March 2012 Quarterly aCtIVItIeS reportcontent.stockpr.com/peakresources/media/56acf71443b246dc... · 2012. 8. 3. · Quarterly aCtIVItIeS report March 2012 HIGHLIGHTS Ngualla RaRe

Quarterly aCtIVItIeS report

March 2012

HIGHLIGHTSNgualla RaRe eaRth PRoject (Southern Tanzania) Rare Earths, Niobium – Tantalum, Phosphate

• Amajormilestonewasreachedaheadofscheduleon29thFebruarywiththereleaseofthe

maidenMineral ResourceestimatefortheNguallaRareEarthProject.

Ata1.0%lowergradecut-offtheMineralResourceEstimateforthecombinedSouthernRareEarthandSouth

WestAlluvialZonesis:

170 million tonnes at 2.24% REO*, for 3.8 million tonnes of contained REO.

Usinga3.0%lowergradecut,thetotalresourceincludesahighergradenearsurfacezoneof:

40 million tonnes at 4.07% REO*, for 1.6 million tonnes of contained REO.

Nguallaisagloballysignificantrareearthdeposit,beingthefifthlargestoutsideofChinaandthehighest

gradeofthesevenlargestdeposits.

• TheacquisitionofJointVenturepartnerZariExplorationLtdwascompletedonscheduleon22ndFebruary,

givingPeak100% ownershipoftheNguallaRareEarthProject.

• Initialmetallurgicalresultsreleasedon1stFebruaryshowencouragementforsimple acid leachextractionof

someofthehighestgrade,nearsurfaceweatheredmineralisationwithoutpriorbeneficiation.Leachextraction

ratesof 88% REO wereachievedfromacompositesample.Ifsuccessful,adirectatmosphericacidleach

processwouldgiveNguallaasignificantadvantageintermsofleadtimetoproductionandlowercapitaland

operatingcosts.Furtherworkrequiredtovalidateandfurtheroptimisethisapproachtothedevelopmentofthe

projectistheCompany’stoppriority.

• TheresourceestimationandblockmodelwillallowscopingstudiestocommenceduringthecomingQuarter.

Engineeringcontractorsandconsultantswhowillmanagethisprocesshavebeenshortlistedandwillbe

appointedshortly.

• TheNguallacamphasbeenre-openedandadrillingcontractorappointedinpreparationfordrillingactivities

toresumeinMayaftertherainshaveeased.

• TheCompanyhad$4.97millioncashonhandattheendoftheQuarter.

*reo = total rare earth oxides plus y2o3

PeakResourcesLimited

Level2,46OrdStreetWestPerthWesternAustralia6005

POBox603,WestPerthWesternAustralia6872

Directors:

AlastairHunter,Non-ExecutiveChairman

RichardBeazley,ManagingDirector

DaveHammond,TechnicalDirector

JonathanMurray,Non-ExecutiveDirector

LindaPaini,CompanySecretary

ASXSymbol:PEK

Telephone:+61892005360

Email:[email protected]

ACN112546700

www.peakresources.com.au

2

March 2012


Ngualla RaRe eaRth PRoject, Tanzania Rare Earths, Niobium – Tantalum, Phosphate

Summary Overviewthe Ngualla rare earth project in southern tanzania is a

large virgin discovery made by peak in June 2010. rare

earth mineralisation occurs from surface and is enriched in

the strongly weathered regolith profile of a large carbonatite

as well as occurring in fresh rock beneath.

the Quarter was a significant one for the Company with the

announcement of the maiden rare earth Mineral resource at

Ngualla. this was achieved ahead of schedule and confirms

the deposit as being of global significance in terms of grade,

size and contained rare earths.

rare earth mineralisation remains open to the north, south and at depth, with potential to expand this initial resource by further drilling.

Mineralogical studies show that rare earths in the Southern rare earth Zone (SreZ) are in the form of the carbonate minerals

synchysite and bastnasite, with some of the lowest uranium and thorium contaminant levels of any significant rare earth deposit in

the world. Initial metallurgical work on high grade, near surface weathered mineralisation has identified the potential for simple direct

acid leach as a relatively low cost processing route, with 88% of rare earths extracted in composite samples at atmospheric pressure.

Such a processing route would give Ngualla a significant advantage in terms development time, capital and operating costs over

other rare earth projects. additional metallurgical work to validate and further optimise this approach is proceeding as a top priority.

the completion of resource estimation and the block model combined with the early stage metallurgical acid leach test work will

allow scoping studies to commence this Quarter to begin to quantify the economic significance of this large new rare earth discovery.

!

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Tanga

Moshi

Iringa

Dodoma

TaboraKigoma

Arusha

Mwanza

Singida

Morogoro

Zanzibar

Shinyanga

Dar Es Salaam

Nairobi

KENYA

ZAMBIA

DCR

BURUNDI

RWANDA

Lake Victoria

Indian Ocean

Lake Tanganyika Lake Rukwa

T A N Z A N I A

! Mbeya400km0 100 200 300

N

Nkerege

Geita West (Imweru)

Ngualla

Bunda

Sheba

Figure 1: location of peak’s projects in tanzania.

Figure 2: location of areas of planned drilling, surface reo% contours and drill holes coloured by maximum down hole reo% on satellite image draped over topography, Ngualla Carbonatite.

