Next Investors logo grey

Archer identifies exploration target at SA manganese project

|

Published 08-MAY-2018 12:45 P.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Archer Exploration Limited (ASX:AXE) has this morning informed the market it has identified an Exploration Target for its Jamieson Tank Manganese project located near Cleve, South Australia.

A review undertaken by AXE of historical drill results at the project has led to the establishment of a maiden exploration target of 15Mt–25Mt at a grade of 8-12% manganese.

The Jamieson Tank project — which is located within close proximity to critical infrastructure and just 2km from the proposed Sugarloaf Graphite Processing Facility — is spread between two tenements owned by AXE, Carappee Hill (the site of the proposed Sugarloaf Graphite Processing Facility) and Waddikee.

Critically, Electrolytic Manganese Dioxide (EMD) has been made from Jamieson Tank project material grading 12% manganese, and the mineralisation predominantly comprises cryptomelane resulting in the potential for relatively high metal recovery.

The newly identified Exploration Target is based on exploration results from 208 historical drill holes and a robust geological model, which extends 20m beyond both the most northerly and southerly drill sections and to a vertical depth of 100m. Positively for AXE, the mineralisation remains open along the strike and at depth.

AXE initially drilled the Carappee Hill portion in 2008 with follow up drilling under a joint venture between AXE and the manganese miner and processer OM Holdings Limited (ASX:OMH). An additional 11,000 metres of drilling was completed by Monax and OMH at Jamieson Tank.

These drilling campaigns intersected substantial widths of manganese mineralisation over an extensive area, and now provide AXE the impetus to undertake further exploration. Having now identified an Exploration Target, AXE plan to follow up with geophysical surveys and diamond drilling.

AXE Executive Chairman, Greg English said: “The calculation of such a large a maiden Exploration Target and the recent successful EMD test work at Jamieson Tank, gives us confidence to undertake further manganese focused exploration at Jamieson Tank.

“The Exploration Target is based on a relatively conservative interpolation of grade and tonnage from historical drill results. Jamieson Tank is ideally situated close to existing rail, power, gas and other significant infrastructure which will aide further exploration and possible project development.

“The development of this potential EMD project is consistent with Archer’s strategy of pursuing opportunities in the reliable energy space,” he said.

It should be noted that AXE is an early stage play and anything can happen, so seek professional financial advice if considering this stock for your portfolio.

While this is a positive development for the company, the announcement also stated that investors be aware that the potential quantity and grade of the Exploration Target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource.

The new Exploration Target as been determined “over a range of metres below the surface, which is greater than the average depth extent (54m) of the drill holes used in the Exploration Target calculation” and “does not include any potential manganese mineralisation situated along strike from the last drill section, nor any manganese mineralisation below the 137m RL”.

Last month AXE announced that test work undertaken by an independent laboratory confirmed the manganese from AXE’s Jamieson Tank project can make electrolytic manganese dioxide (EMD) — a critical component used in the manufacture of cathodes for lithium-ion, alkali and other batteries.

Jamieson tank cross section

AXE’s interpretation of steeply dipping mineralisation at Jamieson Tank.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.