Archer boards the magnesia train
Archer Exploration (ASX:AXE) has signaled that it’s moving into the magnesia space lock and stock by hiring one of the finest magnesia minds in the country.
It told its shareholders this morning that it had hired Paul Rix as a non-executive director, pointing to his decades of experience in the magnesium game as the chief reason for the hire.
Rix has more than 30 years in the marketing of industrial minerals, including a 10 year stint at Queensland Magnesia as its general manager of marketing.
He was responsible for finding key industrial end-users for the company’s magnesia, discovering sales contacts in six continents or more than 30 countries.
Crucially, he also has experience in marketing graphite, AXE’s chief play.
AXE has increasingly focused on its magnesite deposits at Leigh Creek in South Australia as a result of Alinta closing coal operations in the area.
Last year Alinta confirmed it was moving away from its operations in the area, leaving vital infrastructure behind.
Since that time, AXE has been in talks with the South Australian government about possibly using some of this infrastructure.
“Development of this valuable resource has previously been restricted by both the lack of infrastructure and the inability to access existing Leigh Creek coalfield infrastructure,” AXE managing director Greg English previously said.
“However, Alinta’s decision to close the Leigh Creek coalfield from next week means that its railway line and associated infrastructure is potentially available to Archer.”
The hiring of Rix is another sign that far from a fleet of fancy from AXE, it is increasingly eyeing its magnesia project as a real option to offset its graphite play to the south.
Archer Exploration has a string of resources projects based on the Eyre Peninsula in South Australia.
Known predominantly as a graphite play, it has other projects on its plate including gold, magnesia, and copper.
AXE currently has its foot on a resource of 8.55 million tonnes @ 9% graphite content for 770,800 tonnes of contained graphite – the biggest resource in Australia.
Campoona is thought to be the most advanced graphite play for AXE, with plans for a 10,000 tonne per year processing centre at Sugarloaf on the cards.
The plan is to mine for 14 years, but this doesn’t include any exploration upside.