Max DH REO %:

A 1 to 2%

A 2 to 3%

A 3 to 5%

A >5%

Max DH REO %:! <1%! 1 – 2%! 2 – 3%! 3 – 5%! > 5%

OPEN OPEN

OPEN

1,200m

900m

2. Drilling to extend the SREZ resource to the north, south

and at depth

3. Systematic drilling to define a maiden resource for this second

style of mineralisation

1. Infill drilling to upgrade the SREZ resource

Perim

eter of Carbonatite Northern Zone

Southern Rare Earth Zone

South West Alluvials

3

March 2012


preparations are also underway for an infill drilling program to commence at Ngualla after the rains end in May 2012. the drilling will

provide the necessary higher density of data to support an upgrade to Measured resource category in order to convert to a reserve after

financial studies are completed. the drilling will also seek to extend the resource in several directions where it currently remains open.

peak gained 100% ownership of the Ngualla project through the completion of the acquisition of Joint Venture partner Zari exploration

ltd (Zari) during the current Quarter.

In addition to rare earths, the Ngualla Carbonatite is also highly prospective for niobium – tantalum and phosphate. encouraging

grades of niobium – tantalum, phosphate and rare earths were received this Quarter from two exploration reconnaissance drill

traverses in the Northern Zone – located one kilometre to the north of the Southern rare earth Zone. additional drilling is planned for

the upcoming field season to define an initial resource for this second style of mineralisation at Ngualla.

Maiden Rare Earth Resourcethe maiden Mineral resource estimate for the Ngualla rare earth project was announced on 29th February 2012 and represents a

significant watershed in the transition of the Company from explorer to developer.

the resource estimate reported according to the JorC Code and Guidelines was completed by independent resource consultants

Hellman and Schofield pty ltd for the Southern rare earth and South West alluvial Zones (Figure 2). It excludes the Northern Zone.

Block grades in a 20m x 20m x 5m block model were assigned using ordinary Kriging geostatistical techniques from two metre

sample composites with searches aligned parallel to the strike and dip of the mineralisation. Density measurements were collected

from nine diamond core holes located in or surrounding the main mineralised zones and applied to the entire project area on the

basis of rock type.

the Mineral resource estimate for the Southern rare earth and South West alluvial Zones at Ngualla above a 1% reo cut-off is:

170 million tonnes at 2.24% REO, for a total of 3.8 million tonnes of REO(See table 1 for classification details)

the distribution of individual rare earths plus yttrium oxides that make up the total for the 1% cut is shown in table 4.

rare earth mineralisation at Ngualla is of three main types:

1) surface iron rich gravel deposits,

2) iron rich, strongly weathered carbonatite and

3) fresh rock carbonatite.

the 170Mt Mineral resource includes a higher grade near surface portion of mineralisation. above a 3% reo cut-off grade this is:

40 million tonnes at 4.07% REO, for a total of 1.6 million tonnes of REO.(See table 1 for classification details)

the majority of this mineralisation consists of near surface, ferruginous weathered carbonatite.

Table 1: Classification of Mineral Resources for the Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades.

Lower cut – off grade

Resource Category

Tonnage (Mt)

REO (%)*

Contained REO tonnes

1.0% REO

Measured 29 2.61 750,000

Indicated 69 2.43 1,700,000

Inferred 72 1.92 1,400,000

TOTal 170 2.24 3,800,000

3.0% REO

Measured 11 3.99 430,000

Indicated 21 4.09 850,000

Inferred 8.7 4.11 360,000

TOTal 40 4.07 1,600,000

*reo (%) includes all the lanthanide elements plus yttrium oxides. See table 4 for breakdown of individual reo’s. Figures above may not sum precisely due to rounding. the number of significant figures does not imply an added level of precision.

4

March 2012


the Ngualla rare earth deposit can be divided into two geographic and geological areas, the Southern rare earth Zone located in

the centre of the carbonatite around Ngualla Hill, and the South West alluvial Zone (see Figure 2). the resource and geology for each

zone differs and hence is described individually below:

Southern Rare Earth Zone: a 1km x 1km area in the low magnetic central core of the Ngualla Carbonatite (Figure 2). rare earth

mineralisation occurs from surface and is enriched in the weathered zone of the carbonatite, varying from a few metres to 140m

vertical depth. Fresh rock mineralisation extends to the current drill depth of 155m from surface.

Mineralisation in the SreZ remains open to the north, south and with depth with a likelihood that further drilling would increase the

size of the deposit.

the bulk of the Mineral resource at Ngualla is contained within the SreZ and most of the highest grade component occurs near

surface within the weathered zone (see Figure 3). table 2 shows the classification of the Mineral resource for the SreZ at cut-off

grades of 1% and 3% reo.

Table 2: Classification of Mineral Resources for the Southern Rare Earth Zone, Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades.


Resource Category

Tonnage (Mt)

REO (%)*


1.0% REO

Measured 15 3.31 500,000

Indicated 62 2.50 1,500,000

Inferred 68 1.93 1,300,000

TOTal 145 2.32 3,400,000

3.0% REO

Measured 9.6 4.08 390,000

Indicated 20 4.11 830,000

Inferred 8.5 4.13 350,000

TOTal 38 4.10 1,600,000


South West alluvial Zone: located to the south west of Ngualla Hill (see Figure 2). rare earth mineralisation occurs from surface

within unconsolidated ferruginous gravels to depths of up to 30m. rare earth mineralisation in the South West alluvial Zone is the

result of erosion, transportation and deposition of weathered bed rock mineralisation in the Southern rare earth Zone.

table 3 below shows the classification of the Mineral resource for the South West alluvial Zone at cut-off grades of 1.0% and 3.0% reo.

Table 3: Classification of Mineral Resources for the South West alluvial Zone, Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades.


Resource Category

Tonnage Mt)

REO (%)*


1.0% REO

Measured 14 1.84 250,000

Indicated 6.8 1.70 120,000

Inferred 3.9 1.64 63,000

TOTal 24 1.77 430,000

3.0% REO

Measured 1.2 3.32 40,000

Indicated 0.56 3.36 19,000

Inferred 0.18 3.27 5,800

TOTal 1.9 3.33 65,000


the average reo % distribution for each of the two Mineral resource zones is shown in table 4.

