Prairie Downs Metals Limited (ASX:PDZ) Quarterly Report for the ...
[2008-12-23 17:03:34]
Prairie Downs Metals Limited (ASX:PDZ) Quarterly Report for the ...
Perth, Oct 31, 2008 (ABN Newswire) - The Prairie Downs MetalsLimited (ASX:PDZ) Base Metal Project is located approximately 100kilometres southwest of Newman in the Eastern Pilbara region ofWestern Australia.
Currently the project hosts a total global inferred and indicatedresource of 4.7 million tonnes at a grade of 6.3% zinc, 18g/tsilver and 1.8% lead at a nominal lower cut off grade of 1% zinc(refer to Table 2.0 attached to this announcement). This resourcecontains 295,000 tonnes of zinc, 2.6 million ounces of silver and83,000 tonnes of lead.
Included is a High Grade Resource of 1.6 million tonnes at a gradeof 12.3% zinc, 36g/t silver and 3.7% lead. In addition, PrairieDowns Metals Ltd has successfully targeted mineralization alongstrike including "Costean Seven" and "Kerrs Find" prospects forzinc, lead, silver, copper, vanadium and gold. Reconnaissance andresource definition results are pending.
RESOURCE DRILLING
Resource drilling of the Main Lode has been completed and theinitial results are very encouraging. A total of 25 RC holes for4,817 meters have been drilled with target depths being achieved inthree holes which intersected both alteration and sulphidemineralisation. All but three holes completed have reached targetmineralization with the remainder of the holes (21 in total)requiring diamond tails to reach anticipated mineralized horizons.A total of 11 diamond tails have been completed for 1,365 meters.
The primary objective of the resource drilling program is toincrease the high grade resource to underpin at least five years ofhigh grade production. Conceptually the Company may extend highgrade resources from 1.6 million tonnes to between 2.0 milliontonnes and 2.5 million tonnes grading 8-12% zinc, 1-2% Pb and 10-20g/t Ag. These potential resources are not estimated due toinsufficient exploration to date but are suggested as possible onthe basis of unclosed high grade mineralization, previous drillingto depth not included in the high grade resource due to low drilldensity, and a 3D geological interpretation. Current plant and minedesign plans on this basis would support five years of high gradeproduction. The potential quantity and grade is conceptual innature, there has been insufficient exploration to define a MineralResource and it is uncertain if further exploration will result inthe determination of a Mineral Resource Initial results have beenreceived for the first of the diamond tails as described below:
- MAIN LODE, PDD111, 6.2 meters at 8.1% zinc, 1.2% lead and 12g/tsilver (9.6% zinc equivalent) from 201.8 meters. This intersectionincludes 4 meters at 11.9% zinc, 1.4% lead and 15g/t silver (13.7%zinc equivalent).
- MAIN LODE, PDD325, 1.7 meters at 8.7% zinc, 1.7% lead and 48g/tsilver (10.8% zinc equivalent) from 242.7 meters.
Notes:
1. Zinc equivalent % = Zinc % + (Lead %*(USD Lead price per tonne/USD Zinc price per tonne))
2. Zinc price of USD1,146/t and lead price of USD1,440/t as perLondon Metals Exchange 29th October 2008.
These results demonstrate the continuation of the ore body togreater depths and support geological breakthroughs previouslyannounced. The mineralization is variably broad, continuous andhigh grade.
Drilling conducted during this quarter has been designed tomaximize the contribution of indicated resources and add toinferred resources. In addition, the company (Prairie Downs MetalsLtd) aims to increase the high grade indicated and inferredresources. These results demonstrate the realization and potentialof the deposit at modest mining depths and support the Company'sresource definition strategy.
EXPLORATION DRILLING
Assay results received from the recent first drill program atCostean Seven have confirmed the existence of mineralizationderived from diamond drilling near surface. All holes weremineralized to varying degrees with respect to copper, lead, zincand silver. Mineralization is zoned. Intermittent narrowintersections variably graded up to 19.5% Pb, 0.9% Cu, 7.6% Zn and245ppm Ag.
These results demonstrate the continuation of base metalsmineralization over 3.7 kilometres strike. The company intends tocommission an Aircore drilling program in the short term, pursuingbase and precious metals, to the west of the Main Lodemineralization. The company envisages high drill production andspatial coverage, with a view to improved subsequent targeting andcost effective contribution to the resource base.
