By BusinessWeek Reporter
Dar es Salaam. Mineral-rich Tanzania might soon join few rare earth mining countries in the world if positive exploration results are anything to go by.

Reports indicate that Peak Resources, a mining exploration firm that operates the Ngualla Rare Earth Project in the South of the country could be able to announce a major discovery by the end of the first quarter of this year in March.

Earlier exploration results already show that Ngualla is proving to be one of the largest and better grade new rare earth discoveries of recent years, according to a statement released last week by the firm.

 “Peak Resources has received further assays from recent drilling at the Ngualla Rare Earth Project, which show broad intersections of rare earth oxides (REO) including 100 metres at 3.65 per cent from surface including 66 metres at 4.39 per cent,” the statement said.

Rare earth intersections from a further five holes in the Southern Rare Earth Zone also include 120 metres at 3.38 per cent REO from surface, including 14 metres at 5.33 per cent from 38 metres and 38 metres at 4.75 per cent from 68 metres.

Ngualla is a virgin discovery made by Peak Resources, with the first holes completed in June 2010.
The Australian company has rapidly advanced the project and a 19,046 metre resource drilling programme was recently completed on 30 November 2011.

Results continue to demonstrate that Ngualla is one of the largest and better grade new rare earth discoveries of recent years, with mineralisation still open to the north and south.

Rare earth mineralisation extends from surface and is similar in style to Lynas Corporation’s Mt Weld project in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite.
While the rare earth potential of Ngualla is Peak’s primary focus, the project also has potential to host large, near surface deposits of niobium-tantalum and phosphate.

A steady flow of assay results will continue until the end of January from the 21 reverse circulation and diamond holes in the Southern Rare Earth Zone and 23 reverse circulation holes still outstanding in the Northern Niobium-Tantalum-Phosphate Zone.

Peak Resources is targeting a maiden JORC Resource for the Ngualla rare earth mineralisation by the end of the March quarter of 2012.

The potential of the Ngualla Rare Earth Project also appears to be well acknowledged by investors with Peak Resources receiving firm commitments to raise A$2.24 million through the placement of 8 million new ordinary shares at $0.28 per share.

The placement was to new institutional and sophisticated investors. Funds raised from the placement will be used to complete the assays on the RC and diamond drill holes for the Ngualla Rare Earth drill program completed on 30 November.

In addition, the placement funds will assist beneficiation and metallurgical test work.

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