Copper Update

Prairie Downs Metals Limited commenced the first drill program at the Costean Seven copper/lead prospect at the end of June 2008. Until the cessation of diamond drilling last week, a total of five holes were drilled.  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.  All the holes are mineralised.

Copper Update

Prairie Downs Metals Limited commenced the first drill program at the Costean Seven copper/lead prospect at the end of June 2008. Until the cessation of diamond drilling last week, a total of five holes were drilled.  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.  All the holes are mineralised.

Surface copper mineralisation was discovered at the Costean Seven prospect in April 2008 during a detailed mapping program at the Project.  Lead had previously been discovered at this prospect, 3.2 kilometres from the Main Lode.  Drilling at the Costean Seven prospect's objective is to determine the source of the surface mineralisation.

Results from the first drill hole, PDD308, have previously been announced.  Based upon visual observation of core, PDD309, 40 metres south of PDD308 is sporadically mineralised in copper and lesser amounts of zinc, lead and silver.  PDD310, 311 and 312, 350 metres along strike and 40 metres apart, have sporadic lead mineralisation and lesser amounts of zinc, copper and silver. Assay results for all holes are not yet available and will be released as soon as we receive the same.

The geology in the area is very complex and requires further drilling to gain a better understanding.  Many different rock types have been intersected and alteration, particularly silicification, is extensive.  Areas of significant alteration are often mineralised.

It is believed that the high grade surface copper mineralisation at Costean Seven has come from a primary source.  The first drill program, a total of five holes, did not discover that source.  An RC drill program is planned at the Costean Seven prospect in the September quarter to further target the copper mineralisation.  RC drilling is more economical and can drill up to 300 metres a day rather than the 120 metres that diamond drilling should be able to complete. 

The RC drill rig expected on site by the end of this week will be targeting depth and strike extensions to the current 4.7 million tonne zinc resource.  The primary objective is to increase the high grade resource to approximately 2.5 million tonnes which would allow for five years of high grade production and further facilitate current financing negotiations. Once we have completed this initial program of drilling we will again concentrate our efforts on drilling the various copper zones which include Costean Seven and Kerrs Find and cover a strike length of some 5 kilometres.

Mark Hansen
Managing Director

For further information contact:
Elissa Samuel
Investor Relations Manager
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Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Luke Kerr and by Mr Mark Hansen, both of whom are Members of The Australasian Institute of Mining and Metallurgy. Mr Hansen and Mr Kerr have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 and Mr Hansen consent to the inclusion in this report of the statements based on their information in the form and context in which it appears.