Archer Exploration has executed a conditional sale and purchase agreement to acquire from Monax Mining that company’s primarily graphite-focused Waddikee exploration licence on South Australia’s Eyre Peninsula. The tenement abuts the northern boundary of Archer’s Sugarloaf graphite project on the Carrapee Hill exploration tenement.
The transaction is conditional on Archer completing due diligence within 30 days, and Ministerial consent under SA’s Mining Act for the transfer of all legal and beneficial interest in Waddikee to Archer within three months of the date of execution of any final sale agreement. Due diligence is expected to be completed by June 22, 2014.
The Waddikee tenement is between the townships of Cleve and Kimba on central Eyre Peninsula. The 999sqkm tenement is highly prospective for graphite, manganese, iron, gold, base metals and uranium. It hosts a number of graphite deposits and prospects that have been evaluated using combinations of geophysics, rock chip sampling, detailed petrology and drilling.
In February 2013 Monax completed 77 reverse circulation drill holes for 7307 metres over 1.4km of the Wilclo South graphite prospect. The drilling identified multiple shallow dipping graphite horizons. On August 26, 2013, Monax announced a maiden total combined JORC 2012 inferred resource of approximately 550,000 tonnes of contained graphite.