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Stonehenge Metals: Update on Daejon Project, South Korea

Contributed by Fox-Davies Capital

Stonehenge Metals has released an update on the Daejon uranium project in South Korea following the permitting of two drill sites at Daejon 6-1 as part of the Sanji Permit application.

The permitting included road building to access the sites, drill site preparation and drilling on the land parcel Daejon 6-1.

Key points:

- Road construction began on 28th February 2013 and is expected to take 2030 days to finish the 1.4km access road

- Diamond drilling as part of the Stage 1 drilling programme will start once the road is built and will include an initial 12 holes for 4,301 m of core

- Initial analysis will be by handheld XRF

- Chemical assays for uranium, vanadium and molybdenum amongst others will probably be done in Australia with an expected turnaround of 4-6 weeks

- Daejon Environmental pre-assessment plan is now complete and will be submitted to the authorities for comment

- This will form template a for the EIA and necessary permits which will form part of the PFS.

With land at such a premium in S Korea, permitting has taken longer than originally anticipated, but progress is now been made. However, drilling will start as scheduled and based on the above timescales we don't expect to realistically get the assay results until 3Q'13, although the initial XRF results will be quicker. The aim of the programme is to upgrade the current Inferred resource, produce a maiden vanadium resource and identify potential high grade zones.

Meanwhile the Company is continuing with the environmental work. As the first proposed uranium mine in South Korea the authorities are unlikely to have much experience of permitting such projects. It therefore makes good sense to submit the environmental work early so the Company can get feedback and an understanding of any concerns the authorities have in good time.