Archer Materials Limited · ASX:AXE
Archer Materials — Archer Exploration — AIMEX 2011 Mining Mission to Australia from India
31 slides from Archer Materials's conference presentation, Sep 1, 2011
Slide 1: Archer Exploration Limited – AIMEX 2011 Mining Mission to Australia
For personal use only Archer Exploration Limited Graphite Magnesite Manganese AIMEX 2011 MINING MISSION TO AUSTRALIA from India September 2011 Gerard Anderson Managing Director 1
Slide 2: Disclaimer
For personal use only Disclaimer Competent persons statement The exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr. Bollenhagen is a Member of the Australasia
Slide 3: Corporate
Corporate For personal use only ASX Code AXE Shares on Issue 67,142,763 Unlisted Options on Issue 6,270,000 Share price at 28/8/2011 $0.20 Market Capitalisation $13.4 million Cash at Bank as at 30/6/2011 ≈$2.7million Directors Chairman Greg English Non – Executive Directors Tom Phillips Mineral Expo
Slide 4: Assets
Assets For personal use only Exploration Tenements • 100% of 19 tenements covering ≈9,500km2 covering Eyre Peninsula, Leigh Creek, West Roxby, Burra and World’s End. • 100% of 3 ELA’s covering >1,100km2. • 100% of minerals other than uranium on Wildhorse Plain and Elbow Hill covering 895km2. Graphit
Slide 5: Project development pyramid
1 For personal use only Project Status Reserve* ≈ 100% Mt Hutton Archer is an exploration company. The Resource* Pug Hill 4 principal assets of the Company are its ≈ 70% Probability of Termination Hill significant mineral tenements and mineral Mt Playfair Witchelina Development at T0 deposits. Advan
Slide 6: Graphite & the Graphite market
For personal use only Graphite & the Graphite market Graphite exhibits both metallic and nonmetallic properties: Metallic properties: - Excellent conductor of heat and electricity - Highest natural strength and stiffness of any material Nonmetallic properties: - High natural lubricity - Maintains st
Slide 7: Uses for Graphite
For personal use only Uses for Graphite Traditional Uses for Graphite High Tech Uses for Graphite Carbon steel forging Electric motor brushes Graphite crucibles Refractory bricks to line blast furnaces Pencils Valves Dry cell batteries Graphite brake pads
Slide 8: Emerging New Technology Uses for Graphite
Emerging New Technology Uses for Graphite For personal use only Zero EV motor cycles Construction of a high temperature PEMFC: Bipolar plate as electrode with in-milled gas channel structure, fabricated from conductive composites (enhanced with graphite, carbon black, carbon fiber, and/or carbon nan
Slide 9: Graphene - the new super material
Graphene - the new super material For personal use only Graphene is a unique atom-thick carbon-based material derived from graphite that has exceptional physical and chemical properties. Applications are continually being generated as research unlocks its unique attributes: • Superior composite mate
Slide 10: Graphite supply – China first, then daylight
For personal use only Graphite supply* – China first, then daylight…. Country Mine Production 2009 (kt) Mine Production 2010e (kt) Reserves (kt) Unites States - - - Brazil 76 76 360 Canada 25 25 (4) China 800 800 55,000 India 130 130 5,200 North Korea 30 30 (4) Madagascar 5 5 940 Mexico 5 5 3,100 No
Slide 11: Graphite prices
For personal use only Graphite prices Graphite Prices Rising on Strong Demand: Graphite has a posted price however prices are negotiated between the buyer and seller based on graphite crystal size and the carbon content with settled prices generally around the posted price level. Graphite Product Ca
Slide 12: Graphite demand trends
For personal use only Graphite demand trends • Traditional uses in steelmaking, refractories, auto parts, gaskets, composites, batteries, semiconductors, carbon brushes and oils and greases is increasing with increasing industrial output. Growth in the flake market from increased demand from high va
Slide 13: Graphite demand trends
For personal use only Graphite demand trends Growth in the flake market also coming from green energy initiatives including fuel cells and new generation nuclear power and from the evolving applications for graphene. • Green energy initiatives especially fuel cells and solar electricity applications
Slide 14: Graphite market trends
For personal use only Graphite market trends Graphite is facing increasing demand worldwide from growing traditional uses and rapidly emerging new technological applications. Archer likens the emerging importance of graphite to that of the recent history of Rare Earth Elements (“REE”) and lithium. F
Slide 15: Significant Land Position in Graphite Province
For personal use only Significant Land Position in “Graphite Province” Large & medium flake potential – Campoona, Campoona South - Grid 2, Mt Shannan, Wicklow & Others 15 Archer has a substantial land position in “graphite province”
Slide 16: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Exploration Potential • 100% owned Sugarloaf deposit has Exploration Potential of 24 – 37Mt grading 10-12% total carbon*. Petrology indicates deposit consists of fine crystalline flake graphite averaging 100µm in size. *The potential quantities and grades pre
