Neodymium and praseodymium (NdPr) rare earth explorer Peak Rare Earths [ASX:PEK] has announced a new exploration program at its critical mineral potential at the Ngualla deposit — a world-class rare earth development located near the City of Mbeya on the edge of the East African Rift Valley.
PEK had bumped down by 1% in share price following the announcement, though it is up 10% on its sector average and has climbed 15% so far in 2023:
Source: TradingView
Peak Rare Earths to commence exploration of critical minerals at Ngualla deposit
Peak is launching a new exploration program for critical mineral potential at the Ngualla deposit, which is a rare earth development located near the Ngwala Village — approximately 150km from the City of Mbeya in the Songwe Region and on the edge of the East African Rift valley.
Peak explained the deposit hosts a large carbonatite system — the world’s highest-grade undeveloped rare earth deposit. Though no drilling has been undertaken here in the last five years, historical drilling has identified potential for a range of critical minerals. This includes monazite-hosted rare earths, niobium, phosphate and fluorspar outside of the current mineral resource area.
Peak will be initiating a new exploration programme to test this potential. The miner said the new programme will test the multi-commodity exploration potential already identified at the site, with a focus on two of the most highly prospective areas — the Northern Zone and Breccia Zone.
Drilling at the Northern Zone is expected to comprise of 30 RC (Reverse Circulation) drill holes and 3,000 meters of drilling. Furthermore, the meridian drilling campaign at Breccia will consist of 10 drill holes and 1,000 meters of drilling.
Despite no drilling having been undertaken at Breccia, several trenches have been excavated in the area as part of a soil sampling campaign back in 2017, and mineralisation remains an open pit in all directions.
The company said that the exploration programme will not divert Peak’s primary focus from progressing Ngualla to a targeted FID (Financial Investment Decision) by the end of September 2023.
A tender process for exploration drilling has commenced, and it is expected that the initial drilling programme will extend from July–October 2023.
Estimated full costs for the exploration programme are around $1.5 million, and the miner intends to fund the activities with its recent capital raising.
Last month, Peak received firm commitments for a $27.5 million two-tranche institutional placement, in which it had received strong demand both in Australia and internationally.
The placement followed a recent signing of a binding framework agreement with the Government of Tanzania and the granting of a Special Mining License for the world-class Ngualla Rare Earth Project.
Source: PEK
The red draught and what you can do about it
Stopping climate change will require trillions and a global supply of critical minerals. One special metal in particular is copper.
This means that we’re going to need a lot of the red metal, and more exploration will be required to restock supplies.
If you subscribe to Fat Tail Commodities, you will have access to resources expert James Cooper’s most recent insider report on the subject — all for free.
James will give you instant tips on stock picks for the copper industry. He’ll also explain the copper supply crisis and how you can position yourself to take advantage of incoming changes in the industry.
Find out more about making money from the red draught and click here today.
Regards,
Fat Tail Commodities
Comments