tanzania developing a new rare earth...

Developing a New Rare Earth Discovery

Ngualla Project Tanzania

INVESTOR PRESENTATION

PRESENTED BY RICHARD BEAZLEY MANAGING DIRECTOR PEAK RESOURCES

Ngualla Rare Earth Project September 2012

2

DisclaimerThe information in this document has been prepared as at 29th August, 2012. The document is for information purposes only and has been extracted entirely from documents or materials publicly filed with the Australian Stock Exchange and/or the Australian Securities and Investments Commission. This presentation is not an offer or invitation to subscribe for or purchase securities in the Company. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information. Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements and information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward looking statements contained in this document, see the Company’s Annual Report for the year ended 30 June 2011, as well as the Company’s other filings with the Australian Securities Exchange and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.

competent Person StatementThe information in this presentation relates to Exploration Results based on information reviewed by David Hammond who is a Member of the Australasian Institute of Mining and Metallurgy, is also a Director and full time employee of the Company. He has sufficient experience which is relevant to the mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. David Hammond consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this presentation that relates to Metallurgical Test Work Results based on information compiled and / or reviewed by Gavin Beer who is a Member of The Australasian Institute of Mining and Metallurgy. Gavin Beer is a Consulting Metallurgist with sufficient experience relevant to the activity which he is undertaking to be recognized as competent to compile and report such information. Gavin Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.


3

Introduction

Moving from Developer to Miner of rare earths

• South West tanzania – 3rd largest producer of gold in africa

• Maiden resource Feb 2012 - 5th largest rare earth resource, and the highest grade of the seven largest deposits outside of china

• just completed a $7.5m capital raising

• Why we will succeed:

• Projecteconomics,and

• Timelinetoproduction

• Where we are:

• Resourcedrilling

• Scopingstudy

• Metallurgicaldevelopment

!Mbeya

Dar Es Salaam

UGANDA

KENYA

ZAMBIA

MALAWI

Lake Victoria

Indian Ocean

Lake Rukwa

Ngualla Project

Lake Nyasa

T A N Z A N I A

N

400km0 100 200


4

The Team

Alastair Hunter Non-executive Chairman

MrHunterhasmorethan38years’experienceinthemanagementofresourceprojectsinaustralia,africaandnorthamerica.Hehasplayedasignificantroleinanumberofgoldandbasemetalsdiscoveries.MrHunterwasformerlyadirectorofPeninsularMineralsnL,andaformermanagingdirectorofMatlockMiningnLandangloResourcesnL.

MrHunterisresponsibleforprovidingstrategicadvicetotheexecutiveontheGroup’sTanzaniaexplorationprojectsandcoordinatingtheGroup’srelationshipwithzariExplorationLimited.

Dave Hammond Technical Director

WithanMScinMineralExplorationfromtheRoyalSchoolofMines,London,DaveHammondisageologistwithover23yearsoftechnicalandmanagementexperienceinafricaandaustralia,inarangeofcommoditiesandgeologicaldepositstyles.Mr.HammondwaspreviouslyExplorationManagerwithDeGreyMiningLimited,workingonprojectsinthePilbaraandnewprojectacquisitionsglobally.

HispreviousexperiencealsoincludesExplorationManagerforSonsofGwaliainthenEGoldfieldsofWesternaustraliaandProjectGeologistwithBillitoninSouthafricaandzambia.

Richard Beazley Managing Director

MrBeazleyisaminingengineerwithmorethan25years’experienceintheresourcessectorwhoholdsaBachelorofEngineering(Mining)fromtheUniversityofnewSouthWalesandaMasterofBusinessadministration.

MrBeazleyhaspreviouslyheldmanagementandexecutiveroleswitharangeofcompaniesoperatingthroughoutaustraliaincludingConsolidatedMinerals,St.BarbaraLimited,adityaBirlaMineralsLimited,HenryWalkerEltinContractingPtyLtdandSonsofGwalia.

Jonathan Murray Non-Executive Director

Mr.MurrayisapartneratindependentcorporatelawfirmSteinpreisPaganin,basedinPerth,Westernaustralia.Hespecializesinequitycapitalraisings,allformsofacquisitionsanddivestments,governanceandcorporatecompliance.

Mr.MurraygraduatedfromMurdochUniversityin1996withaBachelorofLawandCommerce(majoringinaccounting).HeisalsoamemberofFinSia(formerlytheSecuritiesinstituteofaustralia).Mr.Murrayiscurrentlyanon-executivedirectorofHannansRewardnL,LagunaResourcesnLandKalgoorlieMiningCompanyLimited.


