Quarterly Activities Report

15 July 2010
Quarterly Activities Report
For the period ended 30th June 2010
HIGHLIGHTS FOR THE QUARTER
FINANCIAL
•
Cash in bank on 30th June 2010 of $3.925 million.
•
$128,000 spent on exploration during the quarter.
EXPLORATION
•
An 18 hole drilling program to evaluate the Jamieson Tank Manganese Project
as part of the Farmin Agreement with OM Holdings Limited (ASX:OMH) was
completed in June. Results are expected in mid July.
•
Field evaluation of manganese and iron targets on other Archer Exploration Ltd
(ASX:AXE), Eyre Peninsula licenses has been implemented and targets defined.
Best results were at High Bluff where 4 hematite rock chip samples averaged
62.4% Fe.
•
The maiden RC drilling program by Archer Exploration Ltd to test Pindari Nickel
and Chrome anomaly has been approved and will commence in July.
•
Leach testwork of nickel-cobalt-copper- manganese mineralization from K1 at
Ketchowla has commenced with Ammtec in Perth with results expected in August.
A summary of the June Quarter exploration activity follows:
1.
Eyre Peninsula
1.1.
Jamieson Tank (Carappee Hill EL 3711)
ASX listed OM Holdings Limited’s wholly owned subsidiary, OM (Manganese) Ltd (OMM)
completed an 18 hole, 738.5m reverse circulation drilling program at the Jamieson Tank
Manganese Project between the 4th and 9th June. OMM is required to fund A$600,000 of
exploration over four years to acquire a 60% participating interest in the manganese and iron
rights on Archer Exploration’s 100% owned Carappee License EL 3711.
The OMM drilling program was aimed at testing the extensions to the manganese and iron
mineralization intersected in drilling programs previously conducted by Archer in 2008 and
Western Mining Corporation in 1993. The main lithologies intersected by OMM included
Quaternary sands calcrete and iron laterite near surface, over basement which comprised
weathered schist and chert and interstitial bands of manganese oxide. In total, 131 samples
were taken for geochemical analysis. Assay results from the program are expected in mid
July 2010.
1.2.
Pindari Nickel Project (Carappee Hill EL3711 AXE 100%)
Later this month Archer Exploration will commence drilling at its 100% owned Pindari Nickel
Project located approximately 12 km northeast of the Jamieson Tank Manganese
Project on the Eyre Peninsula SA. The Pindari drilling program will comprise 6 RC holes
totaling approximately 600metres and will test the > 1,000 ppm nickel and chrome soil
geochemical anomaly associated with the 3 km diameter Pindari bullseye magnetic anomaly.
Assay results from this program are expected in August.
1.3.
Eyre Peninsula Iron and Manganese
In June, Archer commenced field evaluation of manganese and iron prospects identified on
the Wild Horse Plains (EL3377) and North Cowell (EL4277) Licenses on Eyre Peninsula (Fig
1).These prospects were identified following a review of historical exploration and mining
data and regional aeromagnetic interpretation.
Archer Exploration is farming into UraniumSA Ltd’s (ASX:USA) Wild Horse Plains license,
where it is earning an interest in all minerals except uranium.
A total of 43 samples (appendix 1) were taken from dolomites, quartz veins and banded iron
formation during initial reconnaissance of the project area. The iron rich rocks contain
magnetite and hematite and the best results came from Campoona and High Bluff in the
west.
Iron
Campoona
High Bluff
8 samples
4 samples
Average
Average
43.2% Fe
62.4% Fe
Archer’s sampling of outcrops identified in the 1980’s at Salt Creek confirmed reported
manganese and iron assays.
Manganese
Salt Creek
3 samples
Average
24% Mn and 23.8% Fe
Iron Mineralization
Archer believes the Wild Horse Plains Area has the potential to host economic, hematite iron
mineralization within the extensive limbs and fold closures of synclines in the west of the
licence. A total of 24 samples were taken from the western iron formations over 3 separate
locations (Fig 2).
Hematite mineralisation was associated with the Middleback Jaspilites within synclinal
structures. This geological setting has a number of vectors, particularly the long strike
lengths (+40km) of the subcropping jaspilites and proximity of outcropping felsic rocks that
are considered important in the development of an economically significant iron deposit.
Figure 2. Initial and historical significant rock chip iron results on Farmin and AXE Wild Horse Plains
tenements.
Photo 1. Sample location 15173, showing hematite rocks on ridge of outcrop.
Manganese
Discoveries of haematite and magnetite mineralization on Eyre Peninsula have been common
particularly in recent years. Discoveries of manganese, an important component of steel production
have been rare. The most significant discovery has been at Jamieson Tank (Archer’s EL3711, which
has been farmed out to OMM) where intervals of up to 24m @12% Mn were intercepted in 2008
drilling.
In the Wild Horse Plains area (fig 3), manganese mineralisation is associated with the Lower
Middleback Jaspilite. In 1978 CRA identified manganese in rock chip sampling and this was followed
up by Shell in 1986 with sample traverses across the manganese outcrop and scree. Both companies
reported surface grades of approximately 20% Mn over a 4km strike length. The manganese material
is exposed in grain cropping paddocks and is covered by transported soils for most of the strike
length.
