Australian Market Report of December 7, 2010: China Magnesium Corporation (ASX:CMC) Commences Capital Works On China Plant Upgrade

Sydney, Dec 7, 2010 AEST (ABN Newswire) - China Magnesium Corporation Limited (ASX:CMC) announced that capital works have commenced at the Pingyao Magnesium Project to upgrade and refurbish the existing 5,000tpa capacity magnesium plant. The upgrade will be overseen by Zhengzhou Magnesium Science & Technology Company Limited. The upgraded plant will be at the leading edge of magnesium industry developments, with environmental, efficiency and productivity standards far superior to almost every other magnesium plant currently operating in China. First phase expansion is targeting an production capacity of 20,000tpa.

Augustus Minerals Limited (ASX:AUJ) has entered into a binding Share Sale Agreement to purchase the Hastings Rare Metals and Heavy Rare Earths Project, comprising of ten wholly owned prospecting licenses in the East Kimberley region of Western Australia covering approximately 1990 hectares. The Project hosts 22 million tonnes of JORC compliant resources of the rare metals zircon, niobium and tantalum, and the heavy rare earth yttrium, with significant potential to increase the overall resource tonnage. An extensive drilling program is scheduled for March Quarter 2011.

Vital Metals Limited (ASX:VML) is to raise A$2.5 million before costs to fund an accelerated drilling campaign at the highly prospective Doulnia Gold Project in Burkina Faso, West Africa. The Phase 1 drilling program confirmed the highly prospective nature of the Project and the Phase 2 drilling programme is aimed at further defining the width, gold tenor and continuity of mineralisation.

Phosphate Australia Limited (ASX:POZ) announced the acquisition of 100% interest in the 973km2 Earaheedy Basin manganese project, including the flagship Iroquois manganese prospect, in the mid-west of Western Australia. Previous 1990's drilling on the project included 6m at 34% Mn from 34m. An airborne electromagnetic survey has just been completed over the Iroquois prospect for drilling early next year.

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