Prairie Downs Metals (PDZ) - Base Metals Minnow

[FarmerGeorge]

Hommel, I saw the HHG report, some interesting reading. I note a PDZ report out today "spectacular drill core", worth a look for holders. SP is hitting some highs right now. Still holding.

[Huang Chung]

The Zed lode seems to be the best PDZ has uncovered so far.

Info was released today on visually recorded zinc and lead mineralisation from diamond drill hole PDD 180 (i.e not assay results). Estimates of zinc grades are up to 50% zinc over a short interval.

Assay results for RC drill holes PDP 175 to 189 and diamond holes PDD 179, 180, 182 and 190-195 are yet to be released, so there will be a good flow of data to keep the punters happy.

Commentary from MD Mark Hansen seems to imply that the news will continue to be good "There are a number of other core intersections that are as good as or better than PDD 180".

PDZ is shaping up to be a great story.

[FarmerGeorge]

I have read the report a bit more thoroughly. I'm no geologist so don't take this as gospel but the risk associated with PDZ (the co., not the beta risk of the share) now appears minimal. Even with the latest run up in price the market cap is tiny for this company. The release announcing the economic feasibility of the mine seems to me to be an indicator of further positive news regarding the full resource in the ground. Margin of safety has been reduced but with a full cap. still less than 100m there seems to be plenty of value not being priced in.

Huang Chung do you have a price target for PDZ right now?

[Huang Chung]

G'day Farmer George

Yes, the Praire Downs project is now looking very solid. The only thing that I see as a possible threat is a collapse in the zinc price. Even then, the relatively shallow nature of the deposit and the very acceptable grades present would provide a reasonable degree of comfort in a weaker metals environment.

If you get the chance, do a comparison of PDZ with Jabiru Metals (JML) ,whose flagship Jaguar Project is of similar grade and size to the Prairie Downs Project, and see what you think. At around $450m, JML's market cap is some 10 times PDZ's.

All things being equal, as PDZ gets more runs on the board, both in relation to exploration and mine development, I can't see why their market cap would not climb to levels similar to JML's current market cap. It will take a bit of time though.

As for where PDZ are placed right now, I think that a share price of around $2 is not unreasonable...... but strictly my personal opinion only.

[FarmerGeorge]

HC, I looked into Jabiru a few months ago but was chicken and decided to get indirect exposure to it via Consolidated Minerals. Am not currently holding. I hadn't considered JML as a peer of PDZ, will look into it. Thanks for the advice.

[FarmerGeorge]

Approached $1, backed off, then proceeded to break through fairly healthily. Should be a fascinating week for PDZ the stock, perhaps we will have some further news from PDZ the co?

[Huang Chung]

Expecting a pause after a stellar run.....at least until the next lot of assays are released [8D].

[Huang Chung]

More assays released today from 5 holes recently drilled on the Zed Lode.

Widths and grades look good. The assay for hole PDP 180 included 1.3m at 41.3% zinc, as part of a wider intercept.

Quote: Zed Lode remains open along strike and at depth and appears to be increasing in width and tenor at depth.

More RC drilling assays are expected within the week, with diamond drilling assays due towards the end of June. Drilling recommences in July.

Plenty of action, and now a continual flow of good news. [8D]

[Huang Chung]

Feels like I'm flying solo on this one....[V]

At a guess, 2 million tonnes grading around 8-10% zinc should now be well and truely in the bag. All relatively shallow as well. Massive potential to expand the resource.

Market cap now around $60m...still peanuts if you ask me....topped up with a few more today.

[tricha]

Huang Chung -"Feels like I'm flying solo on this one...."

Nothing wrong with flying solo on this baby Huang Chung ( reminds me of TFE when they were at 35 cents), where was I when u posted on the 24.04.2007 [?][?] Dam missed an excellent opportunity at a cheap entry, still can't have them all.

Cheers [B)][}]