Annual and final technical report for period ending 21 December 2015 EL 30136 Stromberg - Scaramanga

Abstract

EL 30136 (formerly EL 25222) is situated approximately 140km due south of Darwin. Over the past nine years Spectrum Rare Earths Limited (Spectrum), previously known as TUC Resources, has explored this tenement area initially for uranium and more recently Rare Earth Elements (REE). Spectrum focussed the majority of its efforts on two REE prospects (Stromberg and Scaramanga). The REE enriched horizons are situated near surface. Spectrum has substantially advanced the geological understanding of the area through geological mapping, surface geochemistry, airborne geophysics, several RC and diamond drilling campaigns and multiple metallurgical campaigns at Stromberg and Scaramanga prospects. Subsequent to the term expiry of EL 25222, Spectrum was granted EL 30136 on 19 December 2014 which covered the majority of the EL 25222 area. During Year 1 of EL30136 additional metallurgical and mineralogical test work was undertaken on a composite sample which included Stromberg Prospect trial pit STRTP2014 bulk sample material from 0.4m to 1.4m depth. The metallurgical and mineralogical test work was conducted by Nagrom, Perth. A 40kg composite was prepared from a 20kg split of homogenised sample from STRTP2014 (TP9) 0.4-1.4m depth and a 20kg split of homogenised sample from TP6 0.4-1.0m depth (Skyfall Prospect trial pit TP6). The 40kg composite was crushed to 100% minus 1mm then the following splits were analysed: a head sample; nine size fractions ranging from +0.7mm to -0.038mm; and numerous finer staged grind fractions. These analyses generally indicated that the finer the grind, the higher the Total Rare Earth Oxide (TREO) + Y2O3 concentration. The staged grind sample was ground to 80% -0.038mm for a direct rougher flotation testing and analyses. The results indicated that the float concentrate was successful in higher TREO + Y2O3 values. Given that the Stromberg TREO mineralisation had similarities to Spectrum's priority prospect, Skyfall (located in adjacent EL 27151), most of the 2015 activities focussed on various metallurgical and mineralogical test work aimed at beneficiation optimisation studies at Skyfall Prospect. Extensive rehabilitation was undertaken during the previous reporting period (EL 25222). No field work was conducted on EL 30136 during this reporting period. The Exploration Licence was relinquished due to Spectrum's financial constraints limiting further exploration, the relatively high Native Title compliance costs, ongoing tenement commitment costs and the currently depressed rare earth prices.