not Applicable
Not Applicable
20 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
VINOD MANIKANDAN
Joint Company Secretary
Appointed 4 November 2015.
Vinod Manikandan graduated with a Bachelor of Commerce degree from Mahatma Gandhi University and also attained a
Graduate Certificate of Professional Accounting from Deakin University. He has completed his post graduate studies in Applied
Corporate Governance and is a member of CPA Australia. For the past three years, Vinod has provided financial reporting,
accounting and company secretarial services to a range of public listed companies in Australia.
DIRECTORS INTERESTS
At the date of this report, the Directors held the following interests in Argent Minerals.
Name
Fully Paid
Ordinary Shares
Options
Option Terms
(Exercise Price and Term)
Peter Wall
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof*
-
-
753,334
180,000
-
-
-
-
-
666,668
$0.10 at any time up to 30 September 2021
-
-
-
-
Stephen Gemell*
1,581,818
800,000
$0.10 at any time up to 27 June 2019
Peter Nightingale*
833,333
1,666,666
$0.10 at any time up to 27 June 2019
*At the date of resignation as a Director.
There were no options over unissued ordinary shares granted as compensation to directors or executives of the Company
during or since the end of the financial year.
In the prior year, 2,000,000 unlisted options with an exercise price of $0.03, 2,000,000 unlisted options with an exercise price of
$0.06 and 3,000,000 unlisted options with an exercise price of $0.10 were granted to David Busch.
UNISSUED SHARES UNDER OPTION
At the date of this report, unissued ordinary shares of the Company under option are:
Number of Shares
Exercise Price
Expiry Date
3,500,000
3,500,000
4,500,000
187,000,000
$0.03
$0.06
$0.10
$0.10
30 September 2021
30 September 2021
30 September 2021
27 June 2019
All options expire on the earlier of their expiry date or termination of the employee’s employment provided the exercise
period has been reached. In the event that the employment of the option holder is terminated, any options which have not
reached their exercise period will lapse and any options which have reached their exercise period may be exercised within
three months of the date of termination of employment. Any options not exercised within this three month period will lapse.
The persons entitled to exercise the options do not have, by virtue of the options, the right to participate in a share issue of the
Company or any other body corporate.
21 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
The principal activity of the Group is mineral exploration in Australia.
RESULTS AND REVIEW OF OPERATIONS
The results of the consolidated entity for the financial year ended 30 June 2018 is a comprehensive loss after income tax of
$1,712,330 (2017: loss of $2,120,074).
A review of operations of the consolidated entity during the year ended 30 June 2018 is provided in the ‘Operations Review’.
LIKELY DEVELOPMENTS
The Group’s focus over the next financial year will be on its key projects, Kempfield, West Wyalong and Loch Lilly. Further
commentary on planned activities in these projects over the forthcoming year is provided in the ‘Operations Review’. The
Company will also assess new opportunities, especially where these have synergies with existing projects.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with
all regulations when carrying out exploration work.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend
to the date of this report.
BOARD MEETINGS
During the financial year, 9 meetings of directors were held. Attendances by each director during the year were as follows:
Director
Peter Wall
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof
Stephen Gemell
Peter Nightingale
Directors’ Meetings
No. of Eligible Meetings to Attend
No. of Meetings Attended
1
5
9
5
4
4
4
1
4
9
4
4
4
4
22 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
REMUNERATION POLICY
The remuneration policy of Argent Minerals Limited has been designed to align directors’ objectives with shareholder and
business objectives by providing a fixed remuneration component, which is assessed on an annual basis in line with market
rates and equity related payments. The Board believes the remuneration policy to be appropriate and effective in its ability to
attract and retain the best directors to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members is as follows:
n The remuneration policy and setting the terms and conditions for the executive directors and other senior staff members
is developed and approved by the Board based on local and international trends among comparative companies and
industry generally. It examines terms and conditions for employee incentiveschemes, benefit plans and share plans.
Independent advice is obtained when considered necessary to confirm that executive remuneration is in line with market
practice and is reasonable within Australian executive reward practices.
n Executives receive a base salary (which is based on factors such as length of service and experience) and superannuation.
n The entity is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and
retaining talented executives, directors and senior executives are paid market rates associated with individuals in similar
positions within the same industry. Options and performance incentives may be issued particularly as the entity moves
from an exploration to a producing entity, and key performance indicators such as profit and production and reserves
growth can be used as measurements for assessing executive performance.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment
and responsibilities. The Executive Directors, in consultation with independent advisors, determine payments to the non-
executives and review their remuneration annually, based on market practice, duties and accountability. The maximum
aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual
General Meeting and is currently $250,000 per annum. Fees for non-executive directors are not linked to the performance
of the Company. However, to align directors’ interests with shareholder interests, the directors are encouraged to hold
shares in the Company.
DETAILS OF DIRECTORS AND EXECUTIVES
The following table provides details of the members of key management personnel of the entity as at 30 June 2018.
Directors/Executives
Position held as at 30 June 2017 and any changes during the year
Peter Wall
David Busch
Non-Executive Chairman
CEO
Emmanuel Correia
Non-Executive Director/ Joint Company Secretary
Peter Michael
Tim Hronsky
Non-Executive Director
Non-Executive Director
Executive Officer’s remuneration and other terms of employment are reviewed annually by the Non-Executive Directors having
regard to performance against goals set at the start of the year, relative to comparable information and independent expert
advice.
Except as detailed in the Remuneration Report, no director has received or become entitled to receive, during the financial
year or since the financial year end, a benefit because of a contract made by the Company or a related body corporate with
a director, a firm of which a director is a member or an entity in which a director has a substantial financial interest. This
statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by directors
and shown in the Remuneration Report, prepared in accordance with the Corporations Regulations, or the fixed salary of a full
time employee of the Company.
23 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
DETAILS OF REMUNERATION FOR THE YEAR ENDED 30 JUNE 2018 – AUDITED
Details of director and senior executive remuneration and the nature and amount of each major element of the remuneration
of each director of the Company, and other key management personnel of the Company are set out below:
Salary, Fees
and Leave
Superannuation
Termination
Payment
$
Performance
Rights
$
Share Based
Payments -
Options
$
Total
$
% of
Remuneration
as Share
Payments
DIRECTORS
Non-executive
Peter Wall1
2018
2017
Emmanuel Correia2
2018
2017
Peter Michael
2018
2017
Tim Hronsky2
2018
2017
Klaus Eckhof3
2018
2017
Stephen Gemell4
2018
2017
Peter Nightingale4
2018
2017
CEO
David Busch^
2018
2017
8,260
-
24,865
-
39,999
40,000
24,961
-
16,320
-
28,258
65,700
21,900
43,800
-
-
-
-
3,800
3,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,260
-
24,865
-
43,799
43,800
24,961
-
16,320
-
28,258
65,700
21,900
43,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
266,883
273,295
25,650
25,963
39,095
78,491
5,494
-
337,122
377,749
11.60
20.78
1 Peter Wall was appointed as a Director on 23 April 2018.
2 Emmanuel Correia, Tim Hronsky were appointed as Directors on 6 December 2017.
3 Klaus Eckhof was appointed as a Director on 6 December 2017 and ceased to be a Director on 23 April 2018.
4 Stephen Gemell and Peter Nightingale ceased to be directors on 5 December 2017.
24 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
OPTIONS GRANTED AS COMPENSATION – AUDITED
Details of options granted as compensation to each key management person:
Director
Grant Date
Number of
Options Granted
Vesting
Date
Fair Value
at Grant
Date
Option Terms
(Exercise Price and
Term)
David Busch^
2 November 2016
2,000,000
2 November 2016
$41,982
David Busch^
2 November 2016
2,000,000
31 December 2017
$37,417
David Busch^
2 November 2016
3,000,000
31 December 2018
$50,397
$0.03 at any time to
30 September 2021.
$0.06 at any time from
31 December 2017 up
to 30 September 2021.
$0.10 at any time from
31 December 2018 up
to 30 September 2021.
The fair value of the options at grant date was determined based on Black- Scholes formula. The model inputs of the options
issued, were the Company’s share price of $0.027 at the grant date, a volatility factor of 110% based on historic share price
performance, a risk free rate of 1.87% based on the 5 year government bond rate and no dividends paid.
No Options were granted as compensation during 2018 financial year. The number of options that vested during the year
ended 30 June 2018 is 2,000,000 (2017 – 2,000,000).
OTHER TRANSACTIONS AND BALANCES WITH KEY MANAGEMENT PERSONNEL
n During the year ended 30 June 2018, Peter Nightingale had a controlling interest in an entity, MIS Corporate Pty Limited,
which provided full administrative services, including rental accommodation, administrative staff, services and supplies, to
the entity. Fees paid to MIS Corporate Pty Limited until his resignation as a Director amounted to $77,700 (2017 - $124,000).
There were no outstanding amounts at 30 June 2018 (2017 - $nil).
n During the year ended 30 June 2018, Peter Wall had a beneficial interest in an entity, Steinepreis Paganin Lawyers &
Consultants, which provided legal consulting services on ordinary commercial terms. Fees paid to Steinepreis Paganin
Lawyers & Consultants amounted to $1,523 (2017 - $nil). There was $1,523 outstanding at 30 June 2018.
EMPLOYMENT CONTRACTS OF DIRECTORS AND EXECUTIVES
In accordance with best practice corporate governance, the Company provided each Director with a letter detailing the terms
of appointment, including their remuneration.
The Company has entered into an employment agreement with Mr David Busch whereby Mr Busch receives remuneration of
$270,000 per annum plus statutory superannuation. The agreement may be terminated subject to a 6 month notice period.
25 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
Ordinary shareholdings of key management personnel
Directors and other key
management personnel
Balance at 1 July 2017 Net other change Balance at 30 June 2018
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof
Stephen Gemell
Peter Nightingale
(i)
-
5,281,818
-
753,334
180,000
-
1,581,818
833,333
(ii)
-
584,933
-
-
-
-
-
-
(iii)
-
5,866,751
-
753,334
180,000
-
1,581,818
833,333
Directors and other key
management personnel
Balance at 1 July 2016 Net other change Balance at 30 June 2017
Stephen Gemell
David Busch
Peter Michael
Peter Nightingale
(i)
1,181,818
2,681,818
420,000
-
(ii)
400,000
2,600,000
333,334
833,333
(iii)
1,581,818
5,281,818
753,334
833,333
(i) Balance at the beginning of the financial year or at the date of appointment.
(ii) On market transactions for cash consideration.
(iii) Balance at the end of the financial year or at the date of retirement.
(iv) No remuneration shares were issued or options exercised during the financial years ended 30 June 2018 and 30 June 2017.
