Rare Earth, Niobium ? Tantalum and Phosphate Drill Results, Ngualla
Peak is pleased to report the remaining assay results from the November ? December 2010 RC and diamond drilling campaign in the central hills area at Ngualla. Southern Rare Earth Zone
Highlights from the final three holes include:
NDD001: 8m at 5.18% REO from surface and 30.69m at 4.51% REO from 62.58m NRC022: 19m at 4.98% REO from surface to End Of Hole (EOH) Northern Niobium - Tantalum Zone The five holes completed in this area returned up to: NDD002: 20.61m at 0.49% Nb2O5 and 94ppm Ta2O5 from 24.29m and 5.15m at 1.64% Nb2O5 and 214ppm Ta2O5 from 51m NDD003: 62.3m at 0.70% Nb2O5 and 245ppm Ta2O5 from surface NRC021: 22m at 0.91% Nb2O5 and 213ppm Ta2O5 from surface to end of hole High phosphate levels accompany the niobium ? tantalum mineralisation and include: NDD002: 5.15m at 25.4% phosphate from 51m NDD003: 60.85m at 21.0% phosphate from 1.45m NRC021: 14m at 20.6% phosphate from 8m to end of hole Full results above 2% REO, 0.25% Nb2O5 and 10% P2O5 are detailed in Tables 1 to 4 Southern Rare Earth Zone Results from the Southern Rare Earth Zone in the central hills area of the Ngualla carbonatite confirm and extend the substantial zones of rare earth mineralisation reported on 4th February 2011. Mineralisation remains open to the north, west, south and with depth, with only a portion of the high tenor surface geochemical REO anomaly that is centred on Mt Ngualla drill tested to date (see Figures 1 and 2). 2 24 FEBRUARY 2011 ASX RELEASE Figure 1: Location of RC and diamond drill holes on the Central Bedrock Zones at Ngualla. Previous REO results in aircore drilling and surface sampling also shown. 9149000 mN 9147000 mN 9148000 mN ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! NRC 1 NRC 2 NRC 4 NRC 3 Mt. Ngualla N 0 250 500 1000m 481000 mE 482000 mE 483000 mE 484000 mE New Drill Holes # RC (Previously reported) # RC (New results) Diamond (New results) Map inset ? See Figure 4 Map inset ? See Figure 2 REO % ? 1.0 to 1.4 ? 1.4 to 2.0 ? 2.0 to 2.4 ? 2.4 to 3.0 ? 3.0 to 3.4 ? 3.4 to 4.0 Max REO in aircore% ! <0.5 ! 0.5 to 1.0 ! 1 to 2 ! 2 to 4 ! >4 R econ. Drill Holes NRC 1 to 4 #### ## # # # # # # # # # # # # NDD003 NDD002 NDD001 NRC022 NRC021 NRC020 NRC019 NRC018 NRC017 NRC016 NRC015 NRC014 NRC013 NRC012 NRC011 NRC010 NRC009 NRC008 NRC007 NRC006 NRC005 NE Alluvials SW Alluvials Central Bedrock Southern REO Zone Central Bedrock Northern Niobium ? Tantalum Zone Diamond hole NDD001, angled at -60? to the east, returned the deepest intersection to date, ending in mineralisation grading 4.96% REO within strongly weathered carbonatite at 101.08m (87m vertical depth). Although the higher tenor REO mineralisation is hosted within the more strongly weathered clay and iron rich saprolite horizons of the carbonatite, some holes extend into relatively fresh carbonatite and contain mineralisation in the 1 to 2% REO range, illustrated in Figure 3 below. This suggests the potential for as yet largely untested, primary REO mineralisation at Ngualla in addition to the alluvial and regolith hosted mineralisation identified to date. Further deeper drilling is required to validate the extent of this primary mineralisation. Location of the Ngualla Project in Southern Tanzania. 