Prairie Downs Metals (PDZ) - Base Metals Minnow

Anyone with in interest in a small base metals speculative play might care to do some research on this one.

Share price has done nothing much over the last year, but the story continues to slowly unfold.

Prairie Downs Project:

The extracts below come from their quarterly activities report, released on Thursday 26 April 2007.

In January, Lycopodium Engineering was engaged to evaluate the economics of an operation processing around 250,000 tpa and producing around 20,000 tonnes per annum of zinc in concentrate. This operation would be based upon the current resource of one million tonnes at a grade of 8.3% zinc, 1.7% lead, and 22 g/t silver augmented by the recently discovered Zed Lode. (this info has been released previously)

Initial results from this year's drilling are very encouraging. Visually identified zinc and lead mineralisation remains strong, and further gossans have been located on the surface to the west of current drilling. Significant copper mineralisation has also been identified for the first time. It may also be relevant that the total sulphide content (including the gangue mineral pyrite) is increasing to the west. (this is new information)

The assays from the first 8 holes in the 2007 drilling program are expected within a fortnight (subject to delays at the lab). I believe that these holes are stepouts on the Zed Lode. A further 10,000 meters of RC drilling is planned for this first program, with diamond and more RC drilling planned for later in the year. There have been delays in the 2007 drilling program due to cyclones, associated rain and mechanical failure.

It's all taking time, but the story continues to build - hopefully the pending assays will reveal decent grade and width.

What interests me is that PDZ's market cap is only some $20m, so the market is not currently ascribing much value to the project.

As I mentioned previously, please do your own detailed research if you are interested.

Initial assay results for the 2007 drill program were released today.

Best intercept was 22m at 4.3% zinc, 3.5% lead and 19.3 g/t silver, including 2m at 25.2% zinc, 5.9% lead and 31.5 g/t silver and 3m at 5.2% zinc, 9.8% lead and 54.5 g/t silver.

The company expects to be mining in 2009, and has commenced discussions to finance and acquire a ball mill, which is the longest lead time item required for mining.

More assay results are expected in about 2 weeks.

Please read today's release for full details.

Hi HC I've held a few of these for a few months now, yesterday they moved above the price I paid for the first time so I'm happy with the results! I bought them simply because they are cheap as as chips and have quite a bit of potential in the ground. Plus they are run by geologists rather than accountants which I like. I think part of what holds them back is that people don't realise their market cap: lots of miners with a similar cap are 6-7 cents per share. Market seemed to like yesterdays announcement though and I believe there is still some more to come.

Farmer George - I bought them simply because they are cheap as as chips and have quite a bit of potential in the ground.

You're not wrong FG. The mineralisation appears to be extensive and reasonably shallow. The Zed Lode appears to be open along strike and down dip, and they now seem to think the Zed Lode could be an extention of the Main Lode. If this was the case, the mineralisation would be continuous for over a kilometre and still remain open along strike and at depth.

Management is obviously excited - they have brought the diamond drilling program from later on in the year to now. The drill should be on site this week.

Like you, I'm holding. [8D]

HC Quite right the potential for the two to be part of a single deposit was a consideration also. I think it has been mentioned before but it's nice to have further evidence.

Bought some more of these last week when they fell off a bit. Worth taking a look at the latest drilling results: further indication of a large resource. Market liked it however Market Cap. remains low. My feeling is this is still fairly cheap, 2009 production kick off still on schedule - anyone else still holding?

Hi FG

Yep, still in there and still accumulating. PDZ is a steadily unfolding story, so I'm settling in for an enjoyable ride. :)

Some darn good intercepts reported today, but this is the bit that I liked most from today's announcement...

...the existing resource of 1 million tonnes is primarily hosted by Main Lode (which is evidently misnamed) and has a grade of 8.4% zinc, 1.7% lead and 22 g/t silver, with an average intersection width of 4.3 metres. Zed Lode is of consistently higher tenor.

The Zed Lode remains open in all directions as well.

I'm now assuming that they have at least 2 million tonnes of ore grading around 10% zinc equivilent.

Fully diluted market cap is just $30m or there abouts.

I think Intersuisse sharebrokers had a recommended buy on this one recently.

No sorry, it was Hamilton Hindon Greene in N.Z. taht had a write up about PDZ.

HC I agree on the 2m tonnes, not convinced yet on grade. Loved the 'evidently misnamed' quip, had to have a chuckle about that one!

Interesting Hommel, out of curiosity, did they have a price target at all?