Prairie Downs Metals (PDZ) - Base Metals Minnow

[Huang Chung]

Trading halt.

They have a lot on the go at the moment, including talk of an exploration decline, so a capital raising is a distinct possibility.

[FarmerGeorge]

Hopefully it will be a nice friendly raising for current holders with some options attached a la VML. Even better would be if it depresses the stock a bit from where it is now so I can pick up a bunch on the cheap.

[Huang Chung]

Dare I say it Farmer George, but IMHO PDZ is cheap now! [8D]

[cupacino]

HC - looking forward to expected announcement tomorrow which I tip will be a capital raising. The results coming in just seem to be buiding a good story for PDZ. Should be more results soon I think!.

[Huang Chung]

$5.5m capital raising announced - institutional and sophisticated investors only...so Farmer George, we lucked out this time, eh.

Anyhow, the capital raising sets PDZ up to continue the job of proving up a significant zinc / lead resource at their namesake project. You'd imagine a revised resource statement can't be too far away (must surely be around 2mt grading around 9 or 10% zinc equivilent by now).

Drilling has recommenced...exploration decline now funded....its all happening!

Cupacino - I take it you're holding PDZ? Welcome to the thread in any case. All comments appreciated.

[FarmerGeorge]

Agreed, would have been nice to have had an offer to participate but c'est la vie. I guess with the recent pullback in share price they might not have thought there would be enough interest. I will look to pick up a few more at under $1, even with the raising there are not too many shares on issue but I'd like to reduce any dilution effect.

[Huang Chung]

Huang Chung 25/7/07 - You'd imagine a revised resource statement can't be too far away.

Praire Downs Quarterly 26/7/07 - An updated resource calculation is now in preparation and is expected to be complete in August.

This is what I've been waiting for! Most likely it will be the catalyst that takes PDZ to the next level.

I'd be surprised if we weren't looking at 2 million tonnes plus. That's about $800m in ground value. Market cap is around $60m and capital costs $55m.

Remember, these guys reckon this gound could be good for 10 million tonnes or better.[8D]

[cupacino]

HC - Sometime ago the MD made a comment that implied the main lode which had the 1m tonnes was incorrectly named and that the ZED lode was the "main lode". You would like to think that the new resource estimate would be over 2m at this point in time. Bring it on!

[Huang Chung]

Cupacino - 2 million tonnes will take the Prairie Downs Project to a higher tonnage than Jabiru Metals flagship Jaguar Project. Grades will probably slightly favour Jaguar, but Prairie Downs is shallower, and therefore should be cheaper to extract.

Naturally, PDZ has to be discounted because its project is not as far advanced, but PDZ's market cap is around one eigth of Jabiru's ($500m or there abouts). Over time, all things being equal, this discount will surely diminish.

The next month will tell the story....who knows, they might even disclose a resource greater than 2m tonnes. And the story won't stop there, as a lot of the known lodes remain open, and they keep finding more of them!

PDZ is now cashed up and pushing on to prove up an even bigger resource.

$60m market cap.....cheap as chips IMHO.

[Scuffer]

Wise Owl and Fat Prophets were pushing PDZ as a growth stock.