Exploration Update - Prairie Downs Base Metals Project
Resource Drilling
On 1 August 2008 the Company announced the cessation of the first drill program at the Costean Seven copper/lead prospect. During this program a total of five holes were drilled, all of which were mineralised. Three out of the five holes did not reach the target depths due to drilling problems and a total of only 821 metres was drilled.
A multi-purpose drill rig commenced operating on site on 2 August 2008 with the objective of targeting depth and strike extensions to the current 4.7 million tonne global zinc resource. In addition, a high grade mineral resource of 1.6 million tonnes grading 12.3%Zn, 3.7%Pb and 36.0 g/t Ag, has been estimated as referred to in the resource table below.
Conceptually the Company may extend high grade resources from 1.6 million tonnes to between 2.0 million tonnes and 2.5 million tonnes grading 8-12% zinc, 1-2% Pb and 10-20 g/t Ag. These potential resources are not estimated due to insufficient exploration to date but are suggested as possible on the basis of unclosed high grade mineralization, previous drilling to depth not included in the high grade resource due to low drill density, and a 3D geological interpretation. Current plant and mine design plans on this basis would support five years of high grade production and further facilitate financing negotiations. The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
A total of 16 RC holes for 2,517 meters have been drilled with target depths being achieved in three holes which intersected both alteration and sulphide mineralisation. All but three holes have reached target mineralization with the remainder of the holes requiring diamond tails to reach anticipated mineralized horizons. It is anticipated the multi-purpose drill rig will swap to diamond drilling late next week to reach target depths.
The mineralization encountered in the current drill program appears to confirm stacked Main and Zed lodes of broad thickness.
Assay results from the first drill program at the Costean Seven copper/lead prospect are expected to be available shortly. The Company anticipates the assay results from the current drill program should be available by the end of September 2008, however delays by the assay laboratory are possible. These results will be released as soon as they are processed.
On completion of the current program the Company will consider extending the current drilling program and drilling the various copper zones which include Costean Seven and Kerrs Find and cover a strike length of some 5 kilometres.
Resource Statement
In previous announcements the Company has referred the Project's total Global 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. The resource statement below has been updated to provide additional information on the classification of the Global Resources including the Indicated Resource and Inferred Resource for the respective lodes.
|
Lode
|
Category
|
Tonnes
|
Zinc
|
Lead
|
Silver
|
Zinc
Metal
|
Lead
Metal
|
Silver
Metal
|
| |
|
|
(%)
|
(%)
|
(g/t)
|
(tonnes)
|
(tonnes)
|
(Ounces)
|
|
Main
|
Local Indicated
|
1,692,844
|
7.8
|
1.9
|
23.8
|
132,086
|
32,164
|
1,295,725
|
|
Main
|
Local Inferred
|
853,838
|
6.9
|
1.9
|
21.4
|
58,915
|
16,223
|
587,463
|
|
Main
|
Local Total
|
2,546,682
|
7.5
|
1.9
|
23.0
|
191,001
|
48,387
|
1,883,188
|
|
Main
|
High Grade
Indicated
|
884,082
|
13.3
|
3.3
|
34.8
|
117,193
|
29,526
|
989,823
|
|
Main
|
High Grade
Inferred
|
351,024
|
11.3
|
3.2
|
46.0
|
39,666
|
11,233
|
519,141
|
|
Main
|
High Grade
Total
|
1,235,106
|
12.7
|
3.3
|
38.0
|
156,858
|
40,758
|
1,508,964
|
| |
|
|
|
|
|
|
|
|
|
Zed
|
Local Indicated
|
477,352
|
6.2
|
2.6
|
18.1
|
29,644
|
12,626
|
277,809
|
| |
|
|
|
|
|
|
|
|
|
Zed
|
Local Inferred
|
262,922
|
5.9
|
2.8
|
15.0
|
15,512
|
7,362
|
126,797
|
|
Zed
|
Local Total
|
740,274
|
6.1
|
2.7
|
17.0
|
45,157
|
19,987
|
404,606
|
|
Zed
|
High Grade
Indicated
|
144,562
|
10.1
|
6.0
|
35.0
|
14,601
|
8,674
|
162,672
|
|
Zed
|
High Grade
Inferred
|
178,781
|
10.0
|
4.7
|
35.0
|
17,878
|
8,787
|
201,178
|
|
Zed
|
High Grade
Total
|
323,343
|
10.1
|
5.4
|
35.0
|
32,479
|
17,461
|
363,850
|
|
Gabbro
|
Local Indicated
|
87,639
|
14.4
|
2.9
|
14.0
|
12,620
|
2,542
|
39,447
|
|
Gabbro
|
Local Inferred
|
1,280,463
|
3.6
|
1.0
|
7.4
|
46,208
|
12,508
|
303,640
|
|
Gabbro
|
Local Total
|
1,368,102
|
4.3
|
1.1
|
7.8
|
58,828
|
15,049
|
343,087
|
|
Gabbro
|
High Grade
Indicated
|
87,639
|
14.4
|
2.9
|
14.0
|
12,620
|
2,542
|
39,447
|
|
Gabbro
|
High Grade
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Gabbro
|
High Grade
Total
|
87,639
|
14.4
|
2.9
|
14.0
|
12,620
|
2,542
|
39,447
|
| |
|
|
|
|
|
|
|
|
|
Total Global
|
|
4,655,058
|
6.3
|
1.8
|
18.0
|
294,986
|
83,423
|
2,630,881
|
|
Total Global
High Grade
|
|
1,646,088
|
12.3
|
3.7
|
36.0
|
201,957
|
60,761
|
1,912,262
|
Corporate
The Company has commenced an executive search for a new Managing Director who will oversee the development and financing of the Project. The Company has previously indicated a desire to consider alternative project financing including joint venture arrangements with an end user or corporate partner, pre-payment from end user, off take with end users or traders, premium share issue tied to metal rights.
Alec Pismiris
Company Secretary
For further information contact:
Alec Pismiris
Company Secretary
+61 08 9225 5755
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Information in this release that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Luke Kerr who is a member of The Australasian Institute of Mining and Metallurgy. Mr Kerr has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Kerr consents to the inclusion in this report of the statements based on their information in the form and context in which it appears.
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