Half Yearly Report and Accounts
Perth, Feb 18, 2015 AEST (ABN Newswire) - Archer Exploration Limited's (
ASX:AXE) exploration activities during the six months ended 31 December 2014 focused on exploration of the Group's Eyre Peninsula Graphite Project which includes the newly acquired EL4662 Waddikee tenement, the Leigh Creek Magnesite deposits and the Spring Creek copper prospect. All projects are located in South Australia.
Graphite
Substantial progress was made on studies to support the Campoona Mining Lease Proposal (MLP) planned to be submitted to government around March 2015. As at 31 December 2014 the MLP was estimated at 85% complete with only the final mine plan (including Mine Closure Plan) and tailings design and management remaining to be completed.
Archer purchased Waddikee EL4662 from Monax Mining Limited (ASX:MOX) for $300,000. Waddikee is contiguous with and lies to the north of Archer's graphite interests. The acquisition provided:
- The Wilclo South graphite deposit with a JORC 2012 Inferred Resource of 6.38 million tonnes grading 8.8% GC (using a 5% GC lower cut-off grade) for over 561,000 tonnes of contained graphite in Resource. The Resource drilling covered just 1.4kms of a ˜ 14 kilometre pronounced linear EM signature.
- Substantial exploration upside as Waddikee has 7 additional graphite prospects and numerous EM targets not yet drill tested.
- Large to jumbo flake indicated from petrology at Wilclo, Cut-Snake and Argent.
Archer announced Australia's largest JORC 2012 graphite resource of 8.55Mt @ 9.0 Cg% (based on cut-off grade of 5% Cg) containing 770,800 tonnes of contained graphite.
A short scout drilling programme designed to identify those Waddikee graphite prospects capable of delivering large flake graphite commenced late in the period. Results are expected during January/February 2015.
Metallurgical process flowsheet designed for Campoona Shaft ores.
Chemical cleaning of concentrates achieved purity >98.5% Cg.
A composite RC sample (drill hole WG045) from the oxide zone of the Wilclo South graphite deposit produced extra large, large, medium and fine flake graphite at grades of 91-93% Cg. The shape of the recovered flake particles showed a high degree of graphite release from the predominantly quartz gangue, which infers potential for efficient recovery of graphite at relatively coarse grind sizes. Small scale laboratory tests inferred that 42-55% of the graphite is recoverable as flake products.
Concentrate was recovered through conventional mineral separation processes including grinding in a rod mill, froth flotation, and then sieved into sized fractions before batch beneficiation on a shaking table and Haultain super-panner.
The expectation is that concentrate grades from Wilclo South will improve with further process steps such as light regrinding and re-cleaner stages of flotation and tabling.
Research undertaken by the University of Adelaide is part of ongoing collaboration between Archer and the University of Adelaide, School of Chemical Engineering (Prof Dusan Losic Nano Research Group). Archer is sole funding the $200,000 research funding over two years which will confer exclusive rights to license any commercial applications arising from the program.
Graphite samples from the Campoona and Sugarloaf graphite deposits were characterized to determine mineral composition, graphitic carbon concentration and impurities as inputs into optimizing processing conditions for the production of graphene based products.
The research focused on the modification of Sugarloaf graphite and Sugarloaf derived graphene as a mechanism for the capture and slow release of nitrogen, phosphorus and potassium (NPK) and other trace elements to test the materials capability of providing a slow release of nutrients.
Eighteen formulations were prepared using graphene, graphene oxide and expanded graphite.
Following pelletizing, release studies will be conducted and monitored over a two-three month period under various leaching conditions. Results will be compared with commercially available products.
Archer reached agreement with Samphire Uranium Pty Ltd, a wholly owned subsidiary of Uranium SA Limited, to transfer the title to EL4693 Wildhorse Plain to Pirie Resources Pty Ltd, a wholly owned subsidiary of Archer Exploration Limited. On the 3 February 2015, Archer Exploration Limited issued 250,000 fully paid ordinary shares to UraniumSA Limited, as full consideration payable upon the transfer of title of EL4693 (ASX release 3 February 2015).
MAGNESITE
Archer and Foyson Resources Limited entered into a confidential settlement agreement to settle all disputes between them concerning the Leigh Creek Magnesite Project.
Ernst & Young completed a strategic review of the Leigh Creek assets.
The Leigh Creek Magnesite Project has been offered for sale.
SPRING CREEK
Preparations have been made to request access to the historic high grade copper mine (+10% Cu) for the purpose of diamond drill testing. The historic Spring Copper mine occurs on ELA 2014/025 (formerly EL 4249).
Copper mining ceased in 1918 when the mine de-watering pump failed and the mine flooded.
The government of the day determined that the operator had 12 months to reactivate the mine or face forfeiture. The mine was handed to SA Water in 1919 and established as the source of water for the town of Wilmington. Water is currently pumped from the mine workings at the Main Shaft.
Archer plans to drill test the copper mineralisation to determine if economic copper exists in the breccia zone. Meetings were held with SA Water regarding access to the mine which is now used to supply water to the township of Wilmington. Further discussions will be held with DEH and SA Water to develop protocols to access and sample the mine workings and to drill two diamond drill holes to test the tenor of remaining oxide copper mineralization.
For the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AXE-843166.pdf
Contact
Archer Exploration Limited
T: +61-8-8272-3288
WWW: www.archerexploration.com.au
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