Exploration Update

Prairie Downs Zinc Project

The RC drill program that was scheduled at Prairie Downs for late August has been delayed due to factors outside of the Company's control. An alternate RC drill rig has now been engaged and will be on site in October. A diamond drilling program is also planned for this year, with drilling expected to commence in December. A benefit of the delay is that the results of a gravity survey, now underway, will be available prior to the commencement of drilling. The results of this survey will assist in further defining drill targets. Recent geophysical modeling of a large IP anomaly at Zone Two, supported by geological and geochemical evidence, has also defined a significant new target for zinc mineralisation, adding substantial upside to the Project.

The initial focus of RC drilling at Prairie Downs will be the Main, East and Gabbro Lodes which host a total resource of one million tonnes at a grade of 8.3% zinc, 1.7% lead and 22g/t silver. All lodes remain open, both at depth and along strike, and there is also strong geological evidence to suggest that there will be repetitions of the Main Lode at depth. Extensions to these lodes will be tested in the forthcoming program.

RC drilling will also target Zone Two, which is described further below. Diamond drilling will target magnetic anomalies A and B, as shown in Figure 1, along with depth extensions to the Gabbro Lode and Zone Two.

The gravity survey, which is currently underway, will cover a 15 kilometre strike length of the main mineralised horizon. This includes the existing resource and Zone Two, along with Anomalies A and B. Results from this survey will provide greater insight into the nature of existing anomalies and assist in drill targeting.

The IP anomaly at Zone Two, overlain by a large zinc soil anomaly, is shown in Figure 2. This is a remarkable correlation between geophysics and geochemistry which is also supported by drill results and by the geology. The anomaly has been modelled, with the result shown in Figure 3.

Historical drill holes at Zone Two returned anomalous results in zinc even though, with the exception of PDP21, they have been collared too far north. PDP21 was drilled in the 1970's and stopped short of the target depth, as shown in Figure 3. The rock and mineral assemblage at Zone Two indicates a significant mineralising event and includes barite and quartz veining, siliceous and haematitic breccias, extensive potassic alteration and ubiquitous sulphides. With three lines of evidence, geophysics, geochemistry and geology, Zone Two is an exciting new drill target which adds substantial upside to the Prairie Downs project.

Mark Hansen
Managing Director

For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au 

FIGURE 1. PRAIRIE DOWNS PROJECT - AIRBORNE MAGNETIC IMAGE

FIGURE 2. ZONE TWO - IP AND ZINC SOIL ANOMALIES

FIGURE 3. ZONE TWO - IP MODEL