Peak Resources Limited (ASX:PEK) Rare Earth (REE) Ngualla Project Drilling Results

Perth, Feb 24, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report the remaining assay results from the November - December 2010 RC and diamond drilling campaign in the central hills area at Ngualla.

Southern Rare Earth Zone

Results from the Southern Rare Earth Zone in the central hills area of the Ngualla carbonatite confirm and extend the substantial zones of rare earth mineralisation reported on 4th February 2011.

Mineralisation remains open to the north, west, south and with depth, with only a portion of the high tenor surface geochemical REO anomaly that is centred on Mt Ngualla drill tested to date (see Figures 1 and 2).

Diamond hole NDD001, angled at -60 degrees to the east, returned the deepest intersection to date, ending in mineralisation grading 4.96% REO within strongly weathered carbonatite at 101.08m (87m vertical depth).

Although the higher tenor REO mineralisation is hosted within the more strongly weathered clay and iron rich saprolite horizons of the carbonatite, some holes extend into relatively fresh carbonatite and contain mineralisation in the 1 to 2% REO range, illustrated in Figure 3 below. This suggests the potential for as yet largely untested, primary REO mineralisation at Ngualla in addition to the alluvial and regolith hosted mineralisation identified to date. Further deeper drilling is required to validate the extent of this primary mineralisation.

Sample recovery during the angled RC and diamond drilling program was sometimes poor in the highly weathered saprolite, with no sample return over some intervals. No sample return occurred within some mineralised zones; intervals of no sample return are not included in the intersections reported. Alternative drilling equipment and techniques will be used in future programs at Ngualla to improve sample recoveries.

Mineralogical studies have commenced on selected REO mineralised samples as a first step prior to metallurgical test work. Metallurgy, including beneficiation, is a key driver for development time and capital and operating costs for rare earth projects. Results from an initial five RC samples studied identify bastnasite as the main rare earth mineral present. Bastnasite is preferable to monazite as the predominant rare earth mineral as bastnasite typically contains low levels of uranium and thorium. The bastnasite observed often has a fibrous habit and is mainly included within quartz or iron oxides in the small number of samples evaluated to date. Liberation sizes therefore cannot be measured with any confidence. Further mineralogical work is in progress and will be followed by beneficiation and metallurgical testing of the various mineralisation types present at Ngualla. Drilling to date within the central hills area southern REO zone has intersected what are considered to be very low levels of uranium and thorium, averaging 17ppm uranium and 36ppm thorium.

Northern Niobium - Tantalum Zone

Assay results from the two diamond holes and three RC holes completed prior to the onset of December rains in the northern niobium - tantalum zone of the central hills area (Figures 1 and 4) have returned the highest grades of niobium, tantalum and phosphate encountered to date. Highlights from the new drilling include:

NDD002:   20.61m at 0.49% Nb2O5, 94ppm Ta2O5 from 24.29m and          5.15m at 1.64% Nb2O5, 214ppm Ta2O5 from 51mNDD003:   62.3m at 0.70% Nb2O5 and 245ppm Ta2O5 from surfaceNRC021:   22m at 0.91% Nb2O5 and 213ppm Ta2O5 from surface to EOH

High phosphate levels accompany the niobium - tantalum mineralisation and include:

NDD002:   5.15m at 25.4% phosphate from 51mNDD003:   60.85m at 21.0% phosphate from 1.45mNRC021:   14m at 20.6% phosphate from 8m to EOH

Full results above 0.25% Nb2O5 and 10% phosphate are detailed in Tables 3 and 4.

Only a small portion of the large, high tenor surface geochemical niobium - tantalum anomaly has been drill tested to date and significant exploration upside therefore remains for these commodities. Mineralogical studies will be completed on this mineralisation prior to initial beneficiation test work and further exploration drilling.

Preparation is underway for further drilling at Ngualla, which will commence after the rainy season ends in late April.

The priority focus of future drilling will be to test both the bedrock and alluvial REO zones of mineralisation with the objective of providing sufficient data for an initial JORC compliant resource estimate as rapidly as possible.

For the complete Peak Resources announcement including tables and figures, please refer to the following link below:
http://www.abnnewswire.net/media/en/docs/530451.pdf

Contact

Alastair Hunter Chairman Tel: +61-8-9316-9599 Email: alastair@peakresources.com.au http://www.peakresources.com.au