Australian Market Report of October 28, 2010: Stonehenge Metals (ASX:SHE) Returned 5,354ppm U3O8 Assay Result From South Korea

Stonehenge Metals Limited (ASX:SHE) has completed chemical assay analysis for surface rock chips from the Gwesan Project in South Korea, returning assay results up to 5,354ppm U3O8, the highest recorded in the project area to date. As a result, the Company has defined a drilling programme to further investigate this new, 100% owned, exploration target. The company is also progressing its flagship Daejon Project in South Korea, which has a maiden JORC Inferred Resource of 34.9Mlbs grading 340ppm eU3O8.

Highlands Pacific (ASX:HIG) today reported significant exploration drilling results at its world class Frieda copper gold project in Papua New Guinea. Results include 459 metres at 0.61% Cu and 0.51g/t Gold from 34 metres below surface. This in-fill drilling will be used to define the copper gold porphyry resource and mine open-pit shells for the Frieda project bankable feasibility study. Highlands' share of resource metal in the ground at Frieda Project now stands at 2.5 million tonnes of copper and 3.2 million ounces of gold.

Clancy Exploration Limited (ASX:CLY) has received results of the recent round of rock chip sampling at its 100% owned Condobolin project in central New South Wales. All sampled prospects returned highly anomalous results in gold, copper, silver, lead, zinc and arsenic. Seven of the 12 samples assayed over 5g/t gold and two assayed over 5% copper with a maximum values of 26g/t gold and 8.53% copper respectively. One sample assayed 25.3% zinc. The rock chip sampling confirms that the area has significant potential for shallow, high grade mineralisation and drilling program is planned in the December quarter.

Arafura Resources Limited (ASX:ARU) announced a share placement of 75 million shares at A$1.20 per share to raise A$90 million to progress the Nolans Rare Earths Project. First production of rare earth oxides from the project is expected in 2013. Major Shareholder East China Exploration & Development Bureau ("ECE") will also be invited to maintain its pro-rata shareholding (22.17%) at the placement price. Any investment by ECE will require Australian and Chinese regulatory approvals as well as Arafura shareholder approval. If ECE is able to maintain its current pro-rata shareholding, a further A$25.9 million would be raised.


Related Companies

Stonehenge Metals Limited
            

Highlands Pacific Limited
           

Clancy Exploration Limited
            

Arafura Resources Limted