5

The ResourceVirgin discovery – august 2010 – 26,700m drilling for the resource

Max DH REO %:

A 1 to 2%

A 2 to 3%

A 3 to 5%

A >5%

Max DH REO %:! <1%! 1 – 2%! 2 – 3%! 3 – 5%! > 5%

OPEN

OPENOPEN

Perim

ete

r of Carbonatite

550m

Mt Mapuma

SW Alluvials

Northern Zone

Southern Rare Earth Zone


6

Colluvium

100m

1600

1500

1400

Southern Rare Earth Zone (SREZ)

Fresh1.5 to 2% REO

1 to 2% REO

>2% REO

Weathered>4% REO

Ngualla Hill

Ultramafic Carbonatite

Bastnaesite Zone

(Bastnaesite and Monazite)

Monazite Zone

SW Alluvials

200m1000 50

600mREO mineralised carbonatite core

Fresh Fresh

Fresh

The Resource• ThenguallaMineralResourceat

1.0%REOcut-offgradeis170Mt at 2.24% reo containing 3.8Mt reo

• at3.0%REOcut-offgradeitis

40.0Mt @ 4.07% reo containing 1.6Mt reo

ReferappendixB

• Mainmineralisedzones:

–SWalluvials

–SREzFreshrock

– SreZ Weathered rock: –littleadditionalacidconsumingrock –nodeleteriousminerals –veryminoruraniumandthorium –noothereconomicminerals


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The Ore Body and Miningthe consistent blanket of mineralisation at surface, on a hill suggests a shallow open pit with low strip ratios and low cost mining

ThenguallaRareEarthProject,BlockModel

• at10ktpacontainedREproducts,theminingratewillonlyhavetobeintheorderof350ktoreminedeveryyear

• itisprobablethatthestripratiointhefirstseveralyearswillbeeffectively0:1–nowastemining

Ngualla Hill

150m

700m

REO %:

A >4%

A 3 to 4%

A 2 to 3%

A 1 to 2%

SW Alluvials

OPEN

OPEN

OPEN

OPEN

Southern Rare Earth Zone


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Global top 5 Rare Earth Deposit• nguallaisalarge,highgrade,globallysignificantrareearthdeposit

• itisthehighestgradeofthesevenlargestdepositsoutsideofChina

Cont

aine

d RE

O (M

t)

rare earth Project comparisons Date: 3 April 2012 Source: Technology Metals Research and Company filings

9

8

7

6

5

4

3

2

1

0

12

10

8

6

4

2

0

REO

Grad

e (%

)

REO grade %

Contained REO (Mt)

300m Depth to base of resource

375m

300m

240m

600m

155m

155m

450m

126m

Niobec

Kvane

fjeld

Necha

lacho

Eldor

Nguall

a (Bulk

)

Montvi

el

Strang

e Lak

e

Mounta

in Pa

ss

Nguall

a (High

Grade)

Mount

Weld

Zand

korps

drift

Nolan’s

Bore

Bear L

odge

Dubbo

Nora Karr

Wigu Hill


9

2.0

1.5

1.0

0.5

0

Aver

age

CREO

Gra

de (%

)

Average REO Grade (%)

Niobec

Kvanefjeld

Nechalacho

Eldor

Ngualla (Bulk)

Montviel

Strange Lake

Mountain Pass

Ngualla (High Grade)

Mount Weld

Zandkorpsdrift

Nolan’s Bore

Bear Lodge

Nora KarrWigu Hill

2 64 8 10 120

Bubble size relative to contained REO

Projects under Commissioning

Global top 5 Rare Earth Deposit – “Grade is King”• Criticalrareearthshavengualla‘outsidethepack’

rare earth Project comparisons Date: 3 april 2012 Source: technology Metals research


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The rare earth market looking ahead – “Meeting Demand”

• growth markets in renewable energy and advanced technologies

• current re market 120kt pa by 2020 the market will expand to 215kt pa

• china controls 97% of raw material supply through to end products

• uSa/japan/South Korea/eu want an independent re supply chain to reduce strategic risk

• china recently has stated that they will be net importers by 2014

Clean energyEnergy efficiencyDigital technology

Source:iMCOa,Roskill


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The Critical Rare Earths

Key Market Focus

Five rare earths are forecast to be in critical undersupply: • Neodymium• Dysprosium• europium• terbium• Yttrium

54% of the in-ground value at Ngualla is from these five critical rare earths.

Neodymium is the major contributor at 35% of the in-ground value.