Listed Options, exercisable at $0.10, holdings of key management personnel
Directors and other key
management personnel
Balance at 1 July 2017
Issue during
the period
Balance at 30 June 2018
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof
Stephen Gemell
Peter Nightingale
(i)
-
4,200,000
-
666,668
-
-
800,000
1,666,666
-
584,933
-
-
-
-
-
-
(ii)
-
4,784,933
-
666,668
-
-
800,000
1,666,666
26 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
REMUNERATION REPORT – AUDITED
Listed Options, exercisable at $0.10, holdings of key management personnel
Directors and other key
management personnel
Balance at 1 July 2016
Issue during
the period
Balance at 30 June 2017
Stephen Gemell
David Busch
Peter Michael
Peter Nightingale
(i)
-
-
-
-
800,000
4,200,000
666,668
1,666,666
(ii)
800,000
4,200,000
666,668
1,666,666
(i)
(ii)
Balance at the beginning of the financial year or at date of appointment.
Balance at the end of the financial year or at date of retirement.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholders’ wealth, the Board has regard to the following indices in
respect of the current financial year and the previous four financial years.
2018
2017
2016
2015
2014
Net loss attributable to equity
holders of the Company
$1,712,330
$2,120,074
$2,115,199
$1,528,384
$96,852
Dividends paid
-
-
-
-
-
Change in share price
(1.1) cents
0.2 cents
0.6 cents
(0.5) cents
0.2 cents
The overall level of key management personnel’s compensation is assessed on the basis of market conditions, status of the
Company’s projects, and financial performance of the Company.
End of Remuneration Report.
27 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ REPORT
INDEMNIFICATION OF DIRECTORS AND OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer or agent of the
Company shall be indemnified out of the property of the entity against any liability incurred by him or her in their capacity
as officer or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever
occurring or in defending any proceedings, whether civil or criminal.
EVENTS SUBSEQUENT TO BALANCE DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly
affect the operations of the consolidated entity, the results of those operations, or the state of the affairs of the consolidated
entity in future financial years.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
During the year ended KPMG, the Company’s auditor, performed no other services in addition to their statutory duties.
A copy of the auditors’ independence declaration as required under Section 307C of the Corporations Act 2001 is included in
the Directors’ Report.
Details of the amounts paid and accrued to the auditor of the Company, KPMG, and its related practices for audit and non-
audit services provided during the year are set out below.
Statutory audit
Audit and review of financial reports - KPMG
45,500
39,500
2018
$
2017
$
Lead Auditor’s Independence Declaration
The Lead Auditor’s Independence Declaration is set out on page 29 and forms part of the Directors’ Report for the year ended
30 June 2018.
This report has been signed in accordance with a resolution of the directors and is dated 24 September 2018.
PETER WALL
Chairman
PETER MICHAEL
Director
28 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Argent Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Argent Minerals
Limited for the financial year ended 30 June 2018 there have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001
in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Adam Twemlow
Partner
Brisbane
24 September 2018
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme
approved under Professional
Standards Legislation.
29 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018
Notes
2018
$
2017
$
Continuing operations
Other income
Administration and consultants’ expenses
Depreciation
Employee and director expenses
Exploration and evaluation expenses
Operating loss before financing income
5
12
6
Interest income
Net financing income
Loss before tax
Income tax expense
Loss for the year
Other comprehensive income
835,715
885,126
(695,694)
(47,326)
(291,756)
(1,537,773)
(1,736,834)
24,504
24,504
(639,881)
(39,261)
(282,663)
(2,062,759)
(2,139,438)
19,364
19,364
(1,712,330)
(2,120,074)
9
-
-
(1,712,330)
(2,120,074)
-
-
Total comprehensive loss for the year
(1,712,330)
(2,120,074)
Basic and diluted loss per share (cents)
7
(0.39) cents
(0.58) cents
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
30 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION AS AT 30 JUNE 2018
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Other financial asset – security deposits
Plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee entitlements
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Notes
2018
$
2017
$
8
10
11
12
13
14
15
15
1,649,466
2,029,005
-
23,265
1,672,731
83,100
398,371
481,471
17,610
19,538
2,066,153
95,000
420,826
515,826
2,154,202
2,581,979
125,787
91,326
217,113
217,113
120,685
57,225
177,910
177,910
1,937,089
2,404,069
29,274,380
193,529
28,090,527
143,636
(27,530,820)
(25,830,094)
1,937,089
2,404,069
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
31 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018
Attributable to equity
holders of the Company
Notes
Issued
Capital
$
Option
Reserves
Accumulated
Losses
$
$
Total
$
Balance at 1 July 2017
Total comprehensive income for the year
28,090,527
143,636
(25,830,094)
2,404,069
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners,
recorded directly in equity
Contribution by and distribution to owners
Ordinary shares/options issued
Cost of shares issued
Share based payments – options
Expiry of options
-
-
-
1,268,000
(84,147)
-
-
-
-
-
-
-
61,497
(1,712,330)
(1,712,330)
-
-
(1,712,330)
(1,712,330)
-
-
-
1,268,000
(84,147)
61,497
(11,604)
11,604
-
Balance at 30 June 2018
15
29,274,380
193,529
(27,530,820)
1,937,089
Balance at 1 July 2016
Total comprehensive income
for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners,
recorded directly in equity
Contribution by and distribution to owners
Ordinary shares/options issued
Cost of shares issued
Share based payments –
Options
Expiry of options
Balance at 30 June 2017
24,343,436
61,796
(23,771,816)
633,416
-
-
-
4,107,500
(360,409)
-
-
-
-
-
(2,120,074)
(2,120,074)
-
-
(2,120,074)
(2,120,074)
-
-
4,107,500
(360,409)
-
-
143,636
(61,796)
-
61,796
143,636
-
15
28,090,527
143,636
(25,830,094)
2,404,069
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
32 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
Cash flows from operating activities
Cash receipts in the course of operations
Government Subsidy
Notes
2018
$
693,749
141,966
2017
$
709,248
175,878
Exploration and evaluation expenditure
(1,531,308)
(1,955,082)
Cash payments in the course of operations
Interest received
(811,332)
24,504
(805,508)
19,364
Net cash used in operating activities
16
(1,482,421)
(1,856,100)
Cash flows used in investing activities
Payments for plant and equipment
12
Receipts/(Payments) for deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Cost of issue of shares and options
Net cash from financing activities
Net increase in cash held
Cash and cash equivalents at 1 July
15
15
Cash and cash equivalents at 30 June
8
(24,871)
11,900
(12,971)
1,200,000
(84,147)
1,115,853
(379,539)
2,029,005
1,649,466
(51,649)
(28,000)
(79,649)
3,674,479
(358,484)
3,315,995
1,380,246
648,759
2,029,005
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
33 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
1 REPORTING ENTITY
Argent Minerals Limited (the ‘Company’) is a company domiciled in Australia. The address of the Company’s registered office
is at Level 2, 66 Hunter Street, Sydney, NSW 2000. The consolidated financial statements of the Company as at and for the year
ended 30 June 2018 comprise the Company and its subsidiary (together referred to as the ‘Group’). The Group is a for-profit
entity and is primarily engaged in the acquisition, exploration and development of mineral deposits in Australia.
2 BASIS OF PREPARATION
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the
Corporations Act 2001. The consolidated financial statements comply with the International Financial Reporting Standards
(‘IFRSs’) adopted by the International Accounting Standards Board (‘IASB’).
The consolidated financial statements were authorised for issue by the directors on 24 September 2018.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency.
(d) Use of estimates and judgements
The preparation of the consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amounts recognised in the financial statements are described in the
following notes:
• Note 2(e) - Going concern
• Note 9 - Unrecognised deferred tax asset
• Note 15 - Capital and reserves
• Note 15 - Contingent Liability
• Note 19 - Share based payments
(e) Going concern
The financial statements have been prepared on a going concern basis which contemplates the realisation of assets and
settlement of liabilities in the ordinary course of business.
The Group recorded a loss attributable to equity holders of the Company of $1,712,330 for the year ended 30 June 2018 and
has accumulated losses of $27,530,820 at 30 June 2018. The Group has cash and cash equivalents of $1,649,466 at 30 June
2018 and used $1,482,421 of cash in operations, including payments for exploration and evaluation, for the year ended 30
June 2018. The Group is currently undergoing a review by AusIndustry in relation to R&D claims totalling $1,402,997. As at 30
June 2018, the Group has disclosed a congingent liability of $1,402,997 in relation to these claims, refer to note 18. Additional
funding will also be required to meet the Group’s projected cash outflows for a period of 12 months from the date of the
directors’ declaration.
34 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue
as a going concern. The ongoing operation of the Group is dependent upon the Group raising additional funding from
shareholders or other parties and the Group reducing expenditure in-line with available funding.
The directors have prepared cash flow projections that support the ability of the Group to continue as a going concern. These
cash flow projections assume the Group obtains sufficient additional funding from shareholders or other parties. If such
funding is not achieved, the Group plans to reduce expenditure to the level of funding available.
In the event that the Group does not obtain additional funding and reduce expenditure in line with available funding and
successfully resolve the AusIndustry review of the R&D claims, it may not be able to continue its operations as a going concern
and therefore may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the
amounts stated in the financial statements.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
statements, and have been applied consistently by all entities in the Group.
(a) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entities and the revenue can
be reliably measured.
(b) Finance income and finance costs
Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income
and gains on the disposal of available-for-sale financial assets. Interest income is recognised as it accrues in profit or loss, using
the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s right to receive
payment is established, which in the case of quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings, losses on disposal of available-for-sale financial assets and impairment
losses recognised on financial assets. Borrowing costs that are not directly attributable to the acquisition, construction or
production of a qualifying asset are recognised in profit or loss using the effective interest method.
(c) Exploration, evaluation and development expenditure
Expenditure on exploration and evaluation is accounted for in accordance with the ‘area of interest’ method and with AASB 6
Exploration for and Evaluation of Mineral Resources.
For each area of interest, exploration and evaluation expenditure is expensed in the period in which the expenditure is
incurred. Expenditure incurred in the acquisition of tenements and rights to explore may be capitalised and recognised as an
exploration and evaluation asset. Exploration and evaluation assets are initially measured at cost at recognition. Exploration
and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore is expensed as incurred.
Capitalised acquisition costs are assessed for impairment when facts and circumstances suggest that the carrying amount
of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and
evaluation asset to which it has been allocated, being no larger than the relevant area of interest is estimated to determine
the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in
previous years.
Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and
evaluation asset is tested for impairment and the balance is then reclassified to development costs.
35 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
(d) Property, plant and equipment
Items of property, plant and equipment are measured on the cost basis less depreciation and impairment losses.
Depreciation
The depreciable amount of all fixed assets is depreciated over the assets’ estimated useful lives to the Group commencing from
the time the asset is ready for use.
