For personal use only

Transcription

1 HIGHLIGHTS Ngualla Rare Earth Project (Southern Tanzania) Rare Earths, Phosphate, Niobium Tantalum Ngualla is one of the largest and better grade new rare earth discoveries of recent years. The Company is on track to complete the maiden JORC compliant rare earth resource estimate for the Southern Rare Earth and South West Alluvial Zones before the end of the March 2012 quarter. Drilling is completed and 87% of assay results received. Rare Earth Resource Drilling Program The 19,046m resource definition drilling program was completed on 30th November Wide intersections of encouraging grade continue to be received from the program. Intersections this quarter include: NRC077: 170m at 4.18% REO NRC136: 128m at 4.17% REO to EOH NRC101: 120m at 3.54% REO to EOH including NDD004: 75.7m at 5.82% REO including 46m at 6.17% REO 10.74m at 10.1% REO from 38.1m Mineralisation in the Southern Rare Earth Zone now extends over an area of 850m x 470m to vertical depths of 155m, indicating the potential for a large resource. It still remains open to the north and south and further drilling is planned for after the rains in May 2012 to extend the initial resource further. A series of metallurgical and beneficiation laboratory studies, which include gravity, magnetic separation, flotation and direct acid leach, are well advanced on bulk samples of mineralised diamond core. Initial results on some of this work are expected in early February. Niobium Tantalum and Phosphate Potential Significant intersections of niobium tantalum, phosphate and rare earth mineralisation have also been returned from the initial holes of the Northern Zone reconnaissance drilling and peripheral holes of the Southern Rare Earth Zone resource drilling program. Results include: NRC121: 52m at 1.33% REO from 20m and 64m at 19.7% phosphate from 10m and 74m at 0.56% Nb 2O 5 and 171ppm Ta 2O 5 NRC125: 24m at 1.12% Nb 2O 5 and 226ppm Ta 2O 5 from 4m and 28m at 20.4% phosphate Assay results from a further 19 completed holes are still awaited. With only a small portion of the 1,400m x 1,300m target area tested by reconnaissance drilling to date, there is potential for a large tonnage deposit of this second style of mineralisation and further drilling will be planned in Move to gain 100% ownership of Ngualla Project On 26th August 2011 Peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla Project through the acquisition of current JV partner Zari Exploration Ltd. Peak anticipates being in a position to complete the Zari acquisition on or before mid-february The Company had $5.7million cash on hand at the end of the quarter. An additional share placement raised $2,240,000 before costs and was settled on 6th January 2012, after quarter end. Peak Resources Ltd Level 1, 11 Ogilvie Road Mount Pleasant, Western Australia 6153 PO Box 1271, Canning Bridge Western Australia 6153 Directors: Alastair Hunter, Chairman Richard Beazley, Managing Director Dave Hammond, Technical Director Jonathan Murray, Non-Executive Director Linda Paini, Company Secretary ASX Symbol: PEK Telephone: info@peakresources.com.au ACN

2 Ngualla Rare Earth Project, Tanzania Rare Earths, Phosphate, Niobium Tantalum Peak Resources Operator Manager earning 80% (Conditional offer made to acquire 100%) Summary Overview Ngualla in southern Tanzania is a large virgin discovery made by Peak, with the first holes completed in June Rare earth mineralisation occurs and is similar in style to Mt Weld (Lynas Corporation) in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite. The Quarter was a significant one for the Company, with the successful completion of a major resource definition drilling program at Ngualla. A series of encouraging rare earth mineralised intersections from this program continued to be released and 87% of assays have now been received. Results demonstrate the potential for Ngualla to be one of the largest and better grade new rare earth discoveries of recent years. A maiden JORC compliant resource estimate for the Southern Rare Earth and South West Alluvial Zone rare earth mineralisation will be completed by the end of the March 2012 Quarter. RWANDA Geita BURUNDI West (Imweru) Nkerege Lake Victoria Bunda Ikoma Mwanza Sheba Shinyanga Arusha Nairobi KENYA Moshi Rare earth mineralisation remains open to the north and south, leading to the potential to expand this initial resource by further drilling. Mineralogical studies show that rare earths in the Southern Rare Earth Zone are in the form of carbonate minerals with very low uranium and thorium levels. Metallurgical work is well underway on bulk samples of mineralised diamond core to determine optimum processing routes to concentrate and extract the rare earths. Initial results from some of these tests are also expected are expected in early February Kigoma DCR Lake Tanganyika ZAMBIA Singida Tabora Tanga Dodoma T A N Z A N I A Lake Rukwa Igunga Ngualla Mbeya Figure 1: Location of Peaks Projects in Tanzania Iringa Morogoro N Indian Ocean Zanzibar Dar Es Salaam 400km Currently, Peak as operator and manager is earning 80% equity in the Ngualla Project by carrying Joint Venture partner Zari Exploration Ltd (Zari) through to completion of a bankable feasibility study. On 26th August 2011 Peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla Project through the acquisition of Zari. Peak anticipates being in a position to complete the Zari acquisition on or before mid-february In addition to rare earths, the Ngualla Carbonatite is also highly prospective for niobium tantalum and phosphate. Two exploration reconnaissance drill traverses were completed as an initial test of a large target area the Northern Zone located one kilometre to the north of the Southern Rare Earth Zone. Encouraging grades of niobium tantalum, phosphate and rare earths have been returned from the first few holes for which assays have been received to date. Above: Maiden resource drilling program 2011, Ngualla Hill, Southern Rare Earth Zone. 2

