Spectrum Rare Earths (ASX:SPX) is raising $800,000 through a placement of shares to fast track its planned deep three hole drilling program at the Skyfall Magnetic End Use Rare Earth Project in the Northern Territory.
The company had received commitments to subscribe for 20 million shares priced at $0.04 each.
The three holes will test potential for higher grades in primary feeder or fault zones at greater depths.
These will target primary mineralisation beneath the recently announced Exploration Target of 17 to 21 million tonnes at 0.4% to 0.6% Total Rare Earth Oxides (36% to 38% Magnetic End Use Rare Earth Oxides).
Spectrum holds 10,000 square kilometres of prospective land package across 21 tenements, making it a dominant REE ground holder in the Northern Territory.
Multiple consolidated project areas are held across several key geological and metallogenic terrains, affording opportunity to diversify exploration into numerous commodities.
The Skyfall target sits above a major fault corridor adjacent to an interpreted large, deep seated granite body.
The granite is conceptualised to have provided the original REE source, and major faulting has acted as a conduit for fluid circulation and the transport of mineralisation to the surface.
Recent near surface mineralogy at Skyfall has identified secondary rare earth minerals including crandallite.
Notably, crandallite group minerals are known secondary minerals associated with intrusive controlled rare earth deposits such as Mt Weld.
Its presence in the weathered zone at Skyfall, in association with high neodymium distributions, supports Spectrum's interpretation of a potentially higher grade mineralised stock or feeder system beneath this surface zone.
With funding now in place, Spectrum Rare Earths can now fast track the three hole drilling program at Skyfall.
These holes will test potential for higher grades in primary feeder or fault zones at greater depths and could increase the recently announced Exploration Target of 17 to 21 million tonnes at 0.4% to 0.6% Total Rare Earth Oxides (36% to 38% Magnetic End Use Rare Earth Oxides).
The higher percentage of magnetic and heavy rare earth oxides at Skyfall is notable given the Magnetic Sector is one of the fastest growth segments for Rare Earths, where the drivers are clean energy expansion and miniaturisation i.e. hybrid and electrical vehicles.
Proactive Investors sees potential strong price growth of $0.12-$0.16 within 12 months.
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