PEM have been working on restart of mining at their Flinders...

PEM have been working on restart of mining at their Flinders prospect, for some years in fact. Hopefully we will get a decision soon to restart mining, which would be a surprise bonus to this relatively little followed stock.

They are due to report their quarterly results on this coming Friday, I think.

Have a read from their website, as to the quality of this deposit, which they say is up to the highest grade in the world. They are looking at direct shipment of the ore, due to it being so high grade (means ore can be sent direct to smelter).

Say 1 million tons @30%zinc....is worth some $1.3 billion dollars (direct grade export may see delivery to a smelter at $130 per ton, as compared to zinc spot of $4,500 per ton.).

Keen also to hear what they will do will all their cash.

From PEM website:

"......The Flinders project covers 6,095 square kilometres in South Australia, 250 kilometres by rail north of Port Pirie and 470 kilometres north of Adelaide. The project area contains numerous historic mines and base metals prospects. Perilya holds an option to acquire a 100% interest in the Beltana and Aroona mine leases and has a number of joint ventures where it is earning interests between 85% and 90%. Perilya also holds a number of tenements in its own right.

Exploration at Flinders is focused on discovering high grade zinc mineralisation, in the form of the silicate willemite, similar to that mined previously at the Beltana and Aroona mines which together had pre-mining reserves of 1 million tonnes at 37% zinc. There are significant remnant resources in the Beltana pit and new resources at the Reliance prospect, that underpin the exploration risk on the project. Deposits of this nature have a high unit value and could add significantly to Perilya's growth.

The Flinders project is located in the northern part of the Adelaide Geosyncline, a folded sedimentary basin of Late Proterozoic to Middle Cambrian age. Lithologies include siltstone, sandstone, limestone, dolomite and black shale. Zinc mineralisation within the project area is hosted within the Wilkawillina and Woodendina Limestone units.

The Beltana and Aroona zinc oxide deposits were found during exploration for large scale carbonate hosted lead-zinc sulphide deposits in the 1960s. Perilya's exploration is targeting extensions to the high-grade zinc oxide mineralisation, adjacent to the open pits and along strike within the prospective lithological and structural zones that host the deposits. The potential for significant discoveries has been demonstrated at Emu Flats, midway between Beltana and Aroona, where reverse circulation drilling on the Reliance prospect intersected high grade zinc oxide including 16 metres at 39.8% zinc, 23 metres at 30.5% zinc, 30 metres at 28.5% zinc and 27 metres at 28.2% zinc. These drilling results have been compiled to estimate an inferred resource totalling 355,000 tonnes at an average grade of 30% zinc.

Throughout the Flinders project area, there has only been limited evaluation using modern exploration, drilling and geophysical techniques. At the Third Plain prospect, recent drilling by Perilya intersected 7 metres at 36.5% zinc and 9 metres at 24% zinc.

Perilya is optimistic that the use of systematic modern exploration techniques in this established zinc province will generate additional significant discoveries.

Total mineral resources, in all categories, in the project area currently stand at 941,000 tonnes at 31% zinc. Perilya’s exploration objective is to outline 3 million tonnes of ore, which will make the establishment of a hydrometallurgical treatment plant attractive. Alternatively, permitting and environmental approvals are in place to allow a mining operation involving the direct shipment of high-grade ore from the Beltana mine."