Archer closes in on pit design for Campoona graphite resource

Archer Exploration expects to have completed the pit design
for their South Australian graphite project at Campoona by the end of May.

During February and March three holes were drilled to 297
metres into the eastern and western pit walls to take rock quality data that
will support a detailed pit design, with one of the holes sampled for analyses.

“We’ve done this latest run of drilling to get the geotech
holes done, so we can tell the angles of the highwall, to get the overall pit
shape and pit shell,” Archer Exploration chairman Greg English said.

Sampling for the first five years of mine life was taken from
four drill holes with 229mm auger at 30 metres deep, which provided 4.5 tonnes of
sample, representative of run-of-mine feedstock, for scale-up and pilot scale
test work.

Drilling during the March program has also sufficiently
infilled the Central Campoona footprint to allow a full resource estimate
update by June this year.

This will build on the deposit’s maiden JORC (Joint Ore
Reserves Committee) inferred resource estimate of 520,000 tonnes at 11.6 per
cent total carbon at a nominal cut-off grade of 5 per cent total carbon, announced
only in February this year.

Central Campoona is one of the Campoona project’s five zones
of high grade, highly graphitic schist located along the trend of the Campoona
Shear, which is located 15 kilometres north of Cleve, roughly halfway between
Whyalla and Port Lincoln in South Australia.

English said that Archer is currently engaged in purchasing
the land for the mine, to be subdivided by the landowner.

“We already own the land for our processing plant. We’re
hoping to lodge a mining lease application towards the end of this year, during
the last quarter, and in SA it’s traditionally a six month period to get
approvals, so construction will commence after approval, in the middle of next

Archer’s Campoona Shaft graphite deposit has a combined,
measured, indicated and inferred mineral resource totalling 2.23 million tonnes
averaging 12.3 per cent total carbon for 293,900 tonnes of contained graphite.

Archer Exploration is 100 per cent owner of all its
projects, including the Campoona Graphite Project, comprised of the Campoona
Shaft and Campoona Central project areas.

Archer has also recently become involved with the University
of Adelaide, donating $200,000 to develop graphene products from the Campoona

The Campoona resource is suitable for graphene production
with high grades of graphite sample, some of which have registered in excess of
99 per cent.

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