Perth, Nov 25, 2008 AEST (ABN Newswire) - The directors of Prairie Downs Metals Limited (ASX:PDZ) are pleased to provide an update on the current exploration activities being undertaken at the Prairie Downs Base Metal Project ("Project").
The Prairie Downs Base Metal Project is located approximately 100 kilometres southwest of Newman in the Eastern Pilbara region of Western Australia. Currently the project hosts a total global inferred and indicated resource of 4.7 million tonnes at a grade of 6.3% zinc, 18g/t silver and 1.8% lead at a nominal lower cut off grade of 1% zinc. This resource contains 295,000 tonnes of zinc, 2.6 million ounces of silver and 83,000 tonnes of lead. Included is a high grade indicated and inferred resource of 1.6 million tonnes at a grade of 12.3% zinc, 36g/t silver and 3.7% lead. In addition, Prairie Downs Metals Ltd has successfully targeted mineralization along strike including "Costean Seven" and "Kerrs Find" prospects for zinc, lead, silver, copper, vanadium and gold. Reconnaissance and resource definition results are pending.
RESOURCE DRILLING
Further encouraging assay results have been returned from Resource drilling completed in the previous quarter. The primary objective of the drill program was to increase the high grade indicated and inferred resource to underpin at least five years of high grade production. Results are summarised below:
- MAIN LODE, PDD315: 1.5 metres at 14.3% zinc, 2.3% lead and 37g/t silver (16.6% zinc equivalent) from 209.5 meters; and
- MAIN LODE, PDD320: 1 metre at 3.8% zinc, 0.8% lead and 6g/t silver (4.6% zinc equivalent) from 274 meters.
Notes:
i. Zinc equivalent % = Zinc % + (Lead %*(USD Lead price per tonne/ USD Zinc price per tonne))
ii. Zinc price of USD1,204.5/t and lead price of USD1,217.0/t as per London Metals Exchange 29th October 2008.
PDD320 also intersected 2 metres at 1.5% Cu from 340m to 342m. Further to assay results for PDD325 announced in the Company’s September 2008 Quarterly Activities Report, additional assaying has identified four zones grading between between 1 and 2 % Cu over 0.5 to 1 metre in thickness.
Drilling was designed to target high grade shoots and has confirmed the geological model comprising three high grade shoots and a fourth horizontal shoot as defined by 108 drill holes, and announced on the 7th of February 2008. Of the three high grade plunging shoots, two remain to be tested. The geology indicates that mineralization may extend to considerable depths and further that horizontal shoots possibly may occur.
Results from three holes described as significantly mineralized are pending. Results for these holes are expected in late December.
Prairie plans to pursue further extension to the resource base by refining the targeting process. The company has compiled a comprehensive geological, geochemical, geophysical and structural database which is being reviewed. The review comprises an appraisal of potential vectors to further mineralization which include alteration, mineralization, multi-element geochemistry and structure.
Legacy drill core and percussion chips will be relogged as a part of this process.
The Company expects to receive the remainder of assay results from Resource drilling during December 2008 and should be in a position to release an updated resource statement in early 2009.
EXPLORATION DRILLING
Exploration Aircore drilling has been completed at the Prairie Downs Project covering 3.7km of strike, west from the main zinc resource. Drilling was designed to target anomalous surface vanadium, copper, lead and silver. A total of 21 holes were drilled for a total of 1292 meters and variably spaced to assess conspicuous surface mineralisation. The "Face sampling 4.5 inch hammer" utilised in this aircore drilling programme, provides high quality samples conducive to the elevated levels of certainty required for resource estimation purposes.
Mineralisation has been described in most holes with visible galena, chalcopyrite and sphalerite. In addition, anomalous vanadium has been returned by handheld Niton XL3T XRF analyses of drilling samples. Mineralisation is generally broad and near surface and, consistent with geological mapping and surface sampling conducted to date.
Assay results will be reported as they come to hand which is expected to be mid to late December.
Contact
Alec Pismiris
Director/Company Secretary
Prairie Downs Metals Limited
Tel: (+6 18) 9225 5755
www.prairiedownsmetals.com.au
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