Slide 1: Leigh Creek Magnesite Revisited 2010
ARCHER EXPLORATION LIMITED For personal use only Leigh Creek Magnesite Revisited 2010 Sept 2010 www.archerexploration.com.au ASX : AXE
Slide 2: Disclaimer
Disclaimer For personal use only 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: Background
Background For personal use only ASX Listing 14th August 2007 ASX code “AXE” Exploration Base – Adelaide Projects – South Australia
Slide 4: Leigh Creek Magnesite Revisited
Leigh Creek Magnesite Revisited For personal use only Leigh Creek Magnesite History Magnesium Metal • Early 21st Century - Impact of China • Post WW2 Magnesium Market • Magnesium Future Archer and the Leigh Creek Magnesite Deposits • Geology • Leigh Creek Magnesite Resources Leigh Creek Magnesite a
Slide 5: Leigh Creek Magnesite History
Leigh Creek Magnesite History. For personal use only 1914 First documented magnesite mining 1947 FH Faulding small quantities mined for pharmaceutical and Chemical use. 1984 -85 30,000 t to QAL(Gladstone) for water treatment (44.7% MgO, 4.2% SiO2, 2.4% CaO, 0.13% Al2O3, 0.16% Fe2O3) SAMAG Resource d
Slide 6: Magnesium Metal 1998-2002
Magnesium Metal 1998-2002 For personal use only AMC Prospectus to raise $500m Oct 2001 Dow AMC a Sardine trying to give birth to a Whale Electrolytic Process AMC Mothball Stanwell Magnesium Project June 2003 Australian Magnesium Corporation QMAG
Slide 7: Magnesium 1998-2002
Magnesium 1998-2002 Magnesium Metal For personal use only • 4 times lighter than Iron and a third lighter than Aluminium • 4 C’s Computers, cameras, cell phones, cars • Superior strength to weight ratio. • Mg is the Aluminium of the new century
Slide 8: Magnesium Last Century
Magnesium Last For personal use only Century 1959 Convair RB-36D Peacemaker U.S.A.F. Intercontinental strategic bomber. Contained 8.6 tonnes magnesium saved 26 tonnes steel or 2.9 tonnes Al. From 1936 Volkswagon 1965 Beetle 20 kgms/vehicle Mg Metal 1970s BMW Rennsport motorcyle. Magnesium engine and
Slide 9: Magnesium v's Aluminium
Magnesium v’s Aluminium Mg the Aluminium of the new century? For personal use only Bayer Electrolytic Bauxite Process Alumina Aluminium Reduction 40,000,000 Al Production Al atomic No 13. 30,000,000 3rd most abundant crustal element 20,000,000 Al Metal 30 m tonne pa Business 10,000,000 Price approx
Slide 10: Magnesium electrolysis process
Magnesium 1998-2002 Beneficiated Magnesite >40% MgO For personal use only HCl Leach Electrolysis Process – Mg Metal First Commercial Production 1852 Calcium Removal Purification Filtration Boron Removal Fluid Bed Becdancour . Canada Drying MgCl2 .2H2O Cl2 Electrolytic Cells Magnesium to Casting
Slide 11: Magnesium Metal Processes
KMgCl Magnesium Metal For personal use only Processes Electrolytic Reduction v’s MgCO3 Thermal Reduction H4Mg3Si2O9 MgCa (CO3)2
Slide 12: Magnesium Metal Production
700000 600000 1990 – 2009 500000 Other World For personal use only 400000 Israel 300000 EU USA Magnesium 200000 Canada Russia Metal 100000 0 China Production 100% Before GFC 90% Growth 10% pa 80% 70% Other 60% Israel 50% EU 40% USA 30% Canada Nth America Plant Closures Russia 20% 1999 Dow Texas Chin
Slide 13: Magnesium 2010 Thermal Reduction
Quarry Magnesium 2010 Thermal Reduction Dolomite 20% MgO Gas Fired Rotary For personal use only Kiln Cool Calcined Dolomite Quarry Dolomite Ball Mill Grind FeSi and Mix Ferrosilicon Briquette Press Retort Furnace Residue Retort Furnace Magnesium Crowns Refining & Sludge Casting Magnesium Magnesium C
Slide 14: Magnesium Future Pigeon Process?