0 100 200 300 400 KILOMETERS Major Population Centre DCW Major Internal Roads Tanzam Rail Line ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Lindi Mbeya Tanga Moshi Songea Mtwara Iringa Dodoma Tabora Kigoma Arusha Mwanza Singida Morogoro Zanzibar Shinyanga Dar Es Salaam UGANDA KENYA MOZAMBIQUE ZAMBIA MALAWI DCR BURUNDI RWANDA Lake Victoria Indian Ocean Lake Tanganyika Lake Rukwa Lake Nyasa T A N Z A N I A Ngualla Carbonatite 3 24 FEBRUARY 2011 ASX RELEASE Figure 2: Key REO intersections received to date in the central hills area over satellite image of Mt Ngualla. Figure 3: Top: Photograph of relatively fresh white carbonatite drill chips from 64m to 85m in hole NRC015 which contains 21m at 1.64% REO (see ASX announcement 4th February 2011). Above: Close up of 80m to EOH 9148000 mN 0 50 100 250m NRC 1 NRC 2 Mt. Ngualla 482000 mE 482500 mE Recon. Drill Holes NRC 1 to 2 Results Previously reported New results New RC holes are angled -60? west, diamond holes are -60? east? Drill Holes RC (New results) RC (Previously reported) Diamond (New results) N 20m @ 3.61% REO from surface to EOH incl. 6m @ 4.99% REO and 4m @ 5.18% REO EOH 40m @ 3.21% REO from surface to EOH incl. 6m @ 5.16% REO and 6m @ 5.09% REO EOH 28m @ 3.90% REO from 12m and 13m @ 4.80% REO from 41m 26m @ 4.43% REO from 62m 14m @ 3.25% REO from 22m 16m @ 3.70% REO from surface and 22m @ 4.76% REO from 28m 18m @ 2.86% REO from 14m and 20m @ 4.47% REO from 50m 8m @ 2.08% REO from 42m 24m @ 21.3% P2O5 from surface 19m @ 4.98% REO from surface with hole ending in mineralisation 64m @ 5.48% REO from surface 38m @ 3.30% REO from surface 40m @ 3.38% REO from 62m 10m @ 3.79% REO from 24m 34m @ 7.30% REO from surface and 10m @ 4.21% REO from 36m 8m @ 5.18% REO from surface and 30.69m @ 4.51% REO from 62.58m # # # # # # # # # # # # # # # # NDD001 NRC018 NRC017 NRC011 NRC010 NRC009 NRC008 NRC007 NRC006 NRC005 NRC022 NRC016 NRC015 NRC014 NRC013 NRC012 64-65 65-66 66-67 67-68 68-69 69-70 70-71 71-72 72-73 73-74 74-75 75-76 76-77 77-78 78-79 79-80 80-81 81-82 82-83 83-84 84-85 4 24 FEBRUARY 2011 ASX RELEASE Sample recovery during the angled RC and diamond drilling program was sometimes poor in the highly weathered saprolite, with no sample return over some intervals. No sample return occurred within some mineralised zones; intervals of no sample return are not included in the intersections reported. Alternative drilling equipment and techniques will be used in future programs at Ngualla to improve sample recoveries. Mineralogical studies have commenced on selected REO mineralised samples as a first step prior to metallurgical test work. Metallurgy, including beneficiation, is a key driver for development time and capital and operating costs for rare earth projects. Results from an initial five RC samples studied identify bastnasite as the main rare earth mineral present. Bastnasite is preferable to monazite as the predominant rare earth mineral as bastnasite typically contains low levels of uranium and thorium. The bastnasite observed often has a fibrous habit and is mainly included within quartz or iron oxides in the small number of samples evaluated to date. Liberation sizes therefore cannot be measured with any confidence. Further mineralogical work is in progress and will be followed by beneficiation and metallurgical testing of the various mineralisation types present at Ngualla. Drilling to date within the central hills area southern REO zone has intersected what are considered to be very