Magnetic End Use Rare Earths in The Northern Territory

Transcription

1 Magnetic End Use Rare Earths in The Northern Territory Investor Update 24 November 2014 ASX:SPX

2 Company Position Shares ~176 million A$ /11/2014 Market Cap A$4.4 million Shareholders Funds A$983,000 (30 September 2014) +A$0.16M (possible RnD Tax Rebate) 42% Shareholder Base 56% Exploration & Metallurgy in Progress 4% 11% Directors, Officers and Founders Funds Other Top 20 TOTAL Top 20

3 Location Close to the Port of Darwin

4 Skyfall Magnetic End Use Rare Earth Target - Drilling and Trial Pitting Progressed in 2014 Fault Corridor Drilling October 2014

5 Initial at Surface Discovery - 3D Geology Interpretation - Shape = Exploration Target Size approximately 19 Million Tonne (17 21 Mt) 3.5 4m Thickness; 0.4% - 0.6% TREO; 36-38% Magnetic End Use REO s The potential quantity and grade of the Exploration Target is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource. Refer to ASX Announcement of 6 August for further details. GDA94, Z52

6 The Choice To Seek The Most Economically Profitable Basket Price Unusually Rich Magnetic End Use Rare Earth Distribution La2O3 5% Nd2O3 20% CeO2 21% Eu2O3 1% Tb4O7 1% Pr6O11 4% Y2O3 25% Dy2O3 5% Sm2O3 6% Gd2O3 7% Er2O3 2% Lu2O3 0% Tm2O3 0% Ho2O3 1% Yb2O3 2% SKH m; 0.61% TREO

7 Skyfall s MEU REO s Give the Prospect a Leading Basket Price Secondary Crandallite Group and Xenotime Minerals Xenotime Absorption Absorption Monazite Monazite Bastnaesite Prices Metalpages Website January 2014

8 Magnetic Sector - The Fastest Growing For Rare Earths Drivers: Clean energy expansion and miniaturisation Example: Hybrid and Electrical vehicles Permanent Magnet Sector

9 Mineralogy: Dysprosium Rich Mineralogy in a mineral with a Proven Economic Processing History Liberated Xenotime Particles from Skyfall Extremely low levels of contaminant elements Th and U (6.7ppm and 44ppm respectively at 0.2%TREO cut-off). = Competitive Advantage

10 Lower Cost Processing Options afforded by Secondary Minerals (broken down by nature) being Investigated T????????????? Secondary Minerals Identified at Skyfall Including Florencite, Xenotime, Crandallite, Gorceixite and Goyazite are known in the weathering profile above deposits such as Mt Weld

11 Simple Concentration of REE Minerals by Direct Froth Flotation Single Floatation Agent Collecting both mineral groups.

12 Mineralogy: Lower Cost Processing Options Being Investigated Friable Clay Geology with Quartz Potential for Lower Energy Cost During Grinding

13 First Test Only (Trial) Simple Flow Sheet to a Clean Product Smaller Plant Energy and Re-Agent Requirements Crush SAG Grind 40µm Direct Rougher Float Regrind 20µm Direct Cleaner Float Regrind 10µm Direct Re-Cleaner Float Sulphuric Acid Bake Water Leach 59% Recovery 66% Recovery 4.66% TREO Con Only 11.5% of Mass Optimisation Planned Room for Improvement 5.7% TREO Con Only 5.6% of Mass 43% Recovery Relatively Clean Oxalate Precipitate (next page) Refer to ASX Announcements of 11 and 24 November 2014 for further details.

14 First Oxalate Produced Magnetic End Use Rare Earth Rich Relatively Low Impurity Levels Further Test-work in Progress Refer to ASX Announcement of 11 November 2014 for further details. 45% TREO (42% MEU REO) Only 0.86% Fe2O3, 0.3% Al2O3, 0.8% CaO and 0.3% SiO2 ~20ppm U, 74ppm Th not yet calcined to REO Oxides (results pending)

15 131.1º 131.2º Large District Potential All Tenements 100% Spectrum 45km Severine Scaramanga 7 Drill Holes -14.3º Stromberg 85 Drill Holes Mineral Inventory Skyfall - Current Focus of Activity Drilling Met. Work Largo Knightfall Airborne Radiometric Image Relative to Background SPX Tenement Boundaries/Holdings Oct 2014

16 Value Proposition High Magnetic REE and HREE Distributions Leading Basket Price Shallow Mining and Drilling Advantages for Development Market Cap US$ millions (20/11/14) Emerging Simple Process Flow Sheet Large Single Location Targets offer a potential impact on the Rest of World s Magnetic REE Needs

17 Disclaimer The Company has prepared this presentation. Whilst the information contained in this presentation has been prepared with all reasonable care from information provided by the Company and from sources, which the Company believes are reliable, no responsibility or liability is accepted by Spectrum Rare Earths for any errors or omissions or misstatements, however caused. To the maximum extent permitted by law, Spectrum Rare Earths, its directors officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person thought the use or reliance on anything contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of Spectrum Rare Earths, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Spectrum Rare Earth s actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Spectrum Rare Earths, its directors officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated. Spectrum Rare Earths directors and associates own shares in Spectrum Rare Earths Company. The Company recommends investors obtain their own independent financial and accounting advice before making any financial investment in reliance upon information contained in this publication. Competent Person The information in this report that relates to exploration targets and exploration results is based on information compiled by Ian Bamborough, a Competent Person who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee and Director of Spectrum Rare Earths Limited, in addition to being a shareholder in the Company. Ian Bamborough has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Bamborough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

18 Ian Bamborough MANAGING DIRECTOR ASX:SPX ABN: Tel +61 (0) Level 10, 553 Hay Street Perth WA, Australia

19 Additional Slides for Background Information

20 At Surface mineralisation Laterally Extensive Potential for Low Strip Ratio and Low Drill and Blast Costs afforded by At Surface Weathered Material 0.47 TREO% from 5.1m 0.93 TREO% Mineralisation 0.66 TREO% Horizontal Rock Units Refer to Slide 4 for section location See Quarterly Report for hole information

21 Drilling Extends MEU REO Mineralisation 2km along strike to the South 0.58 TREO% 0.29 TREO % 0.27 TREO% >500ppm TREO Mineralised Envelope Mineralisation Open Horizontal Rock Units 0.17 TREO% Refer to Slide 4 for section location See Quarterly Report for hole information