EDITOR: | November 29th, 2015 | 1 Comment

Darren Townsend of Peak Resources presents at the Technology Metals Summit

| November 29, 2015 | 1 Comment
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November 29, 2015 — Watch Darren Townsend, Managing Director for Peak Resources Ltd. (ASX: PEK) present on being one of the highest grade neodymium (Nd) and praseodymium (Pr) development projects during the InvestorIntel Technology Metals Summit on October 14, 2015 in Toronto. In spite of challenging markets, Darren highlights Peak’s recent closing of their bankable feasibility study financing for $29.5M with the Appian Fund and IFC. “Appian and the IFC want to see these plants built” he reiterates as he discusses Peak’s strong strategic partners interest in developing the Ngualla Rare Earth project in Tanzania. To access the complete presentation, click here

Peak-ResourcesDarren Townsend: Thanks Tracy for the opportunity to present the Peak story. We’re an ASX listed company. Market cap around about $25 million dollars just heading into our bankable feasibility study. As we talked about this morning in the panel, as you’re aware, we’ve done a financing transaction with Appian and the IFC, which funds us through the bankable study. I’ll talk a little bit more about Appian and the IFC further in the presentation, but I just wanted to give you an overview of the project. We’re located in southwest Tanzania in the east coast of Africa. It’s a bastnaesite deposit so similar mineralogy to the Mountain Pass deposit at Molycorp, but we’ve got a couple of unique parts of the ore body in terms of the composition is quite a bit simpler from a processing perspective. I’ll talk through a bit on the processing. That’s where we are, southwest Tanzania. I can’t say we’ve got excellent infrastructure and all that sort of stuff cause it’s not as good as some of the other projects. Rare earths, you’re talking about producing, in our PFS case, we were talking about producing 10,000 ton a year of final product. We’re actually now looking at producing about 6,500 ton a year of product. Rare earth mining and processing is more about incoming chemical logistics then it’s about the amount of product you’ve got to ship out. I’m not going to talk a lot about the PFS numbers. They are quite dated now. We are now moving to a hydrochloric acid leach rather than a sulfuric acid leach. Those big breakthroughs in the beneficiation really substantially change the economics. We’ve also worked out a way of getting rid of 70% to 80% of our cerium very early in our process. Cerium effectively is a loss-making rare earth so it’s very good to get that out of your processes as early as possible. I’m not going to talk a lot about the market. I think most everybody here is familiar with the market. It’s really all about NDPR as you can see from that chart. High-powered magnets is really our key focus. 81% of our revenue stream is going to come from NDPR. That’s a cross-section through the orebody. I can use some of the bingo words for this. It is on surface, low strip ratio, all that sort of stuff. Rare earth mining, it’s really chemical processing. The mining side of it actually quite simple. We have a mine life well in excess of 30 years so this is a big long life project. As I said before, our biggest advantage is the mineralogy. We’re very low in carbonate and phosphate minerals. Really what you’re trying to do with rare earth processing is make sure you’re not chewing up too much acid. We’re very lucky…to access the full presentation, click here


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Comments

  • Jeff Thompson

    The Ngualla project’s ability to attract funding is certainly a major accomplishment, and a beacon of light to others in the industry also looking to secure funding, but concern would be whether the long-term political stability necessary for development could be counted on in east Africa. The 1998 bombings of the U.S. embassies in Dar es Salaam and Nairobi which served at precursors for 9/11 come to mind, along with seemingly unchecked rampaging militant religious groups such as Boko Haram, the civil war in South Sudan, the Rwanda genocide that killed more than half a million people, the Ethiopian-Eritrean war, and recurring problems with naval pirates off the coast of Somalia. None of these affect the specific area Ngualla is located in directly of course, just a concern about the historical tendency of lawlessness and civil wars in Africa spilling over into adjoining regions.

    November 29, 2015 - 6:46 PM

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