Name of the Project
Eyre Peninsula graphite project.

Location
The project is located near the township of Cleve, in South Australia.

Client
Archer Exploration.

Project Description
A scoping study completed on the project has shown that Eyre has robust economics and is a technically low-risk graphite development when considered against a strong graphite and graphene market outlook.

The project has mineral resources estimated at 2.8-million tonnes grading 6.5% total graphitic carbon. The study is based on the mining and production of graphite from only the Campoona shaft, Central Campoona and only 10% (by tonnes of contained graphite) of the total Wilclo South mineral resource.

Estimated average yearly production (after ramp-up) is estimated at 11 592 t of graphite concentrate increasing to 18 648 t after Year 7.

The project has a mine life of 17 years.

Mining will be openpit methods using conventional truck-and-excavator operations. Mining trucks will transport material from the pit to the run-of-mine pad and waste-rock storage facilities adjacent to the mine.

The study is based on the construction of Sugarloaf – a centralised graphite mineral processing plant. The plant will comprise crushing, blunging, rougher flotation, concentrate milling, cleaner/recleaner flotation and chemical leaching.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of A$126-million and an internal rate of return of 62%, with a payback of 1.8 years.

Value
The project has an estimated pre-production capital of A$36-million from years 1 to 3, with a further A$25-million in capital allocated for expansion – $18-million in Year 6 and $7-million in Year 14.

Duration
Not stated.

Latest Developments
The scoping study supports Archer’s decision to lodge a mining lease application in the fourth quarter of 2016, with the subsequent granting of a mining lease expected in mid-2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Archer Exploration, tel +61 8 8272 3288, fax +61 8 8272 3888 or email info@archerexploration.com.au.