3 NGUALLA PROJECT 3D Projection REO % For personal use only Northern Niobium Tantalum, Phosphate Zone Max REO % <1 1 to 2 2 to 3 3 to 5 Southern Rare Earth Zone >5 SW Alluvials Figure 2: Location of areas of drilling, surface REO% contours and drill holes coloured by maximum down hole REO% on satellite image draped over topography, Ngualla Carbonatite. Rare Earth Resource Drilling Program The resource drilling program of over 19,000m of reverse circulation (RC), aircore and diamond drilling commenced on 24th May 2011 and was completed on 30th November A steady flow of assay results have continued to be received from this program over the December Quarter. Intersection highlights received from the Southern Rare Earth Zone (Figure 2) during the period include: Drill Hole Intersection NRC077: 170m at 4.18% REO NRC079: 81m at 4.04% REO from 84m to EOH NRC080: 26m at 5.44% REO NRC097: 52m at 4.61% REO from 32m NRC100: 24m at 5.55% REO NRC101: 120m at 3.54% REO to EOH including 46m at 6.17% REO NRC114: 110m at 3.70% REO NRC136*: 128m at 4.17% REO to EOH NDD004*: 75.7m at 5.82% REO including 10.74m at 10.1% REO from 38.1m REO = total rare earth oxide including yttrium. See Table 2 for drill hole details and additional intersections received this Quarter from the Southern Rare Earth Zone. * = results received after the end of the December Quarter. These new results continue to illustrate the high grade, thick and consistent nature of the rare earth mineralisation in the Southern Rare Earth Zone (SREZ), which extends over an area of 850m north south and up to 740m east west (Figures 3 and 4). Mineralisation remains open to the north and south, indicating the potential to further expand the initial JORC resource with additional drilling after the rains this year. 3

4 ( Intersection labels REO %: A Current highlights A Previous highlights Drill holes max REO %: 0 to 1 1 to 2 2 to 3 3 to 5 >5 Completed holes, results awaited Max DH REO %: A 1-2 A 2-3 A 3-4 A >5 3.20% 3.27% 4.06 from surface to EOH 4.18% incl. 7.40% from 22m SW Alluvials NAC082 NAC % from 12m to EOH 4.48% NAC % from 36m Fig. 5 Fig. 4 ( ( ( ( NRC075 NRC102 NRC % to EOH NRC053 NRC089 NRC136 Results awaited 2.74% from 44m 6.37% NRC077 NRC027 NRC094 NRC015 Mt. Ngualla NRC080 ( Fig. 7 Southern Rare Earth Zone NRC % to EOH NRC129 Results awaited NRC125 NRC % from 26m mn mn mn mn % to EOH 2.43% to EOH 5.14% to EOH 3.19% from 24m 6.56% from 24m 3.07% N m me me me me me Figure 3: Plan of Southern Rare Earth Zone showing new results this Quarter and previous intersection highlights over maximum down hole REO % contours. Rare earth mineralisation also occurs over a large area within unconsolidated gravel and soil that has been eroded and transported to the South West Alluvial Zone from the bedrock source of the Southern Rare Earth Zone (Figures 2 and 3). All assay results from this 1,980m, 107 hole portion of the resource drilling program within the South West Alluvial Zone were received during the Quarter and include: Drill Hole NAC476: NAC477: NAC479: NAC480: NAC566: NAC567: intersection 24m at 3.27% REO to EOH 28m at 3.20% REO 10m at 3.01% REO 16m at 3.30% REO 17m at 3.72% REO to EOH 25m at 3.50% REO to EOH REO = total rare earth oxide including yttrium. See Table 3 for drill hole details and further REO intersections from the SW Alluvial Zone. 4

