Initial Drill Results of 2 diamond holes:  Updated 25 September 2009

PDM announced that it has intersected disseminated copper sulphide mineralisation in a 90m wide magnetite interval in its second drill hole at the Blue Bush project. Drill hole BBD002 was stopped at 455.5m after intersecting semi-massive magnetite (a form of iron oxide) containing disseminated sulphides from 357 to 445m.  The first hole, BBD001, intersected the same magnetite interval over a 30m width at a shallower depth but contained minimal sulphides because of deep weathering.  See cross section below in Figure 3A.  A plan of the drill hole locations is shown on a magnetic map in FIgure 3B.   

A 20m interval, believed to be representative of the full 90m interval in BBD002, has assayed 0.15% copper from 399.5 to 419.5m .  The rest of the mineralised 90m interval from BBD002, and the magnetite zone in BBD001,  will be assayed as soon as possible.  Gold is also anomalous along with copper, up to 0.12g/t Au over a 2m interval.  Drilling has now been stopped to enable time for full assays and interpretation of the results. 

The drill results are believed to be very encouraging.  The copper grades appear to be increasing to the southeast and at depth, while the thickness of the mineralisation is also increasing with depth (see cross section in Figure 3A).  

Figure 3A. Cross section of Blue Bush showing drill holes BBD001 and BBD002 

 
Figure 3B:  Magnetic map of Blue Bush project with drill hole locations

JV partner
PDM announced on 15 July 2009 it has signed a Joint Venture Agreement with unlisted company Northwest Discovery Ltd (NWD) for NWD to farm into the Blue Bush Iron Oxide Copper Gold project, located 140km north of Cloncurry, Queensland. NWD has the right to earn up to 50% of the project by funding costs associated with drilling up to a total of $725,000.  At that stage, a 50:50 joint venture will be entered into. PDM will continue to be Manager of the Joint Venture while it holds at least 50% ownership of the project. 

Funding from Queensland Government
In April 2009 the Company was successful in receiving a $50,000 grant from the Queensland Government under Stage 3 of the Smart Mining - Collaborative Drilling Initiative.  This funding will cover 50% of the direct drilling cost of drilling the initial 2 holes planned for August 2009.   

Figure 3C.  Regional airborne magnetic image of the Mt Isa - Cloncurry region of Queensland with selected major deposits and location of Blue Bush project EPM 15324.

Geological Model
There are two general styles of Iron Oxide Copper GOld (IOCG) mineralisation. Some IOCG copper-gold mineralisation in the Cloncurry belt (eg Ernest Henry, Mt Elliot) occur together with significant iron oxide in the form of magnetite, which is strongly magnetic.  Other IOCG deposits (eg Oz Minerals' Prominent Hill in South Australia) occur with iron in the dominant form of haematite, which is non-magnetic but more dense than magnetite and therefore may generate a gravity anomaly if the haematite occurs in a massive form.  

Previous Exploration
A single hole was drilled into the magnetic anomaly in 1983 to a depth of 320m (DDH83KM2 - see Figure 3B) with minor and sporadic copper mineralisation intersected.