Archer Materials Limited · ASX:AXE
Archer Materials — Archer Exploration — Shareholder Meeting (November 2011)
39 slides from Archer Materials's shareholder meeting presentation, Nov 25, 2011
Slide 1: Archer Exploration Limited 2011 Annual General Meeting
For personal use only Archer Exploration Limited 2011 Annual General Meeting 25th November 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: Presentation Outline
For personal use only Presentation Outline • Corporate Overview • Company Assets • Project Pipeline • 2011 Highlights • Graphite • Magnesite • West Roxby Uranium and IOCG Targets • Manganese 3
Slide 4: Corporate Overview
For personal use only Corporate Overview ASX Code : AXE Archer Exploration Shares on Issue 67,142,763 30 25 Unlisted Options on Issue 6,270,000 20 Share price at 21/11/2011 $0.16 15 10 Market Capitalisation A$11.7 million 5 Cash at Bank as at 31/10/2011 ≈A$2.1million 0 Directors Chairman Greg Englis
Slide 5: Company Assets
For personal use only Company Assets Exploration Tenements • 19 granted mineral tenements covering portions of Eyre Peninsula, Leigh Creek, West Roxby, Burra and World’s End areas. • 3 ELA’s. • 100% of mineral rights other than uranium on Wildhorse Plain Graphite • 100% owned Sugarloaf deposit has E
Slide 6: Project Pipeline
1 For personal use only Project Pipeline Reserve* ≈ 100% Mt Hutton Archer is an exploration company. The Pug Hill Resource* 4 ≈ 70% Probability of principal assets of the Company are its Termination Hill significant mineral tenements and mineral Development at T0 deposits. Mt Playfair Witchelina whe
Slide 7: 2011 Highlights
For personal use only 2011 Highlights Graphite Sugarloaf • Exploration Target defined. • Petrology indicating fine graphite averaging 100µm in size. Regional • Large flake graphite identified at several locations - Campoona, Campoona South , Council Pit. • Airborne EM survey highlighted strike and d
Slide 8: Graphite
For personal use only Graphite Graphite Properties: Metallic properties: - Excellent conductor of heat and electricity - Highest natural strength and stiffness of any material Nonmetallic properties: - High natural lubricity - Maintains strength and stability to temperatures in excess of 3,600 oC -
Slide 9: 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 9 Dry cell batteries Graphite brake pads
Slide 10: 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 11: Graphene - the New Super Material
For personal use only Graphene - the New Super Material 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 12: Graphite Supply – China first, then daylight
For personal use only Graphite Supply* – China first, then daylight…. Country Mine Production 2009 Mine Production 2010e Reserves (kt) (kt) (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 13: 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 14: Graphite Demand Trends
For personal use only Graphite Demand Trends • Traditional Uses : Steelmaking, refractories, auto parts, gaskets, composites, batteries, semiconductors, carbon brushes and oils and greases is increasing with increasing industrial output. • Emerging Uses : Growth in the flake market from increased de
Slide 15: 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. 2. Green energy initiatives : especially fuel cells and solar electricity applicati
Slide 16: 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 17: Significant Land Position
For personal use only Significant Land Position Flake potential – Campoona, Campoona South - Grid 2, Mt Shannan, Wilklow & Others Archer has a substantial land position in “graphite province” 17
Slide 18: Sugarloaf Graphite
For personal use only Sugarloaf Graphite Sugarloaf area first explored for gold, base metals and uranium. Goldstream then Helix identified a coincident gold and copper soil anomaly. The two companies drilled a total of 41 drill holes across Sugarloaf. Best intercept was 3m @ 1g/t Au in a laminat
Slide 19: Sugarloaf Graphite 2011 Drilling
For personal use only Sugarloaf Graphite 2011 Drilling • Drilling in March – April 2011 confirmed overall strike extent of the highly graphitic schist. • A number of samples from varying depths were collected for detailed petrology. Hold ID From (m) To (m) Interval (m) Total Carbon (%) SLRC11 _001 6
Slide 20: Sugarloaf Graphite Summary
For personal use only Sugarloaf Graphite Summary • 100% owned Sugarloaf deposit has Exploration Potential of 24 – 37Mt grading 10-12% total carbon*. The estimate is for the western graphite limb only. • *The potential quantities and grades presented are conceptual in nature, there has been insuffici
Slide 21: Wildhorse Plain Graphite - Campoona
For personal use only Wildhorse Plain Graphite Significant regional 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 6km long was identified adjacent to the Lower Middleback
Slide 22: 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 23: 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 24: Some Other Wildhorse Plain Graphite Targets
For personal use only Some Other Wildhorse Plain Graphite Targets A405 Graphite was reported in drill holes as a part of uranium exploration in 1968 by Kerr McGee. Hole A405/2 graphite flakes were reported from 32 to 56 metres, within altered dolomites. Hole A405/3 medium crystalline graphite was re
Slide 25: Archer Graphite Summary - Deposit Comparison
For personal use only Archer Graphite Summary Deposit Comparison Company Deposit Lower Cut-off Resourc Resource Graphite Size Grade (%C) e Grade (µm) (t) (%C) Archer Exploration Sugarloaf 1%C 40Mt* 11.7%C* Fine/Amorphous Northern Graphite Bissett Creek 1%C 20Mt 1.97%C Large 2%C 8.8Mt 2.58% Large 3%C
Slide 26: Archer Graphite – Summary
For personal use only Archer Graphite – Summary Known Knowns • Exploration is in the formative stages having started in April 2011. • Large prospective land bank >900km2. • Exploration has consisted of rock chip sampling, RC drilling and detailed petrology. • Through literature searches Archer ident
Slide 27: 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 28: 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 29: 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 30: Leigh Creek 1999 JORC Resources
For personal use only Leigh Creek 1999 JORC Resources 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 “Econom
Slide 31: Magnesite / Magnesia Business Model
For personal use only Magnesite / Magnesia Business Model Crushing Plant 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 intermediate pro
Slide 32: 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 33: 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 34: West Roxby Project - Uranium and IOCG
West Roxby Project - Uranium (Apollo) & IOCG (Island Lagoon and For personal use only Evelyn Dam) Residual Gravity and Magnetic image with Cariewerloo Basin Substantial exploration targets now a step closer to evaluation 34
Slide 35: Olympic Dam Province - Apollo Target
For personal use only Olympic Dam Province - Apollo Target Apollo Topography Apollo Magnetics Apollo Gravity 20-30m topographic low 8mgal low Deposit style : Rabbit Lake Uranium Mine Nth Saskatchewan Canada Discovered 1965 First Production 1975 2008 Production CAMECO 3.6m pounds Apollo has compellin
Slide 36: West Roxby – Apollo Unconformity Uranium Target Model
West Roxby – Apollo Unconformity Uranium Target Model For personal use only Athabasca Style Magnetic and Gravity Lows Surface Depression – Rabbit Lake Pandurra redbed lithologies Unconformity Reduced crystalline basement intruded by A type granites. (Olympic Dam) 36 NTMA signed by main Claimant repr
Slide 37: 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% recovery
Slide 38: 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 39: 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 39
Archer Exploration — Shareholder Meeting (November 2011) on 6ix