Quarterly Report for the period ended 30 June 2007
Prairie Downs: Zinc-Lead-Silver
Assay results have been received for the final two holes for the exploration program completed during the March quarter.
- MAIN LODE, PDD129: 2.7 metres at 7.8% zinc, 2.6% lead and 28.3g/t silver
- MAIN LODE, PDD135: 4.5 metres at 12.7% zinc, 1.3% lead and 20.3g/t silver
Exploration during the quarter was remarkably successful with the vast majority of holes drilled returning significant intersections. The strike length of mineralisation was extended by several hundred metres; two new zinc lodes were discovered; and significant copper was intersected for the first time. The attached tables show significant zinc intersections for holes drilled during the quarter and a location plan for Zed Lode holes.
An updated resource calculation is now in preparation and is expected to be complete in August. It should be noted that the existing resource (one million tonnes at a grade of 8.3% zinc, 1.7% lead and 22g/t silver) does not include any of the holes in the tables below, or holes drilled in the Zed and East Lodes in the December quarter.
Further drilling at Prairie Downs has been underway since the beginning of July, with visually recorded zinc and lead mineralisation from holes drilled to date confirming that Zed Lode mineralisation continues along strike to the east and west.
Other Projects
No fieldwork was completed on either the Longreach Well or Perenjori projects during the quarter. The Coppermine Bore and Jillary uranium projects are joint ventured to Western Uranium Limited and are reported on by that company.
Corporate
On behalf of directors and shareholders I would like to extend a warm welcome to Mr Angus Nichols, who joins us as Project Geologist.
Subsequent to the end of the quarter the Company agreed to a share placement to institutional clients of Southern Cross Equities Limited. The share placement will comprise of an issue of 6.0 million shares at a price of $0.91 per share to raise a total of $5.46 million (before costs of the issue). The share placement is subject to shareholder approval which will be sought at a general meeting to be held on or around 27 August 2007.
Mark Hansen
Managing Director
For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au
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PRAIRIE DOWNS PROJECT
AIRBORNE MAGNETIC IMAGE |
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DRILL HOLE LOCATION PLAN
ZED LODE AND WEST END MAIN |
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ZED LODE
SIGNIFICANT INTERSECTIONS |
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ZED LODE
SIGNIFICANT INTERSECTIONS (Con’t) |
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EAST LODE
SIGNIFICANT INTERSECTIONS |
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MAIN LODE
SIGNIFICANT INTERSECTIONS |
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NOTES
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Zinc equivalent % = Zinc % + (Lead %*(USD Lead price per tonne/ USD Zinc price per tonne))
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Zinc price of USD3540/t and lead price of USD3018/t
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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