Peak Resources returns further wide rare earth intersections from surface at Ngualla

Peak Resources' (ASX: PEK) latest assay results from the Ngualla Rare Earth Project in southern Tanzania include more wide intersections from surface from the Southern Rare Earth Zone and the first assays from the South West Alluvial Zone.

Peak is undergoing a maiden resource drilling program at the project where a highly anticipated JORC resource is expected to be completed by consultants Hellman and Schofield Ltd in the first quarter of 2012.

Highlights from eleven new holes within the Southern Rare Earth Zone include:

- 170 metres at 4.18% REO from surface;
- 24 metres at 4.48% REO from surface; and
- 129 metres at 3.19% REO from 24 metres.

Intersections from the first twelve holes received from the South West Alluvial Zone confirm REO mineralisation from surface in unconsolidated gravel and include:

- 24 metres at 3.27% REO from surface;
- 28 metres at 3.20% REO from surface; and
- 10 metres at 3.18% REO from surface.

In addition, niobium–tantalum and phosphate mineralisation is also wide spread in the same area and includes 24.5 metres at 0.68% Nb2O5 and 156ppm Ta2O5 from 24 metres and 18 metres at 15.9% phosphate from 30 metres.

The results underscore that Ngualla is one of the largest and better grade new rare earth discoveries of recent years. Ngualla is a virgin discovery, and with mineralisation from surface and extending over a large area, the project has vast potential.

Intriguingly, mineralisation at Ngualla in southern Tanzania is similar in style to Lynas Corporation's (ASX: LYC) Mt Weld in Western Australia

Peak is currently operator and manager, earning 80% equity in the Ngualla Project by carrying Joint Venture partner Zari Exploration Ltd through to completion of a Bankable Feasibility Study.

However, on 26 August 2011 Peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla Project through the acquisition of Zari.

Resource Drilling Program

Drilling operations are continuing on schedule with a total of 212 holes for 15,348 metres completed within the Southern Rare Earth and South West Alluvial Zones.

Diamond drilling for beneficiation and metallurgical test work and density measurements for the resource estimation has now been completed with 6 holes completed for 862 metres.

The diamond drill rig has been converted back to reverse circulation capability and will continue in the Southern Rare Earth Zone.

The second drill rig has commenced the exploration reverse circulation traverses in the Northern Niobium–Tantalum–Phosphate Zone as seasonal heavy rain is expected at the end of November.

Samples are currently in the laboratory and results will be released as they come to hand. Also, beneficiation and metallurgical test work on a series of rare earth mineralised bulk core samples from the Southern Rare Earth Zone is being undertaken.

In addition, Work will commence shortly on a bulk core sample of phosphate, niobium and tantalum mineralisation from the Northern Zone.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21534/peak-resources-returns-further-wide-rare-earth-intersections-from-surface-at-ngualla--21534.html