Archer Exploration has signed a farm-in agreement with Uranium SA Limited to earn an interest in all minerals (except uranium) on Uranium SA's Wild Horse Plains and Elbow Hill tenements located adjacent to Archer's North Cowell Project on South Australia's Eyre Peninsula.

The combined projects give Archer a contiguous land holding of 1,042 km2 over an area which contains known manganese and iron occurrences.

The farm-in agreement provides Archer access to highly prospective manganese, iron and copper bearing units under the company's ongoing strategy to exploit Eyre Peninsula's significantly underexplored base metals potential.

Archer said the presence of more than 10km strike of the highly magnetic rocks north of Mt Shannon provides encouragement that similar mineralisation to the company's Jamieson Tank Project, located only 10km to the northwest of Wild Horse Plain, can be identified.

Historic work by CRA in 1977 identified strong iron mineralisation (Fe2O3) above 60% at both Mt Shannon and Mt Desperate. Historic work in the area has been focussed on lead, zinc, copper and uranium, and the tenements remain under-explored for iron and manganese.

Under the farm-in agreement, Archer may earn a 100% interest in all minerals (except uranium) by spending a total of A$300,000 exploring the tenements during the next 2 years. 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 then 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). The farm-in agreement is subject to the granting of Ministerial approval.