EL 27151 Skyfall Annual technical report for period ending 7 November 2014

Abstract

During year 1, Spectrum managed to investigate the Skyfall Prospect in great detail. First a rock chip and soil sampling reconnaissance programme was undertaken allowing Spectrum to clearly identify the best drilling targets. In total, 699 samples of soil and rock chips combined were taken. Following the sampling program, Spectrum started digging trial pits and very shallow RAB holes to better investigate the type of mineralisation at surface. 13 RAB holes were drilled for a total of 12.6m and 8 trial pits were dug for a total of 20.02m. The results from the trial pitting demonstrated that the surface mineralisation was very rich containing high Magnetic End Use Rare Earth distributions which range from 34 percent to 44 percent of TREO including high averages of 19.9 percent Neodymium and 4.2 percent Dysprosium Oxide of TREO. Spectrum drilled 8 diamond holes including 7 relatively shallow holes and one deep hole to better understand the regional stratigraphy. A total of 465.1m was drilled. This drilling program highlighted the greater rare earth potential at surface in several sheets of flat lying mineralisation. Two zones of different rare earth enrichment were identified. The weathering profile of Skyfall's mineralisation appears to be clearly segregating the more valuable rare earths. The Magnetic End Use Rare Earths are enriched in the upper surface zones, while the Heavy Rare Earths are present with depth. This metallurgical profile offers Spectrum the potential for a full suite of higher value rare earths. Spectrum has already begun metallurgic work on Skyfall's surface mineralised material. Results to date are extremely encouraging and still ongoing.