Overview During the Quarter: • Final assay results from Ngualla Project soil geochemical programme received. • Interpretation of Ngualla results outlines two large alluvial zones the first 2.5km by 1.5km and the second 1.5km by 800m containing highly elevated levels of REE’s phosphate, niobium, tantalum and titanium. • Core zone of hard rock REE anomalism was outlined at Ngualla extending over 2.5km by 800m. • Planning completed for drill programmes at Ngualla and Imweru with international drilling contractor engaged. • Drill rig mobilised for first programme at Imweru Gold Project (drilling now underway). • Peak acquires interest in advanced Igurubi Gold Project in Tanzania. • Soil geochemical results for Three Rivers Project highlight copper/gold anomaly. The March Quarter has seen much of the groundwork completed for an active exploration season in Tanzania commencing early in April. Work was undertaken on analytical results from the soil sampling programmes at the Ngualla Project and included analysis of an additional 334 samples that were submitted for analysis. The results from these samples were consistent with previous samples, however, anomalous trends remain open and further infill geochemical work is proposed. The soil programme results have formed the basis of drilling programmes at Ngualla planned for the coming June Quarter. A drilling contract has been awarded to South African based international drilling company, Geosearch International Ltd, operating in Tanzania as Tandrill Ltd, who will provide drilling equipment for Peak’s drilling programmes. Detailed data interpretation included petrological work on 16 representative samples of the Ngualla cabonatite, by Dr Reyno Scheepers, has provided encouragement on the potential of the economics associated with the Project with a limited presence of thorium and uranium elements identified. The March Quarter also saw the completion of planning for the first drilling campaign for the field season at the Imweru Gold Prospect which forms part of the Geita West Project. This programme commenced on 10 April and is to consist of between 3,000 to 4,000 metres of aircore drilling. Since Quarter’s end, the Company finalised an agreement with AIM/JSE listed company African Eagle Plc for the acquisition of a 75% interest in the Igurubi Gold Project. This Project is located approximately 190km south of the major regional centre of Mwanza and 50km from Resolute’s Golden Pride Gold Mine. Details of this project with terms for the acquisition were released to ASX on 7 April. The Company believes that activities carried out during the quarter lay the foundations for aggressive exploration including drilling in the 2010 field season. MARCH 2010 QUARTERLY ACTIVITIES REPORT Peak Resources Ltd Level 1, 11 Ogilvie Road Mount Pleasant, Western Australia 6153 PO Box 1271, Canning Bridge Western Australia 6153 ACN 112 546 700 Directors: Mark Maine, Executive Director Mobile: 0416 107 244 [email protected]Alastair Hunter, Chairman Rodney Foster, Non Executive Director ASX Symbols: PEK, PEKOA www.peakresources.com.au For personal use only
Transcript
OverviewDuring the Quarter:
• Final assay results from Ngualla Project soil geochemical programme received.
• Interpretation of Ngualla results outlines two large alluvial zones the first 2.5km by 1.5km and the second 1.5km by 800m containing highly elevated levels of REE’s phosphate, niobium, tantalum and titanium.
• Core zone of hard rock REE anomalism was outlined at Ngualla extending over 2.5km by 800m.
• Planning completed for drill programmes at Ngualla and Imweru with international drilling contractor engaged.
• Drill rig mobilised for first programme at Imweru Gold Project (drilling now underway).
• Peak acquires interest in advanced Igurubi Gold Project in Tanzania.
• Soil geochemical results for Three Rivers Project highlight copper/gold anomaly.
The March Quarter has seen much of the groundwork completed for an active exploration season in Tanzania commencing early in April. Work was undertaken on analytical results from the soil sampling programmes at the Ngualla Project and included analysis of an additional 334 samples that were submitted for analysis. The results from these samples were consistent with previous samples, however, anomalous trends remain open and further infill geochemical work is proposed. The soil programme results have formed the basis of drilling programmes at Ngualla planned for the coming June Quarter.
A drilling contract has been awarded to South African based international drilling company, Geosearch International Ltd, operating in Tanzania as Tandrill Ltd, who will provide drilling equipment for Peak’s drilling programmes.
