Can Peak Minerals Sustain Growth Amid Unverified Uranium Prospects and Exploration Costs?

Expanding Mineralisation at Minta Rutile

Peak Minerals Limited (ASX, PUA) has revealed a substantial increase in the zone of heavy mineral (HM) mineralisation at its flagship Minta Rutile Project in Cameroon. The recent drilling program, comprising 452 holes across residual and alluvial targets, has achieved a remarkable 100% success rate in detecting mineralisation, extending the mineralised area to approximately 1,500 square kilometres. This broad and consistent presence of heavy minerals, dominated by rutile, marks a significant milestone for the company’s maiden exploration efforts.

Confirmatory X-Ray Diffraction analysis indicates that over 93% of the titanium dioxide (TiO2) content in the soil horizon is derived from rutile, a high-value mineral used extensively in pigments and titanium metal production. The drilling to date has been conducted on broad spacings, with plans for targeted infill drilling to delineate higher-grade zones and better define the resource potential.

Rare Earth Elements and Monazite Potential

Adding to the project's appeal, Peak Minerals has confirmed the presence of a rare earth-rich monazite assemblage at the Minta Est area. In-situ grades ranging from 0.5% to 1.2% total rare earth oxides (TREO) were obtained from free-dig material processed by conventional mineral sands methods. The assemblages include up to 73% monazite, 35% rutile, and 28% zircon, with magnet rare earth oxides (MREO) exceeding 25%. Notably, light rare earth elements such as neodymium and praseodymium (NdPr) reach up to 22.5%, while heavy rare earths like dysprosium and terbium (DyTb) are present up to 2.7%.

These findings position the Minta Rutile Project not only as a source of industrial minerals but also as a potential supplier of critical rare earth elements, which are in growing demand for clean energy technologies and high-tech applications.

Strategic Funding Boost

In a timely development, Peak Minerals secured a $3.5 million strategic placement from a European-based investor at an issue price of $0.035 per share, representing a multi-year high for the company’s stock. The new shares are subject to a voluntary 12-month escrow, underscoring the investor’s confidence in the project’s prospects. This capital injection fully funds the company’s 2025 exploration program, enabling accelerated infill and reconnaissance drilling, establishment of in-country testing facilities, and general working capital needs.

Broader Exploration Portfolio and Outlook

Beyond Cameroon, Peak Minerals continues to advance its uranium prospects at the Kitongo and Lolo Projects, also in Cameroon, pending tenement grants. Historical drilling by previous operators indicated encouraging uranium mineralisation, though Peak notes these results remain unverified and plans confirmation drilling upon tenement grant.

In Australia, the company maintains interests in the Green Rocks Project in Western Australia and the Yendon Kaolin Project in Victoria, with ongoing desktop reviews and tenement management. Notably, the company allowed one tenement at Earaheedy to expire during the quarter, reflecting a strategic focus on core assets.

During the quarter, Peak expended approximately $929,000 on exploration activities, primarily focused on the Minta Rutile Project. The company ended the period with a cash balance of $934,000 and, following the strategic placement, is well-positioned to advance its exploration agenda.