Archer Exploration announces Campoona maiden Resource
THE DRILL SERGEANT: Archer Exploration (ASX: AXE) has reported a Phase 1 JORC Resource for the Campoona graphite deposit at the company’s Campoona graphite project located 15 kilometres north of Cleve on Eyre Peninsula, South Australia.
The maiden JORC Resource at Campoona has come in at 2.572 million tonnes grading 12.3 per cent total graphitic carbon (TGC) with 310,800 tonnes of contained graphite at a lower cut‐off grade of 5 per cent TGC.
The Phase 1 Campoona JORC Resource which has been achieved within 9 months of the company’s discovery drill hole and is estimated to contain almost 400,000 tonnes of contained graphite.
Archer explained that less than 20 per cent of the Campoona shear has been drill tested.
Schematic geology of Campoona graphite deposit. Source: Company announcement
“Archer has progressed from a virgin discovery to a substantial high‐grade Maiden JORC Resource in less than 9 months – an outstanding achievement by our team,” Archer Exploration managing director Gerard Anderson said in the company’s announcement to the Australian Securities Exchange.
“The Phase I Resource encompasses only the data from Campoona Shaft and a small portion of Central Campoona.
“In‐fill drilling at Central Campoona is planned to commence in February 2013 with results to be incorporated into the Phase II Resource likely late in the second Quarter of next year.
“This Maiden JORC resource cements Campoona’s position as one of the most significant new graphite discoveries in Australia.
“With less than 20 per cent of the host shear drilled to date, the reasonable expectation supported by airborne EM results, is that further exploration is likely to lead to much more graphite being discovered.”
Archer has been working on defining the optimum processing flow sheet for the extraction of high value graphite products.
The intense weathering of the deposit has presented it challenges, however, the company said it has been successful in dealing with these through the application of mineral science and systematic testing, which has provided it with greater understanding of the project.
“We now know how to treat our ores to achieve ultra‐pure concentrates,” Anderson said.
“Results to date show us that greater than 98 per cent TGC concentrates are reproducible with excellent recoveries.
“No acid was needed or used to achieve this result. Further grade enhancements are realistically expected.
“Testing will now use that knowledge to quantify the product types across the length, breadth and depth of the deposit with results being progressively announced over the next two months.”
The company has now turned its focus on defining development options for Campoona, where it has completed Environmental Fauna and Flora Baseline Studies to provide Spring season data needed to support a future Mine Lease Proposal.
“Over the next quarter we will commence Scoping Studies which we expect to lead directly into a Pre‐Feasibility and Definitive Feasibility Study commencing in mid‐2013,” Anderson said.