5 180m 127m 165m 180m WEST 2.68% from 30m including 5.78% from 38m 31m 4.48% 1.59% from 42m H NRC072 H NRC % H NRC075 Weathered 3.79% from 22m H NRC % 3.29% to EOH H NRC079 H NRC001 40m 2.43% to EOH including 5.44% H NRC080 Colluvium Weathered 3.02% to EOH including 4.85% from 68m H NRC082 H NRC084 EAST 1600mRL 1.37% from 92m Fresh 1.66% from 150m to EOH 1.57% from 60m 4.04% from 84m to EOH Fresh 2.05% from 74m 120m 120m 120m 180m 20m Primary mineralisation over 425m open down dip Ultramafic Ultramafic Carbonatite 1400mRL m mE mE mE SECTION 9,148,100mN NGUALLA PROJECT SOUTHERN RARE EARTH ZONE JAN Drill Holes Completed H Results received Intersection labels REO %: A Dec 2011 Qtr results (weathered) A Dec 2011 Qtr results (fresh) A Previously reported % REO A 1 to 2% A >2% A No Sample Recovered Figure 4: Drill hole cross section 9,148,100mN, Southern Rare Earth Zone, with new drill results and geology. Intersections confirm +3% REO mineralisation over a 770m x 280m area, correlate with results from 2010 drilling (Figure 5), and infill to the 100m spaced traverse spacing required for resource definition. The South West Alluvial rare earth mineralisation will form a part of the maiden rare earth JORC resource estimate that is scheduled for completion before the end of the current March 2012 Quarter. 1.81% WEST 13m H NAC359 19m H NAC % 18m H NAC360 H NAC % 18m H NAC080 Alluvial 2.73% 22m H NAC % 22m H NAC % H NAC % 3.26% NAC477 H H NAC082 24m H NAC363 17m H NAC % 10m 30m H NAC364 H NAC % 9m H NAC % 30m H NAC479 13m H NAC % 12m NAC366 34m H H NAC480 Bedrock Carbonatite 3.66% 27m H NAC086 Alluvial NAC367 NAC481 H 18m 38m H NAC087 EAST 11m 1500mRL 30m Bedrock Carbonatite 32m 30m 25m m 49m 200m mE mE mE SECTION 9,147,600mN NGUALLA PROJECT SW ALLUVIAL ZONE JAN Drill Holes Completed H Results received H Results pending H 2010 Drill Holes Completed Intersection labels REO %: A Dec 2011 Qtr results A Previously reported % REO A 1 to 2% A >2% 1400mRL A No Sample Recovered Figure 5: Drill hole cross section 9,147,600mN, South West Alluvial Zone, showing geology and new drill results received this quarter compared to previous drilling. 5

6 Metallurgy Mineralogical, including scanning electron microscope (SEM), work has shown that rare earths in both weathered and fresh rock in the Southern Rare Earth Zone occur as the carbonate minerals synchysite and bastnaesite. This is considered preferable to monazite, a phosphate rich rare earth mineral which can contain deleterious levels of thorium and uranium. Very low levels of uranium and thorium are present in the Southern Rare Earth Zone, with mineralisation above 1% REO averaging 17ppm uranium and 37ppm thorium in drilling to date. SEM work has identified coarse grained rare earth minerals in fresh rock (see Photo opposite) which is potentially favourable in terms of early liberation of these minerals during crushing. Beneficiation and metallurgical test work is in progress on bulk samples of diamond core at Amdel mineral laboratories in Perth, Western Australia, under the management of appointed metallurgical consultants Bateman Engineering Ltd, to determine optimal processing routes to produce a commercially viable rare earth concentrate product. Direct acid leach test work is in progress on samples of the iron oxide rich, carbonate poor weathered REO mineralisation, which is generally of higher grade and occurs. Other concentration processes including screening, gravity methods, magnetic separation and flotation are also in progress on these and a range of other fresh, weathered, mixed and alluvial bulk core samples (Figure 6). Photo: SEM photograph of a sample from NRC058, 59 to 60m showing coarse bastnasite crystals (light grey), barite (white) and ankerite (dark grey groundmass). Heavy Liquid Separation Crushing & Grinding 100kg bulk sample Gravity Separation Sizing Magnetic Separation Mineralogy Flotation Acid Leaching Figure 6: Simplified beneficiation test work diagram, Ngualla rare earth mineralisation Initial preliminary test work results on some samples are expected in early February Northern Niobium Tantalum Phosphate Zone Early results received this Quarter from wide spaced reconnaissance exploration drilling in the Northern Niobium Tantalum Phosphate Zone (Figure 3 and 7) confirm widespread (though at present lower grade) rare earth mineralisation in addition to these other metals, one kilometre to the north of the main SREZ. There is no drilling in the intervening area and mineralisation is currently open to the north, south and west. Rare earth intersections returned from the first seven (of 26) drill holes completed include: Drill Hole NRC121: intersection 52m at 1.33% REO from 20m NRC124*: 20m at 1.21% REO from 44m and 22m at 1.62% REO from 84m NRC125*: NRC127*: 24m at 1.72% REO from 26m 34m at 1.52% REO NRC129*: 22m at 1.77% REO and 10m at 2.74% REO from 44m and 24m at 1.46% REO from 78m REO = total rare earth oxide including yttrium. See Table 4 for drill hole details and additional intersections received this Quarter. * = results received after the end of the December Quarter 6

