Exploration work by Archer Exploration Limited has identified a number of very promising graphite deposits and graphite prospects on EL3711 Carappee Hill and EL4693 Wildhorse Plain located near Darke Peak on Eyre Peninsula, South Australia.

In July 2011 Archer reported the results of detailed petrological work that identified highly prized large flake graphite at each of the first three graphite occurrences tested on Wildhorse Plain.

Campoona Graphite Shaft samples recorded 30% crystalline graphite ranging to 250µm (US 60 mesh and classified as Large flake graphite) with an average length of 100µm (US 140 mesh).

Campoona South recorded 15 to 20% crystalline graphite ranging to 300µm (US 50 mesh and classified as Extra Large flake graphite) with an average length of 250µm (US60 mesh) within graphite clots up to 4mm in length.

Council pit recorded 15 to 20% crystalline graphite with an average length of 300µm (US50 mesh) and maximum flake size of 1,000µm (US 18 mesh classified as Super Large graphite flake graphite).

To follow up these very promising targets, an airborne electromagnetic geophysical survey was flown over the northwest portion of EL4693 Wildhorse Plain over two days in early August 2011.

Graphite is a highly conductive, that is, it conducts electricity. EM has proven to be very efficient at identifying buried conductive bodies. Previous explorers in the Darke Peak - Cleve area used electromagnetic surveys when searching for buried base metal sulphide deposits (copper, zinc and lead). When these explorers drill tested their buried EM anomalies they invariably intersected graphitic rocks which had provided the anomalous EM signature.

The specific aims of the August 2011 airborne EM survey were to determine the EM signature of the outcropping high grade Campoona South graphite deposit, to determine the potential strike of the graphite north and south under cover and to define the continuity of another graphite body, the Grid 2 occurrence, immediately to the south of Campoona South.

The processed EM data showed strong linear continuity in the conductive rocks. Campoona South which forms a prominent outcropping ridge, supports the conclusion that the pronounced linear conductive features are graphitic in nature. Campoona South recorded 15 to 20% crystalline graphite ranging in size to 300µm (US50 mesh and classified as Extra Large Flake graphite) with an average length of 250µm (US60 mesh) within graphite clots up to 4mm in length. Samples from the outcrop returned the exceptional high grade of 25.4% C.

In the Campoona area, graphitic units occur as part of the basal sequence of Banded Iron Formations (BIF's). These BIF's can be easily traced along the surface.

Vertical Extent to Graphitic Bodies

A series of depth slices at 40m, 60m and 100m are shown below (see link at the bottom of the release). These images show the processed conductivity magnitude of the rocks within the survey. Both Campoona South (outcrop) and Grid 2 (historic drill intercepts) are shown as well as their general trend.

From figures 2 and 3 (see link at the bottom of the release), the linear trend of the conductive rocks (graphite) can be seen extending out of the Campoona South area towards the south west. The conductivity of the Grid 2 area remains the same.

Figure 5 (see link at the bottom of the release) shows the two conductive structures extending south out of Campoona South and the larger mass extending north from Grid 2.

Also highlighted in Figure 5 (see link at the bottom of the release) is a section line (1195N) taken through Campoona South and Grid 2. Figure 6 (see link at the bottom of the release) shows the two graphitic bodies in plan section.

Figure 6 (see link at the bottom of the release) shows that both Campoona South and the Grid 2 occurrences are persistent bodies that extend to a depth of at least 200 metres. Moreover these conductive zones can be observed from the north of the EM survey area to the south of the EM survey area, the strike length of over 3km.

Initially Archer planned to commence drilling these two potentially substantive graphite deposits in August 2011, but the contractor suffered delays. That drilling is now scheduled to commence in late September. Due to the presence of crops, this round of drilling will be confined to drilling on access tracks. Despite the limitations of drilling on tracks, this drilling will give sufficient coverage to be able to test the potential of the two graphite deposits.

A second larger drilling campaign is scheduled for early calendar 2012 following the 2011 harvest.