Archer Materials Limited · ASX:AXE
Archer Materials — Archer Exploration — Shareholder Meeting (October 2016)
25 slides from Archer Materials's shareholder meeting presentation, Oct 28, 2016
Slide 1: Archer Exploration Limited 2016 Annual General Meeting
For personal use only Archer Exploration Limited 2016 Annual General Meeting 28 October 2016
Slide 2: Contents: major projects progressing towards commercialisation
Contents AXE has 2 major projects progressing towards commercialisation For personal use only Significant progress being made with the Leigh Creek Magnesite project AXE is focused on capital efficiency and promotion of early cash flow projects Magnesite Graphite Other project opportunities • World l
Slide 3: Diversified business
Diversified business • Leigh Creek Magnesite For personal use only • World’s largest magnesite deposit of its type & 20+ year resource. • Advanced negotiations with established commercial kiln operators regarding toll treatment • Commercial calcining of magnesite expected to commence CY2017 • Quick
Slide 4: Magnesite production can fund future growth
use only Magnesite production can fund future growth Other opportunities Value ($) For personal Graphite project cash flows Magnesite project cash flows Time (yrs) 4
Slide 5: Leigh Creek Magnesite
For personal use only Leigh Creek Magnesite Magnesite outcrop 5
Slide 6: World's largest cryptocrystalline resource
World’s largest cryptocrystalline resource Leigh Creek Magnesite Project is 48% of world cryptocrystalline resources For personal use only • Cryptocrystalline magnesite is a unique and scarce mineral representing only 7% of world’s total magnesite resources • Cryptocrystalline can produce a wide ran
Slide 7: Leigh Creek Magnesite Deposits
Leigh Creek Magnesite Deposits • 6 magnesite deposits that For personal use only extend for more than 120km NW of Leigh Creek Township • Magnesite is a series of parallel dipping beds with dolomite interburden • Closure of Alinta’s operation’s has created government and local support for projects in
Slide 8: Leigh Creek Magnesite Project conceptual development layout
For personal use only Additional Information Leigh Creek Magnesite Project conceptual development layout 8
Slide 9: CSIRO testing
CSIRO testing • Calcining test work of Leigh Creek Magnesite successfully completed by CSIRO For personal use only • Test designed in conjunction with commercial kiln operator • Further testing to be conducted by kiln operator to establish temperature, residency time and other parameters • Critical
Slide 10: Favorable market; Strong demand growth
Favorable market; Strong demand growth Demand for magnesia is expected to continue growing through 2017, at a rate of For personal use only 3.6% pa ( growth trend rate of the last 12 years = 4.7% pa) Global Magnesia Demand Expected Growth 2017E Growth (%) (‘000 t) High Value Deadburn (DBM) 2,197 3.5
Slide 11: Magnesite Project highlights - Scope
Magnesite Project highlights - Scope • No capital required for production process. For personal use only • Bulk trials to confirm characteristics of monolithic deadburn magnesia product (MDBM) – market continuing to grow • Advanced discussions with local kiln operators about possible toll processing
Slide 12: Key dates – magnesite project
Key dates – magnesite project Activity Q4 16 H1 17 H2 17 H1 18 For personal use only Lab testing Bulk trial /pilot test Secure offtake Sign toll processing agreement Magnesite mining Magnesite toll processing Customer sales 12
Slide 13: Key investment takeaways
Key investment takeaways Emerging industrial minerals Cryptocrystalline magnesite has superior physical and chemical For personal use only producer characteristics enabling the production of high value magnesia products Management has extensive magnesite marketing expertise Close proximity to Magnes
Slide 14: Eyre Peninsula Graphite Project
For personal use only Eyre Peninsula Graphite Project “Positioning for the New Economy” 14
Slide 15: Carbon and Graphite projects
Carbon and Graphite projects • Eyre Peninsula Graphite For personal use only • Capable of producing ultra pure ultra fine battery grade graphite, and suitable for graphene manufacture • Continuing to seek off-take partners with potential to move to early production • Indicative life of mine revenue
Slide 16: Campoona Graphite Project
Campoona Graphite Project Mining Lease (ML) and 2 Miscellaneous Purpose Licenses (MPL) For personal use only • ML Campoona Shaft - covering open pit mine • MPL Sugarloaf - covering the Sugarloaf processing site and TSF • MPL Water - covering the Pindari Borefield and process water line to Sugarloaf
Slide 17: Campoona Graphite - mine
Campoona Graphite - mine Conventional, largely free dig open pit mine For personal use only • Compact site ~ 68 Ha • Conventional open pit mine largely free dig to 70m bgl • Initial mining of 10,000tpa from drop-cut directly into ore • Ramp to full scale production of 140,000tpa of ore • Campaign da
Slide 18: Campoona Graphite - infrastructure
Campoona Graphite - infrastructure Access to transport, power, water and other vital infrastructure For personal use only Process water • Two bores -100ML/yr dropping to 60ML/yr with decant recycle Potable water • Potable water for final concentrate wash • Agreement with SA Water for supply of 40 -
Slide 19: Sugarloaf Carbon
Sugarloaf Carbon Potential soil conditioner For personal use only • Sugarloaf hosts unique carbon deposit with an exploration target of 60 – 90Mt at 10-12% TC* • Within 100m of the proposed graphite processing facility • Provides an ideal resource for bulk use projects • Early test work by UniSA is
Slide 20: Appendix: Graphene potential
Appendix Graphene potential High grade Campoona graphite concentrate enables production of pure graphene For personal use only • Research collaboration agreement with University of Adelaide. Test results showed: • Production of high grade graphene using one step process. • Manufacture of numerous pr
Slide 21: Other projects
Other projects Copper - Spring Creek For personal use only Gold – Wonna & Watervale Barite – Mt James 21
Slide 22: Other portfolio opportunities
Other portfolio opportunities Project Tenement Commodity For personal use only • All tenements are owned 100% by Archer and its Carappee Hill EL 4861 Graphite subsidiaries except for the uranium rights North Burra EL 5433 Base Metals attaching to EL 5804 North Cowell EL 5434 Base Metals Wildhorse Pl
Slide 23: Cobalt Bull Joint Venture
Cobalt Bull Joint Venture • Cobalt Bull to earn a 75% interest For personal use only in tenements EL 5749, 5433, 5540 and 5794 through: • Upfront payment of $200,000 cash • Commitment to spend $2.0m on exploration over 3 years • JV Agreement subject to conditions precedent which must be satisfied by
Slide 24: Disclaimer
Disclaimer Scoping Study For personal use only Information in relation to the Eyre Peninsula Graphite Project Scoping Study, including production targets and financial information, included in this document is extracted from an ASX announcement entitled “Positive results from SA Graphite Project sco
Slide 25: Archer Exploration Limited contact details
For personal use only Archer Exploration Limited ASX code: AXE Company details: Level 1, 28 Greenhill Road Wayville South Australia 5034 www.archerexploration.com.au Further Greg English (Executive Chairman) information: T +61 8 8272 3288 genglish@archerexploration.com.au
Archer Exploration — Shareholder Meeting (October 2016) on 6ix