Archer Exploration Limited Free Gold Recorded at Bartel Epithermal Prospect

09:36 AEST Aug 29, 2012 ABN Newswire (C) 2004-2012 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Archer Exploration Limited (ASX:AXE) completed a drill programme testing the Company's main graphite deposits in February 2012. As a part of that drilling campaign three (3) RC drill holes were completed on the Bartel Epithermal Gold Prospect which is located on EL4693 Wildhorse Plain 15km north of the township of Cleve on Eyre Peninsula, South Australia (Fig 1).

The three holes were drilled to intersect the NE-SW trending mineralisation which has resulted from strong alteration of a dolomite host unit.

EPIRC12_001 intersected a highly anomalous gold interval of 29m grading 0.57g/t Au within a chlorite rich shear zone. The gold anomalism and alteration appears to correspond with the EM data. The host lithology is a dolomitic unit that has undergone stylolitic quartz and manganese veining and brecciation.


Significance of Anomalous Gold

The widespread alteration geochemistry suggests the Bartel prospect to be a low sulphidation hydrothermal (epithermal) alteration system. The area of known alteration is very large being at least 1.5km x 1.2km in dimensions and is seen to extend under cover.

Low sulphidation epithermal alteration systems often record strong vertical mineral zonation and can host bonanza grade gold veins. In such systems gold is often concentrated through a combination of ground preparation (permeability) and rheological contrast.


Supporting Petrology

Rock samples were collected from a wide area at Bartel for detailed petrological examination by Pontifex and Associates in Adelaide. A total of 15 samples were taken from RC drill chips and rock chips.

Most samples indicated widespread hydrothermal alteration consisting of argillic and potassic alteration and the formation of extensive quartz breccias.

Importantly one of the petrology samples recorded free gold associated with antimony within a carbonate host rock that had undergone silica flooding and brecciation. This is the first time free gold has been identified at Bartel.


Electromagnetic Survey

The areas around the Bartel gold occurrence were flown as part of the recent airborne EM survey that targeted the Company's numerous graphite deposits and prospects. The aim of extending the EM coverage over Bartel was to assist in the understanding the orientation and strike of the epithermal alteration system. The EM (Figure 3) has indicated a considerable north-east extension to the alteration system. The extension is further supported by a historic geology report that cited fluorite some 3.5km's NNE of Bartel.

A deeper conductive target occurs some 100m vertically below the gold interval in EPIRC12_001.

The EM has also highlighted highly conductive orthogonal cross cutting structures that may represent possible ground preparation sites.

Future work will include mapping and sampling of the alteration system with a view to better define the extent of the hydrothermal system and define future drill targets.

To view the complete Archer Exploration announcement including Tables and Figures, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-AXE-189023.pdf


About Archer Exploration Limited:

Archer Exploration Limited (ASX:AXE) is a graphite, magnesite, copper, gold and manganese explorer focused on the discovery of world-class ore deposits.

The company has carefully acquired a portfolio of projects, covering an area in excess of 5300 km2, in the highly prospective Gawler Craton and Adelaide Fold Belt regions of South Australia. All projects are 100% owned by the Company.

Archer also has earned the right to 100% of minerals other than uranium on EL4693 Wildhorse Plain located near Cleve on Eyre Peninsula.

The Company's flagship Campoona and Sugarloaf graphite deposits occur in the Cleve district where the Company has tenure of 933km2 in the emerging graphite province.

Archer Exploration Limited has an experienced board and management team and has the ability to maximise the potential of the company's world-class projects.



Contact:

Archer Exploration Limited
T: +61-8-8272-3288
WWW: www.archerexploration.com.au