PERTH (miningweekly.com) – ASX-listed mineral explorer and developer Argent Minerals would make a decision to mine its Kempfield project, in New South Wales, by March next year, and was likely to start production of silver during the first half of 2012, the company said on Tuesday.

This comes as an independent scoping study at the Kempfield property showed positive results, leading to a decision to start a definitive feasibility study (DFS) on the project.

The positive scoping study has revealed that the Kempfield silver/ gold/ lead/zinc project could produce up to 12-million ounces of silver, and 42 000 t of lead and zinc during a ten-and-a-half year life-of-mine.

The DFS would start immediately, and was budgeted to cost around A$1,1-million. The study would include infill, metallurgical and geotechnical drilling, as well as process plant engineering and site layout. It would also investigate infrastructure requirements such as water and power.

Concurrently with the preparations for the DFS, Argent will seek development approval and a mining lease. It said on Tuesday that discussions have begun to establish a mining agreement with the Gundungurra tribal council, which was the representative of the native title claimant to the area.

The completion of the DFS would culminate in a project financing decision.

“The scoping study results are very encouraging and, if they are confirmed by the DFS and lead to the establishment of a viable project, will provide a strong stepping stone for Argent’s growth profile and underpin the future of the company for years ahead,” said Argent chairperson Kerry McHugh.

McHugh noted that the company was continuing to review and assess other potential near-term production assets accessible to Kempfield, as well as other key regional mining areas in Australia.

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