Detailed data interpretation included petrological work on 16 representative samples of the Ngualla cabonatite, by Dr Reyno Scheepers, has provided encouragement on the potential of the economics associated with the Project with a limited presence of thorium and uranium elements identified.
The March Quarter also saw the completion of planning for the first drilling campaign for the field season at the Imweru Gold Prospect which forms part of the Geita West Project. This programme commenced on 10 April and is to consist of between 3,000 to 4,000 metres of aircore drilling.
Since Quarter’s end, the Company finalised an agreement with AIM/JSE listed company African Eagle Plc for the acquisition of a 75% interest in the Igurubi Gold Project. This Project is located approximately 190km south of the major regional centre of Mwanza and 50km from Resolute’s Golden Pride Gold Mine. Details of this project with terms for the acquisition were released to ASX on 7 April.
The Company believes that activities carried out during the quarter lay the foundations for aggressive exploration including drilling in the 2010 field season.
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Peak Resources LtdLevel 1, 11 Ogilvie RoadMount Pleasant, Western Australia 6153 PO Box 1271, Canning Bridge Western Australia 6153ACN 112 546 700
Alastair Hunter, ChairmanRodney Foster, Non Executive Director
ASX Symbols: PEK, PEKOA
www.peakresources.com.au
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Ngualla Project (Tanzania)
(Phosphate, Rare Earths and Niobium, Tantalum, Titanium and Base Metals)
(Peak Resources earning 80%)
Overview
Peak Resources advised the ASX on 2 March of the results of analyses of soil sampling on the Ngualla Project in late 2009, including surface and pit sampling. Since that announcement additional work has included assessment of petrological studies by the Company’s South African geological consultant, analysis of an additional 334 samples and analysis for zirconium, flourite and uranium selected central core area samples. The Company has also undertaken extensive planning together with testing of equipment for the upcoming field season which commences in the June Quarter. This has included work on equipment required to carrying out initial analysis on site at Ngualla, contracting drilling services, planning and review of preliminary metallurgical test work on alluvial material and other associated logistics.
Having completed analysis of data obtained during the previous two quarters, the June Quarter will see Peak embark upon an important stage in the development of the Ngualla Project. This will include the commencement of the first drilling campaign and metallurgical testing of material from pits within the alluvial zones.
alluvial Zones
In the December Quarter operations Review, Peak reported on initial results for Pits 2 and 3 based on analytical work carried out at the Mwanza laboratory in Tanzania. The report highlighted lanthanum and phosphate mineralisation that was shown to be evenly distributed throughout both pits. The Company at that stage was not in receipt of any assays for Pit 1 or rare earth results other than Lanthanum. Analyses for these elements has since been carried out by the SGS Perth laboratory, along with infill soil samples from the alluvial zones. Those results, announced on 2 March and provided further support for the economic potential of the alluvial zones within the Ngualla licence.
The aim of the test pits in the alluvial soil zones excavated in the latter part of last year was twofold; firstly, to determine whether the anomalous material identified by the first phase of soil sampling was surficial or developed throughout the alluvial soil horizon; and secondly, to assess the depth extent of this material.
The three test pits were excavated in areas of varying degrees of soil anomalism for phosphate, REES and other minerals. As the Company was not, at the time in receipt of the assay results from infill sampling, the pit locations were not optimised to target areas of highest anomalism.
• Pit 1 was excavated in an area of high phosphate but lower rare earths; • Pit 2 contained REE anomalism; and • Pit 3 was within a second new alluvial zone that had both phosphate and REE anomalism.
Results of infill soil sampling within the alluvial soils provided the Company with a clearer definition of these targets with maximum soil results of Lanthanum 8,500ppm (0.85%), Praseodymium 1,420ppm, (0.142%) Tantalum 138ppm, Niobium 4,700ppm (0.47%), yttrium 355ppm, Cerium 2.04% and Neodymium 7,400ppm (0.75%). Titanium and Phosphate results did not exceed the previous highest results of 2.40%Ti and +15%P2o5.
