3.7 kilometres of copper mineralisation

3.7 Kilometres of Copper Mineralisation

Detailed mapping and sampling has been continuing at Prairie Downs Metal’s namesake project.
Results indicate that copper mineralisation is continuous in a similar geological setting from Costean
Seven to the Main Lode zinc resource. This is a total strike length of 3.7 kilometres of copper
mineralisation which commences at surface and remains open to both the northwest and southeast.
Only 3.7 kilometres of the total 17 kilometre potential strike length has been mapped to date.
Indications are that further mineralisation will be discovered as the exploratory mapping process
continues. The next stage is to map a section of the rift four kilometres northwest of Costean Seven.
Rock chip samples taken from eight separate areas between Kerrs Find and the Main Lode were
analysed using a Niton XL3T handheld XRF machine (“Niton”) have returned grades of up to 20.5%
copper. High lead results have also been discovered close to the rift as the Company’s understanding
of the geology would predict. All of the new discoveries are shown on the attached plan.
Laboratory assay results of rock chip samples from the previously announced Costean Seven discovery
have now been received. Samples were assayed to confirm the Niton results. The laboratory assay
results show that the Company’s Niton sampling has been conservative, with both seven metre zones
from Costean Seven being under called.
Niton results Laboratory (ALS) results
7 metres at 5.6% copper 7 metres at 7.4% copper
7 metres at 3.0% copper 7 metres at 5.6% copper
Further, the laboratory assays also include gold and silver results which have not previously been
reported. Laboratory assays returned values up to 2.5g/t gold and up to 59.4g/t silver. The seven metre
zone above at 7.4% copper also averages 1g/t gold and 34.2g/t silver. This is an excellent outcome as
it could result in substantial gold and silver credits in any copper concentrate produced.
Copper mineralisation at Prairie Downs has been confirmed to occur as bornite. Bornite is very rich in
copper and can produce a high grade concentrate. Coupled with the gold and silver that runs with the
copper at Prairie Downs, the Company could potentially produce a premium copper concentrate.
Further rock chip samples, including samples from the previously announced Kerrs Find discovery,
have been submitted for assay but results are not yet available. Bulk samples have also been
submitted for metallurgical testwork with the results expected in time for the completion of the feasibility
study, due in the June quarter.
Mapping is expected to be complete within the next few weeks and drilling is expected to commence in
June, subject to rig availability. An initial 20,000 metre program of both RC and diamond drilling is
planned to drill out the copper discoveries and define extensions to the existing zinc resource.
Mark Hansen
Managing Director
ASX RELEASE 22 May 2008
For further information contact:
Elissa Samuel
Investor Relations Manager
[email protected]
Map Showing Recent Copper Discoveries
This map does not include the very significant copper discoveries at Costean Seven and Kerrs Find;
maps of these areas have been previously released. The three zinc lodes (Gabbro, Zed and Main) are
shown as surface projections.
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 and
Mr Kerr have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which they are undertaking to qualify as a Competent Persons 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