THE BOURSE WHISPERER: Archer Exploration (ASX: AXE) has agreed to purchase the Sugarloaf Property, located approximately 35km north of the township of Cleve on South Australia’s Eyre Peninsula.
The Sugarloaf Property lies within the company’s Carappee Hill tenement that contains the bulk of the Sugarloaf graphite deposit, which has an identified Exploration Target of 40 to 70 million tonnes at 10 to 12 per cent carbon.
Location of Archer’s Campoona and Sugarloaf graphite deposits. Source: Company announcement
The Sugarloaf Property consists of 568 hectares (1,404.3 acres) of land with 503 hectares arable and used for winter cropping.
Archer indicated it intends to appoint farm managers who will continue to operate the land on that basis.
“Ownership of the Sugarloaf Property gives the company tremendous flexibility in its plans to develop graphite operations,” Archer Exploration managing director Gerard Anderson said in the company’s announcement to the Australian Securities Exchange.
“Ownership of the land means the company can greatly increase the exploration period (usually post-harvest and pre-seeding or January – April each year).
“Given the huge graphite target at Sugarloaf the land also affords the opportunity to consider processing of Campoona graphite at a central processing facility at Sugarloaf.”