Based on these new results, the largest alluvial zone, the South-West Zone (see Figure 1), has potential dimensions of approximately 2.5km by 1.5km with thickness of alluvial material estimated to be up to 20m (possibly averaging 10m).
The second alluvial zone, the Central-East Zone, is approximately 1.5kms x 800m (see Figure 1). Depth potential is considered to be approximately +/-7m.
Phase-2 Ferrocarbonatite. Massive, homogeneous as dykes or breccia matrix.
Phase-3 Ferromagnesian carbonatite; massive, late stage & enriched in REE, Mo, magnetite & phosphorus.
Porphyritic tuff or rhyo-dacitic volcanics.
Fenite ‘roof-pendants’ at carbonatite contacts.
Fenite; strongly brittle-brecciated, silica & K altered contact unit.
Hydrothermal quartz veins; generally east-west, sub vertical to steep dip south.
Rockchip.“RMTZ” prefix. Taken specifically for rock geochemistry & petrology.
Creeks & drainage; generally dry, however main creeks are perpetually draining the carbonatite through dry months. Creeks in rich-red soils down to 10m deep.
Shaft; historic workings by Williamson or Anglo-American. Deepest recorded shaft is ~18m.
Defined / Partly Defined Corridor REE + Nb, Ti, Ta and Phosphate.
Mineralised Corridor.
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Test Pit Results
TEST PIT 1 TEST PIT 2 TEST PIT 3 9148000 MN – 480900 ME 9147600 MN – 481300 ME 9148600 MN – 492950 ME
The alluvial zones have become the Company’s highest priority targets as the economic implications for tonnage are substantial with potential for relatively low cost mining and processing to produce a high value concentrate.
Planning for the first phase of drilling has been completed with an initial drill hole spacing of 200m x 80m for coverage of the alluvial soil area. Contracts have been agreed with an international drilling contractor and a drill rig with air-core, reverse circulation and diamond drilling capacity has been secured for the upcoming programme. Drilling is expected to commence by mid to late May.
The three test pits are to be cleaned out in early May and pit walls re-sampled to provide material for initial metallurgical test work to be undertaken in Australia. A consultant metallurgical laboratory, with considerable experience in alluvial material has been appointed to undertake test work based upon approximately 100kg of material that is to be sent from Ngualla to Perth.
hardrock
Infill soil sampling within the central hardrock zone (considered to be the primary source of the alluvial material) has provided further confirmation of the anomalous hardrock zones. This combined with data from 334 samples, previously collected but not then analysed for rare earths, provided results that were consistent with earlier findings. Higher results returned from these samples included: Cerium 1.9%, Lanthanum 8,810ppm, Neodymium 5,850ppm, Praseodymium 1,610ppm and yttrium 405ppm. Additionally, elevated rare metal results included Niobium 5,510ppm, Titanium 2.36% and Tantalum 208ppm. They have highlighted the need for further infill geochemical work within the central hardrock zone which will be carried out in this upcoming quarter (180 samples planned).
While further work is to be undertaken during the quarter, there already exist several hardrock anomalies which are now at a drill ready stage. The first priority target is approximately 1000m by 500m. It extends from 9147700MN to 9148700MN and from 482100ME 482600ME. Much of this exceeds 1% Cerium, (peaking at 2.33%), supported by +1000ppm Niobium (peaking at 4960ppm) and Praseodymium +500ppm with a central core 700m x 200m at +1000ppm (peaking at 2540ppm), Lanthanum +2000ppm peaking at 1.51%.
Forthcoming exploration will include a detailed aeromagnetic survey designed to cover the carbonatite on a 50m line spacing. The Company is currently finalizing clearances required to facilitate the survey.
Petrological work (16 samples) was completed in South Africa by Peak’s technical consultant, Dr Reyno Scheepers.
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Results from this work indicate that a significant amount of the rare earth mineralisation is associated with an uncommon barium mineral. Significantly, the potential contaminant thorium was only noted in one sample however, it was not associated with the barite and was a separate discrete thorium containing mineral. Additionally, and equally importantly, no uranium minerals were noted during this work. This further supported the close association between barium and rare earth elements (REE) anomalism in the Company’s geochemical surveys.
