Archer identifies exploration target at SA manganese project
Archer Exploration Limited(ASX:AXE) has this morning informed the market it has identified an ExplorationTarget for its Jamieson Tank Manganese project located near Cleve, SouthAustralia.
A review undertaken by AXE ofhistorical drill results at the project has led to the establishment of amaiden exploration target of 15Mt-25Mt at a grade of 8-12% manganese.
The Jamieson Tank project - whichis located within close proximity to critical infrastructure and just 2km fromthe proposed Sugarloaf Graphite Processing Facility - is spread between twotenements owned by AXE, Carappee Hill (the site of the proposed SugarloafGraphite Processing Facility) and Waddikee.
Critically, ElectrolyticManganese Dioxide (EMD) has been made from Jamieson Tank project materialgrading 12% manganese, and the mineralisation predominantly comprisescryptomelane resulting in the potential for relatively high metal recovery.
The newly identified ExplorationTarget is based on exploration results from 208 historical drill holes and arobust geological model, which extends 20m beyond both the most northerly andsoutherly drill sections and to a vertical depth of 100m. Positively for AXE, themineralisation remains open along the strike and at depth.
AXE initially drilled theCarappee Hill portion in 2008 with follow up drilling under a joint venturebetween AXE and the manganese miner and processer OM Holdings Limited(ASX:OMH). An additional 11,000 metres of drilling was completed by Monax andOMH at Jamieson Tank.
Get the latest articles straight to your inboxkeep me postedThese drilling campaigns intersectedsubstantial widths of manganese mineralisation over an extensive area, and nowprovide AXE the impetus to undertake further exploration. Having now identifiedan Exploration Target, AXE plan to follow up with geophysical surveys anddiamond drilling.
AXE Executive Chairman, GregEnglish said: "The calculation of such a large a maiden Exploration Target andthe recent successful EMD test work at Jamieson Tank, gives us confidence to undertakefurther manganese focused exploration at Jamieson Tank.
"The Exploration Target is basedon a relatively conservative interpolation of grade and tonnage from historicaldrill results. Jamieson Tank is ideally situated close to existing rail, power,gas and other significant infrastructure which will aide further explorationand possible project development.
"The development of thispotential EMD project is consistent with Archer's strategy of pursuing opportunitiesin the reliable energy space," he said.
It should be noted that AXE is anearly stage play and anything can happen, so seek professional financial adviceif considering this stock for your portfolio.
While this is a positivedevelopment for the company, the announcement also stated that investors beaware that the potential quantity and grade of the Exploration Target isconceptual in nature, and there has been insufficient exploration to estimate aMineral Resource.
The new Exploration Target asbeen determined "over a range of metres below the surface, which is greaterthan the average depth extent (54m) of the drill holes used in the ExplorationTarget calculation" and "does not include any potential manganesemineralisation situated along strike from the last drill section, nor anymanganese mineralisation below the 137m RL".
Last month AXEannounced that test work undertaken by an independent laboratory confirmedthe manganese from AXE's Jamieson Tank project can make electrolytic manganesedioxide (EMD) - a critical component used in the manufacture of cathodes forlithium-ion, alkali and other batteries.
AXE'sinterpretation of steeply dipping mineralisation at Jamieson Tank.