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March 2012


Ngualla Hill

150m

700m

REO %:

A >4%

A 3 to 4%

A 2 to 3%

A 1 to 2%

SW Alluvials

OPEN

OPEN

OPEN

OPEN

B

A


Figure 3: perspective view of

Ngualla resource Block Model

(+1% reo) sliced in a south

westerly orientation, looking

northwest, showing near surface,

high grade reo mineralisation on

Ngualla Hill (the Southern rare

earth Zone) shedding down into

the South West alluvial Zone.

SW Alluvials

1km

A

B

OPEN

OPEN

OPENOPEN


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March 2012


*Critical Rare Earths

the uS Department of energy (December 2011)

has identified five rare earth metals (dysprosium,

neodymium, terbium, europium and yttrium) to

be in undersupply in the years ahead. these five

critical rare earths are predicted to command

significantly higher value than other rare earths.

the distribution of rare earths, including

Criticals, at Ngualla SreZ and the Northern

Zone are shown in tables 4 and 7.

Critical Near-Critical Not Critical

Table 4: Relative components of individual rare earth element oxides (including yttrium) as a percentage of total REO for the Ngualla Southern Rare Earth and South West alluvial Zones (>1% REO).

Oxide Ngualla SREZ*

%

Ngualla SW Alluvial*

%

Ngualla Average*

%

lig

ht

RE

lanthanum la2o3 27.5 23.4 27.1

Cerium Ceo2 48.3 48.1 48.3

praseodymium pr6o11 4.72 4.91 4.74

Neodymium Nd2O3 16.1 17.5 16.3

Samarium Sm2o3 1.59 2.14 1.65

Hea

vy R

E

Europium Eu2O3 0.32 0.53 0.35

Gadolinium Gd2o3 0.73 1.24 0.78

Terbium Tb4O7 0.06 0.13 0.07

Dysprosium Dy2O3 0.14 0.43 0.17

Holmium Ho2o3 0.02 0.06 0.02

erbium er2o3 0.05 0.14 0.06

thulium tm2o3 0.00 0.01 0.00

ytterbium yb2o3 0.02 0.07 0.02

lutetium lu2o3 0.00 0.01 0.00

Other Yttrium Y2O3 0.40 1.42 0.52

TOTal % 100 100 100

(*= Mineral resource block model at 1% reo cut). BOlD are Critical rare earths (uS Doe report December 2011).

Peer Comparisonthe completion of the resource estimate allows a comparison to be made between Ngualla and other rare earth deposits in the

western world for which a JorC or N43-101 standard resource has been released. as the following graphs illustrate, Ngualla rates

highly in terms of deposit size, total reo grade and Critical reo* grade.

Imp

ort

ance

to

cle

an e

nerg

y

Supply risk

1 (lo

w)

2 3

4 (h

igh)

1(low) 2 3 4 (high)

CeriumCobaltGallium Indium

lanthanumManganesepraseodymium

Nickel

Neodymium

Europiumlithium

Yttriumtellurium

Dysprosium

Terbium

Samarium

Source: uS Doe, ‘Critical Materials Strategy’ report, December 2011

7

March 2012


Ngualla Bulk (+1% REO) and High Grade (+3% REO) Rare Earth Mineral Resources Grade and Contained REO compared to other Western World Rare Earth Deposits:

Ngualla currently ranks as the 5th largest rare earth deposit outside of China in terms of contained reo. More importantly, Ngualla is

the highest grade of the largest seven deposits, and mineralisation starts at surface and has been defined to only a relatively shallow

depth to date. the near surface +3% reo resource at Ngualla of 40 million tonnes at 4.07% reo is the highest grade deposit after

Mountain pass and Mt Weld, which are the two western world rare earth projects currently in development.

Comparison of Peak’s market capitalisation expressed in australian Dollars per Contained REO Tonnes.

peak resources has a low market capitalisation with respect to the size of the rare earth resource compared to other rare earth

projects. this suggests the potential to add significant value to the Company through advancing the development of the Ngualla rare

earth project.

9

8

7

6

5

4

3

2

1

0

12

10

8

6

4

2

0

REO

Grad

e (%

)

Cont

aine

d RE

O (M

t)

REO grade %

Contained REO (Mt)

300m Depth to base of resource

375m

300m

240m

600m

155m

155m

450m

126m

Niobec

Kvane

fjeld

Necha

lacho

Eldor

Nguall

a (Bulk

)

Montvi

el

Strang

e Lak

e

Mounta

in Pa

ss

Nguall

a (High

Grade)

Mount

Weld

Zand

korps

drift

Nolan’s

Bore

Bear L

odge

Dubbo

Nora Karr

Wigu Hill

above: Note depth to base of resource – Ngualla is higher grade and shallow compared to most other significant deposits.

Date: 3 april 2012 Source: technology Metals research and Company filings.

$1,400.00

$1,200.00

$1,000.00

$800.00

$600.00

$400.00

$200.00

00.00

Mar

ket C

ap p

er R

EO to

nne

Market Cap

118.0 Market Capitalisation (A$M)

Peak Frontier Tasman MetalsAvalon Kimberley RE’s Lynas Greenland M & E

Arafura AlkaneQuest Rare Element Molycorp

Ngualla Zandkorpsdrift Norra KarrNechalacho Cummins Range

Mount Weld

Kvanefjeld Nolans Bore

DubboStrange Lake

Bear Lodge

Mountain Pass

Major Project

Date: 3 april 2012 Source: technology Metals research and Bloomberg.

