Archer Exploration Ltd. New Drill Results Confirm Continuity Of High Grade Graphite On Campoona Graphite Project In S.A.

Adelaide, Australia (ABN Newswire) - Archer Exploration Ltd. (ASX:AXE) announce new Drill Results Confirming Continuity Of High Grade Graphite On Archer's Campoona Graphite Project In S.A.

- Results now to hand from March infill drilling program confirm continuity of high grade graphite mineralisation in the northern portion of Campoona's Central Campoona deposit.

- The drilling designed to build on February's maiden JORC Inferred resource estimate for Central Campoona of 520,000t @ 11.6% TC at nominal cut-off grade of 5% TC

- Results of 28 new holes deliver nominal drill coverage now at 25m x 50m line spacings and up to 100m depth.

- Upgraded Central Campoona JORC Resource expected in June 2014.


2014 Central Campoona Drilling Results

Results now available from new drilling in March this year have confirmed the continuity of high grade graphite mineralisation across the Central Campoona prospect within Archer Exploration Ltd.'s (ASX:AXE) wholly-owned Campoona graphite project, north of Cleve on South Australia's Eyre Peninsula.

In addition, the new 28 Reverse Circulation holes drilled in the March program have now sufficiently infilled the Central Campoona footprint to allow a resource estimate update by June this year - building on the deposit's Maiden JORC Inferred resource estimate of 520,000t @ 11.6% Total Carbon (TC) at a nominal cut-off grade of 5% TC announced only in February this year.

In addition to confirming the continuity of the northern portion of Central Campoona mineralisation, the drilling also confirmed that the mineralisation remains open at depth and thickens at depths from 40-60 metres.

Central Campoona, one of the Campoona project's five zones of high grade, highly graphitic schist located thus far along the trend of the Campoona Shear - lies just 1.8 kilometres south of the Company's Campoona Shaft graphite deposit, which itself has a combined JORC 2004 code 2

Measured, Indicated and Inferred mineral resource totalling 2.23 million tonnes averaging 12.3% TC for 293,900 tonnes of contained graphite.

In addition to the March RC drilling schedule, one diamond drill hole was also completed to supply samples for metallurgical evaluation.

Central Campoona drill intervals above 10%Cg (graphitic carbon) are presented in Table 1 below.


Table 1. Central Campoona drill intervals reporting 10%Cg

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Hole ID   Depth From    Depth to   Interval (m)  Cg %
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CSRC14_004     1           19         18         11.1
CSRC14_005    52           69         17         16.7
CSRC14_006    16           24          8         11.5
CSRC14_007    32           58         26         12.4
CSRC14_008    54           84         30         12.7
CSRC14_009     1           11         10         11.3
CSRC14_018    35           42          7         13.7
CSRC14_021    52           81         29         11.3
CSRC14_022    52           81         29         11.5
CSRC14_024   111          119          8         11.7
CSRC14_026    80           97         17         12.2
CSRC14_027    88           97          9         11.8
CSRC14_028    85          116         31         12.8
CCDD14_01      0           11         44         10.6
-----------------------------------------------------

Central Campoona 2014 Drilling

A total of 28 Reverse Circulation (RC) holes (1,447m) were drilled early in 2014 as a part of the recommendations from the maiden JORC 2012 Central Campoona Resource Estimate. The purpose of the holes was to provide additional geological data and assay data to improve the estimation confidence and possibly allow for a higher confidence resource classification.

A plan view of drill hole locations is presented below (Plate1), along with some of the sections being reported (Sections 1 to 3). Co-ordinates of the 2014 drill holes are presented in Appendix 1 at the end of this release.

The drill line spacing in the northern portion of Central Campoona is now at a nominal 25 metres, believed to be sufficient to permit a higher classification after a new estimation is completed. The Maiden resource was limited to depths of around 50 metres. The latest round of infill drilling was extended to a maximum vertical depth of 100 metres.

The Central Campoona graphite body lies beneath a thin veneer of soil cover.

The graphite occurs as highly graphitic steep west dipping schist. The deposit pinches and swells achieving true widths of 10 - 20 metres. Grade of the graphite mineralisation tends to improve with depth.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AXE-794055.pdf


About Archer Exploration Limited:

Archer Exploration Ltd. (ASX:AXE) is a graphite, magnesite, copper, gold and manganese explorer focused on the discovery of world-class ore deposits.

The company has carefully acquired a portfolio of projects, covering an area in excess of 5300 km2, in the highly prospective Gawler Craton and Adelaide Fold Belt regions of South Australia. All projects are 100% owned by the Company.

Archer also has earned the right to 100% of minerals other than uranium on EL4693 Wildhorse Plain located near Cleve on Eyre Peninsula.

The Company's flagship Campoona and Sugarloaf graphite deposits occur in the Cleve district where the Company has tenure of 933km2 in the emerging graphite province.

Archer Exploration Ltd. has an experienced board and management team and has the ability to maximise the potential of the company's world-class projects.



Contact:

Mr Greg English, Chairman
Archer Exploration Ltd.
Tel: +61-8-8272-3288

Mr Gerard Anderson, Managing Director
Archer Exploration Ltd.
Tel: +61-8-8272-3288