Archer Exploration Limited (ASX:AXE) Drilling Started On Priority Eyre Peninsula Targets

Sydney, Mar 17, 2011 AEST (ABN Newswire) - Archer Exploration Limited (ASX:AXE) is pleased to announce that drilling commenced on 16th March 2011 on a number of promising deposits and prospects near Cleve and Darke Peak on Eyre Peninsula, South Australia. Drilling is expected to take up to four weeks to complete.

Due to recent heavy rains the drill program as outlined below is nominal in nature as the actual sequence may change if access issues arise.

Nominal Drill Schedule:

Campoona hematite: 16th - 22nd March
Emu Plain copper: 23rd - 24th March
Salt Creek manganese: 25th - 31st March
Sugarloaf graphite: 1st - 7th April

Drilling results should be available by the end of April 2011.

Sugarloaf Graphite

The Sugarloaf graphite deposit is located near Darke Peak on Eyre Peninsula South Australia. Prior to Archer Exploration Limited acquiring the tenement, drilling had recorded numerous intercepts of graphite. As graphite was not a focus the intervals were never assayed for carbon.

Archer has reviewed the historical drill logs that record intervals of graphite in 23 of the 41 holes drilled. Geological logs record intervals of graphite varying from 4 metres to 61 metres.

The locations of the holes indicate the potential for significant graphite over a strike length of at least 2 kilometres. Figure 1 (see link at the bottom of the release) shows the holes in plan view along with an underlying electromagnetic (EM) image for the area. The graphite is highly conductive and the EM responses are considered to be largely due to the presence of graphite.

Campoona and Mt Desperate Hematite

The Campoona gravity anomaly is considered highly prospective for hematite due to the coincidence of a gravity high over banded iron formation which has had the magnetism largely destroyed.

The central hinge zone remains the primary target for hematite mineralisation, although significant gravity anomalies are recorded outside of this hinge zone.

The purpose of the drill program is test for the presence of high grade hematite that may support a DSO hematite operation.

Salt Creek Manganese

Manganese outcrops at Salt Creek over a 3 km strike with surface expressions indicating widths to 30 metres. Rock chip sampling has recorded manganese grades to 27% Mn.

Drilling will target the vertical extensions and width of manganese mineralisation present at the southern end of the deposit. The program, if successful will permit the development of an exploration target for the remaining untested strike length.

Emu Plain Copper

As a part of regional reconnaissance the Emu Plain copper shaft was visited and a sample of the host rock was taken for petrology. Iron oxide 'blebs' seen in specimen were considered to be the result of weathering of sulphides, but the species was unknown. Petrological examination confirmed the oxides are after chalcopyrite, a primary copper sulphide.

Although there are numerous copper workings in the area, none observed have had the weathered sulphide present at the surface. Iron oxide pseudomorphs after chalcopyrite make Emu Plain an exciting drill target.

For the complete Archer Exploration announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/182333.pdf

Contact

Mr Greg English Chairman Archer Exploration Limited Tel: +61-8-8272-3288 Mr Gerard Anderson Managing Director Archer Exploration Limited Tel: +61-8-8272-3288 Email: info@archerexploration.com.au http://www.archerexploration.com.au