Slide 1: Archer Exploration Limited Investor Presentation
For personal use only Archer Exploration Limited Investor Presentation October 2016
Slide 2: Contents
Contents AXE has 2 major projects progressing towards commercialisation For personal use only Significant progress being made with the Leigh Creek Magnesite project AXE is focused on capital efficiency and promotion of early cash flow projects Magnesite Graphite Other project opportunities • World l
Slide 3: Archer – series of discrete industrial minerals projects
Archer – series of discrete industrial minerals projects • For personal use only Advanced near term production opportunity Key information* in Magnesite • Projects adjacent to existing infrastructure means low capital costs for mining • Potential to access third party infrastructure means low capita
Slide 4: Diversified business
Diversified business • Leigh Creek Magnesite • For personal use only World’s largest magnesite deposit of its type & 20+ year resource. • Advanced negotiations with established commercial kiln operators regarding toll treatment • Commercial calcining of magnesite expected to commence CY2017 • Quick
Slide 5: Magnesite production can fund future growth
use only Magnesite production can fund future growth Other opportunities Value ($) For personal Graphite project cash flows Magnesite project cash flows Time (yrs) 5
Slide 6: World's largest cryptocrystalline resource
World’s largest cryptocrystalline resource Leigh Creek Magnesite Project is 48% of world cryptocrystalline resources For personal use only Cryptocrystalline magnesite is a unique and scarce mineral representing only 7% of world’s total magnesite resources Cryptocrystalline can produce a wide ran
Slide 7: Leigh Creek Magnesite Deposits
Leigh Creek Magnesite Deposits • 6 magnesite deposits that For personal use only extend for more than 120km NW of Leigh Creek Township • Magnesite is a series of parallel dipping beds with dolomite interburden • Closure of Alinta’s operation’s has created government and local support for projects in
Slide 8: CSIRO testing
CSIRO testing Calcining test work of Leigh Creek Magnesite successfully completed by CSIRO For personal use only Test designed in conjunction with commercial kiln operator Further testing to be conducted by kiln operator to establish temperature, residency time and other parameters Critical
Slide 9: Favorable market; Strong demand growth
Favorable market; Strong demand growth Demand for magnesia is expected to continue growing through 2017, at a rate of For personal use only 3.6% pa ( growth trend rate of the last 12 years = 4.7% pa) Global Magnesia Demand Expected Growth 2017E Growth (%) (‘000 t) High Value Deadburn (DBM) 2,197 3.5
Slide 10: Magnesite Project highlights - Scope
Magnesite Project highlights - Scope No capital required for production process. For personal use only Archer aims to mine up to 125,000 tpa of magnesite at Mount Hutton (17.5Mt @ 40.1% MgO). Bulk trials to confirm characteristics of monolithic deadburn magnesia product (MDBM) – market continu
Slide 11: Key dates – magnesite project
Key dates – magnesite project Activity Q4 16 H1 17 H2 17 H1 18 For personal use only Lab testing a Bulk trial /pilot test Secure offtake Sign toll processing agreement Magnesite mining Magnesite toll processing Customer sales 11
Slide 12: Carbon and Graphite projects continue development
Carbon and Graphite projects continue development • Campoona graphite For personal use only • Mining lease proposal completed • Capable of producing ultra pure ultra fine battery grade graphite, and suitable for graphene manufacture • Continuing to seek off-take partners with potential to move to ea
Slide 13: Other portfolio opportunities
Other portfolio opportunities All tenements are owned 100% by Archer and its For personal use only subsidiaries except for the uranium rights Project Tenement Commodity Carappee Hill EL 4861 Graphite attaching to EL 5804 North Burra EL 5433 Base Metals North Cowell EL 5434 Base Metals Wildhorse Pl
Slide 14: Key investment takeaways
Key investment takeaways Emerging industrial minerals Cryptocrystalline magnesite has superior physical and chemical For personal use only producer characteristics enabling the production of high value magnesia products Management has extensive magnesite marketing expertise Close proximity to
Slide 15: Disclaimer
Disclaimer Scoping Study For personal use only Information in relation to the Eyre Peninsula Graphite Project Scoping Study, including production targets and financial information, included in this document is extracted from an ASX announcement entitled “Positive results from SA Graphite Project sco
Slide 16: Competent Person Statement
Competent Person Statement Competent Person Statement For personal use only The Mt Hutton Central Mineral Resource estimate, exploration results and Exploration Target reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Wade Bollenhagen, Exploration Man
Slide 17: Archer Exploration Limited contact details
For personal use only Archer Exploration Limited ASX code: AXE Company details: Level 1, 28 Greenhill Road Wayville South Australia 5034 www.archerexploration.com.au Further Greg English (Chairman) information: T +61 8 8272 3288 genglish@archerexploration.com.au
Slide 18: Leigh Creek Magnesite Project conceptual development layout
For personal use only Additional Information Leigh Creek Magnesite Project conceptual development layout 18
Slide 19: Magnesite resources
Magnesite resources • 453 million tonnes @ 41.4% MgO • For personal use only Mineral Resource calculated to 60m deep but is open at depth • Located 20km northwest of the Leigh Creek township • Detailed historic DFS drilling, metallurgical and other test work results owned by Archer. • Mt Hutton Cent
Slide 20: Appendix Graphene potential
Appendix Graphene potential High grade Campoona graphite concentrate enables production of pure graphene For personal use only Research collaboration agreement with University of Adelaide. Test results showed: Production of high grade graphene using one step process. Manufacture of numerous pr
Slide 21: Appendix Campoona Shaft - battery grade graphite
Appendix Campoona Shaft - battery grade graphite Campoona graphite targeting > 99% Cg natural graphite concentrate For personal use only Aim to produce products grading to 99.5% carbon, matching the world’s highest quality natural graphite. Production of up to 10,500 tpa high purity graphite T