Peak Resources Limited - Quarterly Activities Report and 5B

08:25 AEST Apr 18, 2013 ABN Newswire (C) 2004-2013 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Peak Resources Limited (ASX:PEK) (OTCQX:PKRLY) is rapidly progressing the development of its 100% owned Ngualla Rare Earth Project in Tanzania. Ngualla is on schedule to become the next major rare earth supplier with high grade mineralisation and a simple, proven metallurgical process supporting a low cost operation.

Activity highlights this Quarter include:


Revised Mineral Resource

- A new and increased Mineral Resource was announced on 4th April 2013. At a 3.0% lower grade cut the Mineral Resource for the Bastnaesite Zone weathered mineralisation targeted for initial development is: 21.6 million tonnes at 4.54% REO*, for 982,000 tonnes of contained REO#.

- Potential to support significantly increased production levels and an extended mine life, based on a simple sulphuric acid leach operation, compared to the 10,000tpa REO estimated in the December 2012 Scoping Study

- An increased production rate and higher grades, combined with the enhanced beneficiation ability will significantly improve the strong economics and further reduce cash costs.

- A revised Scoping Study and economic assessment to be completed during June Quarter to quantify cost reductions and revised project economics at a range of REO production levels: 5,000tpa, 10,000tpa and 20,000tpa.


Beneficiation

- Advances in beneficiation achieved during the Quarter lead to lower capital costs through a smaller acid and leach plant.

Operating costs will also be reduced through lower sulphuric acid consumption


SX Pilot Plant, ANSTO

- Production of a rare earth chloride feed solution for the solvent extraction (SX) pilot plant from a 1.3 tonne bulk sample of Ngualla rare earth mineralisation was completed at ANSTO (Australian Nuclear Science and Technology Organisation) during the quarter

- An average of 83% recovery of rare earths was achieved in the acid leach stage, independently verifying the simple sulphuric acid leach recovery process and the robustness of the process flow sheet at a larger scale

- The SX Pilot Plant is on track to produce four separated >99% purity REO products successively over the next few months.


Corporate

- Appointed financial advisors to assist in identifying and securing strategic partners to assist with funding the longer-term development of the Ngualla Rare Earth Project and product off-take agreements. Strong interest has been shown and Peak is in ongoing discussions with a number of parties.

- The Company had $2.25 million cash on hand at the end of the Quarter.

View the complete Peak Resources quarterly report at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-PEK-632047.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:

Peak Resources Limited
T: +61-8-9200-5360
F: +61-8-9226-3831
WWW: www.peakresources.com.au