low levels of uranium and thorium, averaging 17ppm uranium and 36ppm thorium. Northern Niobium - Tantalum Zone Assay results from the two diamond holes and three RC holes completed prior to the onset of December rains in the northern niobium ? tantalum zone of the central hills area (Figures 1 and 4) have returned the highest grades of niobium, tantalum and phosphate encountered to date. Highlights from the new drilling include: NDD002: 20.61m at 0.49% Nb2O5, 94ppm Ta2O5 from 24.29m and 5.15m at 1.64% Nb2O5, 214ppm Ta2O5 from 51m NDD003: 62.3m at 0.70% Nb2O5 and 245ppm Ta2O5 from surface NRC021: 22m at 0.91% Nb2O5 and 213ppm Ta2O5 from surface to EOH High phosphate levels accompany the niobium ? tantalum mineralisation and include: NDD002: 5.15m at 25.4% phosphate from 51m NDD003: 60.85m at 21.0% phosphate from 1.45m NRC021: 14m at 20.6% phosphate from 8m to EOH Full results above 0.25% Nb2O5 and 10% phosphate are detailed in Tables 3 and 4 The niobium ? tantalum and phosphate mineralisation occur together within highly weathered clay rich and ferruginous saprolite. 0 100 200 500 NRC 4 NRC 3 Recon. Drill Holes NRC 3 to 4 New RC holes are angled -60? west, diamond holes are -60? east? Drill Holes RC (New results) Diamond (New results) N 20.61m @ 0.49% Nb2O5 94ppm Ta2O5 5.15m @ 1.64% Nb2O5 214ppm Ta2O5 25.4% P2O5 from 51m 62.3m @ 0.70% Nb2O5 245ppm Ta2O5 60.85m @ 21.0% P2O5 from 1.45m from surface 22m @ 0.91% Nb2O5 213ppm Ta2O5 14m @ 20.6% P2O5 from 8m to EOH from surface to EOH 10m@ 0.69% Nb2O5 210ppm Ta2O5 19m @ 0.65% Nb2O5 279ppm Ta2O5 21m @ 0.69% Nb2O5 319ppm Ta2O5 35m @ 19.5% P2O5 from 22m from 11m from surface from 36m with hole ending in mineralisation from 24.29m # 9149000 mN 482500 mE 483000 mE # # # NDD003 NDD002 NRC021 NRC020 NRC019 Figure 4: Niobium ? tantalum and phosphate drill results in the northern zone of the central hills area at Ngualla over satellite image. 5 24 FEBRUARY 2011 ASX RELEASE Only a small portion of the large, high tenor surface geochemical niobium ? tantalum anomaly has been drill tested to date and significant exploration upside therefore remains for these commodities. Mineralogical studies will be completed on this mineralisation prior to initial beneficiation test work and further exploration drilling. Preparation is underway for further drilling at Ngualla, which will commence after the rainy season ends in late April. The priority focus of future drilling will be to test both the bedrock and alluvial REO zones of mineralisation with the objective of providing sufficient data for an initial JORC compliant resource estimate as rapidly as possible. Alastair HunterChairman 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. Hole Id East North Hole Depth From To Interval REO m m m m m m % NDD001 482,165.3 9,148,154.3 101.08 0 8 8 5.18 29.98 35.98 6 2.64 38.98 44.98 6 3.92 47.98 51.86 3.88 3.54 54.77 59.58 4.81 2.77 62.58 93.27 30.69 4.51 93.53 97.96 4.43 3.49 (97.96 99.21 1.25 NSR) 99.21 101.08 1.87* 3.57 NDD002 482,096.7 9,149,400.5 119.55 25.75 29.5 3.75 2.07 NRC018 482,520 9,148,450 52 24 26 2 2.10 42 50 8 2.08 NRC020 483,038 9,149,203 74 18 22 4 2.14 NRC022 482,380 9,148,050 19 0 19 19* 4.98 Table 1: RC and DIAMOND DRILL RESULTS, CENTRAL BEDROCK ZONE ? INTERSECTIONS +2% REO NDD prefix holes are PQ and HQ diameter diamond holes drilled from surface, angled at -60? east. Samples are quarter core, 0.4m to 2.6m sample length. NRC prefix holes are angled RC holes drilled at -60? west. Samples are 2m composites. Note: REO = Total Rare Earth Oxides including Yttrium. See Table 2 for relative distribution of individual rare earth oxides. Intersections calculated using 2% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP, or fusion and XRF. Co-ordinate system is Arc 1960 UTM zone 36S. *=hole ended in mineralisation. NSR = no sample returned during drilling. 