Peak Resources unleashes rare earth, niobium tantalum and phosphate power at Ngualla

Peak Resources (ASX: PEK) management and board deserve accolades for turning a virgin new rare earth discovery by the company a couple of years ago in Africa into one of the largest and highest grade new rare earth discoveries in recent years.

Known as the Ngualla Rare Earth Project in southern Tanzania, the project is already drawing comparisons to Lynas Corporations' (ASX: LYC) Mt Weld in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite.

Peak has now delivered to the market a new set of very strong near surface drilling results from an additional ten holes at the project, which have extended the Southern Rare Earth Zone an additional 200 metres in a north - south direction. Adding further to the potential it still remains open to both the north and south.

Rare earth peak results from six holes include 128 metres at 4.17% REO from surface; 75.70 metres at 5.82% REO from surface, including 10.74 metres at 10.1% REO; and 39.16 metres at 4.65% REO from surface, including 8.30 metres at 7.66% REO.

Shallow, high grade mineralisation now extends over an area of 850 metres in a north – south direction and up to 740 metres east – west, tested to a maximum vertical depth of 155 metres.


Northern Zone heats up

From the Northern Zone, niobium – tantalum and phosphate highlights from four holes were:

- 24 metres at 1.12% Nb2O5 and 226ppm Ta2O5 from 4 metres;
- 28 metres at 20.4% phosphate from surface;
- 52 metres at 0.48% Nb2O5 and 108ppm Ta2O5 from surface; and
- 20 metres at 0.45% Nb2O5 and 103ppm Ta2O5 from 56 metres.

Where the story becomes even more interesting in this Northern Zone is that they include the highest grade niobium intersection returned to date.

More results are pending for the Northern Zone which includes data from the remaining 19 holes of the reconnaissance program.

Highlighting the prospectivity of the area, the grade, near surface nature and potential extent of this second style of mineralisation provide the potential for more high grade near surface rare earth intersections.


Heavy and critical rare earths

The Northern Zone rare earth mineralisation contains a higher proportion of more valuable heavy and critical rare earths than the Southern Rare Earth Zone.


News flow from Ngualla - including maiden JORC

Peak has forecast that the highly anticipated JORC Resource from Ngualla will be delivered in the March quarter 2012, prepared by consultants Hellman and Schofield.

There will also be a flow of drilling results in the short term, with 16 reverse circulation holes from the Southern Zone and 19 holes from the Northern Zone pending - and expected within weeks.


Beneficiation and metallurgical test work

Beneficiation and metallurgical test work managed by consultants Bateman Engineering is in progress on a series of rare earth mineralised bulk core samples from the Southern Rare Earth Zone at Amdel Laboratories in Perth.

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.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24245/peak-resources-unleashes-rare-earth-niobium-tantalum-and-phosphate-power-at-ngualla-24245.html