The depreciation rates and useful lives used for each class of depreciable assets are:
Class of fixed asset
Depreciation rates
Depreciation basis
Land and Buildings
7.50%
Plant and equipment
5% to 37.5%
Prime cost
Prime cost
(e) Government grants
Where a rebate is received relating to research and development costs or other costs that have been expensed, the rebate is
recognised as other income when the rebate becomes receivable and the Group complies with all attached conditions. If the
research and development costs have been capitalised, the rebate is deducted from the carrying value of the underlying asset
when the grant becomes receivable and the Group complies with all attached conditions.
(f) Financial instruments
Non-derivative financial assets
The Group initially recognises loans and receivables on the date that they are originated. All other financial assets (including
assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a
party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards
of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by
the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the Consolidated Statement of Financial Position
when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless
they are designated as hedges. Assets in this category are classified as current assets if they are expected to be settled within
12 months; otherwise they are classified as non-current. Financial assets at fair value through profit or loss are measured at fair
value and changes therein, which take into account any dividend income, are recognised in profit or loss.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Such assets are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial
recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment
losses. They are included in current assets, except for those with maturities greater than 12 months after the reporting period,
which are classified as non-current assets. Loans and receivables comprise cash and cash equivalents and trade and other
receivables.
36 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Available-for-sale financial assets
The Group’s investments in equity securities are classified as available-for-sale financial assets. Available for-sale financial assets
are non-derivative financial assets that are designated as available-for-sale or are not classified in any of the above categories
of financial assets. Available-for-sale financial assets are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses, are
recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is
derecognised, the cumulative gain or loss is reclassified to profit or loss.
Non-derivative financial liabilities
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All
other financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the
contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Other financial liabilities comprise trade and other payables.
Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as
a deduction from equity, net of any tax effects.
(g) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date on which control
commences until the date on which control ceases. The accounting policies of the subsidiaries have been changed when
necessary to align them with the policies adopted by the Group.
Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and
are presented separately in the Statement of Profit or Loss and Other Comprehensive Income and within equity in the
Consolidated Statement of Financial Position. Losses are attributed to the noncontrolling interests even if that results in a
deficit balance.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the
controlling and non-controlling interests to reflect their relative interests in the subsidiary.
Loss of control
On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and
other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit
or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that
control is lost. Subsequently that retained interest is accounted for as an equity accounted investee or as an available-for-sale
financial asset depending on the level of influence retained.
Investments in associates and jointly controlled entities are accounted for under the equity method and are initially recognised
at cost. The cost of the investment includes transaction costs.
Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are
eliminated in preparing the consolidated financial statements.
(h) Tax
Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or
items recognised directly in equity or in other comprehensive income.
37 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
n temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss;
n temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the
reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; or
n taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at
the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it
is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(i) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
(j) Impairment
Non-derivative financial assets
A financial asset not classified as at fair value through profit or loss is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates
that one or more events have had a negative effect on the estimated future cash flows of that asset.
For an investment in an equity security classified as available-for-sale, a significant or prolonged decline in its fair value below
its cost is objective evidence of impairment. The Group consider a decline of 20 per cent to be significant and a period of 9
months to be prolonged.
Financial assets measured at amortised cost
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are
assessed collectively in groups that share similar credit risk characteristics.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.
Losses are recognised within profit or loss. When an event occurring after the impairment was recognised causes the amount
of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Available-for-sale financial assets
Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value
reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between
the acquisition cost and the current fair value, less any impairment loss recognised previously in profit or loss. Any subsequent
recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income.
38 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is
estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available for use, the recoverable
amount is estimated each year at the same time.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For
impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or loss.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(k) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided internally to the CEO, who
is the Group’s chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All
operating segments’ operating results are regularly reviewed by the Group’s CEO to make decisions about resources to be
allocated to the segment and assess its performance.
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters),
head office expenses, and income tax assets and liabilities.
(l) Employee benefits
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided.
Share-based payment transactions
The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with
a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The
amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market
vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the
number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
(m) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of
the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
Site restoration
In accordance with the Group’s environmental policy and applicable legal requirements, a provision for site restoration in
respect of contaminated land, and the related expense, is recognised when the land is contaminated.
39 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
(n) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1
July 2017, and have not been applied in preparing these consolidated financial statements. Those which may be relevant to
the Group are set out below. The Group does not plan to adopt these standards early.
AASB 9 Financial Instruments
AASB 9 published in July 2014, replaces the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement.
AASB 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected
credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also
carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.
AASB 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The
Group does not plan to adopt this standard early and the standard is not expected to have a significant effect on the financial
statements.
4 DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed
in the notes specific to that asset or liability.
Equity securities
The fair values of investments in equity securities are determined with reference to their quoted closing bid price at the
measurement date.
Share-based payment transactions
The fair value of the employee share options is measured using the Black-Scholes formula. Measurement inputs include share
price on the measurement date, exercise price of the instrument, expected volatility (based on an evaluation of the historic
volatility of the Company’s share price, particularly over the historical period commensurate with the expected term), expected
term of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the
risk-free interest rate (based on government bonds). Service and non-market performance conditions are not taken into
account in determining fair value.
40 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
5 OTHER INCOME
Research and development rebate
Government subsidy
6 LOSS FROM OPERATING ACTIVITIES - EXPENSES
Loss from ordinary activities have been
arrived after charging the following items:
Auditors’ remuneration paid during the year
- Audit and review of financial reports – KPMG
Depreciation
- Land and Building
- Plant and equipment
Exploration and evaluation expenditure
expensed as incurred
7 LOSS PER SHARE
2018
$
693,749
141,966
835,715
2018
$
45,500
24,059
23,267
2017
$
709,248
175,878
885,126
2017
$
39,500
24,059
15,202
1,537,773
2,062,759
The calculation of basic and diluted loss per share at 30 June 2018 was based on the loss attributable to ordinary shareholders
of $1,712,330 (2017 - $2,120,074 loss) and a weighted average number of ordinary shares outstanding during the financial year
ended 30 June 2018 of 443,244,168 (2017 – 364,874,457), calculated as follows:
Net loss for the year
1,712,330
2,120,074
Weighted average number of ordinary shares (basic and diluted)
2018
Number
2017
Number
Issued ordinary shares at 1 July
421,414,516
300,302,689
Weighted average number of ordinary shares at 30 June
443,244,168
364,874,457
As the Company is loss making, none of the potentially dilutive securities are currently dilutive.
41 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
8 CASH AND CASH EQUIVALENTS
Cash at bank
Cash and cash equivalents in the statement of cash flows
9 INCOME TAX EXPENSE
Current tax expense
Current year
Tax losses not recognised
Deferred tax expense
Current year
De-recognition of temporary differences
2018
$
2017
$
1,649,466
1,649,466
2,029,005
2,029,005
2018
$
(682,497)
682,497
-
32,621
(32,621)
-
2017
$
(795,895)
795,895
-
43,720
(43,720)
-
Numerical reconciliation between tax expense and pre-tax net profit
Loss before tax - continuing operations
(1,712,330)
(2,120,074)
Prima facie income tax benefit at the Australian tax rate of 27.5%
(470,891)
(583,020)
Increase in income tax expense due to:
- Adjustments not resulting in temporary differences
- Effect of tax losses not recognised
- Unrecognised temporary differences
Income tax expense current and deferred
Deferred tax assets have not been
recognised in respect of the following items
Deductible temporary differences (net)
Tax losses
Net
294,554
208,958
(32,621)
-
279,859
346,881
(43,720)
-
78,936
6,731,946
6,810,882
134,698
6,522,988
6,657,686
The deductible temporary differences and tax losses do not expire under the current tax legislation. Deferred tax assets have not
been recognised in respect of these items because it is not probable that future taxable profit will be available against which the
Company can utilise the benefits of the deferred tax asset.
42 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
10 TRADE AND OTHER RECEIVABLES
Current
Other debtors
11 OTHER ASSETS
Current prepayments
12 PROPERTY PLANT AND EQUIPMENT
Land and Buildings
Land and Building - at cost
Accumulated depreciation
Total Land and Buildings – net book value
Plant and Equipment
Plant and equipment - at cost
Accumulated depreciation
Total plant and equipment - net book value
Reconciliations
Reconciliations of the carrying amounts for each class of assets are set out below:
Land and Buildings
Balance at 1 July
Depreciation
Carrying amount at the end of the financial year
Plant and equipment
Balance at 1 July
Additions
Depreciation
Carrying amount at the end of the financial year
Total carrying amount at the end of the financial year
43 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
2018
$
2017
$
-
17,610
23,265
23,265
19,538
19,538
500,278
(168,429)
331,849
155,259
(88,737)
66,522
398,371
355,908
(24,059)
331,849
64,918
24,871
(23,267)
66,522
398,371
500,278
(144,370)
355,908
130,388
(65,470)
64,918
420,826
379,967
(24,059)
355,908
28,471
51,649
(15,202)
64,918
420,826
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
13 TRADE AND OTHER PAYABLES
Current
Creditors
Accruals
14 EMPLOYEE ENTITLEMENTS
Current
Employee annual leave provision
Long service leave provision
Number of employees at the end of the financial year
15 CAPITAL AND RESERVES
Issued and paid up capital
2018
$
2017
$
100,787
25,000
125,787
66,884
24,442
91,326
6
100,685
20,000
120,685
57,225
-
57,225
8
463,959,479 (2017 - 421,414,516) fully paid ordinary shares
29,274,380
28,090,527
Fully paid ordinary shares
Balance at the beginning of the financial year
Issue of shares
Costs of issue
Balance at the end of financial year
28,090,527
24,343,436
1,268,000
(84,147)
4,107,500
(360,409)
29,274,380
28,090,527
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid.
During the year ended 30 June 2018 the following shares were issued:
n On 22 June 2018, the Company issued 1,304,347 ordinary shares for nil consideration under the Option to Purchase Box
Hill farm. This transaction was recorded at a fair value of $30,000 at an issue price based on the five day volume weighted
average price immediately prior to issue date being $0.023 per share.
n On 20 December 2017, the Company issued 40,000,000 ordinary shares and 40,000,000 listed options for cash totalling
$1,200,000. Total issue cost of $84,147 was recognised as a reduction in proceeds of issue of these shares. The listed options
were each exercisable at 10 cents to acquire one fully paid ordinary share which expire on 27 June 2019.
n On 10 November 2017, The Company issued 1,240,616 ordinary shares for nil consideration to Mr Clifton McGilvray as part
of his employment contract. This transaction was recorded at a fair value of $38,000 at an issue price of $0.03 per share.
44 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
During the year ended 30 June 2017 the following shares were issued:
n On 9 June 2017, the Company issued 666,666 ordinary shares for nil consideration under the Option to Purchase Box Hill
farm. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted
average price immediately prior to issue date being $0.03 per share. The total issue cost of $1,925 was recognised as a
reduction in equity.
n On 27 April 2017, the Company issued 60,000,000 ordinary shares and 30,000,000 listed options for cash totalling
$2,280,000. Total issue cost of $214,706 was recognised as a reduction in proceeds of issue of these shares. The listed
options were each exercisable at 10 cents to acquire one fully paid ordinary share which expire on 27 June 2019.
n On 16 February 2017, the Company issued 645,161 ordinary shares as part consideration for consultancy services provided.