7 WEST 1600mRL 1.77% H NRC % H NRC127 Weathered 1.72% from 26m H NRC125 H NRC124 Fresh H NRC123 H NRC % 2.74% from 44m 1.21% 1.51% 1.20% 1.33% 1.37% from 44m from 6m from 20m from 42m H NRC121 H NRC021 H NRC003 H NDD003 EAST H NRC020 80m 22m 30m 96m 120m 1.29% from 58m Fresh 120m 80m Colluvium 74m 70m 1.46% from 78m 1.62% from 84m 85m 1.42% from 42m 90m 1.48% from 44.3m mE mE mE mE 200m SECTION 9,149,200mN NGUALLA PROJECT NORTHERN NIOBIUM-TANTALUM & PHOSPHATE ZONE JAN 2012 Drill Holes Completed H Results received Intersection labels REO %: A Dec 2011 Qtr results A Previously reported Figure 7: Cross section 9,149,200mN Northern Niobium Tantalum - Phosphate Zone, with rare earth drill results received this Quarter and geology % REO A 1 to 2% A >2% A No Sample Recovered Niobium tantalum and phosphate mineralisation associated with these rare earth intersections is detailed in the following pages of this report. With large areas not yet drill tested (Figure 3) and results received from only seven of the 26 wide spaced RC holes completed in the Northern Zone, there is considerable potential to extend the rare earth mineralisation significantly in most directions, and also to locate higher grade zones of rare earth mineralisation than have been identified in this area to date. Further drilling planned for this year after the rainy season has ended (April 2012), will investigate the potential for the SREZ and Northern Zone +1% rare earth mineralisation to join and be continuous over a north south distance of some 2.2km. The Northern Zone rare earth mineralisation contains a higher proportion of more valuable heavy and critical rare earths than the Southern Rare Earth Zone. Table 1 below compares the relative distribution of individual rare earths in the two zones at Ngualla and also to some other large rare earth deposits. Table 1: Relative components of individual REO s (including scandium and yttrium) as a percentage of total REO for some large rare earth deposits and the Ngualla Southern Rare Earth and Northern Zones (>1% REO). Rare Earths Content (% of total REO) Light RE Heavy RE Ngualla SREZ % Ngualla North Zone % Nolans Bore % Mountain Pass % Baiyunebo % Mt Weld % Lanthanum Cerium Praseodymium Neodymium Samarium Europium Gadolinium Terbium Dysprosium Other Yttrium Total % (Sources: Arafura Ltd and Lynas Corp Ltd websites) 7

8 The rare earth potential at Ngualla remains the Company s primary focus. However, assay results received during the December 2011 Quarter from reconnaissance exploration drilling in the Northern Niobium Tantalum Phosphate Zone confirm that the Ngualla Carbonatite is also highly prospective for niobium tantalum and phosphate. Results from seven of the 26 hole reconnaissance exploration drilling program in the Northern Zone, (Figure 1) received to date returned wide intersections of niobium tantalum and phosphate in addition to the rare earth mineralisation described above and including: Drill Hole NRC121: NRC122: NRC125*: NRC127*: intersection (niobium tantalum) 74m at 0.56% Nb 2O 5 and 171ppm Ta 2O 5 including: 26m at 0.91% Nb 2O 5 and 239ppm Ta 2O 5 22m at 0.55% Nb 2O 5 and 210ppm Ta 2O 5 including: 6m at 1.06% Nb 2O 5 and 403ppm Ta 2O 5 from 10m 8m at 0.41% Nb 2O 5 and 130ppm Ta 2O 5 from 24m 14m at 0.56% Nb 2O 5 and 161ppm Ta 2O 5 from 40m 24m at 1.12% Nb 2O 5 and 226ppm Ta 2O 5 from 4m 52m at 0.48% Nb 2O 5 and 108ppm Ta 2O 5 20m at 0.45% Nb 2O 5 and 103ppm Ta 2O 5 from 56m See Table 7 for drill hole details and additional niobium - tantalum intersections received this Quarter from the Northern Zone. * = results received after the end of the December Quarter Drill Hole NRC121: NRC122: NRC124*: NRC125*: NRC129*: intersection (phosphate) 64m at 19.7% phosphate from 10m 14m at 22.4% phosphate 8m at 15.6% phosphate from 24m 20m at 17.8% phosphate from 40m 43m at 18.0% phosphate from 33m 28m at 20.4% phosphate 28m at 19.7% phosphate from 92m to EOH See Table 8 for drill hole details and additional phosphate intersections received this Quarter from the Northern Zone. * = results received after the end of the December Quarter As the plans in Figures 8 and 9 illustrate, niobium tantalum and phosphate mineralisation are broadly coincident, surrounding the Southern Rare Earth Zone mineralisation on Ngualla Hill and extending northwards into the Northern Zone within karstic infill sediments and deeply weathered carbonatite bedrock. Drill hole NRC125 returned the highest grade niobium mineralisation intersected to date, from a depth of just 4m and accompanied by 20% phosphate (see Figure 10). This second style of mineralisation at Ngualla remains open to the north, south and west and is currently untested by drilling over a distance of 720m between the Southern Rare Earth and Northern Zones. Assay results from a further 19 RC holes completed in the Northern Niobium Tantalum Phosphate Zone are still awaited (Figures 8 and 9). Mineralogical studies have shown that phosphate occurs as apatite. Marketable rock phosphate concentrate grades range from approximately 30 to 40% but their value also depends on impurity levels. Some beneficiation and processing of the extensive 15 to 20% phosphate mineralisation at Ngualla would therefore be required to achieve a saleable phosphate product. Ferrocolumbite and pyrochlore have been identified as the niobium minerals. A bulk sample of mineralised diamond core is currently at Amdel laboratory in Perth undergoing initial beneficiation test work to determine the potential for the production of a commercially viable concentrate of niobium tantalum, phosphate and / or rare earths. 8