During the reporting quarter, a total of 18 samples were collected from dolomites, meta sediments and
jaspilites and analyses results range from <1% through to 26.8% Mn.(appendix 1) The locations of
the samples that reported above 10% Mn are shown in figure 3. The manganese mineralisation is
strongest on the eastern side of the tenement and associated with the Lower Middleback Jaspilite.
The most significant Mn assays were returned from Salt Creek in the north east of EL3377.
Figure 3. Rock Chip samples reporting over 10% manganese (black dots).
Subject to gaining access from landowners, Archer expects to drill test these iron and manganese
targets in the fourth quarter of 2010.
2.
BURRA REGION (mid North of South Australia)
2.1.
North Burra (EL4266) Ketchowla Manganese Project
(Manganese, Cobalt, Nickel, Copper, Zinc – AXE 100% )
In May, Archer dispatched 25 kgm of nickel-cobalt-copper-manganese mineralized drill cuttings from
the Ketchowla K1 target to Ammtec in Perth for bench scale leach testwork. Leach recovery results
from this program are expected in August.
2.2.
World’s End (EL4230)
(Copper, Gold, Phosphate – AXE 100%)
No exploration was undertaken on this licence in the quarter.
3.
WEST ROXBY PROJECTS (Stuart Shelf, Gawler Craton)
EL3721, 3722, 3724, 3851, and 3869 (IOCG - AXE 100% owned)
Apollo is a greenfields project located in a remote part of South Australia approximately 100 km NW of
Port Augusta in the under explored Cariewerloo Basin. The Apollo Project is centred on an untested,
precisely coincident gravity low, topographic depression and magnetic low anomalies. (Figures 4 a, b,
c).
Figure 4 a. Gravity
b. Total Magnetic Intensity
c. Topography
During the quarter Archer made application for an exploration work approval to drill test Apollo with at
least one 400m drill hole. PIRSA (Primary Industry and Resources SA) approved the program subject
to approval by the Aboriginal Heritage Branch of the Aboriginal Affairs and Reconciliation Division of
the Department of Premier and Cabinet.
4.
WILMINGTON (East of Pt. Augusta – SA)
EL4201, 4249 and 4202 (Copper, Iron and Diamonds - AXE 100% owned)
No field work was undertaken in the March quarter.
CORPORATE
Growing asset base:
EL4482 Australia Plains, located east of Eudunda, covering 880 sq km and the historic Neales Flat
Manganese Mine was granted on the 3rd May 2010.
Two applications, ELA 030/10 Kanyaka, located 25 km north of Quorn, covering 230 sq km and the
former Kanyaka Manganese Mine and ELA 031/10 Termination Hill located NW of Leigh Creek,
covering 542 sq km and the historic Stone Hut Well Manganese Mine were made in the first quarter of
2010. These applications are expected to be processed in the third quarter 2010.
The Termination Hill application (ELA 031/10) also covers a significant proportion of a magnesite
resource drilled by SAMAG in the late 1990’s. During June this area was expanded with the
application for ELA 173/10 covering 420 sqr kms and the Witchilina Magnesite deposit.
Having identified gold mineralization on the Watervale Prospect at North Burra EL4266, Archer made
application in the first quarter of 2010 for ELA 015/10 Riverton, located 10 km northwest of Riverton
and covering 308 sq km and the historic Watervale Gold mine. A further application for Napoleon’s
Hat (ELA 113/10) located immediately north of the Watervale Prospect was made in the second
quarter 2010.
Archer’s tenement locations at the end of the June quarter are shown in Figure 1.
OUTLOOK
Archer will progress its advanced Projects during the third quarter of 2010 by:
•
Drilling the Pindari nickel anomaly with up to six reverse circulation holes.
•
Drilling the Apollo uranium project with up to two 400m diamond drill holes. This drilling
is subject to Ministerial consent.
•
Evaluating Cu, Co and Ni acid leaching test work of the Ketchowla K1 manganese
mineralization.
•
Evaluating reverse circulation drilling results from the Jamieson Tank manganese
target.
License applications are expected to be granted and initial site evaluations of mineralized
systems and historic exploration data will be undertaken for:
•
Manganese mineralization on 100% owned exploration licence 4482 Australia Plains
and exploration licence applications Kanyaka (ELA 030/10) and Termination Hill (ELA
031/10).
•
Gold mineralization on the 100% owned Riverton (ELA 15/10).
•
Magnesite resources, mining plans and metallurgical data from the Leigh Creek
magnesite deposits (ELA 031/10). Archer will commence an order of magnitude study
to evaluate a range of development options for these deposits.
The Company will maintain a strong cash position.
Cash balance:
The Company’s cash balance at the end of the quarter was $3.925 million.