This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average
price immediately prior to issue date being $0.031 per share.
n On 24 October 2016, The Company issued 1,300,000 ordinary shares for nil consideration to Mr Clifton McGilvray as part of
his employment contract. This transaction was recorded at a fair value of $32,500 at an issue price of $0.025 per share.
n On 17 August 2016, the Company issued 40,403,717 ordinary shares under Tranche 2 of the share placement offer for cash
totalling $1,212,112. Total issue cost of $21,467 was recognised as a reduction in proceeds of issue of these shares.
n On 6 July 2016, the Company issued 18,096,283 ordinary shares under Tranche 1 of the share placement offer for cash
totalling $542,888. Total issue cost of $122,310 was recognised as a reduction in proceeds of issue of these shares.
Terms and conditions - Shares
Holders of ordinary shares are entitled to receive dividends as declared and, are entitled to one vote per
share at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank after
creditors and are fully entitled to any proceeds of liquidation.
Option Reserves
At the beginning of the year
Options lapsed during the reporting period
Share Based Payments - Options
Balance at the end of the period
2018
$
143,636
(11,604)
61,497
193,529
2017
$
61,796
(61,796)
143,636
143,636
45 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Listed options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise period
Exercise
Price
Opening
Balance
1 July 2017
Number
Options
Issued
Number
(xv)
Options
Expired/Exercised
Number
Closing
Balance
30 June 2018
Number
On or before
27 June 2019
$0.10
147,000,000
40,000,000
-
187,000,000
Exercise period
Exercise
Price
Opening
Balance
1 July 2016
Number
Options
Issued
Number
(ii), (xii)
Options
Expired/Exercised
Number
Closing
Balance
30 June 2017
Number
On or before
27 June 2019
$0.10
-
147,000,000
-
147,000,000
Unlisted options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise period
Exercise
Price
Opening
Balance
1 July 2017
Number
Options Issued
Expired/Exercised
Number
(xiii) (xiv)
Closing
Balance
30 June 2018
Number
On or before
30 September 2021
On or before
30 September 2021
On or before
30 September 2021
$0.03
$0.06
$0.10
4,000,000
(500,000)
3,500,000
4,000,000
(500,000)
3,500,000
4,500,000
-
4,500,000
Exercise period
Exercise
Price
Opening Balance
1 July 2016
Number
(i)
Options Issued/
(Expired)/(Exercised)
Number
(iii), (iv), (v), (vi), (vii),
(viii), (ix), (x), (xi)
Closing Balance
30 June 2016
Number
On or before
29 August 2016
On or before
30 September 2021
On or before
30 September 2021
On or before
30 September 2021
$0.25
$0.03
$0.06
$0.10
6,574,000
(6,574,000)
-
-
-
-
4,000,000
4,000,000
4,000,000
4,000,000
4,500,000
4,500,000
46 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
(i) On 29 August 2013, the Company issued 6,574,000 unlisted options as part of consideration for management
services in respect to the May 2013 capital raising.
(ii) On 22 August 2016, the Company issued 117,000,000 10 cents listed options to sophisticated investors with
respect to July and August 2016 capital raising.
(iii) On 29 August 2016, 6,574,000 unlisted options expired.
(iv) On 24 October 2016, the Company issued 1,500,000 3 cents unlisted options to its employees under the Employee
Share Scheme.
(v) On 24 October 2016, the Company issued 1,500,000 6 cents unlisted options to its employees under the Employee
Share Scheme.
(vi) On 24 October 2016, the Company issued 1,500,000 10 cents unlisted options to its employees under the
Employee Share Scheme.
(vii) On 2 November 2016, the Company issued 2,000,000 3 cents unlisted options to Mr David Busch under the
Employee Share Scheme.
(viii) On 2 November 2016, the Company issued 2,000,000 6 cents unlisted options to Mr David Busch under the
Employee Share Scheme.
(ix) On 2 November 2016, the Company issued 3,000,000 10 cents unlisted options to Mr David Busch under the
Employee Share Scheme.
(x) On 30 November 2016, the Company issued 500,000 3 cents unlisted options to its employee under the Employee
Share Scheme.
(xi) On 30 November 2016, the Company issued 500,000 6 cents unlisted options to its employee under the Employee
Share Scheme.
(xii) On 27 April 2017, the Company issued 30,000,000 10 cents listed options to sophisticated investors in relation to
April 2017 placement.
(xiii) On 15 September 2017, the Company cancelled 500,000 6 cents unlisted options issued under the Employee
Share Scheme following the employee resignation.
(xiv) On 15 November 2017, the Company cancelled 500,000 3 cents unlisted options issued under the Employee Share
Scheme following the employee resignation.
(xv) On 20 December 2017, the Company issued 40,000,000 10 cents listed options to sophisticated investors with
respect to December 2017 capital raising.
47 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
16 STATEMENT OF CASH FLOWS
Reconciliation of cash flows from operating activities
Loss for the period
(1,712,330)
(2,120,074)
2018
$
2017
$
Adjustments for:
Depreciation of plant and equipment
Share based payments
Changes in assets and liabilities
Decrease/(Increase) in receivables
Decrease/ (Increase) in prepayments
Surplus on disposal of plant and equipment
(Decrease)/Increase in payables and provisions
Shares issued for non-cash
47,326
61,497
17,610
(3,727)
-
39,203
68,000
39,2615
143,636
(17,610)
(1,636)
-
29,748
70,575
Net cash used in operating activities
(1,482,421)
(1,856,100)
17 RELATED PARTIES
Key management personnel and director transactions
The following key management personnel holds a position in another entity that results in them having control or joint control
over the financial or operating policies of that entity, and this entity transacted with the Company during the year as follows:
n During the year ended 30 June 2018, Peter Nightingale had a controlling interest in an entity, MIS Corporate Pty Limited,
which provided full administrative services, including rental accommodation, administrative staff, services and supplies, to
the entity. Fees paid to MIS Corporate Pty Limited until his resignation as a Director amounted to $77,700 (2017 - $124,000).
There were no outstanding amounts at 30 June 2018 (2017 - $nil).
n During the year ended 30 June 2018, Peter Wall had a beneficial interest in an entity, Steinepreis Paganin Lawyers &
Consultants, which provided legal consulting services on ordinary commercial terms. Fees paid to Steinepreis Paganin
Lawyers & Consultants amounted to $1,523 (2017 - $nil). There was $1,523 outstanding at 30 June 2018.
Key management personnel compensation
During the year ended 30 June 2017 compensation of key management personnel totalled $531,049 (2016 - $339,010), which
comprised primary salary and fees of $422,795 (2016 - $385,641), superannuation of $29,763 (2016 - $32,406), and share
based payments of $78,491 (2016 - $79,037). During the 2017 and 2016 financial years, no long term benefits or termination
payments were paid.
48 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
18 COMMITMENTS AND CONTINGENCIES
a) Contingent Liabilities
The Group is undergoing a review by AusIndusry of the R&D claims it made for the 2016 and 2017 financial years totalling
$1,402,997. As at date of this report, the claims are still under review by AusIndustry and a finding has yet to be issued on the
eligibility of the R&D expenditure that was claimed. The Directors are of the view that the claims are in compliance with the
legislation and that it is not probable the Group will be required to repay the R&D claims outlined above. In the event that the
review is unsuccessful the Group may be required to repay up to $1,402,997 plus penalties and interest. No liability has been
recorded in relation to the above matter for the year ended 30 June 2018.
19 SHARE BASED PAYMENTS
The Company has an Incentive Option Plan to provide eligible persons, being employees or directors, or individuals whom
the Plan Committee determine to be employees for the purposes of the Plan, with the opportunity to acquire options over
unissued ordinary shares in the Company. The number of options granted or offered under the Plan will not exceed 10% of
the Company’s issued share capital and the exercise price of options will be the greater of the market value of the Company’s
shares as at the date of grant of the option or such amount as the Plan Committee determines. Options have no voting
or dividend rights. The vesting conditions of options issued under the plan are based on minimum service periods being
achieved. There are no other vesting conditions attached to options issued under the plan.
In the event that the employment or office of the option holder is terminated, any options which have not reached their
exercise period will lapse and any options which have reached their exercise period may be exercised within two months of
the date of termination of employment. Any options not exercised within this three month period will lapse.
The following options were on issue at 30 June 2018:
Grant Date
Expiry Date
Vesting Date
Exercise
Price
Fair Value
of Options
Granted
Expired
During
the Period
Number
Balance at
the end of
the period
Number
24 October 2016
30 September 2021
24 October 2016
24 October 2016
30 September 2021
31 December 2017
24 October 2016
30 September 2021
31 December 2018
2 November 2016
30 September 2021
2 November 2016
2 November 2016
30 September 2021
31 December 2017
2 November 2016
30 September 2021
31 December 2018
30 November 2016
30 September 2021
30 November 2016
30 November 2016
30 September 2021
31 December 2017
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.06
$30,154
$26,826
$24,052
$41,982
$37,417
$50,397
$7,884
$6,948
-
-
-
-
-
-
500,000
500,000
1,500,000
1,500,000
1,500,000
2,000,000
2,000,000
3,000,000
-
-
$225,660
1,000,000
11,500,000
49 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
The following options were granted during the year ended 30 June 2017 and were on issue at 30 June 2017.
Grant Date
Expiry Date
Vesting Date
Exercise
Price
Fair Value
of Options
Granted
Granted
During
the Period
Number
Balance at
the end of
the period
Number
24 October 2016
30 September 2021
24 October 2016
24 October 2016
30 September 2021
31 December 2017
24 October 2016
30 September 2021
31 December 2018
2 November 2016
30 September 2021
2 November 2016
2 November 2016
30 September 2021
31 December 2017
2 November 2016
30 September 2021
31 December 2018
30 November 2016
30 September 2021
30 November 2016
30 November 2016
30 September 2021
31 December 2017
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.06
$30,154
1,500,000
1,500,000
$26,826
1,500,000
1,500,000
$24,052
1,500,000
1,500,000
$41,982
2,000,000
2,000,000
$37,417
2,000,000
2,000,000
$50,397
3,000,000
3,000,000
$7,884
$6,948
500,000
500,000
500,000
500,000
$225,660
12,500,000
12,500,000
Fair value of options
The fair value of options granted is measured at grant date and recognised as an expense over the period during which the
key management and the employees become unconditionally entitled to the options.
The fair value of the options granted is measured using an option valuation methodology, taking into account the terms
and conditions upon which the options were granted. The amount recognised as an expense isadjusted to reflect the actual
number of options that vest.
There were no options granted as consideration during and subsequent to the year end and 1,000,000 options lapsed during
the year.
