Replies to post #265 on Nickel & Cobalt

[kraftdinner]

Prime Meridian finds nothing so far at Kiernan


2007-05-16 09:46 MT - News Release

Mr. Michael Senn reports

PRIME MERIDIAN RESOURCES CORP: NICKEL-COPPER DRILLING UPDATE

Prime Meridian Resources Corp. is reviewing its drilling. In addition its website is now live on-line and its common shares are listed on the Frankfurt Stock Exchange under the symbol DYD.

Drilling was started in March, 2007, in the southern portion of the Kiernan sills project area in Michigan where there were no access restrictions during the spring breakup period. Prime Meridian has now completed testing of two nickel-copper targets of the nine targets in the Kiernan sills project area. While there was some copper mineralization in the cores from the drill holes, there was no evidence of a commercial deposit. A summary description of the core recovery is shown below.

The Kiernan sills (east and west) form a very large Proterozoic intrusive complex with approximate thickness of 4,000 and 8,000 feet and strike lengths of seven and 18 miles, respectively. The entire sill complex was surveyed using MEGATEM in the southern half and GEOTEM in the northern half of the project. Nine priority targets were discovered from these surveys, four in the southern block and five in the northern block.

The continuous drill testing of 29 drill-ready targets is under way on the Kiernan sills and four other midcontinent rift system projects in Michigan. All of the drill targets are in the northern region of the midcontinent rift system where, historically, large and valuable base metal mines have been developed in the northern United States. The drill rig is now fully crewed and works two 12-hour shifts each day on a 10-day-on, four-day-off schedule.

Drilling and exploration plans

The next target, KS-1, is also in Kiernan South and is currently under way. Drilling results will be reported when assay results are received, approximately each four to six weeks throughout 2007 and into 2008.

Prime Meridian has completed ground geophysical surveys over six nickel-copper and three iron-oxide-copper-gold targets in preparation for drilling. Geophysical survey and grid preparation work are continuing to complete the balance of 29 defined drill-ready targets. The grid preparation work is contracted to first nation crews from Thunder Bay, Ont. The ground geophysical surveys are being conducted by TMC Geophysics, Val d'Or, Que., and Prime Meridian field crews. Results are being interpreted by TMC and Big Sky Geophysics.

This summer Prime Meridian will also conduct ground and airborne geophysics, reconnaissance geological mapping, and sampling on the 10 mid-stage projects as reported in Stockwatch April 10, 2007, now available on the Prime Meridian website.

Summary description of drill results

The target tested at KS-102-1 is a strong magnetic positive anomaly with a weak to moderate coincident EM response at the eastern contact of an ultramafic (peridotite) unit that forms the basal unit of the West Kiernan sill. No significant sulphide intercepts were encountered. The anomaly was explained by strongly magnetic, altered peridotite, with local traces of pyrrhotite, chalcopyrite and graphitic volcaniclastic sediments.

The target tested at KS-102-2 is a strong magnetic positive anomaly with notable copper mineralization at surface (azurite, malachite, chalcopyrite in mafic volcanics -- assays to 0.2 per cent copper). Drilling intercepted trace copper mineralization over an eight-foot thickness (approximately 7.2 feet true thickness) in a magnetic chert unit. This interval is presently being prepared for geochemical analysis, including gold. Assay results will be reported when available.

Michael Senn, PGeo, president of Prime Meridian and a qualified person as defined by National Instrument 43-101, prepared the information in this release. Detailed information on the projects described above can be accessed in NI 43-101 reports available on SEDAR.

We seek Safe Harbor.