Peak Resources (ASX: PEK) has received results from a further fifteen reverse circulation holes at the Ngualla Rare Earths Project in Tanzania - with several new wide drill intersections from surface.
The widest and deepest intersection was received to date, which continues to extend the area of consistent bedrock rare earth mineralisation in the Southern Rare Earth Zone.
Further boosting the latest results is that they also include the second highest grade intersection returned so far, which is located on the extreme south west corner of the current drill pattern.
New reverse circulation highlights include:
- 26 metres at 6.56% rare earth oxide (REO) from 24 metres;
- 84 metres at 3.86% REO from surface;
- 93 metres at 3.62% REO from 32 metres; and
- 92 metres at 3.13% REO from surface.
Supporting these high grade hits are some very broad intersections, such as; 161 metres at 3.88% REO from 12 metres, including 74 metres at 4.71% REO, and 101 metres at 2.86% REO from surface, including 32 metres at 5.08% REO.
Adding to the never ending potential at Ngualla - the rare earth mineralisation remains open to the north, south, east, west and with depth.
These results are demonstrating that Ngualla has potential to be one of the largest and better grade new rare earth discoveries of recent years.
The project also has potential to host large, near surface deposits of niobium – tantalum and phosphate.
The similarities with Lynas Corporations' (ASX: LYC) Mt Weld project, with both projects being rare earth enrichment within the deeply weathered regolith profile of a large carbonatite, will also not hurt.
The 22,000 metre drilling program for 2011 is approaching the half-way point, with operations continuing on site with a total of 76 reverse circulation holes for 9,588 metres now completed within the Southern Rare Earth Zone.
Drilling also recently commenced in the South West Alluvial Zone with 20 aircore holes for 533 metres, which was completed at the end of last month.
Adding to the short term news flow for Peak, results from an additional 73 completed drill holes are pending - forecast to be released within coming weeks.
Several of these holes intersected deep ferruginous weathering up to 140 metres vertical depth in areas of known mineralisation.
Peak moves to full ownership of Ngualla
Last week Peak entered into a conditional agreement to acquire all the issued capital of Tanzanian Joint Venture partner Zari Exploration Ltd, providing Peak full ownership of Ngualla.
The significance of the transaction for Peak is that Ngualla has the potential to be one of the largest and better grade new rare earth discoveries in recent years.
The deal will provide the company with greater flexibility of options in taking the project forward, with a maiden JORC Resource currently forecast to be delivered in the March quarter of 2012.
Payment for the acquisition to Zari shareholders is through a combination of cash and shares consisting of US$6 million cash and around 24.3 million Peak shares.
As operator and manager Peak is currently earning 80% equity in the project by carrying Zari through to the completion of a Bankable Feasibility Study.