The fair value of options granted on 24 October 2016 was $81,032. The Black-Scholes formula model inputs were the
Company’s share price of $0.026 at the grant date, the volatility factor of 110% based on historic share price performance, a risk
free interest rate of 1.84% based on government bonds, and a dividend yield of 0%.
The fair value of options granted on 2 November 2016 was $129,796. The Black-Scholes formula model inputs were the
Company’s share price of $0.027 at the grant date, the volatility factor of 110% based on historic share price performance, a risk
free interest rate of 1.87% based on government bonds, and a dividend yield of 0%.
The fair value of options granted on 30 November 2016 was $14,832. The Black-Scholes formula model inputs were the
Company’s share price of $0.021 at the grant date, the volatility factor of 111.53% based on historic share price performance, a
risk free interest rate of 2.16% based on government bonds, and a dividend yield of 0%.
During the year ended 30 June 2018, share based payment expense of $61,497 was recorded in the profit and loss (2017 -
$143,636).
No ordinary shares have been issued as a result of the exercise of any option granted pursuant to the Incentive Option Plan
during the current and prior financial year.
During the year ended 30 June 2018, 3,500,000 (2017- 3,500,000) share options vested and 3,000,000 yet to be vested at
balance date. During the year, 1,000,000 options expired following the resignation of an employee (2017 - nil).
50 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
A summary of the movements of all the Company’s options issued as share based payments is as follows:
2018
2017
Number
of
options
Weighted
average
exercise
price
Number
of
options
Weighted
average
exercise
price
Outstanding at the beginning
12,500,000
$0.065
6,574,000
Granted
Expired
Options outstanding at year end
Exercisable at year end
-
-
12,500,000
1,000,000
11,500,000
7,000,000
$0.045
$0.067
$0.045
6,574,000
12,500,000
4,000,000
$0.25
$0.065
$0.25
$0.065
$0.03
The weighted average remaining contractual life of share options outstanding at the end of 30 June 2018 was 1.12 years (2017
- 2.17 years), and the weighted average exercise price was $0.067 (2017 - $0.065).
(i) On 24 October 2016, The Company issued 1,300,000 ordinary shares for nil consideration to Mr Clifton McGilvray as part of
his employment contract. This transaction was recorded at a fair value of $32,500 at an issue price of $0.025 per share.
(ii) On 16 February 2017, the Company issued 645,161 fully paid ordinary shares as consideration for consultancy services
provided to the Company. This transaction was recorded at a fair value of $20,000 at an issue price at an issue price of $0.031
per share.
(iii) On 9 June 2017, the Company issued 666,666 fully paid ordinary shares as part consideration under the binding option
term sheet, to the owners of a key property within the proposed Kempfield Polymetallic Project site. The transaction was
recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior
to issue date being $0.03 per share.
(iv) On 10 November 2017, the Company issued 1,240,616 ordinary shares for nil consideration to Mr Clifton McGilvray as part
of his employment contract. This transaction was recorded at a fair value of $38,000 at an issue price of $0.03 per share.
(v) On 22 June 2018, the Company issued 1,304,347 fully paid ordinary shares as part consideration under the binding option
term sheet, to the owners of a key property within the proposed Kempfield Polymetallic Project site. The transaction was
recorded at a fair value of $30,000 at an issue price based on the five day volume weighted average price immediately prior
to issue date being $0.023 per share.
51 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
20 FINANCIAL INSTRUMENTS
Financial risk management objectives and policies
The Group’s financial instruments comprise deposits with banks, receivables, other deposits, trade and other payables and from
time to time short term loans from related parties. The Group does not trade in derivatives or in foreign currency.
The Group manages its risk exposure of its financial instruments in accordance with the guidance of the audit and the
risk management committee and the Board of Directors. The main risks arising from the Group’s financial instruments are
market risk, credit risk and liquidity risks. This note presents information about the Group’s exposure to each of these risks, its
objectives, policies and processes for measuring and managing risk, and the Group’s management of capital.
Risk management framework
The Board has overall responsibility for the establishment and oversight of the risk management framework. Informal risk
management policies are established to identify and analyse the risks faced by the Group. The primary responsibility to
monitor the financial risks lies with the CEO and the Company Secretary under the authority of the Board.
Credit risk
Credit risk arises mainly from the risk of counterparties defaulting on the terms of their agreements.
The carrying amounts of the following assets represent the Group’s maximum exposure to credit risk in relation to financial
assets:
Note
8
10
2018
$
2017
$
1,649,466
2,029,005
-
83,100
17,610
95,000
1,732,566
2,141,615
Cash and cash equivalents
Trade and other receivables
Security deposits
Cash and cash equivalents
The Group mitigates credit risk on cash and cash equivalents by dealing with regulated banks in Australia.
Trade and other receivables
Credit risk of trade and other receivables is very low as it usually consists predominantly of amounts recoverable from taxation
and other government authorities in Australia.
Security deposits of $83,100 held as deposits with government departments and regulated banks within Australia are the only
non-current financial assets held by the Group. All other financial assets are current and are not past due or impaired and the
Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments
entered into by the Group.
52 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s
reputation.
Ultimate responsibility for liquidity management rests with the Board. The Group monitors rolling forecasts of liquidity on the
basis of expected fund raisings, trade payables and other obligations for the ongoing operation of the Group. At balance date,
the Group has available funds of $1,649,466 for its immediate use.
The following are the contractual maturities of financial liabilities, including estimated interest payments:
30 June 2018
Trade and other payables
30 June 2017
Trade and other payables
Carrying
amount
Contractual
cash
flows
Less
than one
year
Between
one and
five years
Interest
$
$
$
125,787
(125,787)
(125,787)
$
-
$
-
120,685
(120,685)
(120,685)
-
-
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
Market Risks
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
Interest rate risk
The Group’s income statement is affected by changes in interest rates due to the impact of such changes on interest income
from cash and cash equivalents and interest bearing security deposits. The average interest rate on funds held during the year
was 1.19% (2017 - 1.34%).
At balance date, the Group had the following mix of financial assets exposed to variable interest rate risk that
Financial assets
Cash and cash equivalents
Security deposits
Net exposure
Note
8
2018
$
1,649,466
35,000
1,684,466
2017
$
2,029,005
57,000
2,086,005
The Group did not have any interest bearing financial liabilities in the current or prior year.
The Group does not have interest rate swap contracts. The Group always analyses its interest rate exposure when considering
renewals of existing positions including alternative financing.
53 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
Sensitivity Analysis
The following sensitivity analysis is based on the interest rate risk exposures at balance date.
An increase of 100 basis points in interest rates throughout the reporting period would have decreased the loss for the period
by the amounts shown below, whilst a decrease would have increased the loss by the same amount. The Company’s equity
consists of fully paid ordinary shares. There is no effect on fully paid ordinary shares by an increase or decrease in interest rates
during the period.
2018
$
20,602
2017
$
14,452
Currency risk
The Consolidated entity is not exposed to any foreign currency risk as at 30 June 2018 (2017 - $nil).
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business.
The Board ensures costs are not incurred in excess of available funds and will seek to raise additional funding through issues of
shares for the continuation of the Group’s operations. There were no changes in the Group’s approach to capital management
during the year.
The Group is not subject to externally imposed capital requirements.
Estimation of fair values
The carrying amounts of financial assets and liabilities approximate their net fair values, given the short time frames to maturity
and or variable interest rates.
21 SEGMENT REPORTING
For management purposes, the consolidated entity is organised into one main operating segment, which involves the
exploration of minerals in Australia. All of the consolidated entity’s activities are interrelated, and discrete financial information
is reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon analysis of the
consolidated entity as one segment.
The financial results from this segment are equivalent to the financial statements of the consolidated entity as a whole.
The accounting policies applied for internal reporting purposes are consistent with those applied in the preparation of these
financial statements.
54 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
22 SUBSIDIARIES
The parent entity, Argent Minerals Limited, has a 100% interest in Argent (Kempfield) Pty Ltd, Loch Lilly Pty Ltd, West Wyalong
Pty Ltd, Sunny Silver Pty Ltd and Mt Read Pty Ltd. Argent Minerals Limited is required to make all the financial and operating
policy decisions for these subsidiaries.
Subsidiaries of Argent Minerals Limited
Country of incorporation
Ownership percentage
Argent (Kempfield) Pty Ltd
Loch Lilly Pty Ltd
West Wyalong Pty Ltd
Sunny Silver Pty Ltd
Mt Read Pty Ltd
Australia
Australia
Australia
Australia
Australia
2018
100%
100%
100%
100%
100%
2017
100%
100%
100%
100%
-
55 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
23 PARENT COMPANY DISCLOSURE
(a) Financial Position as at 30 June 2018
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non- current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Transfer from Reserves
Accumulated losses
Total equity
2018
$
1,603,739
20,992
1,624,731
131,979
-
131,979
2017
$
2,046,509
54,366
2,100,875
135,099
-
135,099
1,492,752
1,965,776
29,274,380
193,529
11,604
(27,986,761)
1,492,752
28,090,527
143,636
-
(26,268,387)
1,965,776
There are no contingencies, commitments and guarantees by the Parent other than disclosed in Note 18.
(b) Financial Performance for the year ended 30 June 2018
Loss for the year
Other comprehensive income
Total comprehensive loss
1,718,374
-
1,718,374
2,178,256
-
2,178,256
56 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
NOTES TO THE FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2018
24 JOINT VENTURES
West Wyalong
The Group has entered into the Farm in and Joint Venture Agreements with Golden Cross Operations Pty Ltd, a wholly owned
subsidiary of Golden Cross Resources Limited (ASX:GCR).
During the prior year, under the terms of the Farm in and Joint Venture Agreement, Argent earned a 70% interest in the West
Wyalong Project by spending a total of $1,350,000 by 31 March 2017.
Following the Company increasing its ownership of the West Wyalong project to 70%, under the West Wyalong Farm in and
Joint Venture Agreement, the Group’s 30% partner will either contribute their share of exploration expenditure or be diluted.
As at 30 June 2018, the joint venture partner decided to not contribute their share of exploration expenditure amounting
to $36,592 (2017 - $163,458). Following this election the Company now owns 78.14% (2017 - 76.72%) of the West Wyalong
Project.
Loch Lilly
On 12 February 2017, the Group entered into joint venture agreement to earn a 51% interest, then 70% and 90% in the Loch
Lilly Project, with exploration licences and applications covering a significant area of the Loch Lilly – Kars Belt of over 1,400km2.
The joint venture continues until the Company earns 90% or withdraws from the joint venture.
The Company earned a 51% interest in the joint venture completing a drill program to test two geophysical targets during the
year. A 70% interest will be earned by the Company investing a further $200,000 in exploration expenditure of the project
area, plus a payment of $50,000. There is no time limit by which the expenditure is to be completed other than that implied
by the regulatory expenditure requirements. A 90% interest will be earned by the Company investing a further $250,000 in
exploration expenditure of the project area, plus a payment of $50,000. There is no time limit by which the expenditure is to be
completed other than that implied by the regulatory expenditure requirements.
