Kagara Limited

The Australian stock market opened sharply lower on Monday led by material sector. European bourses broadly tumbled on Friday as European governments' deep spending cuts increased worries over the region's economies. The negative sentiment also spreads through Wall Street and Asian Markets. The Australia's S&P/ASX200 index Monday fell approximately 1.8 per cent in early trade. In economics news today, the Australian Bureau of Statistics releases lending finance data for March.

Australian sharemarket closed flat in thin trade on Monday ahead of the release of more earnings reports. But some investors started to return to the market after the massive drops the past four weeks. The benchmark S&P/ASX200 index climbed 7.3 points, or 0.2 per cent, to 4521.4, while the broader All Ordinaries index gained 6.3 points, or 0.1 per cent, to 4538.8.

Australian stocks ended flat on Wednesday as shares gave up early gains in the afternoon dragged by banks. Miners advanced as investors were optimistic about the iron ore prices. At the close, the benchmark S&P/ASX200 index was up 1.6 points at 4925.9 points, while the broader All Ordinaries index lifted 7.7 points, or 0.15 per cent, to 4947.2 points.

Overnight Wall Street was up on economic data, positive earnings and the nomination of Federal Reserve chief Ben Bernanke to serve a second term. The Conference Board's August index of consumer confidence rose for a second month, exceeding economists' forecast.

US stocks traded slightly higher overnight with more buying in financials. Analysts expect there would be a short-term correction after the rally as investors lock in gains from a strong three-week rally.

The Deloitte WA Index, heavy in Western Australian mining companies, has shot up by nearly 60% over the past six months, Deloitte said Monday.

Yesterday the Australian share market ended lower. The benchmark S&P/ASX200 fell 36.3 points yesterday, or 0.91 per cent, at 3934.9, while the broader All Ordinaries was down 35.4 points, or 0.89 per cent, to 3933.6. Overnight the stronger commodities prices in New York may boost the local market today.

Metallica Minerals Limited (ASX:MLM) advises that Mr Mark Ashley has today resigned as a Director of the Company. Mr Wu Shu has joined the Board as a nominee of the Jilin Nickel/Jien Mining Pty Ltd which now holds 19.95% of Metallica (refer to ASX release dated 11 May 2009).

Metallica Minerals Limited (ASX:MLM) is pleased to announce that China's second largest nickel producer, Jilin HOROC Nonferrous Metal Group Co., Ltd (Jilin), has increased its holding in the Australian diversified resource company to just over 15% (see ASX Release 15 April 2009).

Kagara Zinc Limited (ASX:KZL) is pleased to announce that, using a 1% nickel cut off, an upgraded high grade indicated and inferred resource of 1.149 million tonnes grading 4.62% nickel (53,100 tonnes of contained nickel) has been outlined for the Lounge Lizard nickel deposit at Forrestania in Western Australia.