gareth finally talks about peak

Gareth the chump talks about PEAK finally, l have had several emails with him over PEAK the last few years and finally he writes about us, but l know it hurts him and his lovebuddy Lifton,

Monday, February 06, 2012
Make that 407

Gareth Hatch, of Illinois-based Technology Metals Research, has put as his latest estimate that there are 406 rare earth projects, owned by 251 different companies, in 36 countries. Well, he can add one more with a initial public offering now open in Australia for a start-up in Tanzania. Considering that we have only two non-China REE projects anywhere near production, that we may see only four or five more crank into action by 2016, that the REE market is tiny by comparison with most mineral sectors, then you could not be blamed for thinking the industry needs another project like a hole in the head.


Tabora (proposed ASX code: TLD) is the company’s name and it is hoping to raise A$5 million through the IPO. But the Australian market is not all that keen on REE stocks (with the exception of Lynas Corp, which saw a good price jump after getting its Malaysian approvals) at present. As the Australian Financial Review points out, Kimberley Rare Earths (ASX:KRE) raised A$18.5 million last May to develop its West Australian project. That stock was issued at 20c; at the close of trade Monday, KRE shares stood at 7.5c, just off its lowest point since listing. The shares are worth less than their cash backing. Two other REE IPOs of 2011 - Plymouth Minerals (ASX:PLH) and Lithex Resources (ASX:LTX) - are also trading well below their issue prices. In fact, if you look at the charts across the REE sector in Australia they all make for fairly gloomy reading; however, a few of the more favoured companies - Alkane Resources, Peak Resources and Globe Metals & Mining - have seen prices trending upwards in recent weeks.

Like so many of the later entrants into the REE sector, Tabora was in pursuit of another target - diamonds in Africa - before alighting on to the rare earth story. The company has the right to hunt for REE on ground held in Tanzania by another Australian company, Resolute Mining (RSG), which holds a large stake in the new IPO. Resolute mines gold in Tanzania and Mali.


Tabora has access to Resolute’s Tanzania database and says that aerial geophysical surveys have identified carbonatites on the Resolute ground. A number of these targets are ready for drilling. The new company holds three REE projects, named Nzega, Mbeya and Mwanga.


Tabora notes in its prospectus that “Tanzania is known to host at least 21 carbonatites and the outlook for further discoveries is considered excellent”. It cites the announcement by Peak Resources (ASX:PEK) of its REE-niobium-tantalum-phosphate discovery within the Ngualla carbonatite in southern Tanzania which is in the same province as Tabora’ Mbeya project.