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Perth, Jan 12, 2012 (ABN Newswire) - TUC Resources Limited (ASX:TUC) is pleased to report confirmation of Xenotime mineralogy at the Stromberg Heavy Rare Earth Prospect through continued mineralogical analysis.

Highlights;

- XRD (X-Ray Diffraction) analysis of a rare earth rich concentrate has confirmed Xenotime mineralogy as the rare earth element (REE) host, see Photo 1 and 2 (see link at the bottom of the release). This confirms analysis previously reported in TUC ASX announcement dated 14 September 2011. Xenotime is known for its excellent physical recovery characteristics and is in high demand from the global rare earths processing industry. A simple physical processing method may assist the Stromberg Project in more rapidly producing a saleable product/concentrate when compared to other REE projects.

Other Important Facts about Stromberg;

- Based on drilling to date 85.8% of the REE distribution at the Stromberg Prospect is the valuable and high demand heavy rare earth elements (HREEs).

- Continued demand for critical HREEs in a variety of technologies, against a limited global supply, make any potential resource at Stromberg very attractive. This is due to the potentially quicker development time offered by Stromberg's shallow nature as well as possible simple process flow sheet.

- Importantly, average levels of the deleterious element Thorium are low (3.5ppm Th for an average total rare earth oxide (TREO) of 0.45% from all significant intersections >0.2% TREO.). This may ultimately lead to a more marketable product.

- These important results adds further support to TUC's focussed exploration plans for 2012 at the Stromberg Prospect following on from the excellent results of the last round off RC drilling (see TUC ASX announcement dated 16th November 2011).

The photographs show Xenotime rich concentrates produced for mineralogical analysis by a TBE method (heavy liquid separation, a physical processing method). Following identification of Xenotime TUC is undertaking extensive metallurgical testwork to determine concentrate and processing parameters.

TUC's planned work at the Stromberg Prospect for 2012 includes RC drilling designed for resource definition, and diamond drilling designed for metallurgical and geotechnical purposes, both complementing and adding to work currently underway.

For the complete TUC announcement including photos, please view:
http://media.abnnewswire.net/media/en/docs/ASX-TUC-573899.pdf

About Spectrum Rare Earths Limited

Spectrum Rare Earths Limited's (ASX:SPX) vision is to become a significant high margin mineral producer and resource house. The core purpose of Spectrum is to create value through the discovery, development, production and marketing of metal resources in a socially responsible manner.


Contact

MR IAN BAMBOROUGH
Managing Director
TUC Resources Ltd
Tel: +61-8-8947-0944
Email: ibamborough@tucresources.com.au



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