Archer Materials Limited · ASX:AXE
Archer Materials — Archer Exploration — Shareholder Meeting (October 2012)
39 slides from Archer Materials's shareholder meeting presentation, Oct 26, 2012
Slide 1: Archer Exploration Annual General Meeting
For personal use only Archer Exploration Annual General Meeting 26 October 2012 Gerard Anderson Managing Director 1
Slide 2: Disclaimer
Disclaimer Competent persons statement For personal use only 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 Australasian
Slide 3: Presentation outline
Presentation outline Corporate overview For personal use only • • 2012 - 2013 highlights • Corporate strategy • Company projects • Graphite • Campoona • Sugarloaf • Copper • World’s End & Robertstown • North Cowell • Spring Creek • Gold • Napoleon's Hat • Watervale Resource Drilling at the Campoona
Slide 4: Corporate overview
For personal use only 4 Corporate overview
Slide 5: Corporate overview
Corporate overview 13 Exploration Licences and For personal use only the rights to minerals other than uranium on Wild Horse Plain. The tenement portfolio hosts a number of significant projects. Mineral Exposure • Graphite • Copper • Gold • Magnesite/magnesia • Manganese ± REE • Coal - CSG • Phospha
Slide 6: Corporate overview
Corporate overview ASX Code: AXE For personal use only Shares on Issue 82,362,763 Unlisted Options on Issue 6,000,000 Share price at 19/10/2012 $0.19 Market Capitalisation $15.6 million Cash at 30/09/2012 $11.87 million Who we are Chairman • Greg English Directors • Gerard Anderson • Tom Phillips •
Slide 7: Highlights 2011–2012
For personal use only Highlights 2011–2012 7
Slide 8: Highlights 2011-2012
Highlights 2011-2012 Campoona Graphite Metallurgy For personal use only • Resource drilling completed at • RC hammer samples returned medium Campoona Shaft on 50m x 20m and fine flake concentrates grading spacing. Resource estimation 95% and 96%TGC respectively. High expected December 2012. grade am
Slide 9: Highlights 2011-2012
Highlights 2011-2012 Copper West Roxby Tenements For personal use only • Robertstown and World’s End (Mimic) • Sold five West Roxby tenements to assessed as significant copper targets. BHP Billiton Olympic Dam Corporation • EM at North Cowell identified a Pty Ltd on 22nd June for $8 million. signifi
Slide 10: Corporate strategy
For personal use only Corporate strategy 10
Slide 11: Corporate strategy
Corporate strategy Very strong cash position Copper For personal use only The sale of West Roxby has given the • Initial drilling at Robertstown, World’s End Company the cash needed to advance a and North Cowell. Submit exploration number of very promising projects. proposal to DEH for Spring Creek.