Magnesium Future Pigeon Process ? Pigeon Process Advantages • Capital Cost <$500 /tonne annual production v Electrolytic Capital For personal use only Cost $10,000/tonne annual production • Retorts can be added progressively - incremental expansion of production • Dolomite is an abundant source mate
Slide 15: Current Mg Consumption
Current Mg Consumption Die Casting ( 40%) US Auto Mg Die CastingConsumption For personal use only 2000 - 75,000 tonnes 2008 -34,000 tonnes Aluminium Casting (27 %) No Substitute 2008 Al. beverage can 1.1% Mg in can body 4.5% Mg in can top Desulphurizing Steel ( 23%) Mg’s affinity for Sulphur Price S
Slide 16: Magnesium in the 21st Century
Magnesium in the 21st Century Thermal reduction of MgO (from magnesite) with carbon. For personal use only
Slide 17: Archer and the Leigh Creek Magnesite Deposit
ARCHER and the Leigh Creek Magnesite Deposit For personal use only • Identified SAMAG Magnesite Resource Feb 2010 • License Application Feb 2010 • PIRSA Offer Aug 2010 • Expect Grant Sept 2010 • Archer 100% owner
Slide 18: Leigh Creek Magnesite History 1998-2000
Leigh Creek Magnesite History 1998-2000 For personal use only 232Kms Photo from Myrtle Springs Pit owned by MIL. Rail Regional Historic “Resources” Area Measured Indicated Inferred MgO Pug Hill 10 10 42.7% Termination Hill 4 5 20 42.8% Mt Hutton 18.3 42 53 42.9% Mt Playfair 10 10 42.7% Witchelina 23
Slide 19: Magnesite Geology
Magnesite Geology For personal use only Resources 6 Deposits • Paleoproterozoic Age • Ancient “Coorong “ • 120 kms strike length • Multiple Beds • Vast Resource Potential
Slide 20: Magnesite Geology
Magnesite Geology For personal use only Hymapper at Witchelina
Slide 21: Leigh Creek Magnesite Project 1998-2000
Leigh Creek Magnesite Project 1998-2000 Pastoral Leasehold • Independent Resource Estimate For personal use only & audit. • Baseline Environmental Study • Geotechnical Study • EIS for 200kpa mining Mt Hutton Pit Design Outcropping Magnesite
Slide 22: A New Paradigm For Leigh Creek Magnesite
A New Paradigm For Leigh Creek Magnesite For personal use only Previous work has focused on Magnesium Metal Magnesia (Mg0) market has expaned • Refractories supplying the Steel Industry • Expansion into building Products (MgO) • Board – binder for bricks • Chemical applications – lateritic Ni/Co Mag
Slide 23: Magnesite Uses
Magnesite Uses 14% For personal use only 23% 63% Refractory Chemical Metal Magnesium Metal Refractory MgO
Slide 24: Magnesia
Magnesia Electrical Steel Grade MgO CHEMICAL USES For personal use only Wastewater and Water Treatment Electric Utilities • Lateritic Ni/Co Chemical Precipitation of Ni & Co from Sulphate Agriculture solutions • MgO Board Food Grade Pulp Bleaching Flame Retardant and Smoke Depressant
Slide 25: MgO Board
MgO Board For personal use only • MgO Board approved for construction in US 2003 – Florida Mold Resistant • Beijing Olympics preferred construction material - Internal & external Brick and Binding
Slide 26: Magnesite product types
Magnesite 1000OC For personal use only Chemically Active Fillers, fertilizers, industrial, Caustic Calcined pharmaceutical Magnesite 40,000 tpa 10,000 tpa Vertical Shaft Furnaces Electric Arc Furnaces up to 2,300oC 2,800 – 3,000oC Deadburned Electrofused Magnesite Magnesite
Slide 27: Magnesite product prices
Caustic Calcined Deadburned Electrofused Magnesite CCM Magnesite DBM Magnesite EFM $ 450-590* $ 750* $ 1200* Critical Contaminants Critical Contaminants Critical Contaminants For personal use only - CaO, SiO2, Fe2O3 - CaO, SiO2, Fe2O3 - Product Specific Al2O3 Al2O3 * Indicative Only
Slide 28: Product Specification
Product Specification MgCO3 MgCO3 30k tonnes 1984-85 For personal use only 44.7% MgO; 2.42% CaO; 4.21% SiO2 0.13% Al2O3; 0.16% Fe2O3 For DBM and EFM SiO2 and CaO are too high. Talc Leigh Creek Magnesite Talc
Slide 29: To Meet Refractory Specifications
To Meet Refractory Specifications • SELECTIVE MINING For personal use only Mt Hutton alone 17 Beds unique mineralogy over >4 Kms probably low SiO2 Units • BENEFICIATION Flotation or heavy media NB Historic metallurgy focused on CaO removal for Mg Metal Production Pure MgCO3
Slide 30: LCM - Order of Magnitude Study
LCM - Order of Magnitude Study Leigh Creek Mine Crushing Plant For personal use only 200KT MgCO3 Mine 200kt Magnesite 800kt O&W Crush to 20mm – remove fines $3-$5/t Calcine 200kt Crushed MgCO3 Rail to Pt Pirie 100kt MgO Capital $30-35m. Caustic Calcined MgO Markets
Slide 31: Outlook 2010-11
OUTLOOK 2010 -11 For personal use only INVESTOR PRESENTATION 2010