6 L ight REO = 98.5% Heavy REO = 1.3% 0.2% L a2O3 CeO2 Pr6O11 Sc2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 L u2O3 Y2O3 26.0 48.7 4.7 0.2 17.2 1.7 0.3 0.7 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.2 Table 2: Individual rare earth oxides as a percentage of total rare earth oxides Note: Average relative REO components are calculated using individual rare earth grades in intersections calculated using a 2% REO lower cut and a maximum of 2m internal dilution in the RC holes completed within the central hills area REO zone. REO = Total Rare Earth Oxides including yttrium. 7 Table 3: RC and DIAMOND DRILL RESULTS, CENTRAL BEDROCK ZONE ? INTERSECTIONS + 0.25% NIOBIUM NDD prefix holes are PQ and HQ diameter diamond holes drilled from surface, angled at -60? east. Samples are quarter core, 0.4m to 2.6m sample length. NRC prefix holes are angled RC holes drilled at -60? west. Samples are 2m composites. Table 4: RC and DIAMOND DRILL RESULTS, CENTRAL BEDROCK ZONE ? INTERSECTIONS +10% PHOSPHATE NDD prefix holes are PQ and HQ diameter diamond holes drilled from surface, angled at -60? east. Samples are quarter core, 0.4m to 2.6m sample length. NRC prefix holes are angled RC holes drilled at -60? west. Samples are 2m composites. NDD001 482,165.3 9,148,154.3 102.45 62.58 64.58 2 0.26 0 NDD002 482,096.7 9,149,400.5 119.55 2.5 10 7.5 0.26 0 24.29 44.9 20.61 0.49 94 51 56.15 5.15 1.64 214 NDD003 483,001 9,149,196.3 70 0 62.3 62.3 0.70 245 NRC018 482,520 9,148,450 52 0 10 10 0.64 134 14 16 2 0.27 98 24 28 4 0.35 0 32 36 4 0.41 79 50 52 2* 0.26 85 NRC020 483,038 9,149,203 74 0 10 10 0.69 210 (10 11 1 NSR NSR) 11 30 19 0.65 279 36 57 21 0.69 319 (57 58 1 NSR NSR) 58 67 9 0.59 201 (67 68 1 NSR NSR) 68 70 2 0.50 195 71 74 3* 0.56 163 NRC021 482,960 9,149,210 22 0 22 22* 0.91 213 NRC022 482,380 9,148,050 19 12 14 2 0.26 0 Hole Id East North Hole Depth From To Interval Nb2O5 Ta2O5 m m m m m m % ppm Note: Intersections calculated using 0.25% Nb2O5 lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by fusion and XRF. Co-ordinate system is Arc 1960 UTM zone 36S. *=hole ended in mineralisation. NSR = no sample returned during drilling. Note: Intersections calculated using 10% phosphate (P2O5) lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by fusion and XRF. Co-ordinate system is Arc 1960 UTM zone 36S. *=hole ended in mineralisation. NSR = no sample returned during drilling. Hole Id East North Hole Depth From To Interval P2O5 m m m m m m % NDD002 482,096.7 9,149,400.5 119.55 32 40.9 8.9 15.7 51 56.15 5.15 25.4 NDD003 483,001 9,149,196.3 70 1.45 62.3 60.85 21.0 NRC018 482,520 9,148,450 52 0 24 24 21.3 32 34 2 12.8 38 46 8 11.9 50 52 2* 12.8 NRC020 483,038 9,149,203 74 2 10 8 18.1 (10 11 1 NSR) 11 14 3 15.3 22 57 35 19.5 (57 58 1 NSR) 58 67 9 17.6 (67 68 1 NSR) 68 70 2 22.5 71 74 3* 19.3 NRC021 482,960 9,149,210 22 8 22 14* 20.6
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