Based in part on the petrological work, Dr Scheepers is currently carrying out a detailed review of the Ngualla geochemical data base to assess mineral ratios and association for both light and heavy REEs.
The implications for the barium/rare earth association may have important positive implications for the economics of the alluvial material due to the higher density of the mineral by gravity separation.
The Company has undertaken extensive research and testing of field portable XRF analytical equipment that could be utilized during the drilling programme. utilising XRF units can short circuit time constraints for laboratory results from both Mwanza and Perth and provide field geologists flexibility in planning infill drilling. However it is not considered by Peak to be appropriate to use portable XRF results for ASX releases until sufficient check analysis of drill samples has been carried out by conventional analytical techniques in Australia.
Imweru Gold Prospect (Tanzania)
(Peak Resources earning 75%)
Planning was completed and contracts let for the commencement of drilling on the Company’s Imweru Gold Prospect with drilling commencing on 10 April 2010. Imweru forms part of the Geita West Project in the Lake Victoria Goldfield of north west Tanzania. The West Geita Project comprises licences under offer or application totalling approximately 210sq km within the archaean greenstone belt that hosts the world class Geita Gold Mine (AnglogoldAshanti) The Geita Mine has a total size of 23.8Moz @ 3.3 g/t (production plus reserves and resources) and has produced in excess of 3.3Moz since modern mining commenced in 2000.
The Imweru Prospect, the eastern most licence within the Geita West group, was granted in January 2010 and lies approximately 55 km to the west of the Geita Gold Mine within the same greenstone belt.
The first drilling programme for the 2010 field season, will consist of between 3000 to 4000 metres of air core drilling and is designed to test the dimensions and gold grades of two key mineralised trends. Historical drilling (circa 2000/2001) within both trends intersected mineralisation that is open ended along strike and down dip. These zones were highlighted by rotary air blast and reverse circulation drilling consisting in part:
Two other targets to be drilled in this programme were identified by Peak’s work in the 2009 field season. The first of these targets is marked by intense artisanal gold workings with sampling and mapping by Peak returning up to 5.59g/t gold in gossanous quartz veining contained within altered mafic volcanics. The second, in a laterite, in an area of poor outcrop where rock chip sampling returned 20.15g/t gold from fractured quartz contained within the lateritic material.
Drilling results are expected to be available during the June Quarter.
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Igurubi Project (lake Victoria goldfield, Tanzania)
(Peak Resources acquiring 75% interest)
Peak Resources Ltd agreed terms with African Eagle Resources plc (“AFE”), for the acquisition of a 75% interest in the advanced Igurubi Gold Project in the Lake Victoria Goldfield in Tanzania.
The acquisition of the Igurubi Project provides Peak with an exciting opportunity to secure an advanced gold project with considerable upside potential. Based on work undertaken to date, Peak considers Igurubi has potential to host a resource of between 5 to 8 MT, grading 2.5 – 2.8g/t and 400,000 to 720,000 oz of gold along a known 5.5km corridor.
Igurubi is well located, being 190km south of the Tanzanian mining support centre of Mwanza and approximately 50km from the Resolute Resources Golden Pride Gold Mine. The Igurubi Gold Project comprises prospecting licences totaling 111km2 and contains several parallel gold bearing shear zones at or close to the contact between altered granite and greenstone rocks. Exploration work by African Eagle, including wide spaced drilling, has established the existence of gold mineralization over a strike length of more than 5.5 km.
Based upon conceptual modelling of the drill results undertaken by African Eagle Resources Peak Resources believes the Project hosts a target of significant economic potential.
The southern part of the project area is largely underlain by granite and greenstone lithologies. The contact between these lithologies is sheared and the granite, which is strongly altered, contains at least two parallel, northwest trending quartz reef zones. The main reef zone contains three mineralised structures, two of which were confirmed by drilling and extend over a strike length of at least 5.5km and remain open at both ends. The third, which is host to a number artisanal workings, has an estimated strike length of 2km.
Work by Peak has included a review of African Eagle’s exploration data combined with field reconnaissance and rock sampling. This work has confirmed the project’s prospectivity for both bulk low/medium grade and narrow high grade gold.
