The punters are alive and kicking in the current market and one good example is rare earth explorer Peak Resources Ltd (PEK), albeit in the wilds of Tanzania as well as some good addresses in WA.
It just shows how you can make real money in the market.
On August 2, Peak Resources shares stood at 5c but a week later they changed hands at 11c.
Naturally the company picked up a please explain from the ASX, especially after the volume blew out as well.
Peak directors responded on August 27, saying the company was not aware of any information concerning it that had not been announced to the Exchange.
But a saver for the company came from executive director Mark Maine who said, "media commentary together with market releases by a number of Australian listed corporations, in respect of the potential impact of rare earth price increases on their business, is believed to have increased investor interest and awareness of companies with significant exposure to the rare earth sector such as Peak Resources."
Peak Resources was originally attracted to Tanzania as the country remains under-explored in comparison with other gold producing provinces of its size and potential as well as having geological and structural similarities to the major gold districts of the Canadian Shield and Yilgarn Craton in Western Australia.
As proof of this Tanzania currently boasts in excess of 50 million ounces of gold in proven and probable reserve categories from six modern operations and four potential developments.
Peak acquired Pan African Exploration Ltd in late May 2008, assuming Pan's interest in Tanzania, including a joint venture agreement with Tanzanian partner, Zari Exploration Ltd.
Under the JV agreement, Peak has the right to earn up to 70-75 per cent in five project areas being, Geita, Igunga, North Mara, Ikoma and Lupa.
By partnering with Zari, Peak has placed itself in a strong strategic position to explore and acquire projects within Tanzania using an effective lower risk strategy and cost.
Early field reviews and research work undertaken on the Tanzanian projects has provided Peak with encouragement on the potential of the current project areas to host significant gold mineralisation.
But the latest movement in the shares came from a report released by the company this week involving the Ngualla rare earth project.
Significant rare earth, niobium (Nb2O5), tantalum (Ta2O5) and phosphate (P2O5) intercepts have been returned from a four-hole reconnaissance Reverse Circulation (RC) drilling program within the hard rock core zone of the Ngualla Carbonatite that is over 2.5 kms long.
Results include:
* NRC 1 intercepted 40m @ 3.25pc total rare earth oxide (TREO), higher +5pc TREO zones and mineralisation to end of hole (EOH);
* NRC 2 intercepted 20m @ 3.7pc TREO ending in mineralisation of 4m @ 5.18pc TREO (EOH);
* NRC 3 intercepted 30m @ 0.38pc Nb2O5 and 150ppm Ta2O5 with hole ending in 0.34pc Nb2O5 and 165ppm Ta2O5, additionally with 26m @ 14.7pc P2O5; and
* NRC 4 intercepted 24m @ 0.39pc Nb2O5 and 128ppm Ta2O5 with hole ending in 0.46pc Nb2O5 and 151ppm Ta2O5.
The company considered the results to be highly encouraging due to the wide spacing and reconnaissance nature of these holes and the broad down hole intervals of mineralisation intersected.
After the recent air core drilling campaign on the alluvial zones the four shallow reconnaissance RC holes were drilled within the central core of the Ngualla Carbonatite.
The central core comprises hard rock units with approximate surface expression of 2.5 kms by 700 metres.
The holes were not optimally sited and the drill rig had only limited RC drill capability thus limiting the depth penetration.
Interpretation of the air core results and Landsat studies (satellite) led the company to fast track analysis for these four holes to assist in planning for further drilling proposed for mid-late October.
The results have significantly exceeded expectations, with all holes intercepting broad zones of mineralisation.
In addition, Peak Resources has tied up a major gold project acquisition with the Igurubi gold project in Tanzania.
Key points include:
* Peak to acquire 75 per cent interest in the Igurubi gold project;
* Multiple gold targets outlined include drill intercepts of 6m @ 7.33g/t, 6m @ 3.50g/t, 12m @ 2.13g/t, 3m @ 24g/t, and 4m @ 14.2g/t;
* Potential to host a resource of 5-8 million tonnes, grading 2.5-2.8g/t and 400,000 to 720,000 oz of gold; and
* Equity and performance consideration structured to preserve cash for exploration.
Peak Resources has agreed terms with African Eagle Resources plc for the acquisition of a 75 per cent interest in the advanced Igurubi gold project.
SHARE PRICE MOVEMENTS
*********************
Shares of Peak Resources yesterday slipped 1.5c to 38c. Rolling high for the year is 48c and low 6.1c. The company has 149 million shares on issue with a market cap of $43.6 million.
Making it more balanced here are the Australian activities covering Western Australian with the focus of attention being centred on building a quality ground holding within a competitive market.
