Poland, a member of the European Union and a country with a strong mining tradition has not attracted much interest for overseas investment in its mining potential. But now, an already drilled molybdenum project in Poland is to be acquired by Primary Resources in the South Australian-based explorer’s first expansion overseas.

One hole is currently being drilled on the project under a new four-hole exploration campaign scheduled over the next 12-18 months and which will see Primary spend a minimum of A$3 million on it in calendar 2008. A total of 26 holes have already been drilled on the property by the Polish Government state body and classified by government authorities as having the potential for economic mineralisation.

Primary will also raise up to A$10 million to help fund the drilling program, and the acquisition of all rights to the Myszkow - Zarki molybdenum project, in southern Poland. The 234 km² project includes copper and tungsten mineralisation, with the specific Myszkow deposit being the location for the current new drilling program. The deposit is estimated to contain at least 577-625 Mt of mineralisation with a molybdenum equivalent grade averaging around 0.1%, as classified in the European ‘C2′ category. Primary says the current drill campaign aims at converting these estimates as soon as possible to Australia’s JORC standard classification.

The Australian explorer has initially signed a Memorandum of Understanding (MOU) for the acquisition of all of the issued capital of Strzelecki Mining, which owns 100% of the Polish project.

“Most of the drill core from the Polish Government’s 26 holes is still available and is of adequate quality and in sufficient quantity to allow re-logging and re-analysis,” Primary Resources’ Managing Director, Carl Dorsch, said. “Some 90-98 Mt of Myszkow - Zarki’s higher grade mineralisation has been estimated by the Polish Government to have a molybdenum equivalent grade of 0.25-0.3%.

“The new diamond drill hole, M-1, located within the Myszkow deposit itself, is currently at 700 m with a target depth of 1,200 m. It is showing strong mineralisation in the target zone, validating previous drilling results. Primary’s intention in 2008 and beyond is to concentrate on the Myszkow deposit, a ‘core zone’ of the concession, to establish the size and grade of the project’s mineralisation according to the JORC Code.”

The continuing drilling program will also test areas to the northeast of the deposit considered to be highly prospective on geophysical grounds, and to the northwest, where encouraging extensive intersections of copper were encountered in an earlier drill hole, PZ40 (166.5 m at 0.43% Cu between 299.5 and 466 m depth).

Two of the major shareholders and Directors of Strzelecki, Dr John Santich and Dr Vic Bogacz - who have extensive experience in Poland’s resources sector and who are Executive Directors of Mt Gee uranium project owner, Marathon Resources - will join the Primary Resources Board.