Increased Resource Estimate To Improve Ngualla Economics
Sydney, April 4, 2013 AEST (ABN Newswire) - Peak Resources Limited (
ASX:PEK) is pleased to report a revised Mineral Resource estimate for the Ngualla Rare Earth Project in southern Tanzania. The new estimate incorporates the 13,600m of additional drilling completed in 2012 and is reported according to the 2004 JORC Code and Guidelines.
The infill drilling was completed to increase the amount of weathered mineralisation in the Bastnaesite Zone classified as 'Measured' or 'Indicated' Mineral Resource and provide the definition required for a detailed mine plan and schedule for the project to support the Pre-Feasibility Study now in progress.
The Bastnaesite Zone weathered mineralisation is the high grade, near surface central portion of the greater Ngualla Mineral Resource amenable to a proven, low cost simple sulphuric acid processing route and targeted for production in the initial 25 years of the operation and beyond.
Highlights:
The Mineral Resource for the Bastnaesite Zone weathered mineralisation at a 3.0% lower grade cut-off is:
21.6 million tonnes at 4.54% REO*, for 982,000 tonnes of contained REO#
Ngualla has the highest grade of all the rare earth development projects.
The new Mineral Resource estimate is a significant increase over the 8.2 million tonnes at 4.35% REO in the December 2012 Scoping Study mine plan, which supports an initial 25 year mining period and 10,000tpa REO production level.
The revised Mineral Resource illustrates the potential to support increased production levels and an extended mine life based on a simple sulphuric acid leach operation.
An increased production rate, higher grades and the enhanced beneficiation ability indicated by recent test work as announced on 6th March 2013 will significantly improve the already very strong NPV and IRR of the December Scoping Study.
Of the total Bastnaesite Zone Mineral Resource, 99.6% is now classified in the 'Measured or Indicated' category, with the majority (86%) being 'Measured'.
The Measured and Indicated portions of the Bastnaesite Zone will form the basis for a maiden Reserve estimate for the project to be completed as part of the Pre-Feasibility Study which is now in progress.
The extremely low levels of uranium and thorium in the Bastnaesite Zone weathered Mineral Resource of 14ppm and 42ppm respectively are a distinct advantage over other rare earth projects.
*= total rare earth oxides plus Y2O3 #=see Table 1 (in link below) for classification of Mineral Resource
At a 1% lower grade cut-off, the total Mineral Resource estimate for Ngualla has increased by 15% in terms of tonnes and contained REO compared to the 2012 maiden Mineral Resource estimate. At a 1% lower grade cut off, the new Mineral Resource estimate is:
195 million tonnes at 2.26% REO, for 4.4 million tonnes of contained REO#.
#=see Table 2 (in link below) for classification of Mineral Resource
Ngualla remains one of the largest and highest grade rare earth deposits in the world.
Metallurgical test work has shown that mineralisation outside of the Bastnaesite Zone may be processed using other conventional beneficiation and leach processing routes. The long mine life supported by the Bastnaesite Zone provides the Company with the opportunity and time to optimise these processes, which could be brought in at a later stage in the life of the operation.
Richard Beazley commented further, "The new estimate illustrates the quality of the Ngualla Resource, the economic upside and the options available to Peak to expand production once the initial low cost, low risk operation has been established."
Technical Report
Peak has moved the Ngualla Rare Earth Project forward rapidly from discovery in August 2010 to the release of the maiden Mineral Resource on 29th February 2012. The new revised Mineral Resource incorporates an additional 13,600m of reverse circulation (RC) and diamond drilling completed during the 2012 field season subsequent to the release of the maiden Mineral Resource.
Geochemical, mineralogical and metallurgical work completed after the release of the maiden Mineral Resource has identified an important and high grade portion of the Ngualla deposit that is amenable to a sulphuric acid leach processing route. This metallurgical process is efficient in extracting rare earths from weathered mineralisation within the Bastnaesite Zone (Figure 1 in link below).
The relatively simple process uses conventional technology of 'tanks, pumps and filters' to efficiently extract rare earths at low cost and contributes to a low risk operation that Peak believes can be rapidly brought into production and presenting a distinct commercial advantage over other rare earth projects.
For the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-PEK-630541.pdf
Contact
Peak Resources Limited
T: +61-8-9200-5360
F: +61-8-9226-3831
WWW: www.peakresources.com.au
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