$1,335.04

$1,267.24

$799.96

$424.98

$331.77

$120.22$108.44$102.42$72.35$69.74

$29.89$19.61

PotentiAl VAlue ReAlisAtion

Room foR gRowth

8

March 2012


Total REO grade and Critical Rare Earths Grade of Ngualla compared to other western world rare earth resources

2.0

1.5

1.0

0.5

0

Aver

age

CREO

Gra

de (%

)

Average REO Grade (%)

Niobec

Kvanefjeld

Nechalacho

Eldor

Ngualla (Bulk)

Montviel

Strange Lake

Mountain Pass (Commissioning)

Ngualla (High Grade)

Mount Weld (Commissioning)

Zandkorpsdrift

Nolan’s Bore

Bear Lodge

Nora KarrWigu Hill

Date: 3 april 2012 Source: technology Metals research. Note: Neodymium, europium, terbium, Dysprosium and yttrium were identified as critical rare earth elements (Creo) by the uS Department of energy in December 2011.

2 64 8 10 120

Bubble size relative to contained REO

Ngualla’s high grade resource and the absolute Critical rare earth content distinguish it from the pack of many other deposits,

including several so called ‘heavy rare earth projects’.

In addition to the above advantages in size, grade and content of higher value Critical rare earths, Ngualla is also well placed relative

to other rare earth deposits in terms of:

• geographic location in the ‘mining friendly’ country of tanzania

• favourable carbonate rare earth mineralogy

• very low uranium – thorium ‘contaminant’ levels of 21ppm and 35ppm respectively

• favourable morphology of the high grade mineralisation that occurs on top of a hill, at surface in the form of a thick blanket

(suggesting low strip ratio’s during mining)

• unconfirmed potential for a simple atmospheric leach processing route for a portion of the mineralisation (potentially low capital

and operating cost and shorter development lead time)

the Company’s main focus is now on crystallising these project advantages to add shareholder value through the rapid development

of the Ngualla rare earth project into a low cost producer.

Mineralogyrare earth mineralisation within the Southern Rare Earth Zone at Ngualla occurs from surface in the following main hosts:

1. iron rich gravel colluvium and ferricrete. typical grade 1 to 4 % reo

2. highly weathered carbonatite, rare earth enriched, iron and barite rich, the original carbonate minerals are completely leached –

typically 2.5 to 7% reo

3. fresh, primary carbonatite rock, iron poor, carbonate rich – 1.5 to 2.5% reo

Projects under Commissioning

9

March 2012


Mineralogical studies have shown that bastnasite and synchysite are the main rare earth minerals and occur within a barite – iron

oxide hydroxide lithology in the weathered zone and a carbonate rich lithology with barite in fresh carbonatite. alumina is negligible

and there are no clay minerals. uranium and thorium levels are very low at 21ppm and 35ppm average respectively within +1% reo

mineralisation in the Southern rare earth Zone. the rare earth carbonates are predominantly liberated, with grain sizes between 10

and 120 microns.

Mineralisation in the South West alluvial Zone (Figure 2) occurs from surface over a wide area within unconsolidated (potentially

‘free-dig’) material at grades of 2 to 4% reo. rare earth mineralisation in the Northern Zone ranges in grade from 1 to 2.5% reo

but is also accompanied by niobium mineralisation in the 0.25 to 1.5% Nb2o5 range and phosphate at 15 to 25% within an iron rich

magnetite – apatite rock.

these rock types have different chemical and physical properties, leading to the potential for different opportunities regarding

beneficiation and concentrate production routes for each.

MetallurgyMetallurgy, including beneficiation, is a key driver for development time, capital and operating costs for rare earth projects. peak’s

appointed metallurgical consultants Bateman engineering are overseeing a series of studies on bulk diamond core and rC drill chip

samples of each of the styles of mineralisation. Individual tests include crushing, grinding, screening, heavy liquid separation, wet

table, magnetic separation, flotation and direct acid leach to determine the optimal method to produce a rare earth concentrate (and

/ or niobium – tantalum or phosphate for the Northern Zone sample).

Initial positive results from some early baseline studies were received during the March 2012 Quarter and are presented below.

The acid leach test work in particular is showing some early encouragement with the potential to distinguish Ngualla from

other rare earth projects by a relatively low cost (both capital and operating) processing route. Further acid leach test

work and more detailed drilling is planned or in progress as a top priority to confirm and quantify this potential.

leach test work – weathered mineralisation

preliminary acid leach test work on eight reverse circulation (rC) drill samples of weathered rare earth mineralisation from the Southern

rare earth Zone has produced some early though variable encouragement.

eight samples were tested during the March 2012 Quarter, seven being individual two metre composite samples from single rC drill

holes. the remaining sample was a bulk composite of 25 x 2m composite samples from 6 rC holes. the tests used 11% sulphuric

acid at atmospheric pressure and a temperature of 90º centigrade for a total period of 22 hours.

of the eight samples tested, one sample showed very low (8%) rare earth leach extraction. two samples leached 30% and 46% of the

rare earths. the remaining 5 samples showed encouragingly high rare earth leach extractions of 65%, 87% 88%, 88% and 92% (table

5). Importantly, the more representative bulk composite sample showed an 88% rare earth leach extraction.

acid consumption rates varied from 83 to 366kg/tonne (table 5).

these are first pass, basic sighter test results on a small number of samples. test work has not yet been optimised to reduce acid

consumption and increase rare earth recovery, and further work will be completed with the aim of improving on these initial results.

additional work is planned to determine the cause of the wide variation in rare earth leach extraction and acid consumption, so that

these may be improved and / or preferential parts of the deposit identified for potential processing by simple atmospheric acid leach.

test work is also proceeding to determine what grade of rare earth concentrate may be achievable by the sequential precipitation of

the rare earth solution.

the Company considers these initial leach results to be encouraging and has prioritised further test work to evaluate the possibility of

a relatively simple processing route that may produce a high grade rare earth concentrate for this higher grade, near surface portion

of the Ngualla rare earth mineralisation.