9 Intersection labels Nb2O5 %: A Dec 2011 Qtr results A Previous highlights Drill holes max Nb2O5 %: 0 to to to 0.75 >0.75 Completed holes, results awaited Max DH Nb2O5 %: A 0 to 0.25 A 0.25 to 0.50 A 0.50 to 0.75 A > % Nb2O5 and 214ppm Ta2O5 from 51m 0.47% Nb2O5 and 116ppm Ta2O5 from 20m 0.58% Nb2O5 and 87ppm Ta2O5 ( ( ( ( ( NDD0002 Fig. 10 Results awaited 0.48% Nb2O5 and 108ppm Ta2O5 and 0.45% Nb2O5 and 103ppm Ta2O5 from 56m NRC139 NRC141 NDD005 Southern Rare Earth Zone NRC143 Mt. Ngualla Results awaited NDD004 Northern Niobium Tantalum Phosphate Zone NRC129 NRC084 NRC127 NRC125 NRC110 NRC097 NRC124 NRC121 ( NDD % Nb2O5 and 226ppm Ta2O5 from 4m and 20.4% phosphate 0.56% Nb2O5 and 171ppm Ta2O5 and 20.6% Phosphate from 8m 0.56% Nb2O5 and 173ppm Ta2O5 from 20m 0.58% Nb2O5 and 11ppm Ta2O5 from 56m 0.62% Nb2O5 and 165ppm Ta2O5 from 12m 0.70% Nb2O5 and 245ppm Ta2O5 and 21.0% Phosphate from 1.45m mn mn mn mn me me me me me me NRC136 ( Results awaited Figure 9: Plan view of contoured maximum down hole phosphate in the Southern Rare Earth and Northern Zones of the Ngualla Carbonatite showing drill intersection highlights. Mineralisation remains open to the north, south and west me ( ( ( ( me Figure 8: Plan view of contoured maximum down hole Niobium in the Southern Rare Earth and Northern Zones of the Ngualla Carbonatite showing drill intersection highlights. Mineralisation remains open to the north, south and west. Intersection labels Phosphate %: A Dec 2011 Qtr results A Previously reported Drill holes max Phosphate %: 0 to 5 5 to to to 20 >20 Completed holes, results awaited Max DH Phosphate %: A 5 to 10 A 10 to 15 A 15 to 20 A > % from 51m NDD0002 Results awaited 19.7% from 92m to EOH 20.4% NRC139 Southern Rare Earth Zone NRC136 NRC141 Results awaited Northern Niobium Tantalum Phosphate Zone NDD005 NRC143 NDD004 Mt. Ngualla NRC129 NRC127 NRC110 NRC043 NRC125 NRC me me 500 N 18.0% from 33m NRC121 NDD me 19.7% from 10m 21.0% from 1.45m me 1000m 19.1% from 8m 22.6% from 2m Fig. 10 mn mn mn mn mn 500 N 1000m

10 120m WEST EAST 19.7% from 92m to EOH H NRC % Nb2O5 and 70ppm Ta2O5 H NRC127 Weathered 20.4% H NRC % Nb2O5 and 121ppm Ta2O5 from 33m 18.0% from 33m 17.4% H NRC124 Fresh H NRC % from 10m H NRC122 H NRC % from 1.45m H NRC021 H NRC003 H NDD003 H NRC020 80m 22m 30m 96m 120m 80m Colluvium 74m 70m 1500mRL 0.34% Nb2O5 and 121ppm Ta2O5 from 42m mE 0.45% Nb2O5 and 103ppm Ta2O5 from 56m 0.48% Nb2O5 and 108ppm Ta2O mE 1.12% Nb2O5 and 226ppm Ta2O5 from 4m 0.43% Nb2O5 and 120ppm Ta2O5 from 54m mE 85m 90m 0.56% Nb2O5 and 171ppm Ta2O % Nb2O5 and 245ppm Ta2O mE 200m SECTION 9,149,200mN NGUALLA PROJECT NORTHERN NIOBIUM-TANTALUM & PHOSPHATE ZONE JAN 2012 Nb-Ta intersection labels & Nb-Ta %: A Dec 2011 Qtr results A Previously reported A 0.25 to 0.5% A >0.5% A No Sample Recovered Phosphate intersection labels & Phosphate%: A Dec 2011 Qtr results A Previously reported A 10 to 20% A >20% A No Sample Recovered Figure 10: Reconnaissance drill cross section 9,149,200mN, Northern Niobium Tantalum Phosphate Zone, showing niobium tantalum and phosphate intersections within colluvial sediments and the weathered portion of the carbonatite. The large extent of this style of niobium tantalum, phosphate and rare earth mineralisation suggests potential for a large tonnage deposit immediately north of the Southern Rare Earth Zone and further drilling will be planned for Acquisition of 100% of Zari Exploration Ltd On 26th August 2011 Peak announced it had entered into a conditional agreement to acquire all the issued capital of Tanzanian joint venture partner Zari Exploration Ltd (Zari). The acquisition will give Peak 100% ownership of the Ngualla Rare Earth Project and offer the Company a greater flexibility of options in taking the project forward for the benefit of current Peak shareholders. Currently, Peak as operator and manager is earning 80% equity in the Ngualla Project by carrying Zari through to the completion of a bankable feasibility study. Peak anticipates being in a position to complete the Zari acquisition on or before mid-february Shareholder approval was granted on 23rd for the issue of shares as part of the payment required for the acquisition of Zari. Peak has, over the past 18 months, developed Ngualla into a significant new rare earth discovery, with a maiden resource estimate scheduled for completion in the first quarter of Ngualla is also highly prospective for niobium tantalum and phosphate. The Company s Directors believe that the acquisition of 100% of the project at this stage in its development will secure for Peak and its shareholders absolute control of the project and the value of its further upside potential. 10

