ngualla project drilling results

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