Prairie Downs Zinc Results

Prairie Downs Metals Limited (ASX: PDZ) is pleased to report initial results for an RC drill program of 22 holes for 3,100 metres completed at the Zone 1 prospect in October 2005. The program was designed to confirm previous results, infill around earlier drill holes and explore for extensions to mineralisation along strike.

The holes were drilled on 8 lines spaced approximately 40 metres apart covering the southeastern part of the inferred resource of 500,000 tonnes at a grade of 13.1% zinc, 3.7% lead and 35g/t silver. Grades are generally high and drilled widths are comparable with previous drill holes.

Some 1 metre intersections within broader mineralised intervals are spectacular. For example, in PDP53 the intercept of 5 metres at 24.9% zinc, 3.7% lead and 46g/t silver contains a 1 metre interval with the highest zinc value recorded at Prairie Downs to date: 49.1% zinc, 9.5% lead and 132g/t silver.

The zinc lens has been intersected 50 metres southeast of the limit of the inferred resource and remains open along strike to the southeast. It is moderately dipping such that true widths are close to drilled widths and it appears to have a limited down dip extent on some lines.

Mineralisation within 30 metres of the surface has not been drilled due to lack of rig access and that below 100 metres was not targeted with this program. A second, new zinc lens was intersected in several holes at a depth of around 150 metres.

All drill holes have been sampled at 1 metre intervals and 3 metre composite samples have been submitted for the entire length of all drill holes. Selected 1 metre samples have been submitted where visible zinc mineralisation has been observed; a final series of 1 metre samples will be submitted subject to final results for the 3 metre composite samples.

Final results over the next few weeks may lead to a change in the width and/or grade of reported mineralised intersections and may identify additional significant intersections, but will not downgrade reported results in terms of contained zinc.

The attached table lists significant results where zinc and lead combined assay more than 3%. Specific gravity has been completed on all significant intersections; it ranges from 2.8 to 3.6 depending upon grade. A typical cross section is attached.

Importantly, zinc mineralisation is of a different and more significant type to that expected, based upon descriptions of previous drilling. It has been remobilised and re-crystallised and predominantly occurs as a coarse-grained black sphalerite known as marmatite. It is noteworthy that marmatite is a typical zinc ore at Broken Hill. It is unlikely that zinc of this type has moved far from its source. The marmatite is not oxidized.

An unexpected intersection of copper mineralisation in PDP37 from surface to 9 metres @ 0.7% copper will require follow-up and also analysis for gold.

A gradient array IP (Induced Potential) survey is now underway at Zone 1. This geophysical survey is designed to determine the strike extent of known mineralisation and identify any other conductive bodies that may also indicate zinc mineralisation.

A high definition airborne magnetic and radiometric survey is scheduled for November. The survey is designed to better define both a magnetic low that lies to the immediate south of the Prairie Downs Fault and also a significant magnetic high that lies to the north of the fault. The magnetic survey will also assist in defining structures controlling emplacement of zinc mineralisation.

The next crucial stage will be construction of a drill hole database including all current and previous data. This will in turn allow construction of a detailed 3D model, which will provide the basis for future drilling and for targeting the source of this zinc mineralisation.

Metallurgical testwork is also scheduled for this year, to be followed by an initial scoping study to determine parameters required for a potential "start-up" operation at Prairie Downs.

This first drill program at Prairie Downs has been a great success and has met all objectives. It has enhanced our understanding of zinc mineralisation at Prairie Downs and has significant implications for the discovery of additional mineralisation, both at Zone 1 and elsewhere on the project.

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 they appear.

Background Information

The company's main project is Prairie Downs, where the primary focus is high grade zinc-lead-silver deposits, with secondary prospectivity for gold and nickel. The most advanced prospect at Prairie Downs, Zone 1, contains an Inferred Mineral Resource of 500,000 tonnes, within 100 metres of the surface, at a grade of 13.1% zinc, 3.7% lead and 35g/t silver. Mineralisation is open at depth and along strike, with the total potential at Zone 1 of the order of 2.4 million tonnes indicated by drilling and geophysics.

Shallow drilling at Coppermine Bore in 1977 returned a best result of 3 metres at 2.5% copper and 120ppm uranium and sampling completed in 1996 returned a best result of 2.4g/t gold, 19% copper and 295ppm uranium This project provides a set of outstanding "walk-up" drill targets for gold-copper-uranium mineralisation.

Longreach Well is a Mississippi Valley Type ("MVT") zinc-lead prospect where previous exploration has outlined a 4 kilometre zone of prospective stratigraphy with anomalous geochemistry and gossanous outcrops.

Perenjori is a Volcanic Hosted Massive Sulphide type ("VHMS") prospect. The best drilling results to date are 5 metres at 1.9% copper & 18.2g/t silver, 1 metre at 11.3% zinc & 4.1% lead and 1 metre at 5.3g/t gold. Exploration to date indicates that the main potential for economic mineralisation lies down dip from the known mineralisation.