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ASX Release: 22 January 2007 |
Placement
Prairie Downs Metals Ltd has mandated ABN AMRO Morgans Limited to place approximately 5.6 million shares at $0.45 per share to raise approximately $2.5 million. The placement shares will be issued to professional investors with a settlement date of 25 January 2007. The funds raised will be used to finance ongoing exploration of the Prairie Downs Zinc Project and the scoping study now underway.
Drilling will recommence next month at Prairie Downs, subject to drill rig availability, with the initial objective of doubling the existing resource of one million tonnes at a grade of 8.3% zinc, 1.7% lead and 22g/t silver. The Company is confident of achieving this objective given that the three lodes which comprise the resource remain open at depth and along strike, and that the recently discovered Zed Lode is not included in the resource.
The scoping study results are expected to be available in March. The objective is to assist decision making regarding the economics of an initial smaller scale operation based upon a two million tonne resource. Results will determine whether the Company continues to focus on expanding the resource; or on infill, metallurgical and geotechnical drilling required for mine development.
Mark Hansen
Managing Director
For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au
| Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Mark Hansen, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hansen 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 Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hansen consents to the inclusion in this report of the statements based on his information in the form and context in which it appears. |
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