Slide 17: Wildhorse Plain Graphite – Campoona
For personal use only Wildhorse Plain Graphite Significant potential – Campoona In the mid 1980s airborne electro-magnetic surveys were conducted as part of exploration focused on base metals. A highly conductive graphitic schist over 4km long was identified adjacent to Lower Middleback jaspilite at
Slide 18: Wildhorse Plain Graphite – Campoona South
For personal use only Wildhorse Plain Graphite Significant potential – Campoona South At the southern end of the Campoona EM anomalies lies a graphite outcrop that assayed 25.4% C . Hand specimens had visible large flake graphite to 1,000µm (1mm). Petrological examination reported graphite content a
Slide 19: Wildhorse Plain Graphite – Council Pit
For personal use only Wildhorse Plain Graphite Significant potential – Council Pit The Council Pit is a disused historic borrow pit. The graphite content was reported between 15-20%. The overall size of graphite ranges from 2µm to 50µm (width) x 1,000µm (length) with the average 20µm x 300µm (large
Slide 20: Archer Graphite Summary – Deposit Comparison
For personal use only Archer Graphite Summary Deposit Comparison Company Deposit Lower Cut-off Resource Resource Graphite Size Grade (%C) (t) Grade (%C) (µm) Archer Exploration Sugarloaf 1%C 40Mt* 11.7%C* Fine Northern Graphite Bissett Creek 1%C 20Mt 1.97%C Large 2%C 8.8Mt 2.58% Large 3%C 1.3Mt 3.27
Slide 21: Archer Graphite Summary
Archer Graphite Summary For personal use only Huge land bank in emerging graphite province • Archer has 924km2 of the highly prospective Cleve Uplands. • Sugarloaf deposit : - Exploration Potential *of ≈40Mt @10-12% C and is open along strike and at depth. - Graphite occurring mostly as well liberat
Slide 22: What is Magnesite and Magnesia?
For personal use only What is Magnesite and Magnesia? Magnesium carbonate (MgCO3) was deposited as a chemical precipitate in shallow, marginal marine lagoons and mudflats, and occurs predominantly as cryptocrystalline particles 1–5 µm in size. 86 separate magnesite interbeds within the Skillogalee D
Slide 23: Magnesia Market Growth
For personal use only Magnesia Market Growth • Industrial applications - concrete • Building products – Mg board • Fertilizers and soil conditioners – strong local market MgO growth closely mirrors that of the steel industry • Water purification • Waste water treatment • Acid mine water and acid tai
Slide 24: Archer's Leigh Creek Magnesite Deposits
For personal use only Archer’s Leigh Creek Magnesite Deposits Mt Playfair Mt Hutton • High quality (>42% MgO) • Consistent chemical composition over 80 kms strike • $millions spent on BFS for Mg metal production “World Class” is often self-bestowed but rarely deserved – Leigh Creek is an exception 2
Slide 25: Leigh Creek 1999 Resource Estimate
For personal use only Leigh Creek 1999 Resource Estimate Area Measured* Indicated* Inferred* MgO1 (Mt) (Mt) (Mt) Mt Hutton 18.3 42 53 42.9% Mt Playfair 11 23 42.5% Pug Hill 10 10 42.7% Termination Hill 4 5 20 42.8% Witchelina 23.7 94 99 40.0% Total 46 162 205 *Source: Reproduced from MDL Report “Eco
Slide 26: Growing the Magnesite / Magnesia Business
For personal use only Crushing Plant Growing the Magnesite / Magnesia Business Mine ROM MgCO3 Crushed MgCO3 Flotation? & Rail to Spencer Gulf Calcination Crushed MgCO3 Caustic Calcined (>$600/t) ± DSO magnesite Steadily Growing Market Focus is on producing either DSO magnesite or high value intermed
Slide 27: Leigh Creek Development Options
For personal use only Leigh Creek Development Options Key Attributes • High grade magnesite deposits • Huge JORC Resource can support large scale operation for many hundreds of years • Low capital entry • Good supply chain logistics • Proximal to Leigh Creek Funding Options Archer has 100% ownership
Slide 28: Leigh Creek Magnesite Calcining Test Work
For personal use only Leigh Creek Magnesite Calcining Test Work • Calcining tests to 1000oC on run-of-mine magnesite produced magnesia grading: > 92% MgO ≈ 4.5% SiO2 ≈ 0.3% Al2O3 ≈ 0.6% CaO ≈ 0.4% Fe2O3 • To maximise the marketability of magnesia produced the SiO2 level needs to be reduced to ≤3.0%
Slide 29: Archer Manganese – Ketchowla
For personal use only Archer Manganese Ketchowla – DSO quality manganese • 5 main manganese deposits with ≈28kms strike potential. • Medium grade (≈ 20% Mn ± Ni, Co, Cu & Zn, REE). • Dense media separation and gravity concentration upgraded K1 drill cuttings from 17.47% Mn to ≈38% Mn at a 23% recove
Slide 30: Archer Manganese – Salt Creek
For personal use only Archer Manganese Salt Creek manganese • Drilling highlighted that manganese occurs in three different rock units: - High iron manganese associated with banded iron formation. - Fine manganese in weathered pelitic sediments (clays & schists). - 5mm fine manganese nodules within
Slide 31: Thank You
For personal use only Thank You If you would like additional information please contact: Gerard Anderson Managing Director Archer Exploration Limited ganderson@archerexploration.com.au 31
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