Slide 12: Company projects
For personal use only Company projects 12
Slide 13: Company projects
Company projects 1 For personal use only Reserve* Mt Hutton * SAMAG reports Resource* 4 Termination Hill Pug Hill Mt Playfair Witchelina Advanced Exploration Project 2 Sugarloaf Graphite Campoona Graphite Mineralised Project Salt Ck Mn 5 Ketchowla Mn / REE Probability of Development Bender Au/Cu Rob
Slide 14: Graphite
Graphite Graphite Properties For personal use only Metallic properties: • Excellent conductor of heat and electricity • Highest natural strength and stiffness of any material Nonmetallic properties: • High natural lubricity • Maintains stability to temperatures of 3,600oC • One of the lightest reinf
Slide 15: Archer Graphite
For personal use only Archer Graphite 4861 EL 4861 EL4893 Archer has a substantial land position in “graphite province” with several flake occurrences 15
Slide 16: Campoona exploration history
Campoona exploration history • Airborne EM surveys conducted as part of For personal use only base metal exploration in the mid-1980s indentified several highly conductive bodies in the Campoona area including the Campoona graphite trend. • Other elongate EM conductors, which are parallel to Campoon
Slide 17: Campoona Shaft resource drilling
Campoona Shaft resource drilling In February and April 2012, 27 RC drill For personal use only holes for 2,387 metres were completed resulting in a nominal 50m x 20m drill coverage Metallurgical diamond drilling commenced 27th June 2012. Subsequent to year end 6 diamond drill holes were complete
Slide 18: Campoona Shaft resource drilling results
Campoona Shaft resource drilling results RC Hole # From To Interval Carbon Diamond From To Interval Carbon For personal use only (m) (m) (m) (%TGC) Hole # (m) (m) (m) (%TGC) CSRC12_040 20 55 35 13.0 CSDD12_001 16 47 31 14.4 incl 20 44 24 15.3 CSRC12_041 54 118 64 11.8 CSDD12_002 11 88 77 17.2 incl 6
Slide 19: Campoona EM
Campoona EM Airborne EM has highlighted probable strike extensions to Campoona For personal use only Shaft and Central Campoona • EM provides an effective tool to identify the presence of conductive bodies. • EM has identified several possible graphite bodies along strike from the known graphite occ
Slide 20: Campoona Shaft geology
Campoona Shaft geology • Graphite deposit forms a discrete NE striking, steep NW dipping, 20-50m thick main graphite lode with For personal use only two narrower and discontinuous footwall lodes. Intrusive amphibolites terminate the deposit to both the northeast and southwest. • High grade graphite
Slide 21: Campoona geology
Campoona geology CSDD12_002 For personal use only • Hangingwall contact with soft • Highly weathered, porous • Strongly weathered graphitic highly weathered gneiss quartz + graphite + kaolin + schist below BOCO. passing directly into garnet + tourmaline ± iron • Feldspars altered to illite ± complet
Slide 22: Campoona metallurgy
Campoona metallurgy Lonsdale Sample Facility Interim DDH Metallurgy Results For personal use only • Established during September 2012. Samples to BOCO • Base of complete oxidation (BOCO) at 50- • Facility provides a metallurgical workshop 60m depth. and a bulk sample storage area set up for • Rock i
Slide 23: Campoona Shaft metallurgy
For personal use only Campoona Shaft metallurgy CSRC12_003 +212µm fraction showing large flake CSRC12_003 +150µm fraction showing medium flake CSRC12_003 +106µm fraction showing fine flake QEMSCAN image of Campoona flake graphite Central Campoona has identical characteristics to Campoona Shaft 23
Slide 24: Campoona current work plan
Campoona current work plan Campoona Shaft Drilling For personal use only Resource Drilling Exploration & Central Campoona Drilling Metallurgical Characterisation Resource Estimation Campoona Shaft Resource Estimation Campoona Central Environmental Baseline Studies Development Project Community Engag
Slide 25: Sugarloaf graphite
Sugarloaf graphite Sugarloaf area first explored for gold, base For personal use only metals and uranium in the mid 80’s. Goldstream then Helix identified a gold and copper soil anomaly. The two companies drilled 41 drill holes across Sugarloaf. Best intercept was 3m @ 1g/t Au in a quartz vein.
