Peak Resources shares have jumped after metallurgical testing by the Perth-based explorer demonstrated a high-grade rare earth carbonate product from samples at its Ngualla project in Tanzania.
Peak said the quality of the concentrate, produced from a sulphuric acid leach process, and the high recoveries achieved added further advantages to the Ngualla project’s favourable geology of high-grade mineralisation at surface and the lowest levels of uranium and thorium of any deposit worldwide.
The Ngualla project is the world’s fifth largest rare earths deposit outside of China.
By close of trade today, Peak stocks had gained 12.9 per cent, trading at 17.5 cents.
“Achieving this milestone after nine months of test work is outstanding when compared to the typical time frames taken by the rare earth resource industry and reaffirms the company’d target of commencing production in early 2016, a significantly shorter period to deliver than other typical rare earth projects,” managing director Richard Beazley said in a statement.
“The metallurgical test work to date has indicated that the capital expenditure for this extraction process will be low compared to the rest of the industry, and importantly the environmental advantages to this type of process against other leaching methods are significant.
“Peak is now in a position to engage with strategic partners and off-take partners to define the product specifications required, commence discussions for long-term supply of product and to facilitate commercial financing arrangements to deliver the project to production.”
