Archer Materials Limited · ASX:AXE
Archer Materials — Archer Exploration — 20:20 Investor Series (March 2011)
24 slides from Archer Materials's conference presentation, Mar 8, 2011
Slide 1: Two outstanding deposits with more to come
For personal use only Archer Exploration Limited “ Two outstanding deposits with more to come” 20:20 Investor Series Sydney 9th March 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: Company Assets
Company Assets For personal use only Exploration Tenements • 100% of 18 tenements covering 9,042 km2 over Leigh Creek, Eyre Peninsula, West Roxby, Burra and World’s End areas. • 100% of 3 ELA’s covering 1,513 km2. “World Class” Magnesite Resource JORC Measured, Indicated and Inferred Resources at Le
Slide 4: 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 Termination Hill ≈ 70% Probability of significant mineral tenements and mineral Mt Playfair Witchelina Development at T0 deposits. Advan
Slide 5: 2011 Exploration First Order Priorities
For personal use only 2011 Exploration First Order Priorities Magnesite Graphite Manganese/Iron Ore Eyre Peninsula Adelaidean Termination Hill and Carappee Hill 100% Sugarloaf Jamieson Tank Ketchowla 100% Witchelina ELs deposit Nth Cowell 100% Neales Flat 100% Area 54 km2 Wild Horse Plains Kanyaka 1
Slide 6: What is Magnesite and Magnesia?
For personal use only What is Magnesite and Magnesia? • MAGNESITE is a naturally occurring magnesium carbonate MgCO3 • Leigh Creek magnesite was formed as a chemical precipitate in the NeoProterozoic in a shallow near ocean lagoon environment similar to the present Coorong • Magnesia (MgO) is produc
Slide 7: Magnesia Market
Mg Metal - 14% of Magnesium business 7 Magnesia / magnesium market outlook strong and new technologies emerging MgO based Chemicals - 23% of Magnesium business Magnesia Market Refractory Bricks - 63% of Magnesium business For personal use only
Slide 8: Magnesia Market Growth
For personal use only Magnesia Market Growth • Industrial applications - concrete • Building products – Mg board MgO growth closely mirrors that of the steel industry • Fertilizers and soil conditioners – strong local market • Water purification • Waste water treatment • Acid mine water and acid tai
Slide 9: 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 9
Slide 10: MDL's 1999 JORC Resource Estimate
For personal use only MDL’s 1999 JORC Resource Estimate Area Measured* Indicated* Inferred* MgO1 (Mt) (Mt) (Mt) Mt Hutton 18.3 42 53 42.9% Mt Playfair 21 23 42.5% Pug Hill 10 10 42.7% Termination Hill 4 5 20 42.8% Witchelina 23.7 94 99 40.0% Total 46 172 205 *Source: Reproduced from MDL Report “Econ
Slide 11: Developing a Magnesite / Magnesia Business
For personal use only Crushing Plant Developing a Magnesite / Magnesia Business Mine ROM MgCO3 Crushed MgCO3 Calcine Rail to Spencer Gulf Crushed MgCO3 >97% MgO Caustic Calcined (>$600/t) Deadburned (≈$750/t) Steadily Growing Market ± DSO magnesite 11 Simple high yield flowsheet likely
Slide 12: Competitor Comparison
For personal use only Competitor Comparison Leigh Creek Vs Kunwarara Magnesite (QMag) Beneficiation Plant Feed Vs Leigh Creek Projected Feed 2001 : 3.4Mt ore mined producing 437,000t magnesite (Yield 15.5%) High purity cryptocrystalline magnesite Beneficiation: Crush/screen/scrubbing/heavy media/ore
Slide 13: Leigh Creek Magnesite: Good Supply Chain Logistics
For personal use only Leigh Creek Magnesite Good Supply Chain Logistics Myrtle Springs Mine • Deposits lie 20kms north of privately owned Leigh Creek – Port Augusta standard gauge rail line • Leigh Creek town site 25kms to the south east • Moomba – Adelaide gas line • Port Pirie capable of handling
Slide 14: 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 “Exploration Potential” at Leigh Creek = 423 million tonnes 1 tonne MgO = ≈A$620 (2010 $) 100% ownership affords Archer flexibility in project development. Ther
Slide 15: Sugarloaf Graphite
For personal use only Sugarloaf Graphite The Sugarloaf graphite deposit occurs as a highly graphitic schist. Two shafts dug to 63 and 80 feet in 1915 returned values of 25.3% and 15% total carbon respectively. There is no record of tonnes mined from the shafts. In 2004 Helix and Goldstream both dril
Slide 16: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Archer drilling has recorded wide graphite intervals with total carbon values 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 77-113m 36m @ 14.0% total C
Slide 17: Sugarloaf Graphite
For personal use only Sugarloaf Graphite • Graphitic schist adjacent to a granite intrusion. • Graphite flake size varies to 0.2mm and averages 0.1mm. • Sugarloaf likely to be able to produce Fine; Medium and Large flake products. • NB : Petrological sample taken at surface - expect grain size to in
Slide 18: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Graphite : • . Key ingredient in steel, castings, lubricants, vehicle brakes, golf clubs, tennis rackets and pencils! • Stable in corrosive environments, conducts electricity and resists heat. • Growing importance for storage batteries and nuclear-electricity
Slide 19: Sugarloaf Graphite Work Program
For personal use only Sugarloaf Graphite Work Program • Drilling will re-commence in March – April 2011 to confirm overall strike extent of high grade graphite. This drilling will more tightly constrain the upper Exploration Target currently standing at 20Mt. • A sample has been collected for furthe
Slide 20: Manganese: Ketchowla
For personal use only Manganese Ketchowla • 5 main manganese deposits over 28 km. • Medium grade (≈ 20% Mn ± Ni, Co, Cu & Zn). • Peak assays of 0.47% REE (from rock chip samples) and 0.36% REE in drill cuttings at K1, K2, K3 and K9 manganese deposits. • Elevated REE and lithium results coincident wi
Slide 21: Manganese: Salt Creek
For personal use only Manganese Salt Creek • Manganese outcrops over a 3 km strike. • Surface widths to 30 metres with manganese grades to 27% Mn with elevated REEs. • Four RC drill traverses to be drilled in March – April 2011. Metres Metres Salt Creek manganese has significant tonnage potential. I
Slide 22: Iron Ore: Mt Desperate and Campoona
For personal use only Iron Ore Mt Desperate and Campoona • Outcropping hematite grading to 66.3% Fe. • Gravity survey highlighted the potential for the Campoona Syncline to host hematite mineralisation. • RC drill traverses planned for April 2011. Campoona Mt Desperate High grade hematite recorded f
Slide 23: Uranium: Apollo Prospect
For personal use only Uranium Apollo Prospect • Apollo is a 3km diameter circular 7 - 8milligal gravity low, which is coincident with a 20-30m deep topographic depression and significant disruption to regional magnetic trends. • The surface depression may be the result of intense alteration associat
Slide 24: Uranium: Apollo Prospect
For personal use only Uranium Apollo Prospect • The Apollo target has striking similarities to the Rabbit Lake Athabasca-style unconformity uranium deposit located in Northern Saskatchewan Canada. Rabbit Lake was discovered in 1965, first production was in 1975 and in 2008 Cameco produced 3.6Mlbs of
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