Australian Market Report of August 26, 2010: Peak Resources (ASX:PEK) Rare Earth Results Encouraging

The Australian market opened firmer on Thursday as Wall Street ended its losing streak overnight. The broader All Ordinaries Index rose 0.57 per cent shortly after the opening bell.

Consumer staples surged 2.4 per cent in early trade, led by Woolworths after the supermarkets group reported a 10 per cent rise in net profit for the FY10. Gold sector rose 1.5 per cent as gold prices was pushed to an eight-week high above US$1240 an ounce.

In economics news today, Australian Bureau of Statistics is to unveil private capital expenditure for the June quarter.

The Australian dollar opened slightly lower on Thursday. It was trading at 88.4 US cents, down slightly from yesterday's close of 88.52 US cents.

Company News

Peak Resources Limited (ASX:PEK) said it has completed its first round of drilling at the highly promising Ngualla Project in Tanzania. Peak, which earns 80 per cent of the project through its wholly owned subsidiary Pan African Exploration, has received the first series of analytical laboratory results. The company says the rare earth results from 2010 drilling program are extremely encouraging and further highlight the potential of this project.

Minerals explorer Kasbah Resources (ASX:KAS) said ongoing evaluation of the area between known outcropping mineralisation in the Northern and Western Zones has continued at Achmmach tin project in Morocco. Assay results from soil samples taken west of the Northern Zone Shallow Target have extended the area prospective for shallow tin mineralisation 300 metres along strike from the previous sampling. The Northern Zone now has a prospective strike length of at least 1,000 metres.

Global diversified engineering services and project management group Ausenco Limited (ASX:AAX) today reported an operating revenue of A$219.6 million for the half year ended 30 June 2010. The group is expecting growth into 2011 and beyond as benefits from current strategic growth initiatives crystallise and global business conditions continue to improve.

MetroCoal Limited (ASX:MTE) said it has signed an agreement with an Australian entity holding a 100 per cent interest in Indonesian coal exploration project areas. MetroCoal will hold 20 per cent of the expanded capital of this entity and has an option to increase this holding to 51 per cent after completion of further diligence.

WA based resources company Quest Minerals Limited (ASX:QNL) continues to advance its 100 per cent owned Victory Bore tenement in Western Australia. Quest said results from recently completed Reverse Circulation (RC) drilling confirm excellent along strike continuity of high grade mineralisation previously intersected in Diamond and RC drilling. The company is currently evaluating all development options for the Victory Bore project and is planning a scoping study for completion in the December Quarter 2010.


Related Companies

Quest Minerals Limited
            

Peak Resources Limited
            

Metro Mining Ltd
            

Kasbah Resources Limited
         

Ausenco