Resource Statement
ALL LODES GLOBAL RESOURCE
4.7 million tonnes at a grade of 6.3% zinc, 1.8% lead and 18g/t silver.
ALL LODES HIGH GRADE RESOURCE
1.6 million tonnes at a grade of 12.3% zinc, 3.7% lead and 36g/t silver.
MAIN LODE HIGH GRADE RESOURCE
1.2 million tonnes at a grade of 12.7% zinc, 3.3% lead and 38g/t silver.
Prairie Downs Metals Limited has updated mineral resources for the Prairie Downs Zinc Project to include results from all drill programs to December 2007. The updated resource shows a significant increase in grade from previously reported resources.
These results are excellent and clearly demonstrate the potential of the Prairie Downs Zinc Project to deliver world class grades. Tonnage is expected to increase substantially as the existing lodes are drilled out and drilling commences on new discoveries. Full details for these JORC compliant resources are shown below.
The high grade resource should be sufficient for the first five years of production at Prairie Downs with a minimum rate of 300,000 tonnes per annum. The Bankable Feasibility Study currently underway is based upon a plant designed to allow staged expansion of production to one million tonnes per annum as resources are increased. It is expected that the Main Lode will be mined first, probably commencing with an open cut to minimise development costs, before moving underground.
The Prairie Downs Zinc project has a number of competitive advantages, the most important being the high metal grades, shallow mineralisation and excellent resource upside. The high grades will mimimise the capital payback period and lessen the impact of a lower zinc price while maximising revenue from a higher price. The fact mineralisation commences at the surface will help minimise both capital and operating costs and the resource upside should readily ensure that expansion plans can be implemented and mine life extended beyond 10 years. All competitive advantages are shown in the table below.
Mark Hansen
Managing Director
For further information contact:
Elissa Samuel
Investor Relations Manager
esamuel@prairiedownsmetals.com.au
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Prairie Downs Zinc Project - Competitive Advantages
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Resource Statement
All resources reported in this table are “JORC compliant”. The “Global Resource” has a nominal lower cut of 1% zinc and effectively defines the extent of the various lodes as they have been defined by drilling to date. The “High Grade Resource” is defined by metal content nominally greater than 20%m (combined zinc and lead multiplied by intersect width). This effectively defines the high grade shoots that lie within, and are a sub-set of, the lodes themselves.
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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 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 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.
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