Numerous targets exist within the Igurubi Project that require follow up exploration, with three high priority targets currently identified where infill drilling is proposed to be conducted this field season. Exploration is expected to commence shortly following completion of conditions precedent under the Agreement.
Initial work programmes will be conducted in association with African Eagle’s exploration team and utilize the knowledge base that has been built up on the project over the past five years during which African Eagle has invested in excess of uS$1.5 million on the project licences.
1. The quantity and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
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Three Rivers Project (Western australia)
(Peak Resources 100%)
Work undertaken on the Three Rivers Project has included infill geochemical sampling and geological mapping to follow up on the broad spaced 500m x 200m programme undertaken in late 2008. Infill sampling was carried out on a 200m x 200m offset (triangular) running E-W across the grid over the southern portion of the licence. Total number of samples to be taken was approximately 1,100 plus rock chip sampling.
The work has highlighted what appears to be a coincident gold/copper soil anomaly in the central southern area of the licence.
The Narracoota Formation within the licence area is considered to represent a very prospective target for gold and VMS deposits. The next stage of exploration will require a geophysical survey over the southern portion of the licence prior to the development of drill programmes.
Menzies Gold Project (Western australia)
(Peak Resources 100%)
During the Quarter the Company received notice from Blue Star Resources Limited that it was withdrawing from the farmin/joint venture agreement. Peak Resources is evaluating options for progressing the project.
Yellowdine Nickel Project (Western australia)
(Peak Resources option to acquire 100%)
In November 2009 Exploration Licence 77/1112, over which Peak holds an option, west of yellowdine was granted. The tenement overlies a section of the yellowdine greenstone belt.
The Company has 18 months from grant of license to exercise an option to acquire the tenement for a price of $100,000.
During the quarter the Company undertook a review of historical data and development of a work programmeme. The tenement has had some significant historical works completed by a variety of parties for both Nickel and Gold. These results
THREE RIVERS PROJECT Cu ppm over geology
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include three rock chips (gossans, ex komatiites postulated by petrology) returning elevated Nickel values of over 0.5% that represent a genuine target with untested potential.
A compilation of surface sampling data and other minor works was undertaken to during the March Quarter aid in the evaluation of Nickel Potential of the prospect. This compilation was limited to samples that were analysed for nickel and base metals. (Gold only values have not yet been digitized.)
The data compiled illustrates that there exists potential for massive sulphide mineralisation within the greenstone belt. It appears that there are at least three stratigraphic horizons have the potential to host mineralisation, and more may exist unmapped to the west. To further test for and delineate Nickel mineralisation potential, the Company will undertake a Moving Loop TDEM survey later in the year. This survey will cover the bulk of the greenstone belt (inferred from mapping and aeromagnetics) as well as the granite - greenstone contacts.
Previous work has included a fixed loop survey over part of the region but the technique used was not the optimum method for reconnaissance surveys, and as a result is considered to be of limited value. The TDEM survey proposed includes 450 stations giving approximately 45 line kilometers of coverage. The expected total cost will be approximately $70,000. The survey should exhaustively define the presence/absence of massive sulphide bodies (and/or other basement conductors). Further work will be carried out on defined target areas.
Corporate
During the quarter Mr Alastair Hunter was appointed as Chairman of the Company in January reflecting the increasing demands on Directors as a result of the rapid development of the Company over the past six months.
Mr Hunter, previously a non executive director of the Company, has played a major role in the acquisition and development of the Tanzanian projects and the appointment reflects his ongoing contribution to the growth of the Company and the active role being played.
Peak Resources placed 20 million shares at an issue price of 15 cents per share to raise gross funds of $3,000,000. The March shares were placed to private clients of Southern Cross Equities and Shaw Stockbroking under the provisions of Section 708 of the Corporations Act.
As at the end of the Quarter cash at bank stood at $3.704m.
.
Mark Maine Executive DirectorThe information in this report that relates to Exploration Results is based on information reviewed by Rodney Foster who is a Member of The Australasian Institute of Mining and Metallurgy. Rodney Foster is a 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”. Rodney Foster consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.F
