Archer Exploration Limited - 2012 Quarterly Activities Report

08:55 AEST Oct 24, 2012 ABN Newswire (C) 2004-2012 Asia Business News PL. All Rights Reserved.

Adelaide, Australia (ABN Newswire) - Archer Exploration Limited (ASX:AXE) Quarterly Activities Report with the following highlights for the quarter.


GRAPHITE

Resource modelling of the Campoona Shaft graphite deposit commenced with a JORC Resource* expected in December 2012.

*It is not possible to confirm at this time whether Mineral Resources or Ore Reserves will be defined in accordance with the JORC Code at the Campoona Graphite Deposit

Six diamond drill holes were completed at Campoona Shaft to provide samples for further ore characterisation and to evaluate process design options. A sample preparation laboratory was established at Lonsdale for the current round of metallurgical sampling. The site was chosen with a view to house later pilot-scale testing. Processing of the airborne EM surveys has highlighted likely extensions to Campoona (both north and south) and identified further targets likely to host graphite. Two diamond drill holes were completed at the crest of Sugarloaf Hill to recover graphite material for metallurgical test work.


COPPER

With a strong cash position Archer is now able to fund increased exploration on the Company's non-graphite projects, specifically copper, gold and manganese.
A review of the Company's main copper projects at Robertstown, World's End, North Cowell and Spring Creek led to the flying of airborne EM across the Robertstown and World's End (Mimic) copper targets as a precursor to RC drilling.

Previous auger drilling at Robertstown identified a 400m x 60m wide copper soil anomaly. Previous rock chip sampling returned assays to 1.75g/t Au and 1.14% Cu in a cuprite-bearing ferruginous gossan.

Mimic is a conceptual target but has compelling vectors - structurally identical to the nearby historic Monster Mine at Burra (86,000t recovered Cu) - anti-form with oblique faulting; NMS9 marker bed in Kooringa Member and the presence of prominent iron blows.

At North Cowell previous rock chip sampling returned highly anomalous copper with assays to 15.1% Cu over a strike of some 3kms. A drill program is planned for post-2012 harvest. Nearby, airborne EM identified a non-graphitic conductor requiring drill assessment.

Spring Creek near Wilmington hosts the historic Spring Creek underground copper mine. Mining extracted ferruginous silicified slate with copper carbonates (malachite and azurite) passing into cuprite, native copper and minor chalcocite in what appears to be a classic supergene profile. No primary sulphides were recorded. Mining drive sampling reported up to 21 feet @ 2.5% - 8.9% Cu.

Historic drilling (1969) at Spring Creek identified a zone of 21m @ 1.8%Cu 60m below the mine workings. Copper mineralisation is contained within a breccia. Drilling indicates the breccia has significant depth extent and may extend to the Brighton Limestone opening the opportunity for skarn mineralisation.

The Department of Environment and Heritage must approve exploration programs at Spring Creek.


GOLD AND MANGANESE

As part of the airborne EM targeting copper, flight excursions were included to cover the Napoleon's Hat gold target near Burra and testing for manganese extending under cover at Ketchowla also in the Burra region.


FINANCIAL

Cash in bank on 30th September 2012 of $11.87 million.
$650,042 spent on exploration during the quarter.

For the full quarterly activities report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AXE-701938.pdf


About Archer Exploration Limited:

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



Contact:

Archer Exploration Limited
T: +61-8-8272-3288
WWW: www.archerexploration.com.au