ngualla project a large new rare earth discovery for ... · for personal use only 01 july 2010 30...
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Ngualla Project a large New rare eartH discovery
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The information in this document has been prepared as at March 7th, 2012. Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information.
Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements and information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Company’s Annual Report for the year ended December 31, 2010, as well as the Company’s other filings with the Australian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.
Competent Person StatementThe information in this presentation relates to Exploration Results based is based on information reviewed by David Hammond who is a Member of the Australasian Institute of Mining and Metallurgy, David Hammond is a Director and full time employee of the Company. He has sufficient experience which is relevant to the 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 ad Ore Reserves’. David Hammond consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
DisclaimerF
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1/ Corporate Details2/ Rare Earth Markets3/ Ngualla Rare Earth Project 4/ Maiden Resource5/ Project Advantages6/ Development Schedule
Outline F
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Investment Highlights
Moving from Explorer to Developer
• Maiden Resource – 29th February 2012
• 4th largest rare earth deposit outside of China
• Highest grade of the six largest deposits
• Low market cap for size of resource – significant upside
• 100% ownership
• Distinct project advantages support Peak’s aim to be in the lower cost quartile of producers
• Encouraging early stage metallurgical test results
• Niobium – tantalum, phosphate and rare earth exploration upside
• Scoping studies commencing For
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Ordinary Shares on Issue: 207.1m Cash at 1st March: $6.6m52 week range: $0.26 - $0.87Market Cap: $111.8m (at $0.54)
Share Price (01 July 2010 – 1st March 2012)
Corporate Details
Board and Senior ManagementAlastair Hunter Non-executive Chairman
Richard Beazley Managing Director
Dave Hammond Technical Director
Jonathan Murray Non-executive Director
Linda Paini Company Secretary
Brian Lloyd Exploration Manager (Tanz)
ConsultantsResource consultants: Hellman & Schofield Pty Ltd
Metallurgical & mineral processing: Bateman Engineering Pty Ltd
Mineral processing test laboratory: Amdel
Legal representation: Australia: Steinepreis PaganinTanzania: AKO Law
Auditor: Deloitte Touche Tohmatsu
Options outstanding: 11,041,667Liquidity: 1.8 million shares per day (av. over 3 months)
IPO Date: 29 November 2006
ASX: PEK 1st March 2012
$0.89 –
$0.79 –
$0.69 –
$0.59 –
$0.49 –
$0.39 –
$0.29 –
$0.19 –
$0.09 –30 SEPT 2010 30 DEC 2010 31 MAR 2011 30 JUNE 2011 29 SEPT 2011 29 DEC 201101 JULy 2010
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The Rare Earth Market
• China controls 97% of supply, export restrictions, price increases, the West is searching for alternative supply
China USA Other
Global Rare Earth Metal Oxide Production (,000 tonnes)
140
1956 20081965 1985 2002
20
40
60
80
100
120
Nd Oxide Pr Oxide La Oxide Ce Oxide
Rare Earth Metal Oxide Price ($US per tonne)
350,000
2004 20112005 2006 2007 2008 20102009
50,000
100,000
150,000
200,000
250,000
300,000
Source: Metal – Pages Ltd
Clean energy Digital technology
• Growth markets in renewable energy and advanced technologies
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!Mbeya
Dar Es Salaam
UGANDA
KENYA
ZAMBIA
MALAWI
Lake Victoria
Indian Ocean
Lake Rukwa
Ngualla Project
Lake Nyasa
T A N Z A N I A
N
400km0 100 200
• Tanzania – an established mining culture
• Third largest gold producer in Africa
• Access to transportation
Location and Infrastructure
Ngualla Project
Lake Rukwa
147km
56km
B363
B345
B6
A104
Dar Es SalaamPort 750km
MbeyaN
50km0 10 25
• Onsite power required
• Good potential for groundwater
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• Virgin discovery – August 2010 • 26,700m drilling for the resource
Resource and exploration drilling
Northern Niobium – Tantalum, Phosphate Zone
Northern Niobium – Tantalum, Phosphate Zone
Southern Rare Earth Zone
SW Alluvials
Max DH REO %:
A 1 to 2%
A 2 to 3%
A 3 to 5%
A >5%
Max DH REO %:! <1%! 1 – 2%! 2 – 3%! 3 – 5%! > 5%
OPEN OPEN
OPEN
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The information in this report that relates to Mineral Resources is based on information compiled by Rob Spiers, who is a member of The Australasian Institute of Geoscientists. Rob Spiers is an employee of geological consultants Hellman and Schofield Pty Ltd. Rob Spiers 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’. Rob Spiers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
• Ngualla Mineral Resource – 1.0% and 3.0% cut off grades
Maiden JORC Resource 29th February 2012
Classification of Mineral Resources for the Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades.
