Peak Resources announces the successful completion of the beneficiation pilot plant test work at ALS Metallurgy in Perth. Highlights

• Pilot plant grade/recovery curve superior to results from bench scale test work
• Concentrate grades of up to 52% REO achieved with an average of 40% REO
• Robustness of the flowsheet confirmed in steady state operation
• Continuous production runs of up to five days
• Targeted production of 2 t (dry) of concentrate achieved
• Leach plant piloting on the mineral concentrate produced scheduled to commence in January 2016.

Peak’s Managing Director, Darren Townsend: “We are very pleased to have successfully completed this important milestone. The results show the robustness of the proposed beneficiation flowsheet and the ability to scale up to commercial operation. Congratulations to the Peak/ALS/AMECFW team for successfully achieving this significant project de-risking step. The ability to achieve these concentrate grades is a significant differentiator for the Ngualla project.”

Peak is an ASX-listed Company developing the Ngualla rare earth project in Tanzania in conjunction with its partners Appian and IFC. Ngualla is a large high grade rare earth deposit, particularly rich in the high growth magnet metals neodymium and praseodymium. Peak has commenced the BFS for Ngualla and has appointed AMEC Foster Wheeler as the lead engineer for the study.

For the pilot plant test work at ALS, the 56 t dry bulk sample of typical weathered bastnaesite mineralisation was transported to Perth, coarse crushed and homogenised to form a single sample grading 5.9% REO. The bulk sample was piloted at a feed rate of 250 kg/h using Peak’s unique two stage flotation process.

The pilot plant was commissioned using 10 t of bulk sample to set up and optimise the comminution and flotation parameters. Once optimised, the circuit was then run for two campaigns on the barite pre-float and for three campaigns on the rare earth float. Representatives from Peak’s engineer, AMEC Foster Wheeler (AMECFW) and equipment vendors were in attendance for this period. The pilot plant test work successfully achieved the following criteria:

• Sustained operation in steady state demonstrating the beneficiation process is robust and reproducible on mineralisation deemed representative of the first five years of mill feed
• Provision of vital operating and design parameters for incorporating into the bankable feasibility study (BFS)
• The production of 2 t of dry concentrate grading 40% REO to be used in piloting the next stage leach recovery process at ANSTO. This represents a concentrate of approximately 55% bastnaesite by weight.

Rocky Smith will join Peak Resources as Chief Operating Officer – Development. He was previously the Managing Director of Molycorp’s Mountain Pass rare earth complex from July 2009 to August 2015. As such he brings a great depth of practical, specialist and technical rare earth operations experience as Peak continues to advance development of the Ngualla rare earth project. Responsible for operations at Molycorp’s rare earth mining and processing site in California, USA, Smith managed 500 employees and an annual operational budget of in excess of $150 million. He recruited, developed and led the team responsible for the implementation of the redesigned and expanded Mountain Pass operation. His work included the establishment of sophisticated management systems, the reduction of bottlenecks and the delivery of successful expansions resulting in a 230% increase in production capacity over three years.

Townsend: “We are extremely pleased that Rocky has chosen to join Peak Resources in this vital role. The appointment of an experienced chemical/mining executive of Rocky’s calibre is a strong endorsement of the technical strengths of the Ngualla project. Rocky joins Peak Resources at a key phase in the project’s development as we progress Ngualla through the bankable feasibility study. The unique rare earth operating experience Rocky brings to the team is another important building block towards a successful operation.  2016 will be an important year for the project and the company and we look forward to continuing to deliver key project milestones.”

Peak has also advised of the receipt of funds and notification of completion, subject to final regulatory approvals, of Stage 2 funding from Appian Natural Resources Fund. Peak has received ~A$2.1 million funding following conversion of the Convertible Note into Peak shares by Appian and Appian moves to a 16.1% shareholding in Peak. The Appian Stage 2 investment of~A$3.2* million project funding is to be received on receipt of regulatory approvals www.peakresources.com.au