Slide 1: Archer Exploration Limited: Focused on the critical few
For personal use only Archer Exploration Limited “Focused on the critical few” SAREIC Conference Adelaide 2-3rd May 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 64,428,477 Share price at 29/4/2011 $0.175 Market Capitalisation $11.3 million Cash at Bank as at 31/3/2011 $2.92 million Directors Chairman Greg English Non – Executive Directors Tom Phillips Alice McLeary Hon. John Dawkins Mineral Exposu
Slide 4: Tenement Position
Tenement Position For personal use only Exploration Tenements • 100% of 18 tenements covering 9,042 km2 over Eyre Peninsula, Leigh Creek, West Roxby, Burra and World’s End areas. • 100% of 3 ELA’s covering 1,513 km2. 100% Sugarloaf Graphite Deposit Exploration potential 9-20Mt* of highly graphitic s
Slide 5: Project status and 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. Advance
Slide 6: 2011 First Order Priorities
For personal use only 2011 First Order Priorities Business Development Graphite Characterisation Calcine Characterisation Exploration and Resource Definition Graphite Magnesite Manganese Eyre Peninsula Adelaidean Carappee Hill Termination Hill EL and Wild Horse Plains Ketchowla 100% 100% Sugarloaf d
Slide 7: What is Graphite?
For personal use only What is Graphite? Graphite is a soft, grey to black, opaque crystalline form of carbon. Chemical formula C. Key Attributes: • Exhibits metallic (thermal and electrical conductivity) and nonmetallic (inertness, high thermal resistance, and lubricity) properties. • Stable in corr
Slide 8: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Sugarloaf consists of graphitic schist where the graphite formed by the concentration and crystallisation of carbon during regional ± contact metamorphism. Two shafts dug to 63 and 80 feet in 1915 returned values of 25.3% and 15% carbon respectively. There is
Slide 9: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Archer drilling has recorded wide graphite intervals with total carbon values up to 22.9%. The area has a pronounced EM signature extending over 2.5 km. Archer drill section across northern Sugarloaf CHRC010 10-26m 16m @ 11.3% total C Numerous drill holes rec
Slide 10: Sugarloaf Graphite
For personal use only Sugarloaf Graphite • Graphitic schist adjacent to a felsic intrusion. • Petrology identified graphite averaging 0.1mm in length. • Sugarloaf likely to be able to produce amorphous graphite as well as potentially fine flake products. • Exploration potential to 100m depth of 9 -
Slide 11: Sugarloaf Graphite Work Program
For personal use only Sugarloaf Graphite Work Program • Drilling in March – April 2011 confirmed overall strike extent of the highly graphitic schist. • 4 RC drill holes were drilled in April 2011. Highly graphitic schist intersections included: Hole ID From (m) To (m) Interval (m) Total Carbon (%)
Slide 12: What is Magnesite and Magnesia?
For personal use only What is Magnesite and Magnesia? • Magnesite is magnesium carbonate (MgCO3). Leigh Creek magnesite 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 int
Slide 13: 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 14: Archer's Leigh Creek Magnesite Deposits
For personal use only Archer’s Leigh Creek Magnesite Deposits Mt Playfair Mt Hutton • High grade (≈42% MgO) • Consistent chemical composition over 80 kms strike • 69 DDHs and all other attendant studies completed by previous owner to underpin JORC resource and reserve estimation • $millions spent on
Slide 15: MDL's 1999 Resource Estimate
For personal use only MDL’s 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 “Economic
Slide 16: Leigh Creek Magnesite Calcining Test Work
For personal use only Leigh Creek Magnesite Calcining Test Work • Calcining tests on straight run-of-mine magnesite produced magnesia grading: ≥ 90% MgO ≥ 4.5% SiO2 ≈ 0.3% Al2O3 ≈ 0.6% CaO ≈ 0.4% Fe2O3 • To maximise the marketability of magnesia produced the magnesia (MgO) increased to ≥95% MgO and
Slide 17: 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 >90% MgO Caustic Calcined DSO Magnesite Steadily Growing Market 17
Slide 18: 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 cost (Order of magnitude Capex price for 150,000tpa feed calciner and rotary cooler with installa
Slide 19: Why the interest? – you do the Math
For personal use only Why the interest? – you do the Math Magnesite = MgCO3 Magnesia = MgO Calcine ≈2.1 tonnes of MgCO3 ≈1 tonne MgO Archer’s JORC magnesite resources at Leigh Creek = 413 million tonnes 1 tonne MgO ≈A$620 (2010 $) Further test work needed to unlock value 19
Slide 20: Manganese: Ketchowla
For personal use only Manganese Ketchowla – DSO quality manganese • 5 main manganese deposits. • Medium grade (≈ 20% Mn ± Ni, Co, Cu & Zn, REE). • Dense media separation and gravity concentration upgraded K1 drill cuttings from 17.47% Mn to >35% Mn at a 23.2% recovery. Ni, Co, Cu, Zn and Y also upgr
Slide 21: Manganese: Salt Creek
For personal use only Manganese Salt Creek • Widespread manganese intersected in all 19 RC drill holes completed in April 2011. • The drilling tested 1.5km of strike or just 15% of the known strike length of at least 10km. The eastern limb and western flanks of the syncline yet to be drill tested. •
Slide 22: Thank You
For personal use only Thank You SAREIC Conference Adelaide 3rd May 2011 Archer Exploration Limited ASX Code: AXE Email Contact: info@archerexploration.com.au Phone: +61 8 8272 3288 Facsimile: +61 8 8272 3888 Website: www.archerexploration.com.au 22