Peak Resources drilling continues to unveil rare earth potential at Ngualla

Peak Resources (ASX: PEK) has returned further broad rare earth intersections from surface at the Ngualla Rare Earth Project in southern Tanzania, with results pointing to potential for southern extensions to the known mineralisation.

Assay results from twelve new holes from the recently completed resource drilling program within the Southern Rare Earth Zone include:

- 116 metres at 3.25% rare earth oxides (REO) from 2 metres, including 52 metres at 4.61% REO from 32 metres;
- 110 metres at 3.70% REO from surface, including 24 metres at 4.22% REO from surface; and
- 54 metres at 4.62% REO from 36 metres.

These latest wide intersections indicate the internal continuity of rare earth mineralisation from surface within the Southern Rare Earth Zone.

Mineralisation extends over an area of 660 metres in a north–south direction and 740 metres east-west on the most southern drill traverse completed to date and still remains open to the north and south. It has been tested to a maximum vertical depth of 155 metres.

A reconnaissance aircore drill hole located 380 metres south of existing bedrock intersections in the Southern Rare Earth Zone returned 50 metres at 1.38% REO from surface within weathered carbonatite bedrock.

This provides encouragement to the company as it suggests the potential to extend the rare earth mineralisation of the Southern Rare Earth Zone a further 380 metres to the south of existing bedrock intersections. Rare earth mineralisation remains open and untested to the east of this position.

New rare earth mineralised intersections from unconsolidated sediments within the South West Alluvial Zone have also been received and include:

- 17 metres at 3.72% REO from surface; and
- 25 metres at 3.50% REO from surface.

The results continue to demonstrate that Ngualla is one of the largest and better grade new rare earth discoveries of recent years and a maiden JORC rare earth Resource will be completed by consultants Hellman and Schofield at the end of the first quarter of 2012 for both the Southern Rare Earth and the South West Alluvial Zones.

Peak has been advancing the project with a 19,046 metre resource drilling program recently completed on 30th November 2011.

Mineralisation at Ngualla 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.

Southern Rare Earth Zone

Drill holes in the eastern portion of the resource drill pattern in the Southern Rare Earth Zone also intersected wide zones of phosphate and niobium – tantalum mineralisation including:

- 34 metres at 0.62% Nb2O5 and 165 parts per million (ppm) Ta2O5 from 12 metres and 38m at 16.6% phosphate from 76 metres;
- 4 metres at 2.32% Nb2O5 and 92ppm Ta2O5 from 114 metres;
- 42 metres at 0.56% Nb2O5 and 173ppm Ta2O5 from 20 metres and 54 metres at 19.1% phosphate from 8 metres; and
- 30 metres at 0.46% Nb2O5 and 78ppm Ta2O5 from surface and 17 metres at 22.0% phosphate from 10 metres.

This second style of mineralisation lies to the east of the main bedrock - hosted rare earth mineralisation within ferruginous gravels and weathered carbonatite.

The niobium – tantalum and phosphate mineralisation remains open to the north, south and east.

South West Alluvial Zone

In addition to the rare earth mineralisation, niobium – tantalum and phosphate mineralisation was intersected in some areas within the South West Alluvial Zone including:

- 14 metres at 0.42% Nb2O5 and 151ppm Ta2O5 from surface;
- 22 metres at 0.39% Nb2O5 and 135ppm Ta2O5 from surface
- 19 metres at 14.5% phosphate from surface to EOH

An assessment of the niobium – tantalum and phosphate potential at Ngualla will be completed on receipt of all assay results.

Ngualla Project Program Progress

A steady flow of assay results will continue until the end of January 2012 from the 26 reverse circulation and diamond holes in the Southern Rare Earth Zone and all 26 reverse circulation holes outstanding in the Northern Niobium – Tantalum – Phosphate Zone.

Beneficiation and metallurgical test work is in progress on a series of rare earth mineralised bulk core samples from the Southern Rare Earth Zone.

Tests include a series of gravity, magnetic and floatation techniques on a range of material types. The potential for direct acid leach extraction of rare earths from some of the more highly weathered and higher grade mineralisation is also being evaluated.

The company has also commenced work 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/23432/peak-resources-drilling-continues-to-unveil-rare-earth-potential-at-ngualla-23432.html