For further information please contact:
Mr Greg English
Chairman
Archer Exploration Limited
Tel: (08) 8332 5033
Mr Mike Hatcher
CEO
Archer Exploration Limited
Tel: (08) 8332 5033
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 Australasian Institute of Mining and Metallurgy who has more than fifteen years experience in the
field of activity being reported. Mr. Bollenhagen consents to the inclusion in the report of matters based on his
information in the form and context in which it appears.
Figure 1.
Archer Exploration Tenement Position June 2010.
APPENDIX 1. Results from preliminary rock chip sampling Wild Horse Plains
Sample
#
Easting Northing Al%
Ca%
Fe%
K% Mg% Mn %
15361 632713 6281617 0.51
0.22
10.2
0.03 0.16
0.02
15360 632715 6281639 1.28
0.33
25.1
0.05 0.24
0.02
15362 632716 6281658 1.96
0.12
18.3
0.06 0.14
0.01
15363 633208 6281911 0.51
0.07
17.2
0.03 0.05
0.09
15364 633237 6281934 1.54
0.04
13.2
0.07 0.04
0.01
15365 633295 6281951 0.55
0.06
5.46
0.03 0.04
0.01
15366 633333 6281966 1.06
0.08
14.1
0.03 0.06
0.02
15367 633353 6281979 0.51
0.04
15.7
0.03 0.03
0.07
15371 633900 6282188 2.07
0.14
31.8
0.72 0.16
0.01
15370 633905 6282159 3.27
0.06
22.3
1.49 0.27
0.01
15368 633906 6282182 4.54
0.15
37
1.02 0.18
0.02
15369 633906 6282171 3.62
0.05
22.9
0.86 0.19
0.01
15373 634199 6283362 0.51
0.03
66.3
0.02 0.02
0.09
15372 634207 6283349 0.53
0.07
59.7
0.05 0.09
0.18
15377 634235 6284895 0.91
0.09
54.8
0.06 0.09
0.07
15376 634289 6284807 1.76
0.1
47
0.22 0.09
0.03
15375 634341 6283481 0.75
0.01
61.9
0.02 0.02
0.02
15374 634348 6283471 0.83
0.02
61.6
0.02 0.02
0.02
15146 634517 6285180 2.25
0.08
34.2
1.3 0.18
0.02
15147 634566 6285162 2.23
0.11
39.8
1.54 0.12
0.01
15148 634585 6285124 2.32
0.08
40.1
1.26 0.14
0.02
15149 634619 6285088 2.82
0.07
36.2
2.47
0.1
0.01
15151 637380 6289287 2.18
0.14 >50*
0.34 0.13
0.08
15150 637396 6289339 2.14
0.07
43.6
0.32 0.07
0.06
15356 664931 6284224 0.48
1.14
29.3
0.2 3.49
1.34
15357 664940 6284180 0.66
0.8
44.8
0.37 1.56
0.07
15358 665817 6284022 0.09
1.75
26.8
0.05 1.04
0.79
15359 665872 6284096 0.15
0.07
38.9
0.15
0.3
4.83
15355 666535 6285058 0.26
0.14
46
0.28 0.31
3.33
15354 666553 6285160 0.18
1.5
47.1
0.25 0.45
3.01
15152 669765 6303399 2.09
0.37
46.1
0.06 0.12
0.13
15153 669810 6303379 1.51
0.21
43
0.05 0.08
0.18
15378 670096 6302516 1.11
0.75
15.9
0.06 0.12
1.11
15379 670096 6302506 2.32
0.62
36.7
0.14 0.15
2.88
15382 671027 6300605 2.79
0.18
26.7
0.59 0.05
21.5
15383 671027 6300615 2.18
0.25
24.9
0.75 0.05
23.7
15380 671090 6300437 3.03
0.33
27.6
0.45
0.1
9.89
15381 671090 6300447
3.6
0.21
19.8
0.82 0.04
26.8
15384 671313 6300348 2.84
0.09
0.96
0.51 0.03 17.65
15385 671313 6300345 2.73
0.07
1.7
0.29 0.03
9.83
15386 671351 6300105 0.12
3.82
1.2
0.03 2.08
0.41
15387 671351 6300103 0.11
1.38
0.4
0.02 0.67
0.07
Table 1. Results from preliminary rock chip sampling Wild Horse Plains Area.
P%
0.02
0.02
0.10
0.06
0.10
0.03
0.11
0.12
0.12
0.03
0.08
0.10
0.03
0.05
0.67
0.81
0.03
0.03
0.01
0.01
0.05
0.04
0.83
0.89
0.08
0.02
0.05
0.08
0.06
0.07
1.20
0.87
0.29
0.43
0.28
0.32
0.42
0.26
0.10
0.09
0.05
0.06
S%
0.03
0.04
0.02
0.02
0.04
0.01
0.04
0.03
0.06
0.07
0.01
0.05
0.01
0.02
0.02
0.04
0.05
0.07
0.04
0.04
0.04
0.03
0.05
0.05
0.03
0.06
0.01
0.11
0.02
0.02
0.04
0.03
0.06
0.05
0.03
0.02
0.03
0.02
0.05
0.06
0.01
0.01