Peak has sought and acquired strategic land holdings in areas associated with known production and mineralisation where potential remains for the extension of identified mineralisation, and large grass roots holding where favourable geological and structural settings exist to host large tonnage mineralised systems.
The company's projects are broadly classified into five separate groups:
Ashburton - Located approximately 60 kilometres south of the township of Paraburdoo in Western Australia, consisting of two Exploration Licences 08/1239 (Mt Vernon) and (08/1240) Pingandy, the Ashburton project has the ideal lithologies, structural controls and tectonic location to host large tonnage base metal deposits.
Exploration completed by Peak Resources and previous parties has significantly increased the prospectively of the project with the discovery of extensive geochemical and geophysical anomalies and the return of anomalous rock chip samples including 33.5pc copper, 59pc iron, 6.4pc lead, 46.5 ppm silver and 44.1pc manganese.
Menzies - The Menzies project covers ground from five kms east to 17 kms north of the township of Menzies and covers a total of 101 sq kms in area.
Open pit mining ceased from the Menzies project in 2000 having produced over 60,000 oz of gold from two shallow pits.
Since November 2006 Peak Resources has initiated a number of programs directed at outlining shallow higher-grade mineralisation.
Peak has completed five drilling campaigns to date at Menzies with the objective of defining the potential size and scope of previously identified gold mineralisation.
Interpretive studies have also taken place on mineralisation below and adjacent to the Granny Venn pit. Though drilling has identified additional mineralisation at Menzies mineralisation intersected by drilling does not contain enough tonnes or ounces for Peak to commence planned studies.
Peak Hill - The Peak Hill district is well endowed with mineral resources. The district has produced well over six million ounces of gold from a number of operations and from various styles of mineralisation.
In addition the district has produced more than two million ounces of silver, 49,000 tonnes of copper and 200,000 tonnes of manganese.
Peak Resources has acquired a 100 per cent interest in the tenement holdings of Peak Hill Gold Mines NL (an area referred to as Peak Hill East) and is commencing its own program of ground acquisition and consolidation.
The company has entered into a farm-in agreement with Goldstar Resources under which the company can earn a 70 per cent interest over a three-year period in the Peak Hill West project.
The two project groups cover an area of approximately 711 sq kms within the Peak Hill goldfield and provide Peak with major exposure to an area that has recently seen an escalation in exploration activity and success.
Yellowdine nickel - An ungranted Exploration Licence covering a sub-cropping nickel gossan 40 kms east of Southern Cross in Western Australia.
Preliminary sampling has returned 0.6pc nickel & 2.6pc cobalt.
The project is adjacent to major infastructure including the Great Eastern Highway, railway, water pipeline and grid electricity.
Goldfields uranium - Comprising Cogla Downs, Lake Darlot and Cosmo prospects.
The changing nature of the uranium market motivated the company's founders to secure agreement for the acquisition of significant areas that are prospective for uranium.
The company's Goldfields uranium project, covers an area of approximately 455 sq kms in the northeastern Yilgarn Block in Western Australia.
The uranium project areas represent exploration opportunities for calcrete hosted uranium occurrences and include the Cosmo prospect area where sampling produced visible carnotite grading up to 4,000ppm uranium.
The Goldfields uranium projects are viewed by the company as having medium to longer term potential and the company is hopeful that early exploration on the project will assist in advancing the prospectivity of the areas.
BACKGROUND
**********
Listed on the Australian Stock Exchange in November 2006 and based in Perth, Peak Resources Ltd aims to develop itself into a medium-sized mining house based on exploration and development of its highly prospective gold, nickel and base metal focused portfolio comprising a mix of brownfield, greenfields and advanced exploration prospects within Western Australia & Tanzania.
Peak is looking to generate shareholder wealth through aggressive exploration and acquisition programs, discovery of new deposits and delineation of extensions to known mineralisation from within its large highly prospective land bank, and operating within stable geopolitical environments
Peak's portfolio has been acquired through the selection of exploration assets that provide exposure to a range of mineral types in areas of known exploration success within Western Australia and Tanzania that are either under or poorly explored.
Where appropriate, Peak will look to partner with other companies in advancing exploration or development projects.
Partnering can provide Peak with strategic and operational benefits through broadening the company's technical operational base and providing a new understanding of opportunities whilst diffusing the financial and geopolitical risks.
While seeking to achieve value growth for its shareholders, Peak says it will at all times look to operate in an ethical manner providing benefit and making a positive contribution to the communities where it works.
Peak's current project selection provides a spread of commodity risk and opportunities to deliver positive results within a relatively short time-frame within politically stable environments.
The company will continue to seek new opportunities to build upon its existing asset base by acquiring areas of interest that fit within its strategic objectives.
PEK Price at posting:
36.8¢ Sentiment: Buy Disclosure: Held
(20min delay)