11 Tanzanian Gold Projects (Lake Victoria Gold Field) Peak maintains an exploration base and dedicated gold exploration team at Mwanza in the Lake Victoria Gold Fields region of northern Tanzania to progress the Company s strategy of expanding the current portfolio of gold properties and adding value to these projects through early stage exploration. Location of Lake Victoria Goldfield TANZANIA Dar Es Salaam NORTH Lake Victoria Bunda Nkerege Musoma Ikoma KENYA North Mara 2.8g/t Au Soil sampling programs were completed during the Quarter at the Bunda, Nkerege and Sheba Projects (Figure 11). Assay results from these follow-up sampling programs at Nkerege and Sheba are awaited. Results from Bunda identify moderate gold, arsenic and copper anomalies that require field investigation and follow-up (see below). Results from recently completed surface sampling programs in the Igunga and Fort Ikoma Projects were received. The low level gold responses do not warrant further work and Peak has now formally handed these licences back to the joint venture partner. A number of potential new gold properties g/t Au Sheba Geita West (Imweru) Tulawaka 9.7g/t Au 1.4g/t Au Mwanza 1.15g/t Au Geita Nyanzaga 10.34g/t Au Bulyanhulu Buckreef Golden Ridge Nyakafura Shinyanga Buzwagi 1.7g/t Au Peak Resources Gold Project Location Igurubi Mine or Resource > 1 Moz Au Golden Pride Mine or Resource < 1Moz Au Gold Prospect (Barth) Igunga Major Population Centre DCW Major Internal Roads Archaen Greenstone km Figure 11: Peak s gold projects (yellow) and major mines in the Lake Victoria Gold Field, Tanzania were identified during the Quarter and negotiations are advancing on several of these properties. Singida Bunda Project Peak Resources option to acquire 100% The Bunda Project is located in the northern Lake Victoria Gold Fields 50km north east of Mwanza (Figure 11). Bunda is a new project acquired through an option agreement in August The licence, with an area of approximately 24km 2, surrounds a small excised lease containing old gold workings in sheared, highly silicified pyritic basalts. A program of soil sampling was completed during the December quarter to evaluate the potential for extensions to the known mineralisation and for new occurrences of this encouraging bulk tonnage style of gold mineralisation. Results from this wide spaced, first pass sampling identify moderate gold, arsenic and copper anomalies that will be followed up by further fieldwork in the coming Quarter. Australian Projects (Western Australia) Gold and copper The Company divested its remaining Australian projects at Three Rivers and Menzies during the Quarter in order to focus on the main value driver the Ngualla Rare Earth Project in southern Tanzania. Soil and rock sampling completed at Three Rivers by Peak last year, together with a ground geophysical survey did not identify any immediate targets for follow-up and the tenement was relinquished to avoid further costs. Peak retains an interest in the Menzies Project (M29/189) through a two year Option agreement with Riqo Pty Ltd, a private mining and exploration company at an exercise price of 1 million 20c shares or equivalent. Riqo must keep the tenement in good standing during this period. 11

12 CORPORATE Managing Director On 20th the Company announced the appointment of Mr. Richard Beazley as its Managing Director, effective as of 16 January Mr. Beazley is a mining engineer with more than 25 years experience in the resource sector and holds a Bachelor of Engineering from the University of New South Wales and a Master of Business Administration. He has a strong operational background in a diverse range of minerals from bulk commodities of iron ore through to gold, manganese, copper and tantalum to boutique and market specific minerals of spodumene and kaolinite. His previous appointment was as the General Manager, Technical Services & Corporate Development for Consolidated Minerals. This role oversaw the development of Consolidated Minerals infrastructure capital projects and mine planning and engineering requirements of the Australian and Ghanaian operations, and directed a specialised team dedicated to the Pilbara Manganese Development Project. Mr. Beazley s technical and managerial expertise in mining and project development will prove invaluable as the Company moves the Ngualla Project forward from exploration discovery through scoping and feasibility studies and into development. Chairman As a result of the appointment of Richard Beazley as Managing Director, the Executive Chairman Alastair Hunter has moved to the position of Non-Executive Chairman. Equity Issues On 18 November 2011 the Company announced a placement to institutional shareholders for 11,337,349 shares at $0.28 raising $3,174,458 before costs. The company also announced on 29 a share placement of 8,000,000 shares at $0.28 to sophisticated investors. The placement raised $2,240,000 before costs and was settled on 6 January 2012 after quarter end. Cash on Hand Peak retained $5.7million cash at the end of the quarter. Alastair Hunter Chairman The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Dave Hammond who is a Member of The Australasian Institute of Mining and Metallurgy. Dave Hammond is the Technical Director of the Company. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dave Hammond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 12

