The Sugarloaf property within the Carappee Hill tenement is said to have a bulk of the Sugarloaf graphite deposit. It has an identified exploration target of 40 million tons – 70 million tons at 10-12% carbon.
Also, the property comprises 568 hectares of land, with 503 hectares arable and used for winter cropping. With this acquisition, the company expects to gain some flexibility for ongoing exploration and also for future mining operations to develop Eyre Peninsula.
Archer Exploration managing director Gerard Anderson noted that the acquisition of Sugarloaf property gives company additional benefit in its plan to develop graphite operations.
"Given the huge graphite target at Sugarloaf the land also affords the opportunity to consider processing of Campoona Graphite at a central processing facility at Sugarloaf," added Anderson.
Meanwhile, the company expects to conclude the sale and purchase process with ANZ, mortgagee of the property, on 30 May 2013.