Slide 26: Sugarloaf summary
Sugarloaf summary • Sugarloaf EM: 4km long and ≈40m in true For personal use only thickness. • Exploration Target of 40 – 70Mt grading 10-12% total carbon*. *The potential quantities and grades presented are conceptual in nature, there has been insufficient exploration to define an overall Mineral R
Slide 27: Graphite - conclusion
For personal use only Graphite - conclusion Graphite Checklist The most essential characteristics of any graphite project are grade, product type and quality and metallurgical recovery. 1. Head Grade – Projected head grade of 12-14%TGC places Campoona in the upper quartile grade range. 2. Product
Slide 28: Archer graphite summary
Archer graphite summary High grade outcropping graphite at Campoona. Base of complete oxidation 50 – 60m depth and strong oxidation to ≈100m. For personal use only Campoona Fine and medium flake >94%TGC ; amorphous graphite >92%TGC. Large flake present. EM has identified likely strike exte
Slide 29: Archer Copper - Four very promising targets
Archer Copper - Four very promising targets #1 World’s End For personal use only • Mimic is a conceptual target but has compelling vectors - structurally identical to the nearby Monster Mine at Burra (86Kt recovered Cu) – antiform with oblique faulting; NMS9 marker bed in Kooringa Mimic Member and t
Slide 30: Archer Copper – Four very promising targets
Archer Copper – Four very promising targets #3 North Cowell For personal use only • Rock chip sampling returned highly anomalous copper with assays to 15.1% Cu. Rock chips also reported >10% Pb. • The copper anomalism occurs on a prominent ridge and extends for over 3km. • The copper is present as a
Slide 31: Archer Copper – Four very promising targets
Archer Copper – Four very promising targets #4 Spring Creek For personal use only • SA Bulletin 25 (Half Year to 31 Dec 1916) records mining of copper carbonates (malachite and azurite) passing into cuprite, native copper and minor chalcocite in what appears to be a classic supergene profile. No sul
Slide 32: Archer Gold – Three key targets
Archer Gold – Three key targets #1 Napoleon’s Hat For personal use only • EL4668 covers the widespread historic Wonna gold workings (circa 1886; 1888; 1932 & 1967) in the Burra region. • Gold is associated with sheeted quartz veins within competent sediments. • Historic records of Burra district gol
Slide 33: Archer Gold – Three key targets
Archer Gold – Three key targets #2 Watervale For personal use only • Rock chip sampling of quartz veins in the Watervale Sandstone returned gold values to 6.42g/t Au. High nugget. • Gold anomalism extends for over 1 kilometre and is open along strike. • An EM survey was conducted in September 2012.
Slide 34: Archer Gold – Three key targets
Archer Gold – Three key targets #3 Bartel For personal use only • Widespread hydrothermal alteration consisting of argillic and potassic alteration and extensive quartz breccias. Over at least 1.5km x 1.2km. • Petrology recorded free gold associated with antimony within a carbonate host rock that ha
Slide 35: Archer Magnesite – Leigh Creek magnesite
Archer Magnesite – Leigh Creek magnesite • Magnesium carbonate (MgCO3) was deposited as a chemical precipitate in shallow, marginal For personal use only marine lagoons and mudflats, and occurs predominantly as cryptocrystalline particles 1–5 µm in size. 86 separate magnesite interbeds within the Sk
Slide 36: Leigh Creek magnesite resources
Leigh Creek magnesite resources Leigh Creek 1999 JORC Resources For personal use only Leigh Creek coal operations Mt Playfair Mt Hutton *Source: Reproduced from MDL Report “Economic Evaluation of the Pug Hill Magnesite Deposit, North Flinders Ranges, South Australia. 2001. Note full BFS completed an
Slide 37: Leigh Creek business model
For personal use only Leigh Creek business model Mine ROM MgCO3 HPGR Crushing Calcination Rail to Spencer Gulf Caustic Calcined ± DSO magnesite >95% MgO; 2.5% SiO2 Market 37
Slide 38: Archer magnesite summary
Archer magnesite summary Key Attributes For personal use only • High grade magnesite deposits. • Enormous value proposition: It takes 3t of magnesite to make 1t of magnesia. Value of magnesia between $400 - $600/t. • Huge JORC Resource could support very long-term operation. • Fully serviced town of
Slide 39: Work schedule to June 2013
Work schedule to 30 June 2013 Activity Oct Nov Dec Jan Feb Mar Apr May Jun 12 12 12 13 13 13 13 13 13 only Baseline environmental studies Graphite Metallurgical characterisation Campoona Central JORC Resource estimation use Shaft Campoona Central Campoona resource drilling Campoona Campoona Shaft Bu
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