an old story explains what they have Archer seeks partner for...

an old story explains what they have
Archer seeks partner for $36m SA graphite mine

• VALERINA CHANGARATHIL
• THE ADVERTISER
• MARCH 30, 2015 10:21AM

Archer Exploration managing director Gerard Anderson with Graphite. Pic: Tricia Watkinson.
ARCHER Exploration is seeking joint venture partners to fund its $36 million Campoona Shaft graphite mine on the Eyre Peninsula.

A mining lease for the 12-year operation, which includes processing 140,000 tonnes of ore per annum into 10,700 tonnes of high-grade graphite concentrate, will be lodged next month.

The total cost of mining and upgrading the concentrate is likely to come in at A$1,600 per tonne with Archer estimating revenues of US$2,500 per tonne for its 15-28 micron product with a purity range of between 98.5 ad 99.7 per cent.

Cost estimates of the operation were included in an investor presentation released to the Australian Securities Exchange.

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Archer Exploration managing director Gerard Anderson said final numbers would be released as part of a project scoping study expected to also be completed next month.

“These numbers are indicative and we are hoping to start with a modest size operation,” he told The Advertiser on the sidelines of investor presentations in Melbourne.

The company has been looking for a partner for the project since November 2013 and was previously tipped to start production this year.

An updated timeline on the presentation puts the earliest date for the start of mining as the first quarter of next year and earliest shipment is expected in the fourth quarter.

“We have had interested parties but none of the discussions have come to fruition.

“We are not disappointed with where we are in the process. Our preference is for a joint venture partner who needs offtake.

“This is a long term partnership over several decades as we see it.

“It’s our first foray into mining and we have done exhaustive studies and preparations to assure it’s done well.”
Archer intends to focus on Campoona Shaft, north of Cleve, and processing the ore at Sugarloaf.

However, it has other promising graphite deposits - Central Campoona and Wilclo South - making up what it claims is Australia’s largest combined JORC 2012 graphite resource of 8.55 million tonnes.

The Eyre Peninsula Project encompasses Campoona, Sugarloaf and Wilclo South areas.

The company, which incurred a half-year loss of $329,606, had a cash balance of $3.05 million at the end of December.

Mr Anderson said the “cash burn” would slowdown with the lodging of the mining proposal but at some stage, the company may have to contemplate a capital raising.