Magnetic End Use Rare Earth Exploration in The Northern Territory

Transcription

1 Magnetic End Use Rare Earth Exploration in The Northern Territory Investor Update 2 September 2014 ASX:SPX

2 Company Position Shares ~156 million A$ /09/2014 Market Cap A$8.7 million Shareholders Funds A$632,000 (30 June 2014) 42% Shareholder Base 56% Exploration in Progress 4% 11% Directors, Officers and Founders Funds Other Top 20 TOTAL Top 20

3 Location Close to the Port of Darwin

4 Initial Surface Discovery = 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

5 The Choice To Seek The Most Economically Profitable Basket Price MEU REO Rich And; HREO Rich La2O3 5% Nd2O3 20% CeO2 21% Eu2O3 1% Pr6O11 4% Tb4O7 1% Sm2O3 6% Y2O3 25% Dy2O3 5% Gd2O3 7% Er2O3 2% Lu2O3 0% Tm2O3 0% Ho2O3 1% Yb2O3 2% SKH m; 0.61% TREO

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

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 Disclaimer Drill Rig Mobilised High Magnetic REE and HREE Distributions Leading Basket Price

9 Skyfall Evidence of a Deep Primary System Potential for Grades to improve Interpreted REE Rich Intrusive Body (Granite?) Potential REE source Skyfall Major Fault Fluid circulation, Potential REE transport

10 Mineralogy: A Clue for Deeper Exploration Secondary Minerals Identified at Skyfall Including Florencite, Crandallite, Gorceixite and Goyazite are known T????????????? in the weathering profile above deposits such as Mt Weld

11 A Large Magnetic End Use Rare Earth Drill Target 3 Holes Planned Hole 3 ~300m Hole 1 ~300m Hole 2 ~300m

12 Exploration Model and Type Hole A B RL Interpreted Cross Section

13 Mineralogy: Lower Cost Processing Options Being Investigated Liberated Xenotime Particle from Skyfall Weathered silts and sandstones containing abundant quartz which can help mineral processing. Extremely low levels of contaminant elements Th and U (6.7ppm and 44ppm respectively at 0.2%TREO cut-off). = Competitive Advantage

14 131.1º 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 Largo Knightfall Airborne Radiometric Image Relative to Background SPX Tenement Boundaries/Holdings

15 Value Proposition High Magnetic REE and HREE Distributions Leading Basket Price Shallow Mining and Drilling Advantages for Development Market Cap US$ millions (28/08/14) Mineralogy Xenotime Absorption - Potential for Quicker and Cost Effective Development and Processing Large Single Location Targets offer a potential impact on the Rest of World s Magnetic REE and HREE Needs Further Work in Progress Trial Pitting/Drilling

16 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.

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