Increased Resource Estimate To Improve Ngualla Project Economics
April 4, 2013 (Source: Peak Resources) — Peak Resources Limited (Peak) 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 forthe 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.
- 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 December2012 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 lifebased 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.
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