Peak Resources Rare find
www.peakresources.com.au
Rare find
written by: Alan Swaby research by: Jeff Abbott
Peak Resources
The role of junior exploration companies is to find something to mine; but there is one such company planning to use the finds it has made to transform into a major mining operation
Drilling on the south east side of Ngualla Hill
Peak Resources
W
hile rare earths are nowhere near as rare as their name implies—cerium, for example, is present in similar quantities to copper—they don’t make commercial extraction easy. They are often widely dispersed and lack the concentration needed for economical exploitation. And even where minable deposits are found, the metallurgy involved in claiming the minerals is often highly complex. Of all the world’s sources of rare earths, by far the most plentiful is found in China but for the past few years, the Chinese have been restricting exports. Not surprisingly, then, in rare earth circles, a new and plentiful source is bound to create interest. Such is the case in Tanzania, where Australian junior exploration company Peak Resources, after a long and winding road, has stumbled across what is shaping up to be the fifth largest rare earth find in the world outside of China. “Peak Resources,” explains managing director Richard Beazley, “was launched on the Perth stock exchange in 2006 as an exploration company, looking for gold. When Alistair Hunter joined Peak [Hunter is now company chairman] he brought with him gold leases from Tanzania. Once we landed in Africa, the search soon widened to phosphates, which the Canadians had earlier identified. But after two exploratory drill holes at Ngualla, we found indications of rare earths
and with that, adopted a complete shift in approach.” Rare earths are collectively a group of elements that essentially make up the second bottom row of the periodic table. There are 15 such elements, ranging from light to heavy atomic weights with the heaviest the most difficult to separate and the most costly to buy. They tend to group themselves together and offer numerous properties for use in today’s technologies. Rare earth magnets, for example, are nine times more powerful than ferrite magnets and are finding applications as tiny magnetic medical tools for use inside the body or in hybrid vehicles or wind turbines. Other rare earths are particularly useful in polishing the finest optical surfaces; while others have fluorescent properties ideal for communication equipment such as TVs and mobile phones. The site at Ngualla is still virgin bush. In late February, after just 18 months of drilling, the company issued a maiden resource statement defining a resource of 170 million tonnes of rare earth oxides at 2.4 per cent; and within that body a high grade part of 40 million tonnes at 4.07 per cent. Since then, more infill drilling has been conducted, with the ongoing data
The team on Ng
indicating continuing positive high grades. So much so that Peak Resources is now morphing from a junior exploration company into a mining operation. The first step in this process, just seven months ago, was the appointment of Beazley as managing director who brought with him considerable mining experience, particularly in the development of new green field sites. In turn, Beazley has made
“Rare earths have always involved complex metallurgy but we are confident that ours will be as simple as it’s possible to be”
Peak Resources
gualla Hill - left to right - Patrick Ochieng, Sam Boucaut, Erasto Kafyulilo, George Mwarabu and Emmanuel Kisendi
his first major recruitment confident that ours will be decisions, bringing on as simple as it’s possible board an experienced to be. The ore body is rare earth metallurgist relatively clean and we who will be instrumental are confident of being able Year Peak Resources in defining the f low of to avoid the need for an launched on Perth Stock material through the plant expensive flotation plant or Exchange other processes to clean up and a chief development the ore before processing.” officer who will manage the balance of the studies Instead, after mining that are needed and begin commercial and blending on a ROM pad, the outline development. plan will involve grinding the ore down to “We are just a few weeks away,” says 100 microns, mixing it into a slurry and Beazley, “to being able to release a detailed then stripping out the rare earths through process flow sheet or diagram on how we a low concentration, low temperature will process the mined ore through to sulphuric acid leaching cycle. Even then, finished product. Rare earths have always the investment needed to bring the plant involved complex metallurgy but we are on stream will be well in excess of half a
2006
Erasto Kafyulilo (geologist) and Dave Hammond (technical director) on Ngualla Hill
“The most important factor by far is the nature of the ore body we are working with and its low levels of impurities” billion dollars and Beazley is currently in exploratory talks with potential offtake partners who could be instrumental in raising the funds. As a junior mining company, the ability to raise the money to go it alone is simply out of the question and it will need some of the world’s biggest organisations—and users of rare earths—to underwrite construction. Apart from the underlying excitement
of having such a potentially rich source of rare earth minerals, the industry is shaking its collective head at the audacious timescale that Peak Resources is publically claiming is achievable. “All the other rare earth mining projects have taken years, if not decades,” says Beazley, “and we are telling the industry that product will come on stream by 2015 or 2016 at the latest. Insiders are saying that this is impossible.”
Peak Resources
Richard Beazley
Onsite sampling at Ngualla
Nevertheless, Peak could The next stage of the process, as well as a well show all its detractors complete understanding that they are wrong. For of the variability of the example, the lab work ore body, will be further necessary to prove the Number of elements complex chemical extraction proof that the metallurgy classified as rare earths process often takes years to is understood. This will finalise and yet Peak has involve a pilot plant which accomplished this in just can demonstrate that eight months. “There is still some R&D work the five product groups of rare earths to do,” says Beazley, “because no rare earth that Peak Resources is initially targeting body is ever the same. But our timescale is can actually be extracted in the way realistic. We aren’t breaking new ground but that it believes. building on what is already known. But the most important factor by far is the nature For more information about of the ore body we are working with and its Peak Resources visit: low levels of impurities. Immediately, this www.peakresources.com.au cuts out half the time and half the capex.”
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Peak Resources
Level 2, 46 Ord Street West Perth Western Australia 6005 T +61 (0)8 9200 5360 www.peakresources.com.au
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