Annual and final report for EL 25229 Quantum for period 9 November 2015 to 8 November 2016

Abstract

EL 25229 is situated approximately 120 km south of Darwin by road. EL 25229 initially covered 500 graticule blocks (1526 sq km) and was granted on 9th November 2006 to Territory Uranium Company Ltd, which subsequently changed its name to Spectrum Rare Earths Limited (Spectrum). Exploration activities primarily targeted uranium and rare earth elements. The Year 8 reduction (2014) retained 11 blocks. This report is the combined Final and Annual Report for Year 10 of EL 25229. No on ground work was conducted by Spectrum on EL 25229 from 9 November 2015 to 8 November 2016 due to other priorities. EL 25229 activities were also previously reported under GR042-12. Work during Year 1 of tenure consisted of a review of both NTGS data, compilation of significant results from Industry reports and geophysical data review. A helicopter reconnaissance programme was carried out over the entire tenement during Year 2. Anomalous uranium results were returned with the identification of the Area 16 uranium prospect. During year 3 follow-up sampling was completed at Area 16 (39 soil and 9 rock chip samples) with a highest rock chip of 70ppm U. The Wild Card uranium prospect was identified. Further analysis of airborne radiometric data, soil sampling and resampling of historical drill core in Year 4 identified the Spectre and Quantum uranium prospects. RC and diamond drilling were completed at Quantum revealing REE, uranium and base metal mineralisation. Aircore drilling was undertaken at Wild Card Prospect. In year 5, RC and Diamond drilling was completed at Quantum Prospect in addition to metallurgical and petrographic work. A total of 28 RAB holes were drilled at Wildcard REE - uranium prospect. Eight rock chip pulps and 36 soil sample pulps from the Area 16 2008-2009 exploration were submitted for REE analysis. Anomalous results with maximum Total Rare Earth Elements (TREE) values of 735ppm for rock chips and 508ppm TREE for soils were identified. Data analysis and interpretation continued in Year 6. During Year 7 full rehabilitation was carried out at the Quantum Prospect which included the clean-up of 58 drill pads in the retained ground. Rehabilitation work at the Wildcard Prospect included the clean-up of 28 drill pads. In Year 8 a tenement area reduction assessment was completed. A two year tenement extension was granted. While no on-ground exploration was undertaken during year 9, data analysis continued. No exploration was undertaken during year 10 due to prioritisation. Exploration at Quantum Prospect has revealed elevated REE, uranium, gold, silver and base metals. The geological setting and mineralisation signatures suggest the EL area has potential for hosting Iron Oxide-Copper-Gold deposits. It is recommended that further analysis of geochemical, geological, structural and geophysical data be undertaken to identify exploration targets.