Other 1%

Sm 1%

Y 1%

Gd 2%

Dy 3%

Nd 35%

Ce 20%

Eu 15% La 11%

Pr 10%

nguallain-groundvalueRE%

HE vehicles and wind turbines

Magnetsuseneodymium,PraseodymiumandDysprosiumforpermanentREmagnetsincleanenergyapplicationssuchasHEvehiclesandwindturbines.Magnetsrepresent30%oftheREmarketandgrowingat10-15%pa.

Lighting and screens

PhosphorsprovideagrowingmarketforEuropium,YttriumandGadoliniumwhichexhibitphosphorescence,emittinglightonexposuretoanexternalsourceofenergysuchaselectronsorultravioletlight.Demandinthissectorisforecasttobe6%-8%pa.

Polishing powders

PolishingPowdersuseCeriumoxide-basedpowdersareusedtocreateafinishedsurfaceforglassproductsandelectricalcomponentsincludingflatglass,opticalglass,liquidcrystaldisplays(LCDs),siliconwafersurfacesforintegratedcircuitstonameafew.Maximumforecastgrowthrateof5%pa.

Catalytic converters

CatalystsutilisingbothLanthanumandCeriumareusedinautomotivecatalyticconverters(autocatalysts)toreduceharmfulemissionsinexhaustgasesandfluidcatalyticcracking(FCC)catalyststoseparatepetroleumproductssuchaspetrol/gasolineanddieselfromcrudeoil.Catalystshavea16%shareoftheREmarketwithaforecastgrowthrateof4%pa.

Source:Roskillandarafura


12

The Metallurgy• Developed a low cost sulphuric acid leach process for SreZ – Proof of concept

• Developed a Process Flow Sheet

• Mixed re carbonate concentrate at 50.3% reo

• an overall process recovery of 87% was achieved

• Processoptimizationwillbecompletedinthethirdquarterof2012

• Orefeedmetallurgicalvariabilitycompleteearlyinquarterfourof2012

• nowfocussingonseparationtoproduceREproducts

• Commencepilotplantdesignandconstruction

• Pilotplantoperationandproductionofrareearthconcentratesforevaluationbyofftakecustomers

Simplified Sulphuric acid leach test Work

3.6% REO

LeachFeed

65% CeO 50% REO

Sulphuric Acid Leach

Primary Precipitation

Cerium Removal Purification Final

Precipitation

Cerium Concentrate

Rare Earth Carbonate Product


13

The Schedule to Rare Earth Production - Hitting milestones

Ngualla Project Development Schedule

Mile

ston

esRE

Exp

lora

tion

&

Reso

urce

Dril

ling

Pote

ntia

l Pat

hway

to

RE

Prod

uctio

n

EXPLORER MINERDEVELOPER

2010 2011 2012 2013 2014

Commenced Metallurgical Characterisation Discovery Supply Agreements Zari JV Aquisition

Maiden Resource Statement Production Start up Metallurgical Flow Sheet Development

Pilot Plant Trials commencing

Completion of acid leach test work Completion of separation test work

Exploration Drilling

Resource Definition & Extension

Scoping Study

Pre-Feasibility Study

Definitive Feasibility Study

Maiden Resource Drilling

Geotech - Extension

2015 2016

Construction


14

Ngualla – a summary• operating environment – infrastructure close by, country mining savvy, practical

mining legislation

• 5th largest rare earth resource, and the highest grade of the seven largest deposits outside of china

• Project economics:

• Tonnes–minelife

• Grade–verystrongcompetitiveadvantage

• Rareearthelementmix–54%criticalrareearths

• Metallurgy–‘relatively’simpleacidleach

• Lowcapexandlowopex–bottomquartileofcostofproduction

• Timelinetoproduction–early2016

• Where we are:

• Metallurgyprocessflowsheetandproofofconcept • Hittingmilestones–onschedule,onbudget–thedriversforcontinuedsuccess

Peak Resources Limited

Head Office: Level 2, 46 Ord St, West Perth Western Australia 6005

Ph: +61 8 9200 5360 Fax:+61 8 9226 3831

ASX Code: PEK OTCQX: PKRLY

Richard Beazley Managing Director [email protected]

David Hammond Technical Director [email protected]

Alastair Hunter Non-executive Chairman [email protected]

Jonathan Murray Non-executive Director

www.peakresources.com.au

Developing a New Rare Earth Discovery

NGUALLA PROJECT

15


16

Appendix A – Corporate DetailsaSX: PEK otcQX:PKRLY

ordinary Shares on Issue:207.1m

cash at 1st august 2012: $2m

52 week range:$0.16-$0.69

Share Price (01July2010–1staugust2012)