The Company continues as sole contributor to project expenditure until a decision to mine.
Either party may withdraw from the joint venture on provision of a 30 day notice of withdrawal. In the event that the Company
withdraws after it has earned a 51% interest but no further interest, its interest will revert to 49%. In any case if the Company
withdraws more than three months into the relevant tenement regulatory annual licence period, it must fund the other party’s
minimum regulatory expenditure for the reminder of that annual period.
Sunny Corner
The Group earned a 70% interest of the Sunny Corner Project tenements on 16 May 2013.
25 SUBSEQUENT EVENTS
No matters or circumstances have arisen since the end of the financial year which significantly affected or
could significantly affect the operations of the consolidated entity, the results of those operations, or the state
of the affairs of the consolidated entity in future financial years.
57 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
DIRECTORS’ DECLARATION
1. In the opinion of the directors of Argent Minerals Limited (the Company):
(a) the consolidated financial statements and notes thereto, set out on pages 30 to 57, and the Remuneration
Report in the Directors Report, as set out on pages 23 to 27, are in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance for
the financial year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
chief executive officer and chief financial officer for the financial year ended 30 June 2018.
3. The directors draw attention to note 2(a) of the consolidated financial statements, which includes a statement of
compliance with International Financial Reporting Standards.
Signed at Sydney this 24th day of September 2018 in accordance with a resolution of the Board of Directors.
PETER WALL
Chairman
PETER MICHAEL
Director
58 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
59 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
60 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
61 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
62 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
23 to 27
63 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
SHAREHOLDER INFORMATION
ADDITIONAL STOCK EXCHANGE INFORMATION
Home Exchange
The Company is listed on the ASX Limited. The home exchange is Perth.
Use of Cash and Assets
Since the Company’s listing on the ASX, the Company has used its cash and assets in a way consistent with its stated business
objectives.
Class of Shares and Voting Rights
There is only one class of shares in the Company, fully paid ordinary shares.
The rights attaching to shares in the Company are set out in the Company’s Constitution. The following is a summary of the
principal rights of the holders of shares in the Company.
Every holder of shares present in person or by proxy, attorney or representative at a meeting of shareholders has one vote
on a vote taken by a show of hands, and, on a poll every holder of shares who is present in person or by proxy, attorney or
representative has one vote for every fully paid share registered in the shareholder’s name on the Company’s share register.
A poll may be demanded by the chairperson of the meeting, by at least 5 shareholders entitled to vote on
Distribution of Equity Securityholders
As at 3 September 2018, the distribution of each class of equity was as follows:
Range
Fully Paid
Ordinary Shares
Holders
Total Number
of Shares
27 June 2019
$0.10 Listed
Option Holders
Total Number
of Listed
Options
QUOTED SECURITIES
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
132
197
177
1,012
519
12,543
683,885
1,553,974
45,128,029
416,581,048
2,037
463,959,479
2
-
-
22
146
170
3
-
-
1,620,067
185,379,930
187,000,000
At 3 September 2018, 990 shareholders held less than a marketable parcel of shares and 48 listed option holders held less than
a marketable parcel of options.
64 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
UNQUOTED SECURITIES
Range
30 September 2021
$0.03 Unlisted
Options
30 September 2021
$0.06 Unlisted
Options
30 September 2021
$0.10 Unlisted
Options
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
-
-
-
-
3
3
-
-
-
-
3
3
-
-
-
-
3
3
65 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
7.14
5.12
4.72
2.56
2.16
1.74
1.53
1.46
1.26
1.22
1.06
1.06
1.03
0.97
0.93
0.90
0.89
0.86
0.86
0.83
SHAREHOLDER INFORMATION
Twenty Largest Quoted Shareholders
At 3 September 2018 the twenty largest fully paid ordinary shareholders held 38.30% of fully paid ordinary as follows:
Fully Paid Ordinary Shares %
Name
1 Oceanic Capital Pty Ltd
2 Mr Marc David Harding
3 HSBC Custody Nominees (Australia) Limited
4 Redland Plains Pty Ltd
5 Mr John Henry Matterson
6
St Barnabas Investments Pty Ltd
7 AWD Consultants Pty Ltd
8 Mr Danny Murphy+Mrs Susan Murphy
9
Busch Custodians Pty Limited
10 Mr David Ian Raymond Hall + Mrs Denise Allison Hall
33,141,574
22,755,539
21,892,797
11,896,791
10,000,000
8,088,031
7,088,889
6,779,107
5,866,751
5,648,485
11 Mr Shane Peter Matterson + Mrs Sharyn Alison Matterson
4,930,337
12 Dixtru Pty Limited
13 Struven Nominees Pty Ltd
14 WGS Pty Ltd
15 Metugo Pty Ltd
16 Yarandi Investments Pty Limited
17 Mr John Anthony Cooper + Mrs Robyn Liddell Cooper
18
Caves Road Investments Pty Ltd
19 J P Morgan Nominees Australia Limited
20
Rigi Investments Pty Limited
There are no current on-market buy-backs.
4,920,442
4,800,000
4,500,000
4,300,000
4,153,253
4,147,997
4,000,000
3,970,500
3,838,889
66 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
SHAREHOLDER INFORMATION
Twenty Largest Quoted Option Holders
At 3 September 2018 the twenty largest option holders held 52.64% of listed options as follows:
13.65
7.38
3.21
2.56
2.56
2.34
2.34
2.08
1.96
1.78
1.73
1.58
1.39
1.34
1.31
1.20
1.07
1.07
1.07
1.01
Quoted Options
%
Name
1 Mr Marc David Harding
2 Oceanic Capital Pty Ltd
3
4
5
First Investment Partners Pty Ltd
Redland Plains Pty Ltd
Busch Custodians Pty Limited
6 Dixtru Pty Limited
7 Mr David Ian Raymond Hall + Mrs Denise Allison Hall
8 Mr Yuan-Hsiang Chung
9 Mr Danny Murphy + Mrs Susan Murphy
10 Mr Jason Dawkins
11 Mr Paul Poli
12 Mr Stephen Klinakis
13 Mr Kerry Gilbert Parkin + Ms Janine Sue Prentice
14 Pontre Securities Pty Ltd
15 Mr Mark Balinski + Miss Shelley Marie Guy < Guy Balinski SMSF A/C>
16 Yarandi Investments Pty Limited
17
Ileveter Pty Ltd
25,533,093
13,798,271
6,000,000
4,786,930
4,784,933
4,383,334
4,383,334
3,883,126
3,662,282
3,333,334
3,241,666
2,962,105
2,600,000
2,500,000
2,450,000
2,250,002
2,000,000
18 Mr Earl Grant Saunders + Mr Clinton James Saunders < Saunders Superfund A/C>
2,000,000
19 Mrs Lynn Porteus
20 Clariden Capital Pty Ltd
Substantial Shareholders
2,000,000
1,883,332
The names of the substantial shareholders who have notified the Company in Accordance with Section 671B of the
Corporations Act 2011 are:
Shareholder
Ordinary shares held
Percentage interest %
Oceanic Capital Pty Ltd
Mr Marc David Harding
33,141,574
22,755,539
7.14%
5.12%
67 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
SCHEDULE OF MINERAL TENEMENTS
New South Wales - Australia
Tenement Identifier
Location
Current Equity Interest
Kempfield
EL5645 (1992)
EL5748 (1992)
EL7134 (1992)
EL7785 (1992)
EL7968 (1992)
EL8213 (1992)
PLL517 (1924)
PLL519 (1924)
PLL727 (1924)
PLL728 (1924)
West Wyalong
EL8430 (1992)
Loch Lilly
EL8199 (1992)
EL8200 (1992)
EL8515 (1992)
EL8516 (1992)
Queensbury
EL9/2016
Ringville
EL12/2017
Sunny Corner
EL5964 (1992)
Notes
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
TAS
TAS
NSW
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
78.20%3
51%4
51%4
51%4
51%4
100%
100%
70%5
1. The definition of “Mining Tenement” in ASX Listing Rule 19.12 is “Any right to explore or extract minerals in a given place”.
2. For all Kempfield tenements the tenement holder is Argent (Kempfield) Pty Ltd, a wholly owned subsidiary of Argent
Minerals Limited.
3. Under the West Wyalong Joint Venture and Farmin Agreement dated 8 June 2007 between Golden Cross Operations Pty Ltd
and Argent as tenement holder (WWJVA), Argent has earned a 70% interest. The ongoing interests of the parties includes
WWJVA expenditure contribution and dilution provisions commencing on a 70/30 basis.
4. The tenement holder for EL8199 and EL8200 is San Antonio Exploration Pty Ltd (SAE), and for EL8515 and EL8516 it is Loch
Lilly Pty Ltd (LLP), a 100% owned subsidiary of Argent Minerals Limited. Under the Loch Lilly Farmin and Joint Venture
Agreement (JVA) dated 12 February 2017 (effective date 17 February 2017), the respective ownership of all the tenements
by the JVA Parties (SAE and LLP) is according to their respective JVA Interests. LLP has the right to earn up to a 90% interest,
with the first 51% interest to be earned by completing the drill test for the Eaglehawk and Netley targets. For further details
on Farmin terms and conditions see ASX announcement 20 February 2017 – Argent secures strategic stake in Mt. Read
equivalent belt.
5. The tenement holder is Golden Cross Operations Pty Ltd.
68 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
KEMPFIELD (NSW, AUSTRALIA - 100% ARGENT)
RESOURCE SUMMARY
The updated Kempfield JORC 2012 Mineral Resource estimate as announced on 30 May 2018 is summarised in the following
table at cut-off grades of 25 g/t Ag for Oxide/Transitional and 80 g/t Ag equivalent1 for Primary:
Table 1 - Kempfield Mineral Resource Summary - 30 June 2018
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Contained
Metal Equivalent2
Ag Eq
Resource
Tonnes
(Mt)
Grade
(g/t)
Contained
Metal
(Moz)
Grade
(g/t)
Contained
Metal
(000 oz)
Grade
(%)
Contained
Metal
(000 t)
Grade
(%)
Contained
Metal
(000 t)
Grade
(Zn Eq
%)
Grade
(Zn Eq
(000t)
Grade
(Ag Eq
g/t)
Contained
Ag Eq
(Moz)
6.0
55
11
0.11
21
N/Ri N/Ri N/Ri
N/Ri
1.0
62
64
12
Oxide/
Transitional*
Primary**
Total***
20
26
35
40
23
0.13
81
0.60
120
1.3
250
2.3
450
140
91
33
0.12 100 0.46 120
1.0
250
2.0
520 120
100
* 90% ** 76% *** 79%: % of material class tonnes in Measured or Indicated Category (see Table 4 for details). 1. See Note 1
for details. 2. See Note 2 for details. i : Not recoverable.