RECONNAISANCE EXPLORATION
Earlier in the year the Company undertook a detailed mappingprogram at the Project to provide geotechnical data and to gain abetter understanding of the geology. Initial analysis using a NitonXL3T handheld XRF machine indicated the existence of significantvanadium mineralization in association with barite, copper, lead,zinc and silver. Analysis of surface samples collected has beencompleted which confirms the existence of vanadium mineralizationyielding grades greater than 1% V2O5 over 3.7 kilometres of strikelength.
Grades greater than 1% are rarely achieved in a mining scenario.Windimurra mine produced vanadium at an average grade of 0.46%vanadium. Other Australian projects at an advanced stage includeBarrambie (Reed Resources 0.8% V2O5), Balla Balla (Aurox Resources0.65% V2O5 and 45% Fe) and Bigrlyl (Energy Metals Ltd 0.19% V2O5and 0.17% U3O8).
Internationally, production from from the Bushveld Complex averages1.5% V2O5 from many operations held by Xstrata and Highveld steel.This constitutes approximately 45% of world production. MountKachkanar, Gusevogorsk and Pervoural'sk in Russia, containapproximately 0.5% V2O5 and are operated by Nizhny Tagil Iron andSteel Works and the Chusovskoy Metallurgical Works. Largo Resourcesin Brazil reports production from a reserve grading 1.35% V2O5.
Vanadium enriched carbonitised volcaniclastics and a barite unitare unconformably juxtaposed with Zn/Pb/Ag mineralisation, in veinshosted by mafic intrusives and volcanics. The carbonistisedvolcaniclastics and barite cap, outcrop over approximately 4kilometres. Vandium grades above detection limits (>1%), asproffered by an independent laboratory (ALS Laboratory). Absolutevanadium concentrations are not reportable due to the specialisednature of the samples and very high grade. At this stagepreliminary investigations suggest the vanadium to be extractibleby conventional methods. Preliminary and independent mineralogicalanalysis by "Roger Townend and Associates", described samples asmottramite and vanadinite (both of which are vanadium ore minerals)in spatial association with copper minerals such as chalcocite,malachite, covellite, bornite, digenite and chalcopyrite, inaddition to barite.
In view of the high grades encountered in the preliminary workdescribed above, the Company has commissioned a mineralogical studyin relation to vanadium, and is investigating metallurgicalstudies.
FEASIBILITY RESULTS
Abesque Engineering & Construction Ltd (Abesque) has completed afeasibility study covering the process plant and related supportingsurface infrastructure. This study is now complete and the resultsare summarised below. The design is intended to treat 500,000 tpaof base metal ore, which at a 91.3% availability, equates to athroughput rate of 62.5 tph.
The process plant is designed to produce 113,240 dry tonnes of zincconcentrate per annum and 18,022 dry tonnes of lead concentrate perannum. The key parameters for the two concentrates are set out inTable 1.0 and Table 1.1.
Provision has been made in the current plant layout for a futureupgrade of the facility, including additional crushers, screens,mill and flotation cells which will allow an increase in the designthroughput to 1,000,000 tonnes per annum if required.
The zinc concentrate will grade 50.3% zinc for annual production of57,000 tonnes of zinc metal. The lead concentrate will grade 63.6%lead for annual production of 11,700 tonnes of lead metal.
The estimated capital expenditure for the process plant andsupporting infrastructure is AUD86 million based on the May 2008dollar, being made up of a cost for the process plant of AUD52million at +/- 10% and a cost of AUD34 million at +/- 20% for thesupporting infrastructure.
Operating costs from the ROM pad to delivery of concentrate to PortHedland (or an equivalent port) have been calculated at AUD41/tonnemilled while processing at 500,000 tpa rate. The largest operatingcost component is concentrate transport, followed in order by powersupplied from gas generators and personnel.
Mining feasibility work will commence pending complete results fromthe latest resource definition drilling program on the Main Lodeexpected in late December. Mine optimization on the basis of theresults from current drilling is targeted towards a substantialincrease in the high grade reserve base.
Environmental and Native title processes have been initiated onbehalf of the Company and are proceeding. Ongoing work includesflora and fauna characterization of the proposed mining leaseincluding stygofauna. Furthermore, hydrological desktop studies andassessment design are continuing completed with an outlook tofinalisation in the new year.
OTHER PROJECTS
Active negotiations are being undertaken with respect to jointventure agreements for the Coppermine Bore, Longreach Well andPerenjori Projects.
CORPORATE
The Company's cash balance at 30 September 2008 was A$6.85 million.There are no plans to raise further capital at this time.
