The Tapley Hill Formation in IHAD5 is 6.6 meters thick with much of this interval being strongly mineralized. The mineralized interval thickness and grade exceeded expectations, returning a weighted average grade of:

• 5.76meters @ 1.67% Cu, 18.5g/t Ag, 495g/t Co and 2,387g/t Zn (from 392.84 to 398.6 meters)

• including 2.5 meters @ 2.88% Cu, 31.4g/t Ag, 831g/t Co
and 2,619g/t Zn (from 393.5 to 396.0 meters).

At current prices, the in situ copper equivalent value of the intersection equates to 2.47% over 5.76 meters, including 4.18% over a 2.5 meter zone, when other metal credits are taken into account.

The latest results in IHAD5 represent a four-fold increase in thickness of ore-grade mineralization at this location, relative to intersections in IHAD2 and IHAD3 (respectively 1.5 meters at 2.48% and 1.33 meters at 2.52% Cu equivalent; Fig. 1).

Argo believes these results are significant, representing a marked thickening and development of mineralization in the Tapley Hill Formation in the IHAD5 area. When coupled with the reported ~25 million ton, 2.0% Cu equivalent inferred resource at Emmie Bluff to the immediate south, these results emphasize the potential for economic base metal deposit discovery within the Tapley Hill Formation.

Intersections of mineralized Tapley Hill Formation in drill holes IHAD2, IHAD3 and IHAD5 all commence at approximately 392 meters depth, which strongly suggests the Formation is flat lying and that the intersections are likely to represent true widths.

The second interval of copper sulphide mineralization intersected in IHAD5 occurs between 836.0 and 1,097.0 meters in iron-oxide altered basement rocks. Full assay results of the IOCG mineralized basement interval in IHAD5 are expected before the end of April. Argo believes that these results, when to hand, will confirm visual observations of significantly enhanced copper grades, relative to IHAD2, supporting the targeting model employed which advocates better copper values in oxidized “fringes’ to copperbearing magnetite-rich ironstones.

Visually, within the basement intersection interval in IHAD5, there are broad sulphide mineralized zones carrying varying proportions of bornite, chalcopyrite and pyrite. Argo considers the relative abundance of bornite within these zones has the potential to be significant in terms of grade.

The basement host rocks consist of strongly brecciated and altered granites, possessing characteristics consistent with Hiltaba Suite Granite, and metasediments. The mineralization occurs within a large, intense, multistage chlorite alteration plume accompanied by variable hematite and magnetite. Other key components of the alteration package include bornite, chalcopyrite and pyrite occurring as fine to coarse disseminations, coarse aggregates, fine veinlets, composite veinlets and veins a number of centimeters in width, together with diverse quartz and/or carbonate and/or albite veins, localized pervasive albite and macroscopic fluorite.

Selected features of the mineralized basement package are illustrated in Plates 1 to 4. These photos do not purport to be representative of the mineralized package.

Drill hole IHAD6, to a depth of 1,116.7 meters, and drill hole IHAD7, to a depth of 465.9 meters, have been completed. IHAD6 is a 500-meter step-out from IHAD5 along the section line between IHAD2 and IHAD3 (Fig. 1). Drill hole IHAD7, designed to test the western extent of Tapley Hill Formation, is a 500-meter step-out to the west-south-west of IHAD6. To date, the drill logs from these two holes have not been received for evaluation. However, preliminary results from IHAD6 indicate that this hole is marginal to the basement mineralized system intersected in hole IHAD5.

Argo has now received clearance from the Barngala and Kokatha Native Title Claimants for five new priority targets within the Intercept Hill Exploration Licence area and plans to drill a number of these prior to further step-out drilling in the IHAD5 area.

The current drill hole in progress, IHAD8 (Fig. 1), is designed to test a significant geophysical anomaly in one of the five new areas recently cleared for exploration. Argo will continue evaluating identified targets in newly cleared areas, while the drill results from IHAD 5–7 are received and further evaluated in preparation for further step-out drilling.