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Archer Exploration encouraged by manganese hits at Eyre Peninsula

Published: 17:14 21 Jul 2010 AEST

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Archer Exploration (ASX: AXE) has reported encouraging drilling results received from an 18 hole slimline RC drill program completed in June to evaluate the Jamieson Tank Manganese Project as part of the Farmin Agreement with OM (Manganese) Ltd, a wholly owned subsidiary of OM Holdings Limited (ASX: OMH).

Jamieson Tank is located on the Eyre Peninsula in South Australia. The results extend the strike length of manganese and iron mineralization intersected in previous programs from 200 to 750m. Results include:

Manganese at drill hole JTRC130 28 to 33m 5m @ 14.6% Mn & 8.0% Fe, JTRC133 29 to 35m 6m @ 15.0% Mn & 10.7% Fe and JTRC141 33 to 43m 10m @ 12.6% Mn & 20% Fe.

Iron at drill hole JTRC144 5 to 21m 16m @ 35.3% Fe & 4.3% Mn Inc 16 to 21m 5m @ 55.8% Fe & 2.7% Mn (EOH) and JTRC145 4 to 6m 2m @ 50.5% Fe & 2.6% Mn.

Hole JTRC144 bottomed on high grade iron.

On the nearby Wild Horse Plains tenements rock chip sampling at High Bluff returned average hematite grade of 62.4% iron and at Salt Creek returned average grade of 24% manganese and 23.8% iron.

Through its 100% owned and Farmin tenements, Archer has an exploration interest in 1,042 sq kms in the prospective Central Eyre Peninsula Region.

At Jamieson Tank (Carappee Hill EL 3711), exploration by WMC (Western Mining Corporation) in 1993 intersected manganese and iron mineralization. Drilling by Archer in 2008 confirmed the earlier drill results.

OM (Manganese) Ltd completed a 18 hole, 738.5m reverse circulation drilling program at the Jamieson Tank Manganese Project between the 4th and 9th June.

The OMM drilling program was aimed at testing the extensions to the manganese and iron mineralization intersected in drilling programs previously conducted by Archer in 2008 and Western Mining Corporation in 1993.

In June, Archer commenced field evaluation of manganese and iron prospects identified on the Wild Horse Plains (EL3377) and North Cowell (EL4277) Licenses on Eyre Peninsula.

These prospects were identified following a review of historical exploration and mining data and regional aeromagnetic interpretation.

A total of 43 samples were taken from dolomites, quartz veins and banded iron formation during initial reconnaissance of the licence.

The iron rich rocks contain magnetite and hematite and the best results came from Campoona and High Bluff in the west.

Mike Hatcher, CEO, said Archer believes the Wild Horse Plains Area has the potential to host economic, hematite iron mineralization within the extensive limbs and fold closures of synclines in the west of the licence.

A total of 24 samples were taken from the western iron formations over 3 separate locations.

On the UraniumSA Limited (AXE: USA) Wild Horse Plains and Elbow Hill exploration licenses (Wild Horse Plains Farm in), Archer can earn a 100% interest in all minerals (except uranium) by spending a total of A$300,000 exploring the tenements.

Archer must spend a minimum of A$150,000 on exploration during the first year before it can withdraw from the farm-in agreement. After Archer has spent the required A$300,000, it will enter into a joint venture with Uranium SA whereby Archer will be entitled to explore for, and mine minerals (except for uranium) on the tenements.

Archer will retain a 100% interest in all minerals (except for uranium). At Jamieson Tank, ASX listed OM Holdings Limited’s wholly owned subsidiary, OM (Manganese) Ltd (OMM) is required to fund A$600,000 of exploration over four years to acquire a 60% participating interest in any manganese and iron resources on Archer Exploration’s 100% owned Carappee License EL 3711.

Archer said it will progress its manganese and iron projects on Eyre Peninsula during the rest of 2010 by further analysis of OMM drill results from Jamieson Tank.

Subject to gaining access from landowners, it will do drill testing with shallow <50m reverse circulation holes the Salt Creek and Miltalie manganese/iron targets and the Campoona and High Bluff iron targets during Q4.

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