Peak Resources: 5400m of assays pending, building to maiden resource at Ngualla Rare Earths Project

Peak Resources (ASX: PEK) has now rounded out an extensive drilling campaign at the Ngualla Rare Earth Project in southern Tanzania, with a significant 5400 metres of reverse circulation assays now pending.

Adding spice to the short term news flow is that a maiden resource is scheduled for completion towards the end of the March 2012 quarter.

Ngualla is already demonstrating a large rare earth discovery with 5% and over total rare earth oxide mineralisation extending from surface over an area of 660 metres by 740 metres and to depths of up to 120 metres.

Since May this year, over 250 holes for more than 19,000 metres have been drilled, providing sufficient data for a JORC Resource in the Southern Rare Earth and South West Alluvial Zones of the Ngualla Carbonatite.

Drilling has also provided sufficient bulk diamond core samples for metallurgical test work now in progress on a range of material types, together with an initial evaluation of the economic potential of the Northern Niobium – Tantalum – Phosphate Zone.


Highest rare earth grades to date delivered in November

Highlighting the potential of Ngualla and building anticipation for the pending assays, just last month the company delivered the best intersections to date from the project.

High grade results such as 4 metres at 10.7% rare earth oxides from 32 metres provide support for the extensive broad intersections, with November highlights from Southern Rare Earth Zone including:

- 120 metres at 4.06% REO from surface, including 36 metres at 7.40% from 22 metres; and
- 120 metres at 3.54% REO from surface, including 46 metres at 6.17% from surface.

The results underpin that Ngualla is one of the largest and better grade new rare earth discoveries of recent years, with another plus mineralisation is similar in style to Lynas Corporation's (ASX: LYC) Mt Weld in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22861/peak-resources-5400m-of-assays-pending-building-to-maiden-resource-at-ngualla-rare-earths-project-22861.html