Significant rare earth oxides intercepted by Peak Resources at Ngualla

Monday, September 27, 2010 by Proactive Investors

Significant rare earth intercepts of niobium (Nb2O5), tantalum (Ta2O5) and phosphate (P2O5) have been reported by Peak Resources (ASX: PEK) from the Ngualla Project in Tanzania, from a four hole RC drilling program.

These appear to be highly encouraging results due to the wide spacing and reconnaissance nature of these holes, and the broad down hole intervals of mineralisation intersected.

Highlights include:

- NRC 1: intercepted 40m @ 3.25% Total Rare Earth Oxide (TREO) (TREO), higher +5% TREO zones and mineralisation to End of Hole (EOH).

- NRC 2: intercepted 20m @ 3.7% TREO ending in mineralisation of 4m @ 5.18% TREO (EOH).

- NRC 3: intercepted 30m @ 0.38% Nb2O5 and 150ppm Ta2O5 with hole ending in 0.34% Nb2O5 and 165ppm Ta2O5, additionally with 26m @ 14.7% P2O5.

- NRC 4: intercepted 24m @ 0.39% Nb2O5 and 128ppm Ta2O5 with hole ending in 0.46% Nb2O5 and 151ppm Ta2O5.

After the recent air core drilling campaign on the alluvial zones the four shallow reconnaissance RC holes were drilled within the central core of the Ngualla Carbonatite.

The central core comprises hard rock units with approximate surface expression of 2.5 km by 700 metres.

Peak said the holes were not optimally sited and the drill rig had only limited RC drill capability thus limiting the depth penetration.

Interpretation of the air core results and Landsat studies (satellite), lead the company to fast track analysis for these four holes to assist in planning for further drilling proposed for mid-late October of this year.

The results have significantly exceeded expectations, with all holes intercepting broad zones of mineralisation.

The market has supported the news, with Peak shares spiking 53% higher on massive volume in the first 15 minutes of trading today.

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