EXPLORATION TARGET ESTIMATE
An Exploration Target for potential mineralisation, additional to the existing resource, was estimated by H&S Consultants Pty
Ltd (H&SC) and announced on 6 June 2018, and is restated as follows as at 30 June 2018:
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Contained
Metal Equivalent2
Ag Eq
Approx.
Range
Lower
Upper
Resource
Tonnes
(Mt)
Grade
(g/t)
Contained
Metal
(Moz)
Grade
(g/t)
Contained
Metal
(000 oz)
Grade
(%)
Contained
Metal
(000 t)
Grade
(%)
Contained
Metal
(000 t)
Grade
(Zn Eq
%)
Contained
(Zn Eq
(000t)
Grade
(Ag Eq
g/t)
Contained
Ag Eq
(Moz)
20
50
20
40
13
64
0.1
64
0.3
60
0.7
140
1.3
300
80
58
0.2
320
0.5
250
1.0
500
2.1 1,000 130
190
Exploration Target Notes:
a) An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological
setting where the statement or estimate, quoted as a range of tonnes and a range of grade, relates to mineralisation for which
there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade of the Exploration
Target is conceptual in nature, there has been insufficient exploration to estimate an additional Mineral Resource and it is
uncertain if further exploration will result in the estimation of an additional Mineral Resource.
b) Same as for the Mineral Resource, Ag Eq is based on US$16.77/oz Ag, US$1,295/oz Au, US$2,402/t Pb, and US$3,219/t Zn, recoverable at 86% of
head grade for Ag, 90% for Au, 92% for Zn, and 53% for Pb. For calculation details see Note 2.
c) The upper and lower grades of the Exploration Target estimate do not necessarily correspond to the upper and lower tonnages, nor do the upper
and lower grades for each element necessarily correspond.
d) The Exploration Target estimate is based on a cutoff grade 80 g/t Ag Eq.
e) The Exploration Target has been estimated on the basis of a combination of Exploration Results and the proposed exploration programmes set out
under the heading ‘About the resource infill drilling programme’ in the 8 November 2017 announcement – Kempfield Exploration Target. A detailed
technical description of the Exploration Target estimation methodology employed by H&SC (which remains unchanged) is provided in Appendix B of
that announcement.
f ) The Exploration Target is based on 515 holes/49,229 metres, with drill hole spacing generally greater than 100 metres, and sample spacing
(downhole) predominantly 1.0 metres.
69 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
RESOURCE DETAILS
Table 2 - Kempfield Mineral Resource - Primary material tonnes and grades by mineralisation zone
Contained Metal Grades
In-situ Contained Metal
Equivalent Grades2
Lens
Zone
Resource
Tonnes
(Mt)
Silver
(Ag)
(g/t)
Gold
(Au)
(g/t)
Zinc
(Zn)
(%)
Lead
(Pb)
(%)
Zinc
Equivalent
(Zn Eq) (%)
Silver
Equivalent
(Ag Eq) (g/t)
1
2
BJ Zone
6.9
Southern Conglomerate Zone
0.20
Zone 1 Total
Quarries Zone
McCarron Zone
7.1
2.8
7.9
Zone 2 Total
11.1
3
West McCarron
Zone 3 Total
Total
Zone 1 + Zone 2 + Zone 3
2.2
2.2
20
47
31
46
27
31
30
22
22
35
0.05
0.29
0.06
0.05
0.17
0.14
0.27
0.27
1.2
0.62
1.2
1.4
1.2
1.3
1.6
1.6
0.37
0.53
0.38
0.66
0.78
0.75
0.58
0.58
2.1
1.7
2.1
2.2
2.3
2.3
2.6
2.6
0.13
1.3
0.60
2.3
130
110
130
140
140
140
160
160
140
* Mineral Resource Model constructed prior to re-characterisation of mineralisation into Zones and Horizons:
BJ Zone Kempfield North = C Horizon and D Horizon
Southern Conglomerate Zone Kempfield South = C Horizon and D Horizon
Quarries Zone Henry Zone = C Horizon & D Horizon
McCarron Zone Kempfield South = A Horizon and B Horizon
West McCarron Zone Kempfield West = FW1 Horizon
Table 3 - Kempfield Mineral Resource by category
Grade (g/t)
Grade (%)
In-situ Grade
(Contained Ag Eq g/t)
Category
Resource
Tonnes
(Mt)
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
Zinc
Equivalent
(Zn Eq %)
Silver
Equivalent
(Ag Eq g/t)
Oxide/Transitional
Measured
Indicated
Inferred
Total Oxide/Transitional
Primary
Measured
Indicated
Inferred
Total Primary
Total Resource
2.7
2.7
0.6
6.0
4.7
10
4.9
20
26
68
47
39
55
49
34
25
35
40
0.11
0.11
0.08
0.11
0.12
0.13
0.12
0.13
0.12
-
-
-
-
0.65
0.57
0.60
0.60
0.46
-
-
-
-
1.3
1.2
1.4
1.3
1.0
1.2
0.9
0.7
1.0
2.5
2.2
2.2
2.3
2.0
76
56
45
64
150
140
140
140
120
70 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Table 4 - Kempfield Mineral Resource tonnes and contained metal in Measured and Indicated categories
Contained Metal
Resource Moz
Silver
Tonnes
(Ag)
(Mt)
‘000 oz
Gold
(Au)
‘000 t
Lead
(Pb)
‘000 t
Zinc
(Zn)
‘000t
In-situ Zinc
Equivalent
(Ag Eq)
Moz
In-situ Silver
Equivalent
(Ag Eq)
Oxide/Transitional
Measured
Indicated
Measured + Indicated
As % of Total
Oxide/Transitional
Primary
Measured
Indicated
Measured + Indicated
As % of Total Primary
Oxide/Transitional + Primary
Measured
Indicated
Total Measured + Indicated
2.7
2.7
5.4
5.8
4.1
9.9
9.3
9.9
19
90%
93%
93%
4.7
10
15
7.5
11
19
19
44
63
-
-
-
-
31
60
90
76%
83%
78%
76%
7.4
13
21
13
15
29
28
54
82
31
60
90
-
-
-
-
60
130
190
74%
59
130
190
As % of Total Resource
79%
86%
81%
76%
74%
Note 1 - 80 g/t Silver Equivalent Cut-off Grade for Primary
33
25
57
93%
120
230
350
76%
150
250
400
78%
6.6
4.9
11
93%
24
46
69
76%
30
51
81
78%
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 is based on a silver equivalent (Ag Eq) cut-off grade of 80 g/t.
A silver equivalent was not employed for the oxide/transitional material estimation and is based on a 25 g/t silver only cut-off
grade.
The contained metal equivalence formula is based on the following assumptions:
$US 16.77/oz
$US 1,295/oz
$US 3,129/tonne
$US 2,402/tonne
Silver price:
Gold price:
Zinc price:
Lead price:
Silver recoverable: 86% of head grade
90% of head grade
Gold recoverable:
92% of head grade
Zinc recoverable:
Lead recoverable:
53% of head grade
The metals pricing is based on the one year historical average daily market close as at 25 May 2018.
The metallurgical recovery assumptions are based on metallurgical testing to date, including the results announced on 12 April
2018. It is the Company’s opinion that all the elements in the metals equivalents calculation have a reasonable potential to be
recovered and sold.
71 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Note 2 – In-situ contained metal equivalent (‘Zn Eq’ and ‘Ag Eq’) calculation details
(i) The zinc equivalent (Zn Eq) is reported for the time for the Kempfield deposit on the basis that zinc is estimated to be the
greatest contributor to potential revenues (45%a).
(ii) The formula for calculating the zinc equivalent grade (% Zn Eq) is:
% Zn Eq = % Zn + % Pb x 0.4422 + g/t Ag x 0.0161 + g/t Au x 1.3017
(iii) The silver equivalent (Ag Eq) is also reported on the basis that a) whilst under current market conditions the estimated silver
contribution to potential revenues follows zinc closely (36%a), the order of metal contributions is highly sensitive to volatile
market prices, which could reverse the order for silver to become the greatest contributor followed by zinc; and b) since the
Company has historically published a silver equivalent, the Company’s opinion is that continuing to do so is in the interest
of transparency for investors.
(iv) The formula for calculating the silver equivalent grade (g/t Ag Eq) is:
g/t Eq Ag = g/t Ag + g/t Au x 80.81 + % Pb x 27.46 + % Zn x 62.08
(v) The above Ag Eq and Zn Eq formulae apply to both the Oxide/Transitional and Primary. For Oxide/Transitional the grade
value for Pb and Zn is entered into each formula as zero.
Note 3 – Rounding and Significant Figures
Figures in the tables in this Mineral Resources and Ore Reserves Statement may not sum precisely due to rounding; the
number of significant figures does not imply an added level of precision.
Note 4 - Comparison with Previous Mineral Resource Estimate
The underlying Mineral Resource estimate that was initially reported on 26 April 2012, subsequently updated to JORC 2012
reporting standard on 6 May 2014, and further updated on 16 October 2014 with the addition of the metal zonation detail in
Table 2 of the Mineral Resource statement.
On 30 May 2018 the Company announced substantial revisions to the contained metal equivalence formula to reflect the
significant impact of the metallurgical recoveries announced on 12 April 2018 for the primary material, and updated market
pricing for zinc, silver, lead and gold. This resulted in significant increases to contained metal equivalents (approximately
doubling the Ag Eq ounces), and the addition of a zinc equivalent for the first time.
Whilst the underlying mineral resource estimation methodology and individual metal grade estimates remain unchanged, the
cut-off grade for reporting of the primary material resource, which is based on the contained metal equivalence formula set
out in Note 1 and Note 2, has been increased to 80 g/t Ag Eq (from 50 g/t Ag Eq previously).
The cut-off grade for the oxide/transitional material, which does not depend on the equivalence formula, remains unchanged
at 25 g/t Ag.
There have been no further changes in the Mineral Resource estimate from 30 May 2018 to 30 June 2018.