10

March 2012


Table 5: acid leach sample details and summary leach sighter test work results

Sample Hole ID IntervalGrade REO %

GeologyAcid Consumption

kg/tonne*% rare earths

leached

t19101 NrC066 6 - 8m 4.84 pisolitic gravel 366 65%

t19102 NrC039 38 - 40m 7.96 Iron rich weathered carbonatite 232 30%


t19104 NrC047 8 - 10m 3.39 pisolitic ferricrete 343 8%




t19133 Composite of 25 samples

from 6 rC holes

3.75 Bulk Composite of 25 samples

from 6 rC holes

270 88%

*after 22 hours total leach time

Beneficiation of primary mineralisation

Initial beneficiation studies on a bulk diamond core sample of fresh rock rare earth mineralisation from the Southern rare earth

Zone returned encouraging upgrades of mineralisation from wet table test work. this initial basic baseline test work succeeded in

concentrating 84% of the head feed mineralisation, with a grade of 1.69% reo, 290% (almost 3 x’s) to 4.87% reo. the concentrate

is contained within just 34% of the mass of the original feed material (an alternative presentation of these initial results is that 66% of

the original mass was discarded for the loss of just 16% of the mineralisation).

although this single stage preliminary beneficiation characterisation work has not immediately produced a commercial grade

concentrate, it has demonstrated the potential for simple gravity separation to form an important component of a multi – part

processing stream for the primary rare earth mineralisation at Ngualla.

Similar to the leach test work, these are first pass, basic sighter test results on a single sample of primary, fresh rock mineralisation.

test work has not yet been optimised for grain size or other factors and further work will be completed with the aim of improving on

these initial results. Further test work on these and other beneficiation techniques and combinations thereof are required and are

currently in progress to identify an optimal processing route that will produce a commercial grade rare earth concentrate product from

this fresh rock mineralisation.

the Company considers the initial beneficiation results to be encouraging and will continue to provide updates on results of the

various beneficiation and metallurgical test work programs as they come to hand.

Northern ZoneDrilling in the Northern Zone, which is located one kilometre to the north of the SreZ, is at an early stage and this second style of

mineralisation is not included in the maiden Mineral resource for Ngualla.

Widespread rare earth, niobium – tantalum and phosphate mineralisation has been intersected in the Northern Zone within deeply

weathered carbonatite and infill sediments above the irregular karstic surface of the carbonatite. Mineralisation in the Northern Zone

differs from the SreZ in that rare earth mineralisation is often associated with high levels of phosphate and niobium – tantalum. the

Northern Zone represents a large exploration target for rare earths in its own right, in addition to the SreZ. the Northern Zone rare

earth mineralisation contains a higher proportion of Critical rare earths than the SreZ (see table 7). It is also highly prospective for

niobium – tantalum and phosphate.

11

March 2012


Figure 4: plan of Northern Zone rare earth intersection highlights (drill hole numbers labelled) outside of the Mineral resource area and drilling completed to date, maximum down hole reo% contours.

9148

000

mN

9148

500

mN

9149

000

mN

9149

500

mN

483500 mE483000 mE482500 mE482000 mE481500 mE481000 mE

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Mt. Ngualla

OPEN

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OPEN

OPEN

NRC156

NRC157

NRC159

NRC160

NRC155

NRC154

NRC153

NRC151

NRC150

NRC149

NRC148

NRC146

NRC144

NRC142

NRC140

NRC138

NRC137

NRC133

NRC131

NRC129

NRC127

NRC125

NRC124

NRC123

NRC122

NRC121

56m @ 1.28% from surface

66m @ 1.56% from 10m 10m @ 2.74% from 44m 24m @ 1.72% from 26m



Southern Rare Earth ZoneSouth West Alluvial Zone

Northern Zone


Northern Zone

Total Resource:170 million tonnes at 2.24% REO

Intersection labels REO %:

A Result highlights

Drill holes max REO %: ! 0 to 1! 1 to 2! 2 to 3 ! 3 to 5 ! >5

Max DH REO %: A 1-2A 2-3 A 3-5 A >5

1000m5000 250

N

New rare earth intersections received during the March 2012 Quarter from the two wide spaced reconnaissance exploration drill

traverses completed in the Northern Zone (Figure 2) and not reported in the December 2011 Quarterly report include:

DRILL HOLE INTERSECTION

NRC133: 14m at 1.41% reo from surface and

48m at 1.33% REO from 18m

NRC140: 66m at 1.56% REO from 10m and

16m at 1.35% REO from 80m

NRC149: 26m at 1.52% REO from surface

NRC154: 24m at 1.31% REO from 16m

reo = total rare earth oxide including yttrium. See table 6 for drill hole details and additional intersections received this Quarter.

Niobium – tantalum and phosphate mineralisation associated with these rare earth intersections is detailed in the following pages of

this report.

as Figure 4 illustrates, there is no drilling in the intervening area between the SreZ and the Northern Zone, where rare earth

mineralisation is currently open to the north, south and west. there is considerable potential to extend the rare earth mineralisation in

the Northern Zone significantly in most directions. there is also potential to extend the current rare earth Mineral resource in the SreZ

to the north, into the Northern Zone, thereby expanding the size of the Ngualla rare earth Mineral resource significantly.

Further drilling planned to commence in May this year after the rainy season has ended, will investigate the potential for the SreZ and

Northern Zone +1% rare earth mineralisation to join and be continuous over a north south distance of some 2.2km.

