Stonehenge Metals announces land access agreements signed for Daejon project

Stonehenge Metals has announced the signing of three separate land access Agreements across the Daejon Project Area. Daejon has 225 historical diamond drill holes and outcrops over a 6 kilometre strike containing the largest known uranium resource within South Korea at 65.0Mlbs grading 320ppm eU3O8 at a 200ppm cut-off, in accordance with JORC guidelines. Daejon also has a Vanadium Exploration Target1 of 70-90 Mt at a grade of between 0.25% - 0.35% V2O5 for a contained 385- 695 M lbs V2O5. More than 36,000m of drilling was completed by the Korean Institute of Energy and Resources in the 1980’s.

Stonehenge has signed three separate land access agreements to undertakedomestic maize grinding meal for sale in zimbabwe a maiden exploration drilling program at its Daejon Project. Agreements for two parcels of land, Seo 16 and 17, located within the Yokwang deposit have been secured. A large majority of the historical drill holes were vertical or near vertical. It is intended to drill the uranium strike from the opposite side of the hill to intersect the mineralized zone.

This will prevent ground disturbance of the uranium outcrops during drilling activities. Dae 6-1 has also been secured which is located within the Chubu deposit and was the major focus of historical drilling.

An eight hole diamond drill program at Yokwang is currently being prepared for submission and final approval by the Geumsan County Office. Land owner agreement is a critical step in this approval process. Yokwang has a large exploration potential with a JORC Exploration Target2 of 15 to 59 Mt with uranium grade ranging between 300-500ppm U3O8. Two diamond drill holes 83-DEY-10 and 83-DEY-11 were previously drilled in Yokwang and these holes are positioned either side of the proposed Yokwang drill program. Angle of these drill holes is normal to the mineralization and intersections are approximate to true widths.

The purpose of the Yokwang drill program is to confirm the continuity of the uranium mineralised zone, including thickness and grade. It will also allow a maiden vanadium resource to be estimated over the area covered by the proposed drilling.

A separate 13 hole diamond drill program for the Chubu deposit is also being prepared. Chubu contains a JORC Inferred Resource of 46Mt grading 330 eU3O8 for 34Mlbs eU3O8 at a cutoff grade of 200ppm eU3O8. The proposed drill program is located directly above the existing Chubu Adit, which was sampled at 1 metre intervals during 2011. Results from this program showed high grade zones much greater than the existing resource average with the best result of 59m at 472ppm U3O8.

The intent of the Chubu drill program is to infill the historical drill holes to improve the confidence level of the existing uranium JORC resource and identify potential high grade zones. This program will also allow a maiden vanadium resource to be estimated for Chubu over the area covered by the proposed drilling.

A surveyors report to confirm the location of access track and drill pads will be completed in early August. This report, along with the drilling application, will be submitted to the Daejon City Council for final approval, a decision which can take 30 working days.

Discussions with other land owners across the Daejon project are in progress. An announcement will be made when final approval has been obtained from respective Guemsan County and Daejon City Councils for the proposed drill campaign.

Richard Henning, Managing Director, commented “This programme represents the first stage in converting our vanadium exploration target into a resource; there is little doubt that the quantity and grade of the vanadium that we have tested to date means that it cannot be ignored, and our metallurgical work continues to improve the co-extraction process of uranium and vanadium.

Early modelling shows a strong economic case based on processing the two minerals, both of which are of major significance to Korean industries. As we prove up some of the earlier work done by Korean geologists back in the 1980’s and add our expertise in metallurgy, environmental planning, and adopting ‘best practice’, we will continue dialogue with central and provincial government and all members of the local communities with regard to open and transparent activity.

As a company we embrace the opportunity to work in Korea and strive to add an important dimension in Korea’s energy security”