FACSIMILE TRANSMISSION
25 November 2014
Market Announcements Platform
ASX Limited, Exchange Centre,
20 Bridge Street,
Sydney NSW 2000 ASX Code: SHE
Placement of Rights Issue Shortfall Completed
Stonehenge Metals Ltd (Stonehenge or the Company) is pleased to advise that CPS, the Lead Manager to the rights issue, has secured a number of strategic investors who have subscribed for the balance of the rights issue shortfall. The Company has now issued the remaining 33,999,968 Shortfall Shares to raise $169,999.
For further information visit www.stonehengemetals.com.au or www.proteanwaveenergy.com.au or contact:
Bruce Lane Managing Director T: + 61 8 9481 2276
E: [email protected]
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ABOUT THE PROTEAN WAVE ENERGY CONVERTER (WEC) TECHNOLOGY
The Protean WEC system is based upon a point-absorber wave energy converter buoy device which floats at the water surface and extracts energy from the waves by the extension and retraction of a tether to its anchoring weight on the sea bed. The device is unique in that it optimises the conversion of energy from waves at the surface through all six degrees of wave movement.
Figure 1: Protean WEC technology
The Protean WEC has been developed to use compact architecture to produce power very efficiently from a small, low cost design targeted at keeping the projected levelised cost of energy (LCOE)1 down.
The future plans for the Protean WEC include the modularisation of the proven size for the purpose of creating a dynamic, configurable and scalable power array prior to moving the technology into early commercialisation.
During the Option period the Stonehenge assessment program aims to:
1. Refine the tried and proven scale device to produce a suitable pre-commercial model;
2. Create a scalable power array so as to provide the power requirements of a prospective customer;
3. Test the scalable power array for its potential to delivery cost effective power,
4. Verify the results, including commissioning an independent expert to qualify the testing results; and
5. Commence commercialisation of the scalable array for small to medium customers.
For further information visit: www.proteanwaveenergy.com.au or www.stonehengemetals.com.au
1 Levelised cost of energy is one of the industry's main metrics for the cost of electricity produced. It accounts for all of a system's expected lifetime costs (incl. construction, finance, fuel, maintenance, tax, insurance & incentives), which are then divided by the system's lifetime expected power output (kWh) & discounted for inflation & time cost of money.
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ABOUT STONEHENGE METALS
Stonehenge Metals Limited (ASX Code: SHE) is developing a multi-mineral project in South Korea. Stonehenge owns 100% of the rights to three projects in South Korea, including the Company's flagship Daejon Project, which contains the largest uranium resource within South Korea at 66.7Mlbs grading 329ppm U3O8 at a cut- off of 200ppm U3O8 (JORC 2004 compliant). Recently, the Company established a maiden vanadium resource of 17.3Mlbs (largely indicated) grading 3,186ppm V2O5 at a cut-off of 2,000ppm V2O5.
U3O8 Mineral Resource Estimate at a 200 ppm U3O8 cut-off
Classification
Indicated - Chubu Inferred - Chubu Sub-Total Chubu Inferred - Yokwang Inferred - Kolnami Total
V2O5 Mineral Resource Estimate at a 2,000 ppm V2O5 cut-off
Classification
Indicated
Inferred
Total 2.5 3,186 17.3
Vanadium Exploration Target1
Tonnes (Mt) Grade V2O5 (ppm) Contained V2O5 (Mlbs)
70 - 90 2,500 - 3,500 385 - 695
Uranium Exploration Target1
Tonnes (Mt) Grade U3O8 (ppm) Contained U3O8 (Mlbs)
15 - 59 300 - 500 17-39
vanadium and uranium mineralisation through the black shales.
South Korean Project Locations
1 The potential quantity & grade of the exploration target is conceptual in nature, there has been insufficient exploration to define a Mineral Resource & it is uncertain if further exploration will result in the definition of a Mineral Resource.
The vanadium and uranium exploration targets are based on exploration results from the 2013 drilling at Chubu & Gwesan (refer announcements 15 July & 13
November 2013) that demonstrated
The geology in the Okcheon belt consists of a meta-sedimentary sequence that comprises three formations, Wunkyori, Hwajeonri & Guryongsan. The stratigraphic sequence within the belt at the Gwesan project comprises dark grey phyllite, overlain by the black shale (ore zone) & a fine grained sandstone. The historical drilling at the Gwesan project has demonstrated black shale deposits along 10km of strike. KORES completed three drill holes targeting the mineralised black shale at Gwesan in order to verify the mineralisation zone throughout the area. All three holes were drilled to a total depth of 100m and several ore zones between 3m and 11m have been intercepted in each drill hole.
The best intercept of 3500 ppm V2O5 & 3O8 in the first hole provides encouraging results (refer ASX announcement 13 Nov 2013). More drilling will be required to define the high grade mineralisation zone in the area. The mineralisation remains open at depth & along the 10km strike. The project is in its exploration stage and the additional drilling is expected to increase the potential to discover high class uranium and vanadium Mineral Resources at Gwesan. Stonehenge expects to test the validity of the exploration target once access to historical drill core is obtained and the Company is able to assay the core for vanadium mineralisation.
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The Company is continuing its efforts to access the core and further updates on this progress will be advised as soon as it becomes available. This information was prepared and first disclosed under the JORC Code 2004 (refer ASX announcement 29 Aug 2013). It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
Competent Person's statement
The information contained in this ASX release relating to exploration results and Mineral Resources has been compiled by Mr. Ian Glacken of Optiro Ltd. Mr. Glacken is a Fellow of The Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Glacken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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