The project is located about 12km north of Cleve on Eyre Peninsula, South Australia.

Drilling program in February and in April 2012 found visible flake graphite within a discrete graphitic shear zone hosted in low grade graphitic proto-gneiss.

The high grade graphite unit averages 10-50m in true width with the hanging wall section averaging about 15% graphitic carbon and carrying visible flake.

Evaluating two composite RC samples revealed CSRC12-003 head assay at 16.2%TGC and 97% passing 2mm sizing while CSRC12-006 head assay was 15.5%TGC and also 97% passing 2mm sizing.

Archer believes Campoona can provide very high quality amorphous graphite upon further refinement of the liberation and flotation process.

The samples as received already had 80% passing 220 micron thus making it potentially unsuitable for the recovery of flake graphite.

Despite the limitations of the sample it was considered prudent to continue the recovery process for flake even though the results could only ever be seen as probably indicating a "worse case" result, the company noted.

Test results show that flake graphite is present and recoverable with grades to 91%TGC and acid washing is in progress which is expected to result in even higher flake grading.

Archer now targets on obtaining large weight trench samples and diamond drill samples that will enable preservation of flake prior to comminution testing, liberation and recovery phases as the initial tests show that flake is present in the deposit.

Future work will focus on optimizing a two-stage approach to recovery of product, which will be undertaken on trench samples and diamond drill core to ensure the samples tested have far less chance of damage caused to flake present through the drilling and sample recovery process.