Highlights include; 151m at 5.15% REO from surface to end of hole; 32 metres at 4.62% REO from surface; and 100 metres at 3.99% REO from surface.
The results are from the first six holes of the program and show the predicted rare earth mineralisation in deeply weathered carbonatite.
These assays are just the tip of the iceberg in 2012 for Peak, as the drilling program for the year only commenced in late May after the end of the rainy season, with an extensive 30,000 metres planned.
Drilling is designed to provide information and samples to support the Scoping and Metallurgical Studies currently in progress on the Southern Rare Earth Zone, while also defining additional resources.
Ngualla currently has a Resource of 170 million tonnes at 2.24% REO, which hosts a highly weathered and near-surface zone estimated at 40 million tonnes at 4.07% REO - equivalent to 1.6 million tonnes of contained REO.
Peak continues to rapidly advance the project using the natural geological advantages of Ngualla's mineralisation to position it as a low cost mine.
Mount Mapuma soil sampling identifies REO
In other Peak news, soil sampling has taken place at the Mt Mapuma area, which is only two kilometres from Ngualla - and located to the north east of the Southern Rare Earth Zone.
The program was completed last month over a 1.4 kilometre by 900 metre area, identifying a coherent high tenor rare earth anomaly extending over an area of 550 metres by 500 metres at above 2% REO.
Further outlining the prospectivety of the area, previous sparse reconnaissance soil and rock sampling in this area has identified rare earth mineralisation up to 3.39% REO in ankeritic carbonatite.
Why this is so important is that the Southern Rare Earth Zone has the same rock type which hosts mineralisation - providing the intriguing possibility that Mount Mapuma could be a repeat of this zone.
Comment and Analysis
Within just a few short years Ngualla has evolved from a greenfields discovery to the fifth largest rare earth deposit outside of China, and the highest grade of the top seven.
The impact of the very positive early drilling results in 2012, which were not only broad but high in grade, provide evidence of a significant resource expansion.
Add to the mix milestones and catalysts for valuation change including; extensive drilling programs in 2012 targeting a resource upgrade and resource extension, plus a Scoping Study and more metallurgical test work.
With the current resource of 170 million tonnes at 2.24% REO, the Peak market cap. of just $43 million equates to a REO per tonne of under $20, placing Peak as well under-rated compared to peer averages - and providing the opportunity for investors to increase exposure pending a potential re-rating in the stock.
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