12

March 2012


the rare earth potential at Ngualla remains the Company’s primary focus. However, assay results received from the two reconnaissance

drill traverses in the Northern Zone confirm that the Ngualla Carbonatite is also highly prospective for niobium – tantalum and phosphate.

New niobium – tantalum and phosphate intersections received during the March 2012 Quarter and not reported in the December

2011 Quarterly report include:

DRILL HOLE INTERSECTION (NIObIuM – TANTALuM)

NRC133 64m at 0.55% Nb2O5 and 121ppm Ta2O5 from surface

NRC138 14m at 1.17% Nb2O5 and 364ppm Ta2O5 from 30m

NRC140 119m at 0.71% Nb2O5 and 162ppm Ta2O5 from surface to eoH including:

18m at 1.16% Nb2O5 and 266ppm Ta2O5 from surface and

22m at 1.32% Nb2O5 and 206ppm Ta2O5 from 50m

NRC149 26m at 0.66% Nb2O5 and 241ppm Ta2O5 from surface

Northern Zone niobium – tantalum intersection details included in table 8.

DRILL HOLE INTERSECTION (pHOSpHATE)

NRC140 12m at 21.3% phosphate from 2m and

43m at 20.2% phosphate from 76m

NRC150 14m at 23.4% phosphate from 8m and

26m at 21.2% phosphate from 56m

NRC154 58m at 21.1% phosphate from 4m

Northern Zone phosphate intersection details included in table 9.

Figure 5: plan view of maximum down hole Nb2o5 in the Southern rare earth and Northern Zones of the Ngualla Carbonatite showing new niobium – tantalum intersections highlights. Mineralisation remains open to the north, south and west.

9148

000

mN

9145

00 m

N91

4900

0 m

N91

4950

0 m

N

483500 mE483000 mE482500 mE482000 mE481500 mE481000 mE

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OPEN

OPEN

OPEN

OPEN

Mt. Ngualla

26m @ 0.66% Nb2O5 and

241ppm Ta2O5 from surface

36m @ 0.62% Nb2O5 and

120ppm Ta2O5 from 8m

119m @ 0.71% Nb2O5 and 162ppm Ta2O5 from surface

incl. 18m @ 1.16% Nb2O5 and 266ppm Ta2O5 from surface

and 22m @ 1.32% Nb2O5 and 206ppm Ta2O5 from 50m

34m @ 0.62% Nb2O5 and 165ppm Ta2O5 from 12m

64m @ 0.58% Nb2O5 and 11ppm Ta2O5 from 56m

OPEN

NRC156

NRC155

NRC154

NRC153

NRC151

NRC150

NRC149

NRC148

NRC142

NRC140

NRC138

NRC137

NRC133

NRC131

NRC152

NRC145

NRC161

NRC097

NRC084

70m @ 0.41% Nb2O5 and

126ppm Ta2O5 from surface

NRC129

NRC127

NRC125

NRC124

NRC123

NRC122

NRC121

24m @ 1.12% Nb2O5 and

226ppm Ta2O5 from 4m

NRC157

NRC159

NRC160

NRC146

NRC144


Northern Zone


Northern Zone

1000m5000 250

N

Intersection labels Nb2O5 %:

A Result highlights

Drill holes max Nb2O5 %: ! 0 to 0.25! 0.25 to 0.50! 0.50 to 0.75 ! >0.75

Max DH Nb2O5 %: A 0 to 0.25A 0.25 to 0.50 A 0.50 to 0.75 A >0.75

13

March 2012


as the plans in Figures 5 and 6 illustrate, niobium – tantalum and phosphate mineralisation are broadly coincident, surrounding

the Southern rare earth Zone mineralisation on Ngualla Hill and extending northwards into the Northern Zone within karstic infill

sediments and deeply weathered carbonatite bedrock.

the large extent, wide intersections and fact that the mineralisation has not been closed off in several directions all suggest the

potential for large deposits of niobium – tantalum and phosphate at Ngualla immediately north of and on the peripheries of the

Southern rare earth Zone.

Drilling this year will provide data for an initial maiden Mineral resource for the niobium – tantalum and phosphate mineralisation in

the SreZ and Northern Zones as a second priority to the rare earth focused infill and resource extension drilling planned for the SreZ.

acquisition of 100% of Zari Exploration ltdon 22nd February 2012 peak announced the acquisition of tanzanian joint venture partner Zari exploration ltd (Zari) had been

completed. the acquisition gives peak 100% ownership of the Ngualla rare earth project and offers the Company a greater flexibility

of options in taking the project forward. previously, peak as operator and manager was earning 80% equity in the Ngualla project by

carrying Zari through to the completion of a bankable feasibility study.

payment for the acquisition to Zari shareholders was made through a combination of cash and shares consisting of uS$6million cash

and the issuing of 24,266,475 peak shares.

the Company’s Directors believe that the acquisition of 100% of the project at this stage in its development will secure for peak and

its shareholders absolute control of the project and the value of its further upside potential.

Figure 6: plan view of maximum down hole phosphate in the Southern rare earth and Northern Zones of the Ngualla Carbonatite showing new phosphate intersections highlights. Mineralisation remains open to the north, south and west.


