Spectrum Metals Limited announced further high-grade assays from the Phase II drilling program at the Penny North prospect. In addition, SPX has completed preliminary metallurgical test work on composites of RC chips from high grade intersections, with exceptional results. Spectrum Metals announced further high-grade gold intersections from the Penny North Prospect as the company continues its extensional Phase II RC drilling program. Spectrum has received assay results from the next 12 holes. A further 8 holes have been completed with assay results still pending and an additional 11 holes have been designed and are yet to be drilled. So far, SPX has drilled 44 RC holes into the Penny North prospect. Spectrum has been routinely panning RC chips from suspected lode positions at Penny North throughout its Phase I and Phase II drilling programs. In the field, sample fines (passing a 2mm sieve) are taken from an approximately 1kg subsample of the RC chips removed from the individual one (1) metre rig sample. Panning of these fines has been found to allow for an immediate qualitative assessment of the mineralogy, and in particular the presence of galena and gold. Galena is known to be associated with high grade gold results at Penny West and at Penny North. In this way, Spectrum's management and in-field geology team have been able to design further extensional holes in real time to extend the predicted high-grade zones without the requirement to wait until final assays results are received from the laboratory. Of the holes with assays pending, at least four (SPWRC055, 056, 059 and 060) have been shown to contain coarse, visible gold in pannings. Of particular interest are the large numbers of coarse nuggets and fine gold grains being panned between 268m and 271m down hole in the deepest hole yet drilled at Penny North (SPWRC060) on line 6807170mN. This hole indicates that the high-grade lode structure continues approximately 40m below hole SPWRC040 on the same section which previously intersected 7m at 17.5 g/t gold from 230m within 11m at 11.7 g/t gold from 229m. The Penny West /Penny North gold system now measures 650m in strike length and extends to a vertical depth of 230m and is open down dip. The Penny North Lode is displaying an apparent southerly high-grade plunge, much like the mineralisation associated with the Penny West lode beneath the open pit. However, mineralization remains open to the north with additional holes planned with the aim of extending the mineralization in a northerly direction.