Lower cut – off grade
Resource Category
Tonnage (Mt)
REO (%)*
Contained REO tonnes
1.0% REO
Measured 29 2.61 750,000
Indicated 69 2.43 1,700,000
Inferred 72 1.92 1,400,000
TOTAL 170 2.24 3,800,000
3.0% REO
Measured 11 3.99 430,000
Indicated 21 4.09 850,000
Inferred 8.7 4.11 360,000
TOTAL 40 4.07 1,600,000
*REO (%) includes all the lanthanide elements plus yttrium oxides.
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9
8
7
6
5
4
3
2
1
0
12
10
8
6
4
2
0
REO
Grad
e (%
)
Cont
aine
d RE
O (M
t)
REO grade %
Contained REO (Mt)
350m Depth to base of resource
375m
300m
240m
155m450m
126m 600m
155m
• Ngualla is a large, high grade, globally significant rare earth deposit
• It is the highest grade of the 6 largest deposits outside of China
• Shallow resource and outcropping high grade mineralisation positions Ngualla as a potential low cost open pit mine
Global top 4 Rare Earth Deposit
Niobec
Kvane
fjeld
Necha
lacho
Nguall
a (Bulk
)
Montvi
el
Strang
e Lak
e
Mounta
in Pa
ssEld
or
Nguall
a (High
Grade)
Mount
Weld
Zand
korps
drift
Nolan’s
Bore
Bear L
odge
Dubbo
Nora Karr
Wigu Hill
Source: Company filings and Technology Metals Research
Project Comparisons
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5 rare earths are forecast to be in critical undersupply: • Neodymium, • Dysprosium • Europium • Terbium • yttrium
54% of the in ground value at Ngualla is from these 5 critical RE’s. Neodymium is the major contributor at 35%
Ngualla has a typical mix of critical rare earths and compares well with other large deposits
Critical Rare Earths
Imp
ort
ance
to
cle
an e
nerg
y
Supply risk
1 (lo
w)
2 3
4 (h
igh)
1(low) 2 3 4 (high)
CeriumCobaltGallium Indium
LanthanumManganesePraseodymium
Nickel
Neodymium
EuropiumLithium
YttriumTellurium
Dysprosium
Terbium
Samarium
Critical
Near-Critical
Not Critical
Critical REO as % of total
17.0
20.0
12.2
16.1
19.820% –
15% –
10% –
5% –
0 –Ngualla SREZ Ngualla SW
alluvialsMountain
PassBaiyunebo Mt Weld
La2O3 27.4%
Other 1%
Sm 1%
Y 1%
Gd 2%
Dy 3%
Nd 35%
Ce 20%
Eu 15% La 11%
Pr 10%
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• Peak currently has a low market cap for the deposit size and quality
• Potential to add value through advancing the Ngualla Project
Peer Comparison – Value Upside
$1,400.00
$1,200.00
$1,000.00
$800.00
$600.00
$400.00
$200.00
00.00
Mar
ket C
ap p
er R
EO to
nne
Market Cap
118.0 Market Capitalisation (A$M)
Peak Frontier Tasman MetalsAvalon Arafura MolycorpGreenland M & E
Kimberley RE’s AlkaneQuest Rare Element Lynas
Ngualla Zandkorpsdrift Norra KarrNechalacho Nolans Bore
Mountain Pass
Kvanefjeld Cummins Range
DubboStrange Lake
Bear Lodge
Mount Weld
Major Project
Source: Technology Metals Research and Bloomberg. 5th March 2012.