60m @ 19.7% from 10m

9148

000

mN

9148

500

mN

9149

000

mN

9149

500

mN

483500 mE483000 mE482500 mE482000 mE481500 mE481000 mE

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Mt. Ngualla

34m @ 22.1% from 28m26m @ 21.2% from 56m

43m @ 20.2% from 76m

58m @ 21.1% from 4m

OPEN

OPEN

OPEN

OPEN

NRC156

NRC155

NRC154

NRC153

NRC151

NRC150

NRC149

NRC148

NRC142

NRC140

NRC138

NRC137

NRC133

NRC131

NRC043

NRC157

NRC159

NRC160

NRC146

NRC144

26m @ 22.6% from 2m

NRC110

78m @ 17.0% from 8m

NRC129

NRC127

NRC125

NRC124

NRC123

NRC122

NRC121

24m @ 22.9% from 54m

OPEN



Northern Zone


Northern Zone

Intersection labels Phosphate %:

A New result highlights

Drill holes max Phosphate %: ! 0 to 5! 5 to 10! 10 to 15 ! 15 to 20! >20

Max DH Phosphate %: A 5 to 10A 10 to 15 A 15 to 20 A >20

1000m5000 250

N

14

March 2012


taNzaNiaN gold PRojects (Lake Victoria Gold Field)

peak maintains an exploration base and dedicated gold exploration team at Mwanza in the lake Victoria Gold Fields region of

northern tanzania to progress the Company’s strategy of expanding the current portfolio of gold properties (Figure 7) and adding

value to these projects through early stage exploration.

assay results from follow-up soil sampling

programs at Nkerege and Sheba were

received during the March 2012 Quarter.

results from Sheba were discouraging.

encouraging results were received from

augered soil sampling completed in

December 2011 at Nkerege to follow-up an

initial response of 45ppb gold in regional

sampling. High tenor assay results up to

251ppb gold were returned over the scarp

face of the Kigonga escarpment in the

central part of the licence.

additional follow-up sampling has already

been completed to investigate these new

results from Nkerege further and assay

results are expected during the June 2012

Quarter.

a number of potential new gold properties

were identified during the Quarter and

negotiations are advancing on several of

these properties.

coRPoRate

Equity Issuesas reported in the December 2011 aSX Quarterly report, the company announced on 29 December 2011 a share placement of

8,000,000 shares at $0.28 to sophisticated investors. the placement raised $2,240,000 before costs and was settled on 6 January

2012.

on 16 February 2012 the Company announced a placement to a uS based institutional shareholder for 8,333,334 shares at $0.48

raising $4,000,000 before costs. the placement also included 3 free options for every 4 shares applied, exercisable at $0.55 on or

before 20 February 2017.

on 22nd February 2012, 24,266,475 shares were issued to Zari shareholders as part consideration for the acquisition of Zari (see

‘acquisition of 100% of Zari exploration ltd’ above).

the Company announced on the 29 February 2012 the issue of 541,667 options to roth Capital partners llC for services performed

in relation to the placement announced on the 16 February 2012. the options are exercisable at $0.75, vesting on 24 august 2012

and exercisable on or before 24 February 2014.

on 3 March 2012 the Company entered into an agreement with MZHCI, an Investor relations company based in the uSa. under the

agreement MZHCI has been issued with 150,000 options that are exercisable at $0.55, vesting on 3 March 2013 and exercisable on

or before 3 March 2018.

Singida

Shinyanga

Geita

Buckreef

Tulawaka

Nyanzaga

Golden Ridge

Nyakafura

Buzwagi

Golden Pride

MusomaNorth Mara

Bulyanhulu

Lake Victoria

KENYA

Bunda

Sheba

Nkerege

Geita West (Imweru)

Mwanza

NORTH

150km0 50 100

3332 34 35

Peak Resources Gold Project Location

Mine or Resource > 1 Moz Au

Mine or Resource < 1Moz Au

Gold Prospect (Barth)

Major Population Centre

DCW Major Internal Roads

Archaen Greenstone

-3

-4

-5

3.2Moz @ 1.7g/t Au

4.2Moz @ 1.4g/t Au

0.8Moz @ 9.7g/t Au

4.5Moz @ 1.15g/t Au

5.7Moz @ 2.8g/t Au

14.8Moz @ 10.34g/t Au

TANZANIA

Location of Lake Victoria Goldfield

!Dar Es Salaam

23.8Moz @ 3.3g/t Au

Figure 7: peak’s gold projects (orange) and major mines in the lake Victoria Gold Field, tanzania.

15

March 2012


Cash on Hand

peak retained $4.97million cash at the end of the quarter.

Richard beazley

Managing Director

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Dave Hammond who is a Member of The Australasian Institute of Mining and Metallurgy. Dave Hammond is the Technical Director of the Company. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dave Hammond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Rob Spiers, who is a member of The Australasian Institute of Geoscientists. Rob Spiers is an employee of geological consultants Hellman and Schofield Pty Ltd. Rob Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Rob Spiers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

16

March 2012


Table 6 – Ngualla Project Northern Zone REO Intersections, March Quarter 2012

rC drill results, intersections +1% reo and minimum 4m intersected width.

Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) REO %

NRC131 482,401 9,149,199 84 0 16 16 1.1222 26 4 1.0368 72 4 1.71

NRC133 482,323 9,149,202 80 0 14 14 1.4118 66 48 1.33

NRC137 482,240 9,149,203 102 0 6 6 1.18NRC140 482,079 9,149,203 120 10 28 18 1.51

60 74 14 1.7078 82 4 1.2010 76 66 1.5680 96 16 1.35

NRC144 481,922 9,149,597 80 0 4 4 1.1316 22 6 1.10

NRC146 482,006 9,149,597 80 0 56 56 1.28NRC148 482,079 9,149,596 90 56 60 4 1.03NRC149 482,162 9,149,596 80 0 26 26 1.52NRC150 482,241 9,149,596 90 0 4 4 1.87NRC151 482,318 9,149,600 80 0 8 8 1.11NRC153 482,405 9,149,597 100 72 82 10 1.72NRC154 482,482 9,149,598 68 0 4 4 1.19

16 40 24 1.3150 54 4 1.09

NRC155 482,560 9,149,598 80 0 10 10 1.18NRC159 482,797 9,149,602 80 2 8 6 1.38

18 24 6 1.14NRC160 482,880 9,149,603 80 0 4 4 1.32

Note: reo = total rare earth oxides including yttrium. See table 1 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60° west rC drilling. Intersections calculated using 1% reo lower cut and a maximum of 2m internal dilution. analysis by SGS laboratory, perth, by 4 acid digest and ICp or XrF. Co-ordinate system is arc 1960 utM zone 36S.