Shareholder Information
As at 30 September 2008 the Company had 2,508 shareholders and72,890,598 ordinary fully paid shares on issue with the top 20shareholders holding 40.05% of the total issued capital.
http://www.abnnewswire.net/press/en/58805/Prairie_Downs_Metals_Limited_(ASX:PDZ)_Quarterly_Report_fo [2008-11-4]
Tag : baritePerth, Oct 31, 2008 (ABN Newswire) - The Prairie Downs MetalsLimited (ASX:PDZ) Base Metal Project is located approximately 100kilometres southwest of Newman in the Eastern Pilbara region ofWestern Australia.
Currently the project hosts a total global inferred and indicatedresource of 4.7 million tonnes at a grade of 6.3% zinc, 18g/tsilver and 1.8% lead at a nominal lower cut off grade of 1% zinc(refer to Table 2.0 attached to this announcement). This resourcecontains 295,000 tonnes of zinc, 2.6 million ounces of silver and83,000 tonnes of lead.
Included is a High Grade Resource of 1.6 million tonnes at a gradeof 12.3% zinc, 36g/t silver and 3.7% lead. In addition, PrairieDowns Metals Ltd has successfully targeted mineralization alongstrike including "Costean Seven" and "Kerrs Find" prospects forzinc, lead, silver, copper, vanadium and gold. Reconnaissance andresource definition results are pending.
RESOURCE DRILLING
Resource drilling of the Main Lode has been completed and theinitial results are very encouraging. A total of 25 RC holes for4,817 meters have been drilled with target depths being achieved inthree holes which intersected both alteration and sulphidemineralisation. All but three holes completed have reached targetmineralization with the remainder of the holes (21 in total)requiring diamond tails to reach anticipated mineralized horizons.A total of 11 diamond tails have been completed for 1,365 meters.
The primary objective of the resource drilling program is toincrease the high grade resource to underpin at least five years ofhigh grade production. Conceptually the Company may extend highgrade resources from 1.6 million tonnes to between 2.0 milliontonnes and 2.5 million tonnes grading 8-12% zinc, 1-2% Pb and 10-20g/t Ag. These potential resources are not estimated due toinsufficient exploration to date but are suggested as possible onthe basis of unclosed high grade mineralization, previous drillingto depth not included in the high grade resource due to low drilldensity, and a 3D geological interpretation. Current plant and minedesign plans on this basis would support five years of high gradeproduction. The potential quantity and grade is conceptual innature, there has been insufficient exploration to define a MineralResource and it is uncertain if further exploration will result inthe determination of a Mineral Resource Initial results have beenreceived for the first of the diamond tails as described below:
- MAIN LODE, PDD111, 6.2 meters at 8.1% zinc, 1.2% lead and 12g/tsilver (9.6% zinc equivalent) from 201.8 meters. This intersectionincludes 4 meters at 11.9% zinc, 1.4% lead and 15g/t silver (13.7%zinc equivalent).
- MAIN LODE, PDD325, 1.7 meters at 8.7% zinc, 1.7% lead and 48g/tsilver (10.8% zinc equivalent) from 242.7 meters.
Notes:
1. Zinc equivalent % = Zinc % + (Lead %*(USD Lead price per tonne/USD Zinc price per tonne))
2. Zinc price of USD1,146/t and lead price of USD1,440/t as perLondon Metals Exchange 29th October 2008.
These results demonstrate the continuation of the ore body togreater depths and support geological breakthroughs previouslyannounced. The mineralization is variably broad, continuous andhigh grade.
Drilling conducted during this quarter has been designed tomaximize the contribution of indicated resources and add toinferred resources. In addition, the company (Prairie Downs MetalsLtd) aims to increase the high grade indicated and inferredresources. These results demonstrate the realization and potentialof the deposit at modest mining depths and support the Company'sresource definition strategy.
EXPLORATION DRILLING
Assay results received from the recent first drill program atCostean Seven have confirmed the existence of mineralizationderived from diamond drilling near surface. All holes weremineralized to varying degrees with respect to copper, lead, zincand silver. Mineralization is zoned. Intermittent narrowintersections variably graded up to 19.5% Pb, 0.9% Cu, 7.6% Zn and245ppm Ag.
These results demonstrate the continuation of base metalsmineralization over 3.7 kilometres strike. The company intends tocommission an Aircore drilling program in the short term, pursuingbase and precious metals, to the west of the Main Lodemineralization. The company envisages high drill production andspatial coverage, with a view to improved subsequent targeting andcost effective contribution to the resource base.
RECONNAISANCE EXPLORATION
Earlier in the year the Company undertook a detailed mappingprogram at the Project to provide geotechnical data and to gain abetter understanding of the geology. Initial analysis using a NitonXL3T handheld XRF machine indicated the existence of significantvanadium mineralization in association with barite, copper, lead,zinc and silver. Analysis of surface samples collected has beencompleted which confirms the existence of vanadium mineralizationyielding grades greater than 1% V2O5 over 3.7 kilometres of strikelength.