72 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
The resulting changes since 30 June 2017 are summarised in the following table:
Table 5 – Comparison of Kempfield Mineral Resource as at 30 June 2018 versus 30 June 2017 (within brackets adjacent)
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Contained
Metal Equivalent2
Zn Eq Ag Eq
Resource
Tonnes
(Mt)
Grade
(g/t)
Contained
Metal
(Moz)
Grade
(g/t)
Contained
Metal
(000 oz)
Grade
(%)
Contained
Metal
(000 t)
Grade
(%)
Contained
Metal
(000 t)
Grade
(Zn Eq
%)
Contained
(Zn Eq)
(000t)
Grade
(Ag Eq
g/t)
Contained
Ag Eq
(Moz)
Oxide/
Transitional*
Primary**
Total***
6.0
(6.0)
20
(15.8)
26
(21.8)
55
(55)
35
(44)
40
(47)
11
(10.7)
0.11
(0.11)
23
(22.3)
0.13
(0.13)
33
(33.0)
0.12
(0.12)
21
(21)
81
(66)
100
(86)
N/Ri
(N/A)
N/Ri
(N/A)
N/Ri
(N/A)
0.60
(0.62)
0.46
(N/A)
120
(97)
120
(97)
1.3
(1.3)
1.0
(N/A)
N/Ri
(N/A)
250
(200)
250
(200)
1.0
(ii)
2.3
(ii)
2.0
(ii)
62
(ii)
450
(ii)
520
(ii)
64
( - )
12
(11.7)
140
( - )
91
(40.5)
120
(75)
100
(52)
* 90% (90%) ** 76% (79%) *** 79% (82%) : % of material class tonnes in Measured or Indicated Category (see Table 4 for
details). i : Not recoverable. ii : Not reported in 2017.
Note 5 - Annual Review
The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore
Reserves for the Kempfield Polymetallic Project for reporting as at 30 June 2018. H&SC is an independent Mineral Resources
estimation consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard
governance arrangements and internal controls with respect to the estimation of Mineral Resources.
JORC 2012 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in the Mineral Resources and Ore Reserves Statement for the Kempfield deposit is based on information
compiled by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC).
The information in the Mineral Resources and Ore Reserves Statement, including the Exploration Target, is based on, and fairly
represents, information and supporting documentation prepared by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden
is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy. Mr. Arnold van der
Heyden has sufficient experience which is 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 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee,
the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia’.
The Mineral Resources and Ore Reserves Statement for the Kempfield deposit as a whole, and the Exploration Target in the
Operations Review section of this 2018 Annual Report, are approved by Mr. Arnold van der Heyden in the form and context in
which they appear.
73 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
MT. DUDLEY (NSW, AUSTRALIA - 100% ARGENT)
On 1 March 2013 Argent announced a small maiden Resource for Mt. Dudley, a potential feedstock source located approxi-
mately 4 kilometres to the east of the Kempfield deposit. This Mineral Resource was restated in the Company’s Annual Report
to the shareholders for the year ended 30 June 2017.
The following table sets out the Mt. Dudley Mineral Resource statement as at 30 June 2018. This information was prepared and
first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that
the information has not materially changed since it was last reported.
At a cut-off grade of 0.5 g/t Au:
Table 6 - Mt Dudley Mineral Resource Estimate - 30 June 2018
Category
Inferred
Resource
Tonnes
(Mt)
0.89
Au
(g/t)
1.0
Contained Au Metal
(oz)
28,000
Note 1 - Comparison with Previous Mineral Resource Estimate
There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously
stated as at 30 June 2017. Accordingly, no comparison is provided.
Note 2 - Annual Review
The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore
Reserves for the Mt Dudley deposit for reporting as at 30 June 2018. H&SC is an independent Mineral Resources estimation
consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance
arrangements and internal controls with respect to the estimation of Mineral Resources.
JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in the Mineral Resources and Ore Reserves Statement for the Mt Dudley deposit is based on information
compiled by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC). The information in the
Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation
prepared by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden is a Member and Chartered Professional (Geology) of the
Australasian Institute of Mining and Metallurgy. Mr. Arnold van der Heyden has sufficient experience which is 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 prepared by the Joint Ore Resources Committee, the Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and the Mineral Council of Australia’. The Mineral Resources and Ore Reserves Statement for the Mt
Dudley Deposit as a whole is approved by Mr. Arnold van der Heyden in the form and context in which it appears.
SUNNY CORNER (NSW, AUSTRALIA - 70% ARGENT)
Background
In the 12 August 2008 announcement, the Company reported that “The GCO campaign comprised a total of 49 RC holes for
a total of 4,090 metres drilled beneath and adjacent to the historical Sunny Corner mine which is reported to have produced
210,000 tons @ 13.8 ounces of silver per ton for 2.9 million ounces of silver between 1881 and 1893”.
On 12 August 2008 Argent announced a maiden Mineral Resource at Sunny Corner. The resource estimates were completed
by H&S Consultants Pty Ltd (H&SC) and were reported using a cut-off grade of 2.5% combined base metals (copper, lead &
74 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
zinc) based on data derived from Golden Cross Operations Pty Ltd’s (GCO) 2004 drilling campaign, and excludes results from
the Company’s three hole RC drilling campaign in June 2007 for a total of 340 metres (Three RC Holes). The Exploration
Results were compiled by Dr Vladimir David.
In April 2009 Argent announced its completion of a 5 hole HQ diamond hole drilling campaign at Sunny Corner. The vertical
holes were drilled for metallurgical testwork purposes, over a 100 metre north-south strike length for a total of 279.75 metres
(Metallurgical Holes).
In September 2013, H&SC was engaged by Argent to review the potential impact of the Metallurgical Holes on the Sunny
Corner resource statement announced in August 2008, for reporting as at 30 June 2013. The review concluded that the data
from the Metallurgical Holes were unlikely to have a material impact on the existing resource estimate.
Sunny Corner Mineral Resource Statement - 30 June 2018
The following table sets out the Sunny Corner Mineral Resource statement as at 30 June 2018. This information was prepared
and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis
that the information has not materially changed since it was last reported.
At a combined base metals (cbm) cut-off grade of 2.5%:
Table 7 - Sunny Corner Mineral Resource Estimate - 30 June 2018
Category
Resource
Tonnes
(Mt)
Density
cbm
(%)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag
(g/t)
Inferred
1.5
2.8
6.2
0.17
2.13
3.70
0.39
24
for contained metal as:
n
n
n
n
55,000 tonnes of zinc;
32,000 tonnes of lead;
5,800 tonnes of copper; and
1.2 million ounces of silver.
Note 1 - Qualification
n No account has been made for any historical production or mine development; and
n
The data from the Three RC Holes from within the resource and the Metallurgical Holes, have not been included in any
resource estimate. However, H&SC believes that they would have a minor impact on the resource estimate figures and
spatial location of grades.
Note 2 - Comparison with Previous Mineral Resource Estimate
There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously
stated as at 30 June 2017. Accordingly, no comparison is provided.
Note 3 - Annual Review
The Company has engaged H&SC to complete the annual review of Mineral Resources and Ore Reserves for the Sunny
Cornerdeposit for reporting as at 30 June 2018. H&SC is an independent Mineral Resources estimation consulting practice
located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and internal
controls with respect to the estimation of Mineral Resources.
75 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results for the Sunny Corner Deposit is based on information
compiled by Dr. Vladimir David, who is a member of the Australian Institute of Geoscientists, a consultant to Argent, and who
has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity
he is undertaking 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’. Dr. David consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
The data in this report that relates to Mineral Resources for the Sunny Corner Deposit is based on information evaluated by
Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he
is undertaking 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 (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd
and he consents to the inclusion of the estimates in the report of the Mineral Resource in the form and context in which they
appear.
RINGVILLE AND QUEENSBERRY (TAS, AUSTRALIA - 100% ARGENT)
Background
On 29 January 2018 Argent announced pre-JORC Code historical mineralisation estimates for the Company’s newly acquired
Ringville and Queensberry tenements in Tasmania (Historical Estimates). The following summaries are provided in accordance
with ASX Listing Rule 5.14 in relation to progress made by Argent in evaluating the Historical Estimates, and the status of
further evaluation and/or exploration work required to verify the Historical Estimates and report as Mineral Resources in
accordance with the JORC Code 2012 Edition.
Salmons and Pieman Lodes – Ringville tenement
The Salmons and Pieman Historical Estimates (being separate veins of the same deposit) were based on the drilling results for
50 drillholes totalling 18,308.4 metres; assays were attained using atomic absorption spectroscopy (AAS) for Cu, Pb, Zn, Ag, As,
Hg and Mn, fire assay with AAS finish for Au, and X-ray fluorescence (XRF) for Sn; 265 samples were used for specific gravity
determination.
Work commenced during the year included an initial review of the drillcore and the collation of available data into the
Company’s database. These activities will continue into the 2018/19 financial year, and drilling will be required on suitable
sections to test the integrity of historic information.
Godkin deposit – Ringville Tenement
Historical information on which the Godkin Historical Estimate is based comprises 4 drillholes totalling 978.4 metres with full
assay results not reported, only highlighted intersections for Sn, Cu, and As. Work commenced during the year included an
initial review of drillcore and the collation of available data into the company database. These activities will continue into the
2018/19 financial year. The Godkin prospect is a secondary target area to Salmons and Pieman and further work required to
verify the Godkin Historical Estimate is intended to follow activities at the Salmons and Pieman Lodes.
Queensberry Mine deposit
Work commenced during the year included an initial review of drillcore and the collation of available data into the company
database. Hyperspectral studies were conducted by Mineral Resources Tasmania (MRT) on drillholes LCD01 and LCD04. A
site visit was also conducted during the year to assess the integrity of location information and analyse available rockchips to
ensure that reported mineralisation was evident.
These activities will continue into the 2018/19 financial year. Further work will include regional and local mapping to locate all
outcrops of mineralisation followed by a series of stream sediment and soil sampling programs to identify any further potential
mineralisation in the area.
76 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
PRE-JORC CODE HISTORICAL MINERALISATION ESTIMATES - COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results and the reporting of pre-JORC Code historical
mineralisation estimates is based on information compiled by Mr. Clifton Todd McGilvray who is a member of the Australasian
Institute of Mining and Metallurgy, an employee of Argent Minerals, and who has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to the activities being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
Reserves’ (JORC Code).
Mr. McGilvray consents to the inclusion in this report of the matters based on the information in the form and context in
which it appears, and confirms that the information provided in this announcement under ASX Listing Rule 5.14 is an accurate
representation of the progress made by Argent in evaluating the Historical Estimates, and the status of further evaluation and/
or exploration work required to verify the Historical Estimates and report as Mineral Resources in accordance with the JORC
Code 2012 Edition.
GOVERNANCE ARRANGEMENTS
Argent’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration
and mining industry who monitor all exploration programmes and oversee the preparation of reports on behalf of the
Company by independent consultants. The exploration data is produced by or under the direct supervision of qualified
geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality assurance and quality
control. The Company uses only accredited laboratories for analysis of samples and records the information in electronic
databases that are automatically backed up for storage and retrieval.
DISCLAIMER
Certain statements contained in this report, including information as to the future financial or operating performance of
Argent and its projects, are forward-looking statements that:
n
n
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,
n
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 report 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 forward-looking statements due to the inherent uncertainty therein.
77 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
78 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
79 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018
ARGENT MINERALS LIMITED
Level 2, 66 Hunter Street, Sydney NSW 2000
Phone +61 2 9300 3390 Facsimile +61 2 9221 6333
www.argentminerals.com.au
80 / ARGENT MINERALS LIMITED ANNUAL REPORT 2018