Peak Resources Quarterly Update March 2013
April 18, 2013 (Source: Peak Resources) — Peak Resources Limited (Peak; 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.
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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.
- 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.
- 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.
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