Table 7: Relative components of individual REO’s (including yttrium) as a percentage of total REO for some large rare earth deposits and the Ngualla Southern Rare Earth and Northern Zones (>1% REO).

RaRE EaRTHS CONTENT (% OF TOTal REO)

NGuALLA SREZ

%NGuALLA

NORTH ZONE %NOLANS bORE

%MOuNTAIN

pASS %bAIyuNEbO (CHINA) %

MT WELD %

ligh

t re

lanthanum 27.5 21.4 19.7 33.2 27.1 25.6

Cerium 48.3 44.1 47.5 49.1 49.9 45.7

praseodymium 4.72 5.17 5.82 4.34 5.15 5.42

Neodymium 16.1 19.0 21.2 12.0 15.4 18.6

Samarium 1.59 2.88 2.37 0.80 1.15 2.44

europium 0.32 0.76 0.40 0.12 0.19 0.55

Hea

vy r

e

Gadolinium 0.73 1.89 1.00 0.17 0.40 0.97

Terbium 0.06 0.21 0.08 - - 0.09

Dysprosium 0.14 0.78 0.33 - 0.30 0.16

other 0.09 1.07 0.21 0.16 0.03 0.04

Yttrium 0.40 2.75 1.32 0.10 0.20 0.37

Total % 100 100 100 100 100 100

*From block +1% reo Mineral resource block model. #Drill intersections +1% reo. (other projects source: arafura ltd website). BolD are Critical rare earths (uS Doe report December 2011)

17

March 2012


Table 8 – Ngualla Project Niobium – Tantalum Intersections, March Quarter 2012

Intersections with a minimum width of 8m at > 0.25% niobium oxide are reported.

Hole ID East North Hole Depth (m)

From (m)

To (m)

Interval (m)

Nb2O3 %

Ta2O3 ppm

NRC131 482,401 9,149,199 84 0 10 10 0.27 82

20 30 10 0.33 68

NRC133 482,323 9,149,202 80 0 64 64 0.55 121

NRC137 482,240 9,149,203 102 10 28 18 0.40 176

35 52 17 0.38 286

56 86 30 0.54 120

NRC138 482,158 9,149,199 80 30 44 14 1.17 364

NRC140 482,079 9,149,203 120 0 119 119 0.71 162

NRC142 481,997 9,149,202 80 0 10 10 0.53 96

NRC144 481,922 9,149,597 80 16 33 17 0.76 91

NRC145 482,401 9,148,555 120 8 44 36 0.62 120

NRC146 482,006 9,149,597 80 0 56 56 0.48 137

NRC148 482,079 9,149,596 90 0 8 8 0.37 100

NRC149 482,162 9,149,596 80 0 26 26 0.66 241

60 68 8 0.35 75

NRC150 482,241 9,149,596 90 0 22 22 0.40 130

56 80 24 0.35 126

NRC151 482,318 9,149,600 80 0 14 14 0.56 245

20 30 10 0.44 172

NRC151 482,318 9,149,600 80 0 12 12 0.45 319

70 80 10 0.37 116

NRC154 482,482 9,149,598 68 0 18 18 0.32 183

30 46 16 0.54 244

52 62 10 0.37 196

NRC158 481,993 9,148,547 81 16 40 24 0.33 96

58 81 23* 0.36 87

NRC159 482,797 9,149,602 0 8 8 0.64 82

14 30 16 0.46 52

Note: Samples are 2m composites from angled -60 west rC drilling. Intersections calculated using 0.25% Nb2o5% lower cut and a maximum of 2m internal dilution. analysis by SGS laboratory, perth, by XrF fusion for Nb and pressed powder for ta. Co-ordinate system is arc 1960 utM zone 36S. * = hole ended in mineralisation.

Table 9 – Ngualla Project Phosphate Intersections, March Quarter 2012

Intersections with a minimum width of 8m at > 10% phosphate are reported.

Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) p2O5 %

NRC137 482,240 9,149,203 102 20 28 8 17.44

NRC140 482,079 9,149,203 120 2 14 12 21.26

76 105 29 23.71

NRC144 481,922 9,149,597 80 12 26 14 16.82

NRC146 482,006 9,149,597 80 28 62 34 22.14

NRC148 482,079 9,149,596 90 54 78 24 22.86

NRC150 482,241 9,149,596 90 8 22 14 23.41

56 82 26 21.24

NRC151 482,318 9,149,600 80 0 14 14 20.26

20 30 10 21.35

NRC153 482,405 9,149,597 100 68 82 14 18.15

NRC154 482,482 9,149,598 68 4 62 58 21.15

NRC156 482,637 9,149,604 70 6 16 10 16.93

NRC158 481,993 9,148,547 81 10 48 38 17.58

Note: Samples are 2m composites from angled -60 west rC drilling. Intersections calculated using 10% phosphate lower cut and a maximum of 2m internal dilution. analysis by SGS laboratory, perth, by XrF. Co-ordinate system is arc 1960 utM zone 36S.

Documents

March 2012 Quarterly aCtIVItIeS reportcontent.stockpr.com/peakresources/media/56acf71443b246dc... · 2012. 8. 3. · Quarterly aCtIVItIeS report March 2012 HIGHLIGHTS Ngualla RaRe