Perth, Feb 4, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report highly encouraging assay results received from the initial 13 RC drill holes completed during the November - December 2010 drilling campaign at Ngualla.

Highlights from the program include the following intersections:

- NRC011: 64m at 5.48% REO from surface

- NRC015: 34m at 7.30% REO from surface

Higher grade mineralisation is hosted by clay and iron rich saprolite in the upper weathered zone of the Ngualla Carbonatite. The geological setting of the mineralisation is analogous to Mt Weld (Lynas Corporation Ltd (ASX:LYC) (PINK:LYSCF)) in Western Australia; being REO, phosphate and tantalum - niobium enrichment in a deeply developed regolith profile above a large carbonatite.

All 13 holes intersected +1% rare earth oxide (REO) mineralisation in the central hills area of the Ngualla carbonatite. Most of the holes also intersected significant widths of higher grade including:

- NRC006: 28m at 3.90% REO from 12m and 13m at 4.80% REO from 41m

- NRC007: 16m at 3.70% REO from surface and 22m at 4.76% REO from 28m

- NRC008: 26m at 4.43% REO from 62m

- NRC009: 38m at 3.30% REO from surface

- NRC011: 64m at 5.48% REO from surface

- NRC012: 40m at 3.38% REO from surface

- NRC014: 10m at 3.79% REO from 24m

- NRC015: 34m at 7.30% REO from surface and 10m at 4.21% REO from 36m

- NRC016: 14m at 3.25% REO from 22m

- NRC017: 18m at 2.86% REO from 14m and 20m at 4.47% REO from 50m

Results received to date are from two 250m spaced east - west RC drill traverses. Mineralisation extends over 600m in an east west direction and up to 80m depth, and is currently open to the north, south and west. Only a portion of the higher tenor surface geochemical REO anomaly that is centred on Mt Ngualla has been drill tested to date.

The wide zones of bedrock REO mineralisation identified by these latest results are in addition to extensive alluvial REO mineralisation reported from the aircore drilling program in 2010. The Company is encouraged by these latest results, which indicate a large REO mineralised system at Ngualla and a significant new REO discovery.

Sample recovery from the angled RC drilling 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.

Assay results from a further five RC holes and three diamond holes completed during the drilling campaign are awaited. This includes holes drilled in the northern niobium - tantalum - phosphate rich area identified by surface geochemical sampling and previously reported reconnaissance RC holes NRC003 and NRC004.

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.

For the complete Peak Resources Limited announcement including tables and figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/65147-ASX-PEK-527704.pdf

About Peak Resources Limited

Listed on the Australian Stock Exchange (ASX:PEK) in November 2006 and based in Perth, Western Australia, Peak Resources Limited is developing the Ngualla Rare Earths Project in southern Tanzania. Peak also holds a number of gold projects comprising a mix of brownfield, greenfield and advanced exploration prospects in the highly prospective Lake Victoria Goldfields area of Tanzania.

Peak’s goal is to generate shareholder value through:

- Development of the exciting new high-grade, low uranium and thorium Ngualla Rare Earth discovery into production

- Exploring for niobium-tantalum and phosphate at Ngualla to generate a pipeline of additional commodities

- Discovery of new gold deposits within its large, highly prospective portfolio of exploration projects in Tanzania

- Aggressive new project acquisition programmes in East Africa

Peak’s head office is located in Perth, Western Australia with an exploration office in Mwanza, Tanzania.

 


Contact

Alastair Hunter
Chairman
Tel: +61-8-9316-9599
Email: alastair@peakresources.com.au
http://www.peakresources.com.au



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