13 Hole Table 2 Ngualla Project Southern Rare Earth Zone REO Intersections, December Quarter 2011 RC and diamond drill results - Intersections +1% REO and minimum 4m intersected width. Selected intersections +2% REO in italics IDEast North Hole Depth (m) From (m) To (m) Interval (m) REO % NRC ,023 9,148, * 1.66 NRC ,080 9,148, NRC ,160 9,148, NRC ,240 9,148, * 4.04 NRC ,321 9,148, * 2.43 (Incl ) NRC ,955 9,148, * 2.09 NRC ,398 9,148, * 3.02 (Incl ) NRC ,880 9,148, NRC ,482 9,148, NRC ,797 9,148, NRC ,751 9,148, NRC ,402 9,147, NRC ,320 9,147, * 3.20 NRC ,489 9,147, * 1.50 NRC ,558 9,147, * 1.90 NRC ,634 9,147, (incl ) NRC ,723 9,147, NRC ,320 9,148, (Incl ) * 1.49 NRC ,401 9,148, (incl ) NRC ,076 9,147, * 3.54 (incl ) 13

14 Table 2 Ngualla Project Southern Rare Earth Zone REO Intersections, December Quarter 2011 (continued) Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) REO % NRC ,001 9,147, * 4.06 NRC ,921 9,148, NRC ,000 9,148, * 1.84 NRC ,092 9,148, * 1.93 NRC ,135 9,148, * 1.72 NRC ,125 9,148, * 1.50 NRC ,480 9,148, (Incl ) NRC ,560 9,148, NRC ,641 9,148, NRC ,720 9,148, NRC ,037 9,148, * 1.43 NRC ,122 9,148, (Incl (Incl ) NRC ,168 9,148, (Incl and ) NRC ,202 9,148, (Incl and ) NRC ,239 9,148, * 3.65 (incl ) NRC ,239 9,148, * 3.38 (incl and ) 14

15 Table 2 Ngualla Project Southern Rare Earth Zone REO Intersections, December Quarter 2011 (continued) Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) REO % NRC ,199 9,148, * 4.23 NRC ,160 9,148, NRC ,116 9,148, * 3.07 (incl * 6.04) NRC ,160 9,147, * 4.17 NRC ,160 9,148, * 1.86 NRC ,240 9,148, * 1.05 NRC ,318 9,148, NDD ,402 9,148, and ^ NDD ,276 9,148, (Incl ) Note: REO = Total Rare Earth Oxides including yttrium. See Table 1 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60 west RC drilling. Intersections calculated using 1% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP or XRF. Co-ordinate system is Arc 1960 UTM zone 36S. * = hole ended in mineralisation. 15

16 Hole Table 3 Ngualla Project South West Alluvial Zone REO Intersections, December Quarter 2011 Aircore drill results - Intersections +1% REO and minimum 4m intersected width. Selected intersections +2% REO in italics IDEast North Hole Depth (m) From (m) To (m) Interval (m) REO % NAC ,380 9,148, NAC ,456 9,147, NAC ,524 9,147, NAC ,300 9,147, NAC ,219 9,147, NAC ,904 9,147, NAC ,103 9,147, NAC ,293 9,147, * 3.27 NAC ,294 9,147, (incl ) NAC ,426 9,147, (incl ) NAC ,500 9,147, (incl ) NAC ,584 9,147, NAC ,663 9,147, NAC ,663 9,147, NAC ,580 9,147, NAC ,499 9,147, NAC ,419 9,147, NAC ,344 9,147, NAC ,270 9,147, NAC ,062 9,147, NAC ,862 9,147, NAC ,702 9,147, NAC ,903 9,147, NAC ,099 9,147, NAC ,303 9,147, NAC ,497 9,147, NAC ,705 9,147, NAC ,658 9,147, NAC ,864 9,147, NAC ,824 9,146, NAC ,580 9,146, NAC ,661 9,146, NAC ,742 9,146, NAC ,903 9,146, NAC ,862 9,147, NAC ,941 9,147, NAC ,022 9,147, NAC ,105 9,147, NAC ,183 9,147, NAC ,261 9,147, NAC ,339 9,147, NAC ,421 9,147, NAC ,502 9,147, * 1.21 NAC ,584 9,147, * 1.45 NAC ,021 9,147, * 1.59 NAC ,021 9,147,

