Peak Resources nears maiden rare earth resource at Ngualla in southern Tanzania

Peak Resources (ASX: PEK) has received further assays from recent drilling at the Ngualla Rare Earth Project in southern Tanzania which show broad intersections of rare earth oxides (REO) including 100 metres at 3.65% from surface including 66 metres at 4.39%.

Rare earth intersections from a further five holes in the Southern Rare Earth Zone also include 120 metres at 3.38% REO from surface, including 14 metres at 5.33% from 38 metres and 38 metres at 4.75% from 68 metres.

A reconnaissance reverse circulation drill hole within the Northern Zone returned 52 metres at 1.33% REO from 20 metres.

This hole is located 860 metres northeast of existing bedrock intersections in the Southern Rare Earth Zone and suggests the potential to significantly extend the known rare earth mineralisation to the north.

Meanwhile, the first assay results from the Northern Zone have also been received and returned encouraging grades of niobium-tantalum and phosphate in addition to the rare earth mineralisation.

Best intersections include 74 metres at 0.56% niobium oxide and 171 parts per million tantalum oxide from surface, including 26 metres at 0.91% niobium oxide and 239 parts per million tantalum oxide from surface and 64 metres at 19.7% phosphate from 10 metres.

Ngualla in southern Tanzania is a virgin discovery made by Peak, with the first holes completed in June 2010.

The company has rapidly advanced the project and a 19,046 metre resource drilling program was recently completed on 30 November 2011.

Results continue to demonstrate that Ngualla is one of the largest and better grade new rare earth discoveries of recent years, with mineralisation still open to the north and south.

Rare earth mineralisation extends from surface and is similar in style to Lynas Corporation’s (ASX: LYC) Mt Weld project in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite.

While the rare earth potential of Ngualla is Peak’s primary focus, the project also has potential to host large, near surface deposits of niobium-tantalum and phosphate.

A steady flow of assay results will continue until the end of January from the 21 reverse circulation and diamond holes in the Southern Rare Earth Zone and 23 reverse circulation holes still outstanding in the Northern Niobium-Tantalum-Phosphate Zone.

Peak Resources is targeting a maiden JORC Resource for the Ngualla rare earth mineralisation by the end of the March quarter of 2012.

The potential of the Ngualla Rare Earth Project also appears to be well acknowledged by investors with Peak Resources receiving firm commitments to raise A$2.24 million through the placement of 8 million new ordinary shares at $0.28 per share.

The placement was to new institutional and sophisticated investors.

Funds raised from the placement will be used to complete the assays on the RC and diamond drill holes for the Ngualla Rare Earth drill program completed on 30 November.

In addition, the placment funds will assist beneficiation and metallurgical test work.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23827/peak-resources-nears-maiden-rare-earth-resource-at-ngualla-in-southern-tanzania-23827.html