Grades greater than 1% are rarely achieved in a mining scenario.Windimurra mine produced vanadium at an average grade of 0.46%vanadium. Other Australian projects at an advanced stage includeBarrambie (Reed Resources 0.8% V2O5), Balla Balla (Aurox Resources0.65% V2O5 and 45% Fe) and Bigrlyl (Energy Metals Ltd 0.19% V2O5and 0.17% U3O8).
Internationally, production from from the Bushveld Complex averages1.5% V2O5 from many operations held by Xstrata and Highveld steel.This constitutes approximately 45% of world production. MountKachkanar, Gusevogorsk and Pervoural'sk in Russia, containapproximately 0.5% V2O5 and are operated by Nizhny Tagil Iron andSteel Works and the Chusovskoy Metallurgical Works. Largo Resourcesin Brazil reports production from a reserve grading 1.35% V2O5.
Vanadium enriched carbonitised volcaniclastics and a barite unitare unconformably juxtaposed with Zn/Pb/Ag mineralisation, in veinshosted by mafic intrusives and volcanics. The carbonistisedvolcaniclastics and barite cap, outcrop over approximately 4kilometres. Vandium grades above detection limits (>1%), asproffered by an independent laboratory (ALS Laboratory). Absolutevanadium concentrations are not reportable due to the specialisednature of the samples and very high grade. At this stagepreliminary investigations suggest the vanadium to be extractibleby conventional methods. Preliminary and independent mineralogicalanalysis by "Roger Townend and Associates", described samples asmottramite and vanadinite (both of which are vanadium ore minerals)in spatial association with copper minerals such as chalcocite,malachite, covellite, bornite, digenite and chalcopyrite, inaddition to barite.
In view of the high grades encountered in the preliminary workdescribed above, the Company has commissioned a mineralogical studyin relation to vanadium, and is investigating metallurgicalstudies.
FEASIBILITY RESULTS
Abesque Engineering & Construction Ltd (Abesque) has completed afeasibility study covering the process plant and related supportingsurface infrastructure. This study is now complete and the resultsare summarised below. The design is intended to treat 500,000 tpaof base metal ore, which at a 91.3% availability, equates to athroughput rate of 62.5 tph.
The process plant is designed to produce 113,240 dry tonnes of zincconcentrate per annum and 18,022 dry tonnes of lead concentrate perannum. The key parameters for the two concentrates are set out inTable 1.0 and Table 1.1.
Provision has been made in the current plant layout for a futureupgrade of the facility, including additional crushers, screens,mill and flotation cells which will allow an increase in the designthroughput to 1,000,000 tonnes per annum if required.
The zinc concentrate will grade 50.3% zinc for annual production of57,000 tonnes of zinc metal. The lead concentrate will grade 63.6%lead for annual production of 11,700 tonnes of lead metal.
The estimated capital expenditure for the process plant andsupporting infrastructure is AUD86 million based on the May 2008dollar, being made up of a cost for the process plant of AUD52million at +/- 10% and a cost of AUD34 million at +/- 20% for thesupporting infrastructure.
Operating costs from the ROM pad to delivery of concentrate to PortHedland (or an equivalent port) have been calculated at AUD41/tonnemilled while processing at 500,000 tpa rate. The largest operatingcost component is concentrate transport, followed in order by powersupplied from gas generators and personnel.
Mining feasibility work will commence pending complete results fromthe latest resource definition drilling program on the Main Lodeexpected in late December. Mine optimization on the basis of theresults from current drilling is targeted towards a substantialincrease in the high grade reserve base.
Environmental and Native title processes have been initiated onbehalf of the Company and are proceeding. Ongoing work includesflora and fauna characterization of the proposed mining leaseincluding stygofauna. Furthermore, hydrological desktop studies andassessment design are continuing completed with an outlook tofinalisation in the new year.
OTHER PROJECTS
Active negotiations are being undertaken with respect to jointventure agreements for the Coppermine Bore, Longreach Well andPerenjori Projects.
CORPORATE
The Company's cash balance at 30 September 2008 was A$6.85 million.There are no plans to raise further capital at this time.
Shareholder Information
As at 30 September 2008 the Company had 2,508 shareholders and72,890,598 ordinary fully paid shares on issue with the top 20shareholders holding 40.05% of the total issued capital.
Source: 沱沱网
Keywords:Industrial Supplies
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