17 Table 3 Ngualla Project South West Alluvial Zone REO Intersections, December Quarter 2011 (continued) Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) REO % NAC ,100 9,147, NAC ,622 9,147, NAC ,542 9,147, NAC ,460 9,147, NAC ,382 9,147, * 2.25 NAC ,302 9,147, * 1.95 NAC ,222 9,147, NAC ,138 9,147, NAC ,062 9,147, NAC ,980 9,147, NAC ,902 9,147, NAC ,824 9,147, NAC ,742 9,147, NAC ,981 9,147, NAC ,061 9,147, NAC ,142 9,147, NAC ,303 9,147, NAC ,383 9,147, NAC ,463 9,147, * 2.01 NAC ,543 9,147, NAC ,621 9,147, * 3.72 NAC ,704 9,147, * 3.50 NAC ,782 9,147, * 2.44 NAC ,620 9,147, * 3.14 NAC ,362 9,147, NAC ,525 9,148, * 2.21 NAC ,445 9,148, Note: REO = Total Rare Earth Oxides including yttrium. See Table 1 for relative distribution of individual rare earth oxides. Samples are 2m composites from vertical aircore or tricone drilling. Intersections calculated using 1% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP or XRF. Co-ordinate system is Arc 1960 UTM zone 36S. * = hole ended in mineralisation. 17

18 Hole Table 4 Ngualla Project Northern Zone REO Intersections, December Quarter 2011 RC drill results, Central Bedrock Zone - Intersections +1% REO and minimum 4m intersected width. IDEast North Hole Depth (m) From (m) To (m) Interval (m) REO % NRC ,957 9,149, NRC ,884 9,149, NRC ,796 9,149, NRC ,720 9,149, NRC ,642 9,149, NRC ,558 9,149, NRC ,480 9,149, Note: REO = Total Rare Earth Oxides including yttrium. See Table 1 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60 west RC drilling. Intersections calculated using 1% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP or XRF. Co-ordinate system is Arc 1960 UTM zone 36S. 18

19 Table 5 Ngualla Project Southern Rare Earth Zone Niobium Tantalum Intersections, December Quarter 2011 Intersections with a minimum width of 8m at > 0.25% niobium oxide are reported. Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) NRC ,160 9, NRC ,028 9, NRC ,481 9, * NRC ,797 9, NRC ,634 9, NRC ,402 9,148, NRC ,076 9,147, NRC ,001 9,147, NRC ,001 9,148, NRC ,480 9,148, NRC ,560 9,148, NRC ,641 9,148, NRC ,720 9,148, NRC ,037 9,148, NRC ,202 9,148, NRC ,239 9,148, NRC ,239 9,148, NRC ,116 9,148, NRC ,160 9,147, * NRC ,160 9,148, NRC ,240 9,148, * NRC ,318 9,148, Note: Samples are 2m composites from angled -60º west RC drilling. Intersections calculated using 0.25% Nb 2O 5% lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by XRF fusion for Nb and pressed powder for Ta. Co-ordinate system is Arc 1960 UTM zone 36S. * = hole ended in mineralisation. Nb2O3 % Ta2O3 ppm 19

20 Table 6 Ngualla Project Southern Rare Earth Zone Phosphate Intersections, December Quarter 2011 Intersections with a minimum width of 8m at > 10% phosphate are reported. Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) P2O5 % NRC ,634 9,147, NRC ,641 9,148, NRC ,720 9,148, NRC ,160 9,148, NRC ,240 9,148, NRC ,318 9,148, Note: Samples are 2m composites from angled -60º west RC drilling. Intersections calculated using 10% phosphate lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by XRF. Co-ordinate system is Arc 1960 UTM zone 36S. Table 7 Ngualla Project Northern Zone Niobium Tantalum Intersections, December Quarter 2011 Intersections with a minimum width of 8m at > 0.25% niobium oxide are reported (selected intersections + 0.5% Nb 2O 5 in italics). Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) NRC ,957 9,149, Nb2O3 % Ta2O3 ppm (incl ) NRC ,884 9,149, (incl ) (incl ) NRC ,720 9,149, NRC ,642 9,149, NRC ,558 9,149, NRC ,480 9,149, Note: Samples are 2m composites from angled -60º west RC drilling. Intersections calculated using 0.25% Nb2O5% lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by XRF fusion for Nb and pressed powder for Ta. Co-ordinate system is Arc 1960 UTM zone 36S. Table 8 Ngualla Project Northern Zone Phosphate Intersections, December Quarter 2011 Intersections with a minimum width of 8m at > 10% phosphate are reported. Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) P2O5 % NRC ,957 9,149, NRC ,884 9,149, NRC ,796 9,149, NRC ,720 9,149, NRC ,642 9,149, NRC ,480 9,149, * 19.7 Note: Samples are 2m composites from angled -60º west RC drilling. Intersections calculated using 10% phosphate lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by XRF. Co-ordinate system is Arc 1960 UTM zone 36S. 20