Archer Exploration Limited (ASX:AXE) Report Salt Creek Manganese Drilling and Ketchowla Manganese Beneficiation Results

Sydney, April 20, 2011 AEST (ABN Newswire) - Archer Exploration Limited (ASX:AXE) completed a 19 hole RC drilling program over the Salt Creek manganese deposit located near Cleve on Eyre Peninsula, South Australia during April 2011.

The drilling targeted an area of discontinuous north-south striking manganese outcrops occurring within cropping paddocks. Previous rock chip samples had returned manganese grades to 27% Mn.

The drilling highlighted that manganese occurs in three different rock units:

1. High iron manganese associated with weathered Lower Middleback banded iron formation.

2. Fine manganese in weathered pelitic sediments (clays and schists).

3. Up to 5mm fine manganese nodules within transported silica-rich sand.

The manganese units appear to comprise two limbs of an overturned syncline with a western limb consisting of sporadic outcrops of high-iron manganese and an eastern limb of manganese and silica-rich manganese adjacent to quartzite/leached BIF. The drilling only targeted the easternmost portion of the western limb with the eastern limb yet to be drill tested.

The presence of fine (<5mm) nodular manganese within unconsolidated silica-rich sand suggests that the manganese was locally re-precipitated. The silica-rich sand units are thought to represent an old scarp (cliff face) possibly formed as a result of faulting. The silica-rich sand hosted nodular manganese was intersected in holes SCRC_001 - SCRC_004. Holes SCRC_005 - SCRC_019 were drilled to the east of the silica-rich sands. The implication is that manganese mineralisation may continue to the west of the drilling, as well as to the east in the buried syncline.

Manganese associated with weathered Lower Middleback banded iron formation is high in iron.

The degree of iron enrichment encountered during drilling is highlighted in a rock sample.

All 19 drill holes encountered highly anomalous manganese.

The Salt Creek manganese deposit has a strike length of at least 10km as evidenced by rock chip sampling and the recent drilling program and as indicated by historical mapping and sampling (CRA-1978, Shell-1986 and Aberfoyle-1991).

Representative samples of the three styles of manganese mineralisation will be collected for dense media and gravity concentration tests.

Ketchowla Manganese Beneficiation Test Results

A composite RC drill hole sample from the Ketchowla manganese deposit was sent to Nagrom in Kelmscott, Perth for dense media separation and gravity concentration. The tests successfully upgraded the 17.47% Mn composite RC drill sample to >35% Mn (at an excellent recovery of 23.2% recovery).

The resultant upgraded manganese has low iron and high manganese. The test work also demonstrated that the already high nickel, cobalt, copper, zinc and rare earth elements grades in Ketchowla manganese can be substantially increased through the beneficiation process. Upgrading of the Ni (0.258% to 0.412%); Co (0.175% to 0.296%); Cu (0.226% to 0.377%) and Zn (0.164% to 0.277%) was achieved in the combined coarse and fine concentrate and the middlings products. Yttrium similarly increased from 113.2ppm to 204ppm.

A ground gravity survey has been completed at Ketchowla. The gravity data is being processed with the aim of identifying areas of manganese under surficial cover for subsequent drill testing.

For the complete Archer Exploration announcement including figures and tables, please view the following link:
http://www.abnnewswire.net/media/en/docs/182775.pdf

Contact

Mr Greg English Chairman Archer Exploration Limited Tel: +61-8-8272-3288 Mr Gerard Anderson Managing Director Archer Exploration Limited Tel: +61-8-8272-3288 Email: info@archerexploration.com.au http://www.archerexploration.com.au