Archer Exploration - An Emerging Nickel Discovery Play

• Archer Exploration (CSE:RCHR) is a nickel sulfide exploration and development company with key projects in Quebec and Ontario.
• The company's flagship is the Grasset nickel sulfide project, boasting an existing resource of 5.5 million tons at 1.53% nickel equivalent, discovered in 2012.
• Grasset was valued at approximately $53 million CAD when it was integrated into Archer Exploration from a deal with Wallbridge, which had a prior focus on gold.
• Challenges have arisen from legacy issues and varying investor interests between gold and base metals, but Archer sees potential growth and more nickel discoveries in the project.
• Current strategies involve a combination of geophysics, Sonic drilling, and other methodologies, with a belief in a significant upside to the known resource at Grasset.
  

Introduction

Archer Exploration (TSX-V: RCH) is a Canadian mineral exploration company focused on advancing its portfolio of nickel sulfide projects in mining-friendly jurisdictions like Quebec and Ontario. Archer's flagship asset is the Grasset project in Quebec, an exciting early-stage nickel discovery with significant resource expansion potential. With renewed nickel demand growth expected from stainless steel and electric vehicles, Archer aims to systematically explore its properties to make new nickel discoveries.

Interview with President & CEO, Tom Meyer

Flagship Grasset Project

Archer's primary focus is rapidly advancing exploration at Grasset to build on the project's 5.5 million ton inferred resource grading 1.53% nickel equivalent. This initial resource estimate only minimally tests the shallow depth potential. According to Archer CEO Tom Meyer, Grasset could ultimately host a world-class nickel sulfide deposit.

The Grasset property covers a 23km long ultramafic trend with ample room for additional discoveries. Exploration is still in the early stages, with the initial 2012 nickel discovery made accidentally while drilling for gold. Archer's seasoned technical team is methodically exploring and expanding the deposit using innovative 3D geophysical modeling to identify new high-grade nickel drill targets.

Recent drilling success demonstrates strong resource expansion potential. For example, a June 2022 drill hole intersected 1.82% nickel over 4.6 meters, open along strike and at depth. Just 550 meters of the mineralized zone has been drill tested, leaving significant expansion potential at depth.

Well-Funded Exploration Program

With over $9 million in cash on hand, Archer has sufficient capital to aggressively advance exploration activities at Grasset. The fully funded program includes geophysics, sonic drilling and exploration drilling with the goal of doubling or tripling the existing resource estimate. Archer expects a steady news flow of ongoing drill results throughout 2022 and 2023 to catalyze investor interest.

Seasoned Technical Team

Archer has assembled an experienced board and technical team to systematically explore its projects. Key management including CEO Tom Meyer have decades of expertise exploring for nickel deposits around the world. This geological knowledge of nickel systems helps target exploration to successfully grow resources and make new discoveries.

Upside Exposure to Nickel Market Fundamentals

Nickel market fundamentals appear strong heading into the electric vehicle boom of the 2020s. Demand is expected to be driven higher by stainless steel and lithium-ion battery consumption. With few new nickel projects coming online, Archer is leveraged on the upside to potentially higher nickel prices above $10/lb.

Risks & Opportunities

Risks

• Exploration and development risks inherent in mineral exploration
• Commodity price volatility could impact project economics
• Financing risks may require dilutive equity financings
• Political/permitting risks could cause delays

Opportunities

• Significant exploration upside given large underexplored land package
• Rising nickel demand expected to drive prices higher
• Strong technical team with expertise in nickel sulfide deposits
• District-scale potential for multiple economic deposits
• Takeout potential if exploration successfully expands resources

Conclusion

Archer Exploration presents a compelling early-stage investment opportunity in the nickel exploration sector. With its experienced management team, promising Grasset nickel project and fully funded exploration program, Archer offers upside exposure to new nickel discoveries and rising nickel demand trends. As the electric vehicle revolution accelerates, investors should keep an eye on Archer as an emerging nickel sulfide developer.