Board and Senior Management

alastair Hunter non-executiveChairmanrichard Beazley ManagingDirectorDave Hammond TechnicalDirectorjonathan Murray non-executiveDirectorFarlee Walker CFO/CompanySecretarylucas Stanfield ChiefDevelopmentOfficerBrian lloyd ExplorationManager(Tanz)

Consultants

resource consultants:Hellman&SchofieldProject managers:EmersonStewartMetallurgical & mineral processing: Hatch;Met-ChemConsultingMineral processing test laboratory:amdel&nagromlegal representation:australia:SteinepreisPaganin

Tanzania:aKOLawauditor:DeloitteToucheTohmatsu

$0.89 –

$0.79 –

$0.69 –

$0.59 –

$0.49 –

$0.39 –

$0.29 –

$0.19 –

$0.09 –18 NOV 2010 07 APR 2011 25 AUG 2011 12 JAN 2012 31 MAY 201201 JUlY 2010

Market cap: $36.2m(at$0.175)

options outstanding: 11,191,519

liquidity:0.4millionsharesperday(av.over3mths)

IPo Date: 29november2006

Note:Peakhascompleteda$5.5mprivateplacementandofferingaSPPcappedat$2.0mtoshareholderson29thJuly2012.ThiswillwashthroughinSeptember.


17

Appendix B – Maiden JORC Resource

TheinformationinthisreportthatrelatestoMineralResourcesisbasedoninformationcompiledbyRobSpiers,whoisamemberofTheaustralasianinstituteofGeoscientists.RobSpiersisanemployeeofgeologicalconsultantsHellmanandSchofieldPtyLtd.RobSpiershassufficientexperiencewhichisrelevanttothestyleofmineralisationandtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasaCompetentPersonasdefinedinthe2004Editionofthe‘australasianCodeforReportingofExplorationResults,MineralResourcesandOreReserves’.RobSpiersconsentstotheinclusioninthereportofthemattersbasedonhisinformationintheformandcontextinwhichitappears.

• Ngualla Mineral resource – 1.0% and 3.0% cut off grades

classification of Mineral resources for the Ngualla rare earth Project, 1.0% and 3.0% reo cut-off grades.

lower cut – off grade

resource category

tonnage (Mt)

reo (%)*

contained reo tonnes

1.0% reo

Measured 29 2.61 750,000

indicated 69 2.43 1,700,000

inferred 72 1.92 1,400,000

total 170 2.24 3,800,000

3.0% reo

Measured 11 3.99 430,000

indicated 21 4.09 850,000

inferred 8.7 4.11 360,000

ToTal 40 4.07 1,600,000

*REO(%)includesallthelanthanideelementsplusyttriumoxides.


18

Ngualla Project

Lake Rukwa

147km

56km

B363

B345

B6

A104

Dar Es SalaamPort 750km

MbeyaN

50km0 10 25

Appendix C – Location and Infrastructure

•Tanzania–anestablishedminingculture

•Thirdlargestgoldproducerinafrica

•accesstotransportation

•Onsitepowerrequired

•Goodpotentialforgroundwater

!Mbeya

Dar Es Salaam

UGANDA

KENYA

ZAMBIA

MALAWI

Lake Victoria

Indian Ocean

Lake Rukwa

Ngualla Project

Lake Nyasa

T A N Z A N I A

N

400km0 100 200


19

Appendix D – 2012 Development ProgramM

ilest

ones

Expl

orat

ion

&

Reso

urce

Dril

ling

Tech

nica

l Dev

elop

men

t Pr

ogra

m

Engage engineering group for Scoping Study Acid Leach process development Drilling contractor on site

Drill assay results with regular updates to follow MET results updates

3rd Year Drill Program

Scoping Study

Metallurgical Test Work

Resource Upgrade Drilling 15,000m SREZ

Resource Extension Drilling 4,000m SREZ

Northern Zone Maiden Resource Drilling 11,000m (Nb-Ta, P,RE)

Diamond Drilling 2,000m Southern & Northern Zone

1St Quarter 3rD Quarter2ND Quarter 4tH Quarter

• Risk analysis, permitting, licencing, logistics, supply, infrastructure, sustainability, social licence• Mining, rehabilitation• Market research – end users =>> direct link to metallurgical test work and studies

• Direct acid leach weathered SREZ – further samples to improve validation of ore body representation, optimisation studies for leaching• Precipitation and solvent extraction studies for weathered SREZ• Beneficiation and flotation studies on fresh rock• Initial sighter test work on Northern Niobium – Tantalum, Phosphate REO Zone• Development of acid leach process flowsheet plus alternatives

2012

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tanzania developing a new rare earth...

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