Market Capital per REO Contained Tonnes
$1,337.89
$971.53
$545.08
$336.88
$276.83$136.69
$118.81$102.70$68.81$60.23
$30.53$26.54For
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The consistent blanket of mineralisation at surface, on a hill suggests a shallow open pit with low strip ratios and low cost mining
Mineralisation and Mining
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H NR
C030
H NR
C064
H NR
C066
H NR
C032
H NR
C034
H NR
C037 H NR
C039
H N
DD008
H NR
C041
H NR
C042
H NR
C043
120m
101m94m110m
120m120m
120m
200m
120m
112m
120m120m
1600mRL
1700mRL
1500mRL
482400mE 482600mE482200mE482000mE481800mE
44m @ 1.50% from 76m to EOH
88m @ 2.38% from 20m
34m @ 4.36% from surface
56m @ 5.83%from surface
39m @ 4.39%from surface
52m @ 3.67%from 62m
Alluvial and weatheredbedrock mineralisation
Fresh rock mineralisation
Fresh rock mineralisation
Alluvial and weatheredbedrock mineralisation
150m
700m
200m1000 50
SECTION 9,147,800mN NGUALLA PROJECT SOUTHERN RARE EARTH ZONEFEBRUARY 2012
Drill REO %:
A 1 to 2% A 2 to 3%
A 3 to 4%
A >4%
Block Model REO %:
1 to 2% 2 to 3%
3 to 4%
>4%
Intersection labels REO%:
A Weathered
A Fresh
EASTWEST
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Resource Upside
Ngualla Hill
150m
700m
1km
A
B
REO %:
A >4%
A 3 to 4%
A 2 to 3%
A 1 to 2%
SW Alluvials
OPEN
OPEN
OPEN
OPEN
Mineralisation is open to the north, south and with depth below 150m
OPEN
OPEN
OPENOPEN
Southern Rare Earth Zone
B
A
Block Model
Southern Rare Earth Zone
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Mineralogy and mineralisation styles
FreshFresh
Weathered
Colluvium
Carbonatite
Ultramafic
120m 120m
120m
120m
144m
177m
98m
140m
1400mRL
482400mE482200mE
H NR
C023
H NR
C024
H NR
C025
H NR
C027
H NR
C028
H NR
C029
EASTWEST
56m @ 5.09% from surface
114m @ 1.98% from surface
34m @ 1.82% from 86m
22m @ 1.50% from 56m
28m @ 1.83% from 92m
32m @ 1.47% from 144m to EOH
200m1000 50
SECTION 9,148,000mN NGUALLA PROJECT SOUTHERN RARE EARTH ZONESEPT 2011
% REO A 1 to 2% A >2% A No Sample Recovered
1600mRL
2011 Drill Holes Completed H Results received H Results pending
Intersection Labels % REOA Weathered A Fresh
144m @ 5.14% from surface to EOH
Rare earths occur as the carbonates synchysite and basnaesite with very low uranium and thorium levels – averaging just 21ppm Uand 35ppm Th in the Southern Rare Earth Zone mineralisation above 1% REO.
Photo 1: SEM photograph of a sample from NRC058, 59 to 60m showing coarse bastnaesite crystals (light grey), barite (white) and ankerite (dark grey groundmass).
Fresh 1.5 to 2.5% REOCoarse euhedral RE minerals
Oxide 3 – 8% REO Iron oxide, barite, leached of carbonates
Section 9,148,000mN (detail)
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Metallurgy
Iron Oxide Mineralisation
• Preliminary leach extraction rates of 88% REO.
• Test work in progress to evaluate simple processing route to concentrate production for near surface high grade mineralisation.
Primary Carbonate Mineralisation
• Simple gravity beneficiation shows promise in preliminary sighter tests.
• Mineralisation may be amenable to conventional gravity / flotation beneficiation for concentrate production.
NDD006-Tray4-Weathered-carbonatite
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1km
Intersections up to: 119m at 0.71% Nb2O5 and 162ppm Ta2O5 from surface to EOH58m at 21.2% P2O5 from 4m66m at 1.56% REO from 10m
Northern Zone Exploration Upside
Northern Niobium – Tantalum, Phosphate Zone
Southern Rare Earth Zone
OPEN
OPEN
OPEN
OPEN
NGUALLA PROJECT
3D Projection
Max DH Nb2O5 %
0.50 – 0.75
>0.75
Max DH Nb2O5 %
! <0.25
! 0.25 – 0.50
! 0.50 – 0.75
! > 0.75
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Ngualla – a Quality Rare Earth Project • Location – accessible infrastructure
• Tanzania – established mining friendly legal & taxation system
• 100% clean ownership
• 4th largest RE deposit in the world outside of China
• Highest grade of the 6 largest deposits
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Ngualla – a Quality Rare Earth Project • Highest grades at surface, on a hill (low strip open cut)
• Very low uranium and thorium levels
• Weathered material may be amenable to simple acid leach
• Fresh mineralisation – conventional gravity / flotation
• Exploration upside – Nb, Ta, P and REO
... on the road to development
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Development Program for Rare Earth ProductionM
ilest
ones
RE E
xplo
ratio
n &
Re
sour
ce D
rillin
gPo
tent
ial P
athw
ay
to R
E Pr
oduc
tion
EXPLORER MINERDEVELOPER
2010 2011 2012 2013 2014
Commenced Metallurgical Characterisation Supply Agreements
Zari JV Aquisition
Maiden Resource Statement
Metallurgical Flow Sheet Development
Pilot Plant Trials
1st Year Drill Program
3rd Year Drill Program
Scoping Study
Pre-Feasability Study
Definitive Feasability Study
Construction
1st Year Drill Program
4th Year Drill Program
2015 2016
Production Start Up
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Peak resources LimitedHead Office: Level 2, 46 Ord St, West Perth WA 6872
Ph: +61 8 9200 5360 Fax:+61 8 9226 3831
www.peakresources.com.au
ASX Code: PEK
Richard Beazley Managing Director [email protected]
David Hammond Technical Director [email protected]
Alastair Hunter Non-executive Chairman [email protected]
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